Opposition to Nomination of Acting Superintendent Harris
Twenty-five New York-based organizations called on Governor Hochul to rescind her nomination of Adrienne Harris for Superintendent of the Department of Financial Services (“DFS”). Their statement stated, in part, that:
the Governor’s nomination of Ms. Harris is deeply problematic on its face, starting with major conflicts of interest that Ms. Harris would bring to the position. Ms. Harris’s resume reportedly includes a long list of consultancies, board service, and advisory affiliations with multiple financial technology (“fintech”) companies — including companies that lobby for financial deregulation. Hiding behind rhetoric of “innovation” and “serving the unbanked,” many of these fintech companies in fact specialize in extracting wealth from Black and brown people and communities. . . . A DFS Superintendent with apparent ties to the fintech industry would represent a dangerous step in the wrong direction. We urge the Governor to nominate a candidate with the independence, qualifications, and vision needed to run our state’s powerful financial services agency.
Harris’s confirmation hearing is expected to commence sometime during the next legislative session. Hochul did not issue a response to the statement.
Climate Change
DFS issued final guidance to domestic insurers detailing DFS’s expectation related to their management of the financial risks from climate change. DFS stated that the guidance is the result of DFS’s outreach to the insurance industry and international regulators and is based on state insurance law, New York Insurance Law, National Association of Insurance Commissioners manuals, and the work of international regulators and networks. The guidance sets forth DFS’s expectations that all New York insurers start integrating the consideration of the financial risk from climate change into their governance frameworks, business strategies, risk management processes and scenario analysis, and developing their approach to climate-related financial disclosure. A copy of the guidance can be found here.
The final regulation comes on the heels of DFS’s creation of a new Climate Division. Dr. Yue (Nina) Chen will lead the division as Executive Deputy Superintendent.
Paid Family Leave Legislative Expansion
Recently enacted legislation builds upon the Paid Family Leave (“PFL”) legislation that was enacted in 2016. In effect since 2018, PFL is employee-paid insurance that provides workers with job-protected, paid time off to bond with a newly born, adopted or fostered child; care for a family member with a serious health condition or assist loved ones when a member of the family is deployed abroad on active military service.
Employees may take up to 12 weeks off at 67% of their pay (up to a cap) to care for family members. Currently, PFL family care covers caring for spouses, domestic partners, children and step-children, parents, parents-in-law, grandparents and grandchildren with a serious health condition.
The legislation expands the definition of "family members" to include siblings. This includes biological siblings, adopted siblings, step-siblings and half-siblings. These family members can live outside of New York State.
The bill will go into effect on January 1, 2023.
More information on PFL can be found at PaidFamilyLeave.ny.gov.
