S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  3340

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                            January 22, 2015
                               ___________

Introduced  by  M. of A. PEOPLES-STOKES -- read once and referred to the
  Committee on Insurance

AN ACT to amend the insurance law, the workers' compensation law and the
  tax law, in  relation  to  establishing  environmental  standards  and
  protections  in  the  insurance business, and providing incentives and
  tax credits for offering green insurance

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.   Legislative findings. The legislature finds and declares
that global warming poses a serious threat to the  economic  well-being,
public  health,  natural  resources, and environment of the state of New
York. The potential  adverse  impacts  of  global  warming  include  the
exacerbation  of  air  quality  problems, a reduction in the quality and
supply of water to the  state,  damage  to  marine  ecosystems  and  the
natural  environment,  an  increase  in  the  incidences  of  infectious
diseases, asthma,  and  other  human  health-related  problems,  and  an
increase  in the occurrence and severity of natural catastrophes. Global
warming will have detrimental effects on some of the state of New York's
largest industries, including  the  insurance  industry.  It  will  also
increase the strain on energy and natural resources necessary to rebuild
and restore property after losses.
  The  legislature  finds  that  by increasing incentives for the use of
low-emission vehicles, reduced driving, the building  of  "green  build-
ings," investments in renewable energy projects, and the conservation of
natural resources, the insurance industry can help reduce greenhouse gas
emissions.  National  and  international  actions are necessary to fully
address the issue of global warming. However, actions taken by the state
of New York to reduce emissions of greenhouse gases will have far-reach-
ing effects by encouraging other states,  the  federal  government,  and
other countries to act.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01305-01-5

              

A. 3340                             2

  It  is the intent of the legislature that the superintendent of finan-
cial services coordinate with state agencies, as well  as  consult  with
the  environmental justice community, industry sectors, business groups,
academic institutions, environmental organizations, and other stakehold-
ers in implementing this act.
  It  is the intent of the legislature that the superintendent of finan-
cial services consult with the public service commission and the depart-
ment of environmental conservation in the development of emissions stan-
dards for low-emission vehicles for insurance rating  purposes,  and  in
the  development  of  green  building  standards  for  insurance  rating
purposes in a manner that minimizes costs and maximizes benefits for the
state of New York's economy, improves and modernizes the  state  of  New
York's  energy infrastructure and maintains electric system reliability,
maximizes additional environmental and economic cobenefits for the state
of New York, and complements the state's efforts to protect the  natural
environment and reduce global warming.
  It  is  also  the intent of the legislature to provide an incentive in
the form of New York state tax credits to attract much needed additional
private capital investments. It is the expectation  of  the  legislature
that  these  new investment dollars shall be used for the direct benefit
of the natural environment and renewable energy sources in the state  of
New York.
  S  2. The insurance law is amended by adding two new sections 2353 and
2354 to read as follows:
  S 2353. GREEN INSURANCE REGULATIONS. (A) AN INSURANCE  COMPANY  ORGAN-
IZED  AND  LICENSED TO SELL AUTOMOBILE INSURANCE SHALL NOTIFY THE SUPER-
INTENDENT BY ELECTRONIC TRANSMISSION, INDICATING  WHETHER  OR  NOT  SUCH
INSURANCE  COMPANY  OFFERS  A PREMIUM REDUCTION FOR LOW-EMISSION AUTOMO-
BILES. IF  SUCH PREMIUM REDUCTIONS ARE OFFERED,  THE  INSURANCE  COMPANY
SHALL  TRANSMIT  TO  THE SUPERINTENDENT THE COST AND THE CLAIMS OF THOSE
LOW-EMISSION AUTOMOBILES COMPARED TO HIGH-EMISSION VEHICLES.
  (1) THE SUPERINTENDENT SHALL  CONDUCT  PUBLIC  HEARINGS  IN  ORDER  TO
COMPARE  AND  CONTRAST  THE  RISK,  THE  COST, AND THE CLAIMS EXPERIENCE
BETWEEN LOW-EMISSION AND HIGH-EMISSION AUTOMOBILES.  THE  SUPERINTENDENT
SHALL ALSO ADDRESS ANY QUESTIONS OR CONCERNS POSED BY THE PUBLIC REGARD-
ING ANY INFORMATION DISCUSSED AT SUCH HEARING.
  (2)  THE  SUPERINTENDENT  MAY  DEVELOP ANY INSTRUCTIONS, PROCEDURES OR
STANDARDS FOR THE APPLICATION OF THE PROVISIONS IN THIS SUBSECTION.
  (3) THE SUPERINTENDENT IS AUTHORIZED TO  PROMULGATE  RULES  AND  REGU-
LATIONS NECESSARY TO IMPLEMENT THE PROVISIONS IN THIS SUBSECTION.
  (B)  AN  INSURANCE  COMPANY  ORGANIZED  AND  LICENSED TO SELL PROPERTY
INSURANCE SHALL OFFER  "GREEN  REPLACEMENT  COVERAGE"  WHICH  ALLOWS  AN
INSURED,  AFTER  A LOSS, TO REPLACE CONVENTIONAL BUILDING MATERIALS WITH
SPECIFIED GREEN ALTERNATIVE  MATERIALS  SUCH  AS  NON-TOXIC  PAINTS  AND
CARPETING, ENERGY-EFFICIENT LIGHTING SYSTEMS AND WATER-EFFICIENT INTERI-
OR PLUMBING.
  (1)  SUCH  INSURANCE  COMPANY  SHALL OFFER COVERAGE FOR SOLAR AND WIND
DISTRIBUTED GENERATION, AS PART OF, OR IN  ADDITION  TO,  A  RESIDENTIAL
PROPERTY INSURANCE POLICY.
  (2)  SUCH  INSURANCE  COMPANY SHALL NOTIFY THE SUPERINTENDENT BY ELEC-
TRONIC TRANSMISSION, INDICATING WHETHER  OR  NOT  IT  OFFERS  A  PREMIUM
REDUCTION FOR GREEN UPGRADES OR COVERAGE. IF SUCH PREMIUM REDUCTIONS ARE
OFFERED,  THE INSURANCE COMPANY SHALL TRANSMIT TO THE SUPERINTENDENT THE
COST AND THE CLAIMS OF THOSE POLICIES COMPARED TO CONVENTIONAL POLICIES.
  (3) THE SUPERINTENDENT SHALL  CONDUCT  PUBLIC  HEARINGS  IN  ORDER  TO
COMPARE AND CONTRAST THE RISK, THE COST, AND THE CLAIMS EXPERIENCE ASSO-

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CIATED  WITH  GREEN  BUILDINGS  AND BUILDINGS WITH SOLAR AND WIND GENER-
ATION, AND TO DISCUSS THE DEVELOPMENT OF INSURANCE PRODUCTS AND  DERIVA-
TIVES  TO  SUPPORT THOSE PROJECTS. THE SUPERINTENDENT SHALL ALSO ADDRESS
ANY  QUESTIONS OR CONCERNS POSED BY THE PUBLIC REGARDING ANY INFORMATION
DISCUSSED AT SUCH HEARING.
  (4) THE SUPERINTENDENT MAY DEVELOP  ANY  INSTRUCTIONS,  PROCEDURES  OR
STANDARDS FOR THE APPLICATION OF THE PROVISIONS IN THIS SUBSECTION.
  (5)  THE  SUPERINTENDENT  IS  AUTHORIZED TO PROMULGATE RULES AND REGU-
LATIONS NECESSARY TO IMPLEMENT THE PROVISIONS IN THIS SUBSECTION.
  S 2354. GREEN INSURANCE INDUSTRY MITIGATION REGULATIONS. (A) A COMPANY
ORGANIZED AND LICENSED TO SELL INSURANCE IN THIS STATE SHALL NOTIFY  THE
SUPERINTENDENT  BY  ELECTRONIC  TRANSMISSION,  INDICATING WHETHER OR NOT
SUCH COMPANY ELECTRONICALLY SUBMITS DOCUMENTS TO ITS INSUREDS,  AND  ANY
COST SAVINGS ASSOCIATED WITH SUCH PRACTICE.
  (B)  THE  SUPERINTENDENT  SHALL CONDUCT PUBLIC HEARINGS TO DISSEMINATE
INFORMATION REGARDING THE NATURE AND MAGNITUDE OF DAMAGE AND  RISK  FROM
NATURAL DISASTERS TRIGGERED BY CLIMATE CHANGE.
  (C)  THE  SUPERINTENDENT  SHALL  CONDUCT PUBLIC HEARINGS TO ASSESS THE
INDUSTRY'S CONSUMPTION OF PAPER AND ELECTRICITY, AND TO  DEVELOP  INDUS-
TRY-WIDE MITIGATION MEASURES.
  (D)  THE  SUPERINTENDENT  MAY  DEVELOP ANY INSTRUCTIONS, PROCEDURES OR
STANDARDS FOR THE APPLICATION OF THE PROVISIONS IN THIS SECTION.
  (E) THE SUPERINTENDENT IS AUTHORIZED TO  PROMULGATE  RULES  AND  REGU-
LATIONS NECESSARY TO IMPLEMENT THE PROVISIONS IN THIS SECTION.
  S  3. The workers' compensation law is amended by adding a new section
134-a to read as follows:
  S 134-A. GREEN WORKERS' COMPENSATION INSURANCE PROVISIONS. THE  SUPER-
INTENDENT OF FINANCIAL SERVICES, IN CONJUNCTION WITH THE COMMISSIONER OF
LABOR,  SHALL  CONDUCT  PUBLIC  HEARINGS  IN ORDER TO DISCUSS THE HEALTH
IMPACT ON WORKERS WHO WORK IN GREEN BUILDINGS, INCLUDING BUT NOT LIMITED
TO, ABSENTEE WORKER RATES.  SUCH INFORMATION SHALL BE  USED  FOR  ESTAB-
LISHING THE APPROPRIATE WORKERS' COMPENSATION CLAIMS COST BENCHMARK.
  S  4. Section 606 of the tax law is amended by adding a new subsection
(g-3) to read as follows:
  (G-3) GREEN INSURANCE TAX CREDIT. (1) FOR TAXABLE YEARS  BEGINNING  ON
OR  AFTER  JANUARY  FIRST,  TWO THOUSAND SIXTEEN, AN INDIVIDUAL TAXPAYER
SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE  EQUAL
TO  TWENTY PERCENT OF QUALIFIED INVESTMENTS MADE BY SUCH TAXPAYER DURING
THE TAXABLE YEAR INTO AN ENVIRONMENTAL  FINANCIAL  INSTITUTION  THAT  IS
CERTIFIED BY THE INSURANCE DEPARTMENT.
  (2)  NO  CREDIT  SHALL  BE  ALLOWED  UNDER  THIS SUBSECTION UNLESS THE
DEPARTMENT CERTIFIES THAT THE INVESTMENT QUALIFIES FOR SUCH CREDIT.
  (3) NO CREDIT SHALL  BE  ALLOWED  UNDER  THIS  SUBSECTION  UNLESS  THE
TAXPAYER  AND THE ENVIRONMENTAL FINANCIAL INSTITUTION THAT SUCH TAXPAYER
INVESTED IN, PROVIDE THE DEPARTMENT WITH SATISFACTORY SUBSTANTIATION  OF
A  QUALIFIED  INVESTMENT IN THE FORM AND MANNER REQUESTED BY THE DEPART-
MENT.
  (4) AN ENVIRONMENTAL FINANCIAL INSTITUTION SHALL:
  (A) APPLY TO THE DEPARTMENT OF FINANCIAL SERVICES FOR CERTIFICATION OF
ITS STATUS AS AN ENVIRONMENTAL FINANCIAL INSTITUTION;
  (B) APPLY TO THE DEPARTMENT, ON BEHALF OF THE  TAXPAYER,  FOR  CERTIF-
ICATION  OF  THE AMOUNT OF THE INVESTMENT, OBTAIN THE CERTIFICATION, AND
RETAIN A COPY OF THE CERTIFICATION; AND
  (C) OBTAIN THE TAXPAYER'S COMPANY IDENTIFICATION NUMBER FOR TAX ADMIN-
ISTRATION PURPOSES AND PROVIDE SUCH INFORMATION  TO  THE  DEPARTMENT  OF

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FINANCIAL  SERVICES,  WITH THE APPLICATION DESCRIBED IN SUBPARAGRAPH (B)
OF THIS PARAGRAPH.
  (5)   THE   SUPERINTENDENT  OF  FINANCIAL  SERVICES  MAY  DEVELOP  ANY
INSTRUCTIONS,  PROCEDURES  OR  STANDARDS  FOR  THE  APPLICATION  OF  THE
PROVISIONS IN THIS SUBSECTION.
  (6)  THE SUPERINTENDENT OF FINANCIAL SERVICES IS AUTHORIZED TO PROMUL-
GATE RULES AND REGULATIONS NECESSARY TO IMPLEMENT THE PROVISIONS IN THIS
SUBSECTION.
  (7) IF THE AMOUNT OF THE CREDIT, AND CARRYOVERS OF SUCH CREDIT, ALLOW-
ABLE UNDER THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAY-
ER'S TAX FOR SUCH YEAR, SUCH EXCESS AMOUNT MAY BE CARRIED  OVER  TO  THE
FIVE TAXABLE YEARS NEXT FOLLOWING THE TAXABLE YEAR WITH RESPECT TO WHICH
THE  CREDIT  IS  ALLOWED AND MAY BE DEDUCTED FROM THE TAXPAYER'S TAX FOR
SUCH YEAR OR YEARS.
  S 5. This act shall take effect immediately.