Hochul Proposes Insurance Reforms, Mamdani Picks New TLC Chair, the AV Controversy Heats Up… and More
As Mayor Zohran Mamdani and Governor Kathy Hochul laid out their plans for the coming year, it was clear that the transportation industry is – at the very least – on their agendas. In her “State of the State Address,” Gov. Hochul prominently mentioned the ongoing auto insurance crisis, offering further details about how she plans to go about lowering rates and punishing rampant fraud in her 2026 State of the State Book. Not long after being sworn in, Mayor Mamdani signaled support for our industry’s drivers and began the process of selecting people for key positions in city government – among them, a new commissioner and chair for the city’s Taxi & Limousine Commission, Midori Valdivia.
Industry advocates and drivers licensed by the TLC were quick to show their appreciation in a wide range of published articles and announcements – and while it’s far too early to tell how these issues (and others) will play out in the year ahead, my optimism – and theirs – was quickly muted by the news that Gov. Hochul plans to introduce a bill paving the way for testing driverless, autonomous for-hire vehicles (FHVs) in New York State.
Although the current plan would exclude New York City from that type of testing, according to an article in amNY, AV companies have “made clear their intentions to enter New York City.” Since 2019, Waymo has spent more than $3 million on lobbying city and state leaders.
Proposed Solutions for the Insurance Crisis
On a more positive note, I’m encouraged by Gov. Hochul’s proposal to address the state’s insurance crisis. According to her website: “Car insurance rates are driven up by a combination of fraud, litigation, legal loopholes, and enforcement gaps, with staged crashes and associated insurance fraud inflating everyone’s premiums.”
To combat these organized criminal efforts, Gov. Hochul plans to:
- “Reinvigorate” the State’s Motor Vehicle Theft and Insurance Fraud Prevention Board, empowering it to redouble its efforts to zealously investigate and prosecute insurance fraud across the state
- Advance additional efforts to take on medical providers who participate in fraud by signing off on phony medical diagnoses that result in enormous payouts, increasing the probability of the temporary or permanent loss of licensure for the providers who commit these crimes
- Cap the payout on non-economic damages for drivers engaging in criminal behavior at the time of the incident
“While guarding against bad actors gaming the system, insurance companies should also seek opportunities to reward drivers who play by the rules and keep themselves and others safe,” Hochul added.
Additionally, she said she would enlist drivers as partners in her efforts to make roads safer and leverage technology to reduce insurance rates. She wants to require insurance companies to offer discounts for drivers who opt into programs that have been shown to reduce the incidents of unsafe and expensive accidents – like devices, cameras, or smartphone apps that monitor driving behavior.
Mayor Mamdani Announces New Appointments, Policies
During a press conference at LaGuardia Airport in January, Mayor Mamdani was flanked by two new appointments that directly affect our industry: Midori Valdivia, who he chose to serve as the new commissioner and chair of the NYC TLC and Julie Su, the recently appointed Deputy Mayor of Economic Justice.
Valdivia, who is considered a “transportation wonk,” is a former TLC deputy commissioner of finance and Metropolitan Transportation Authority (MTA) board member. She also spent six years as an analyst and adviser at the Port Authority.
Su, who previously served as the acting U.S. Secretary of Labor, will oversee a newly established role that focuses on tackling economic inequality, unfair labor practices, and corporate abuses.
As a long-time supporter of TLC-regulated drivers, Mayor Mamdani’s appointments are solid. He has already discussed increasing the number of restrooms available to drivers and pointed to “unfinished business” in the medallion relief program as priorities. All of this is encouraging as industry advocates gear up for a battle to prevent AVs from serving as FHVs on New York City streets.
It won’t be easy. Waymo appears to be taking a page out of Uber’s playbook, burning up countless investor dollars fighting every court battle and being stubbornly uncooperative when data is requested by legislators and regulators. Gov. Hochul has gotten significant push-back from lobbyists, advocates and associations representing the transportation and labor industries, so I’m hoping the idea of allowing Waymo vehicles on city streets will hit a significant speed bump under newly-elected Mayor Mamdani.
