A New Year, New Legislation: New York, Massachusetts, and Florida
I. Introduction
It is critical to keep up with the most recent legislative developments in law. Three states—New York, Massachusetts, and Florida—have enacted a plethora of new legislation that will affect individuals, companies, and communities as we enter 2024. This year is bringing with it a flurry of legislative modifications that need attention, from major tax cuts to workers' rights improvements. Below are a few of the highlights:
II. New York
S5026 – Freelance Isn’t Free Act: Act S5026, known as the Freelance Isn’t Free Bill, provides protection, rights, and modes of recourse for freelance workers who are not paid for their work. This legislation is aimed at protecting the growing sector of New Yorkers who are freelancers. This bill expands upon New York City’s “Freelance Isn’t Free Law” and adds oversight and enforcement from the New York State Attorney General’s Office. This bill applies to all freelancers who receive a minimum of $800 for their services.
This bill has multiple facets which together create a more equitable and safe working environment. First, the language of the bill dictates that freelancers will have the right to a written contract encompassing specific terms. Second, freelancers have the right to timely and full payment for their services. Finally, the law also declares that freelancers are protected from retaliation and discrimination when exercising their rights under this law.
The bill also empowers the Attorney General of New York to pursue legal action against non-cooperating parties and obtain remedies for workers. This includes damages and civil penalties. Additionally, the Department of Labor plans to make sample contracts available on its website so that hiring parties and independent contractors can use language that complies with this legislation.
Act A7273 - New York Housing Authorities are Required to Provide Notice of Possible Water Contamination: Act A7273 is an amendment to Public Housing Law in New York. Prior to the passage of this bill, New York Public Housing Law dictated that New York housing authorities have a “duty to provide heat, water, electricity and elevator service...[and] shall publish information regarding reported disruptions in such services, the length of such disruptions and the steps taken to restore services” (Section 1. Subdivision 1 of section 402-e of the public housing law, as amended by chapter 47 of the laws of 2020).
With this amendment, this bill mandates housing authorities to issue written notifications to residents whenever alerted by a public utility or a local, state, or federal agency regarding potential water contaminants. This ensures that residents are informed about the associated risks of consuming or using the contaminated water for drinking or cooking purposes. These notifications must be distributed in both paper and electronic formats. The notice should also reach the resident association president or any formally acknowledged resident leader for the relevant development. The authority has a maximum timeframe of twenty-four hours from the receipt of the advisory. These changes provide residents with greater protection against severe health risks associated with water contamination.
Act A2258B - Prevention of Unauthorized Installation of Keyless Security Devices: Act A2258B is a piece of legislation which prevents the unauthorized installation of keyless security devices that control access to common areas in residences. To install such devices, written permission must be obtained from the owner, board of managers, board of directors, or another authorized party. Furthermore, the installation of such devices must also be carried out by the owner, property, manager, board of directors, or another authorized party. This law serves to ensure residents' safety and privacy.
Act S1783A - Increased Protections for LGBTQ+ and HIV+ Individuals Living in Long Term Facilities: Act S1783A serves as a Bill of Rights for lesbian, gay, bisexual, and transgender individuals, and people with HIV who live in long-term care facilities. It also prevents long-term care facilities from discriminating against residents on the basis of “actual or perceived sexual orientation, gender identity or expression, or human immunodeficiency virus (HIV) status” (S1783A, p. 2, ll. 3-5). The act has several key provisions which work to ensure that residents live in an environment free from discrimination. Those provisions include:
Respecting Identity: Residents are to be referred to by their preferred names and pronouns and can wear clothing aligning with their gender identity.
Privacy and Dignity in Care: Facilities must ensure privacy during examinations or personal care, especially for transgender or gender-nonconforming residents.
Record Keeping: Facilities must maintain up to date records containing residents' gender identity, correct names, and pronouns.
Restroom Use and Room Assignment: Residents can use the restroom that corresponds with their gender identity and are assigned rooms that conform to their gender identity.
Cultural Competency Training: Staff must undergo regular training on cultural competency related to LGBTQ+ and HIV-positive residents.
With this law, New York takes a step forward in protecting LGBTQ+ individuals and those living with HIV who reside in a long-term care facility.
Labor Law § 652(2) - Minimum Wage Increase: This law provides for a significant increase in the minimum wage. In 2024 the minimum wage in New York City, Westchester and Long Island will be $16 per hour, while for the rest of New York State it will be $15 per hour.
III. Massachusetts
Bill H.4052 - An Act Providing for Unlimited Free Phone Calls to Incarcerated Individuals: This law, a major sea change in how calls for inmates are billed, ensures that any person committed to a “state correctional facility, state prison, or county correctional facility shall be provided with voice communication services, including phone calls, free of charge” (H.4052, p.1, II. 7-9). The law also mandates that incarcerated individuals have access to video calls and email services at no cost. Furthermore, this act forbids the state from taking kickbacks from telecom vendors. This measure is expected to save Massachusetts families over $25 million annually.
Chapter 287 - An Act to Implement Medical Loss Ratios for Dental Benefit Plans: This law acts to regulate dental insurance rates. This law requires companies to allocate a minimum of 83% of premiums towards member dental costs and quality enhancements, rather than putting those funds towards administrative costs. Additionally, insurers would have to give the consumer a refund for any excess premium. This law focuses on “Dental Benefit Plans” which cover a variety of services, ranging from basic check-ups to complex procedures. The law also has provisions which force carriers to have a much higher level of transparency. For example:
Submission of Information by Carriers: Carriers are required to submit medical loss ratios, administrative expenses, and financial details to a state commissioner, which allows the commissioner to assess and regulate their activities.
Rate Filings and Disapprovals: Carriers offering dental benefit plans must file group product base rates and any changes to their plans with the state. The commissioner also has the power to reject excessive, inadequate, or discriminatory changes.
Public Hearings and Refunds: In cases where rate changes face presumptive rejection, carriers must promptly communicate this decision to the affected parties. The state commissioner may conduct public hearings on the matter. Refunds to affected individuals are also mandated when a carrier's aggregate medical loss ratio falls below the specified percentage.
Financial and Public Disclosures: Under this law, carriers are subject to making annual financial statements, face penalties for tardy report filings, and all information collected will be made public.
This act is beneficial to consumers as it helps ensure dental coverage is fair, affordable, and meets statutory standards.
Chapter 50 of the Acts of 2023 – Tax Cuts: This is a major tax-cut bill that is expected to provide $561 million for tax relief during the 2024 fiscal year. By 2027, the impact of this bill will be tax relief in excess of $1 billion. Note: the Act also closed loopholes in the Massachusetts millionaires tax. Here are the most important highlights from this landmark legislation:
2023 Tax Year
Short-Term Capital Gains Decrease: The income tax rate on short-term capital gains will decrease from 12% to 8.5%.
Earned Income Tax Credit: The Earned Income Tax credit will increase from 30% to 40%.
Senior Circuit Breaker Tax Credit: The cap on the senior circuit break tax credit doubles, from $1,200 to $2,400.
Estate Tax: The limit on taxable income received from an estate will double from $1 million to $2 million. Additionally, a new tax credit which is capped at $99,600 was created and is available for all estate tax filers.
Low Income Housing Tax Credit: The amount of yearly low-income housing tax credits that can be awarded will rise from $40 million to $60 million.
Rental Deduction: The cap on rental deduction will rise from $3,000 to $4,000 and renters can deduct half of their rent costs up to that cap of $4,000.
2024 Tax Year
Housing Development Program: For the tax year 2024, the cap on housing development incentive tax credits will rise from $10 million to $30 million. The law also includes a provision that raises the cap for this program to $57 million for the tax year 2023.
Child and Dependent Tax Credit: The child and dependent tax credit will more than double, which takes it from $180 to $310 for dependents in tax year 2023, and then raises it to $440 for every dependent in 2024. This law also eliminates the two-dependent per family rule.
IV. Florida
Office of Insurance Regulation – Rate Filing Decrease: This regulation decreases workers’ compensation rates, statewide, by 15.1%. In August of 2023, the National Council on Compensation Insurance (NCCI) requested this 15.1% decrease, which was ultimately approved by Florida’s Insurance Commissioner (Michael Yaworsky). It goes into effect on January 1st, 2024. This regulation will support small businesses as it means lower insurance costs for employers.
SB 774 - Ethics Requirements for Public Officials Bill: This law requires elected city officials, such as mayors and elected members of the governing body of a municipality, to disclose financial details in greater detail than ever before. More specifically, these officials will now be required to fill out “Form 6” which requires details on income sources, liability and assets over $1,000, net worth and federal tax returns. These more stringent requirements bring elected city officials closer in line with other state officials (the governor, state representatives, and sheriffs), who have long been required to file Form 6.
This law has caused a significant reaction as there have been 15 resignations in Pinellas County, three resignations in North Palm Beach, and 16 resignations or threats of resignation from officials in West Palm Beach. Proponents of the law believe it will facilitate a more transparent and less corrupt government.
HB 5C – An Act Relating to Scrutinized Companies; Amending Florida s. 215.473: This legislation governs the allocation of public funds to private businesses engaged in contracts with foreign companies, with a specific focus on those undertaking scrutinized business operations associated with Sudan, Iran, Israel, Cuba, and Syria.
The original form of this legislation came about in the form of a 2007 state law that requires the State Board of Administration to divest from “scrutinized” companies that have relations with Iran’s petroleum industry. With this current law, companies with more than 10% of total revenues or assets linked to Iran in the sectors of energy, manufacturing, or shipping are to be added to the list. Companies that have investments worth more than $20 million in the oil or mineral-extraction sectors will also be added to the list.
In total, there are three relevant lists: (1) “Scrutinized Companies with Activities in the Iran Terrorism Sectors” (2) “Scrutinized Companies that Boycott Israel List” and (3) "Scrutinized Companies with Activities in Sudan List”.
This legislation will prevent public entities in Florida from forming contracts worth more than $1 million with blacklisted companies (i.e., companies on the scrutinized list). Furthermore, the legislation will prohibit state pension funds from being invested in companies which have a link to Iran. If companies are putting forward bids to the state to be a part of state-funded projects, they are mandated to submit certifications as part of the bidding process, which affirms their non-inclusion in the lists. The bill also establishes very severe penalties and civil fines for companies that may provide false certifications.
This bill is precedent setting as it models how states may approach international business relations in the future. It will also likely fall under federal scrutiny as foreign policy relations are under the authority of the federal government.