Relates to the livery driver benefit fund

Summary of provisions: Section 1 of the bill would amend Executive Law § 160-bbb(6)(a) and (b) to change the role of the Fund's board of directors to one that is advisory.

Section 2 of the bill would amend Executive Law §§ 160-ccc and 160-ddd to allow the Fund to pay claims directly, under the management of the Chair of the Workers' Compensation Board (WCB), rather than by purchase of an insurance policy.

Sections 3 through 6 of the bill would amend Executive Law §§ 160-fff, 160-ggg and 160-hhh to make various changes and clarifications regarding the conduct and management of the Fund.

Section 7 of the bill amends Workers' Compensation Law (WCL) § 18-c(2) to clarify the role of the Chair of the WCB in revoking the status of livery bases as independent liveries.

Section 8 of the bill amends WCL § 18-c(2) to modify the criteria for membership in the Fund, and in particular to make clear that those criteria must be consistent with local law and the rules of the local taxi and limousine commission.

Sections 9 through 12 of the bill amend WCL(2) to clarify the definition of "employer" and "employee" in regard to liveries.

Section 13 of the bill amends WCL § 11 to make clear that the Fund can make the payments required of it directly, rather than through the purchase of an insurance policy.

Section 14 of the bill amends Chapter 392 of the Laws of 2008 to make clear the role of the Chair of the WCB in reviewing affirmations.

Section 15 of the bill provides that it will be effective immediately, and be deemed in full force and effect as of January 1, 2009.

Existing Law: Chapter 392 of the Laws of 2008 created the Fund.

Prior Legislative History: This is a new bill.

Statement in Support: The place of livery drivers in the New York workers' compensation system has posed a quandary for many years. When livery drivers were injured, their claims for compensation are often

delayed for many months while the question of whether such claims should be covered by the no-fault or workers' compensation carrier is resolved. Moreover, livery bases have no way of knowing in advance whether their drivers will be deemed employees (in which case the base may be penalized for failing to secure workers' compensation coverage) or independent contractors (in which case no such coverage is required). Finally, livery drivers deemed independent contractors can find no coverage at all when they are injured because of a crime. The result of these problems has been delay in processing claims, lack of sufficient coverage, widespread failure to secure insurance and unnecessary administrative costs.

An important step towards resolving this situation was taken with the enactment of Chapter 392 of the Laws of 2008. That statute allowed livery bases in New York City, and Westchester and Nassau Counties, to qualify as "independent" bases by meeting certain criteria typically used by the courts to determine independent contractor status. Independent bases would pay into a fund which would purchase special coverage that would provide workers' compensation benefits for the most serious injuries, injuries resulting from crimes and deaths - matters that are not sufficiently compensated in the no-fault system. Other injuries would be covered via the no-fault carrier.

In the process of implementing this statute, however, several technical problems have arisen. First, the absence of any prior experience has made it difficult for the Fund to purchase a policy at a reasonable cost. Second, several of the criteria for entry into the Fund are at odds with rules promulgated by local legislatures or taxi and limousine commissions. Third, some of the dates provided for in the legislation for application and payment for coverage are at odds with established industry practice. Finally, a number of provisions in the original legislation are in need of clarification.

This bill addresses these issues. It allows the Workers' Compensation Board to administer the Fund's payments directly, thereby avoiding the added costs of buying a policy. Further, the bill would not bar bases from entry into the Fund because a local law or taxi and limousine commission regulation prevents them from meeting the relevant criteria. The bill also contains a number of language changes to clear up ambiguities in the current law.

These changes would greatly facilitate implementation of Chapter 392, and allow for the resolution of an issue that has long plagues the livery industry.

Budget Implications: This bill would result in no additional cost to the State, as the WCB will be reimbursed from the Fund for any expenses associated with its administration.

Effective Date: This bill would be effective immediately, and be deemed to be in full force and effect as of January 1, 2009.