Crain’s New York Business: Crain's New York Business: Hochul vetoes wrongful death bill for 3rd time; approves AI regulation

By: Nick Garber

For the third time in three years, Gov. Kathy Hochul rejected a bill that would expand the kinds of damages people could obtain from wrongful death suits — siding with business and medical groups that have long opposed the legislation.

Following an Albany tradition that reeks of a lack of transparency, Hochul waited until a holiday weekend to take action on several of the most hotly contested bills that were passed by state lawmakers earlier this year. In addition to vetoing the wrongful death bill — known as the Grieving Families Act — Hochul on Saturday also vetoed an anti-deforestation bill and approved another bill limiting the use of artificial intelligence by state government.

The Grieving Families Act would allow people to be compensated for emotional anguish from the loss of their loved ones, not only lost income that can be easily quantified as damages. Its backers say the policy would bring New York in line with most other states, and lawmakers made changes in hopes of winning Hochul’s approval this year — including shortening the list of family members who could sue for emotional damages and reducing the amount of damages that could be claimed.

But Hochul, in a veto message, said the bill “would likely have resulted in higher costs to patients and consumers, as well as other unintended consequences” such as financial risks to small hospitals. She said she was open to working with lawmakers on the issue.

The Business Council of New York State and Greater New York Hospital Association had both lobbied against the measure, while supporters included lawyers’ and civil rights groups. The Lawsuit Reform Alliance of New York, a coalition of businesses opposed to the bill, praised Hochul in a statement for withstanding “relentless pressure from the trial lawyer lobby and their attempts to exploit tragedy for profit.”

Hochul signed a bill that will regulate the state’s use of artificial intelligence. The LOADing Act will require agencies to publicly disclose when they use software reliant on AI and other “automated decision-making” systems, and requires agencies to regularly evaluate those tools once in use. Hochul’s approval is conditioned on lawmakers making a few changes once the Legislature returns in January, such as ensuring that the new regulations do not interfere with collective bargaining agreements.

“By signing this bill, the governor has positioned New York as a leader in leveraging the opportunity of AI while setting the standard for protecting government workers,” the bill’s sponsor, State Sen. Kristen Gonzalez, said in a statement.

Hochul disappointed lawmakers by vetoing an environmental bill that would bar the state from contracting with companies that contribute to tropical deforestation. After the governor rejected the bill for the first time last year, lawmakers amended it to exempt the MTA from a ban on tropical hardwood and allow agencies to buy banned products when they have no other options — but the governor was unmoved, writing Saturday that the bill would impose “significant burdens on businesses” by requiring them to certify that their products do not drive deforestation.

“Every vendor that supplies a product that contains a forest-risk commodity such as palm oil, soy, beef, coffee, or cocoa would need to verify the exact location where those ingredients were grown in order to make that certification,” Hochul wrote. “Most businesses supplying products to the state are not manufacturers and do not have access to the supply chain information for every ingredient in their products.”

The bill’s sponsor, state Sen. Liz Krueger, said in a statement Hochul had “killed an achievable, affordable, and necessary bill that would be a significant contribution to a global movement to stop tropical deforestation, not to mention a boost to New York businesses.”

“The climate crisis is a central driver of the affordability crisis,” she added, “and New Yorkers can't afford inaction.”