Plugged In @ Hinman Straub – October 4, 2019

What’s Inside

• New York’s SALT Cap Lawsuit Dismissed by Federal Judge
• Judge Temporarily Halts New York’s Ban on Flavored Vaping Products
• New York Ethics Laws Regarding Issue Advocacy Donor Disclosure Ruled Unconstitutional
• Attorney General James Announces New Whistleblower Program
• Long Island Members of the Senate Majority Issue Letter Supporting Pipeline
• Ninth Annual MWBE Forum
• Lake Ontario Homeowner Recovery Program Now Accepting Applications
• US Representative Chris Collins Resigns
• Updates, Reminders, and Links
• Coming Up

New York’s SALT Cap Lawsuit Dismissed by Federal Judge

A lawsuit filed by a coalition of States including New York, which challenged the imposition of a cap on the deduction of state and local taxes (SALT), was dismissed this week by a Federal Judge. The States argued the SALT cap unfairly targeted high taxed states in a congressional effort to coerce the adoption of preferred tax policies and thus runs afoul of the Constitution and exceeds federal tax authority. The States, however, failed to persuade the Court that the SALT cap exceeded Congress’s broad tax powers under the Constitution.

Excerpt from Judge Paul Oetken’s ruling:

“In the end, Congress enacted the SALT cap pursuant to its broad tax powers under Article I, section 8 and the Sixteenth Amendment. The cap, like any federal tax provision, will affect some taxpayers more than others and, by extension, will affect some states more than others. But the cap, again like every other feature of the federal Tax Code, is part of a landscape of federal law within which states make their decisions as to how they will exercise their own sovereign tax powers. Because the states have failed to plausibly allege that the cap, more so than any other major federal initiative, meaningfully constrains this decision making process, this Court has no basis for concluding that the SALT cap is unconstitutionally coercive.”

Governor Cuomo said in reaction:

“There is no doubt in my mind that President Trump’s unfair tax policy targets New York and other blue states by funding tax cuts for corporations and the rich on the backs of New Yorkers. New York is already the largest ‘donor state’ in the nation – paying the federal government $36 billion more than we get back every year. The SALT cap takes this gross imbalance and supercharges it, costing New Yorkers another $15 billion each year. The bottom line is this policy is unprecedented, unlawful, punitive and politically motivated – and it must be stopped. We disagree with the court’s decision and are evaluating all options including appeal.”

Judge Temporarily Halts New York’s Ban on Flavored Vaping Products

A state appellate court ruled to temporarily halt the implementation of New York’s ban on flavored electronic cigarette products. The temporary restraining order (TRO) was sought by the Vapor Technology Association, Benevolent ELiquids Inc., and Perfection Vapes. The ban would have taken effect on October 4^th. The state will not be able to enforce the ban on flavored products until a ruling on the motion for a preliminary injunction is issued.

Department of Health Commissioner Howard Zucker said:

“It is undeniable that the vaping industry is using flavored e-cigarettes to get young people hooked on potentially dangerous and deadly products. While the court’s ruling temporarily delays our scheduled enforcement of this ban, it will not deter us from using every tool at our disposal to address this crisis.”

New York Ethics Laws Regarding Issue Advocacy Donor Disclosure Ruled Unconstitutional

Two sections of a broader ethics law, signed in 2016, were ruled unconstitutional by a federal judge this week. The law required 501(c)(3) and 501(c)(4) organizations, engaged in issue advocacy and meeting certain thresholds, to publicly disclose their donors to the State Attorney General. U.S. District Judge Denise Cote of the Southern District of New York wrote “There is no question that public disclosure of donor identities burdens the First Amendment rights to free speech and free association.” The judge asserted that the First Amendment right to anonymously advocate on issues of public interest has long been recognized and ruled those sections of the law were invalid on their face.

Attorney General James Announces New Whistleblower Program

Attorney General Tish James announced a new whistleblower submission portal which will allow for secure two-way anonymous communication between a whistleblower and the Attorney General’s office, as well as, the ability to upload related documents. The portal will utilize a web site, but, will allow access to a user employing a TOR web browser. TOR is a free and open-source software which enables anonymous communication by sending communications through thousands of relays worldwide, obfuscating a user’s location. The New York Attorney General’s Office claims to be the first governmental agency in the United States to offer whistleblowers the capability to directly transmit documents and send and receive communications electronically without their identity being traceable. The Attorney General’s Office’s whistleblower website can be found at: https://ag.ny.gov/whistleblower.

Attorney General James said:

“Whistleblowers serve a critically important function in our democracy. Whistleblowers call out illegal, corrupt, and fraudulent behavior, often at great risk to themselves. Our advanced Whistleblower Portal will help to attract, engage, and protect whistleblowers, and in turn enhance fairness and the rule of law in our society. At a time when some are leveling threats against those who seek to call out corruption, New York will stand up for all those who fight for transparency and justice.”

Long Island Members of the Senate Majority Issue Letter Supporting Pipeline

Six members of the Long Island contingent of the Senate Majority sent a letter to the commissioner of the Department of Environmental Protection (DEC), Basil Seggos, calling on his department to conditionally approve the pipeline project known as either the Northeast Supply Enhancement Project (NESE) or the Williams pipeline. The DEC originally denied the permit in May, halting the project and triggering National Grid to impose a moratorium on new natural gas service due to significant supply constraints. In the letter, the Senators suggested the project should be viewed only as an emergency option if an independent body concludes a supply emergency exists.     

Ninth Annual MWBE Forum

The ninth annual MWBE forum was held this week at the Empire State Plaza Convention Center in Albany. The forum is New York State’s largest annual business event for minority and women-owned business enterprises, bringing together business owners, community leaders, state officials and contractors’ representatives to discuss state contracting opportunities and learn about resources available to MWBEs. The Governor announced, in conjunction with the forum, that the utilization rate for Minority and Women-Owned Business Enterprises on state contracts increased to 29.13 percent during the 2018-2019 Fiscal Year. In total, MWBEs won more than $2.93 billion in state contracts during the 2018-2019 Fiscal Year.

Governor Cuomo said:

“In New York, we know that diversity is a strength, not a weakness — and when we empower minority and women-owned businesses to compete for state contracts, we create a better New York for all. Our nation-leading utilization rate reflects the unmatched pool of MWBEs in the Empire State and our concerted efforts to create a more equal playing field for these companies.”

Lake Ontario Homeowner Recovery Program Now Accepting Applications

Governor Cuomo announced the application period for the 2019 Lake Ontario-St. Lawrence River Flood Relief and Recovery Program is now open to homeowners directly impacted by Lake Ontario flooding from January 1, 2019 to September 30, 2019. Homeowners who reside in Cayuga, Jefferson, Monroe, Niagara, Orleans, Oswego, St. Lawrence and Wayne counties are eligible to apply to receive up to $50,000 in state funding to help offset damages to their primary residences. Only applications for primary residences will be accepted from October 1 through October 31. The program has committed to evaluating secondary home-ownership should funding still be available once primary homes have been addressed.

The 2019 Flood Relief and Recovery Program will be administered through New York State Homes and Community Renewal and will allocate up to $20 million to assist homeowners and help offset damages to their primary residence. Applications, including the full list of project criteria, are available on the New York State Homes and Community Renewal website. 

U.S. Representative Chris Collins Resigns

Chris Collins resigned from his congressional seat this week, just one day prior to pleading guilty to the charges of making a false statement and conspiracy to commit wire fraud. His plea comes a year after being accused of insider trading. The resignation will trigger a special election, to be called by the Governor, allowing for candidates to be chosen by party leadership, rather than by open primary.  

Updates, Reminders, and Links

City & State NY’s Winners and Losers here.

City & State NY’s 2019 Finance Power 50 here.

Susan Arbetter to take over Capital Tonight.

Cuomo on Chartock here.

US Army announces large contract with Lockheed Martin.

REBNY argues tax revenues could drop by $1 billion per because of new rent laws.

Senate Republicans file claim to preserve fusion voting.

Coming Up

A Joint Senate and Assembly public hearing on The New York Health Act will be held in Rochester on October 10.

The Senate Mental Health Committee will hold a public meeting on domestic violence and its effect on the community on October 11.

The Senate Task Force on Opioid and Drug Abuse will hold a series of public meetings to hear from stakeholders on strategies for reducing overdoses, improving individual and community health, and addressing the harmful consequences of drug use on October 15 and October 30.

The Senate Committee on Internet and Technology will hold a public hearing to hear from stakeholders within the “Gig Economy” – to identify the needs of workers and employers operating outside the traditional employee-employer dynamic and determine possible legislative avenues – including S.6538 – The Dependent Worker Act’s impact on the workforce on October 16.

The Senate Education and Budget and Revenue Committees will hold a series of public meetings around the state to hear stakeholder input regarding the components of the Foundation Aid formula in relation to student, district and community needs with a goal of greater equity in school financing on October 16, October 29, November 13, and November 19.

The PSC will hold its next meeting on Thursday, October 17.

A Joint Assembly public hearing on the delivery of veteran services and programs is scheduled for October 17.

The Senate Codes Committee will hold public hearings on policing (S3695) on October 17 and October 24.

A Joint Senate and Assembly public hearing on recycling will be held on October 21.

The Senate Committee on Higher Education will hold a series of public hearings regarding the cost of public higher education. The hearings will take place on October 24, October 28, October 30, and November 1.

The Senate Committees on Consumer Protection and Internet and Technology will hold a public hearing on protecting consumer data and privacy on online platforms on October 25.

The Senate Codes Committee will hold its second public hearing on discovery reform implementation on October 28.

The Senate Mental Health committee will hold a public hearing on eating disorders, treatment, and discovery on October 28.

The Assembly Health Committee will hold a public hearing on youth tackle football, scheduled for October 29.

JCOPE will hold its next meeting on Tuesday, October 29.

The Senate Committees on Consumer Protection, Health, and Education will hold a public hearing to investigate the safety and potential harms of electronic cigarettes and vaping, especially among school-aged youth on November 4.

The Senate Committee on Mental Health will hold a public hearing on veteran mental health and well-being on November 6.

Joint Senate Task Force on Opioids, Addiction and Overdose Prevention will hold a public hearing on strategies for reducing overdoses, improving individual and community health, and addressing the harmful consequences of drug use on November 15.

The Senate Committee on Mental Health has schedule a public hearing on OPWDD transition to managed care for December 2.

The Senate Education and Budget and Revenue Committees will hold a public hearing to examine the distribution of the Foundation Aid formula as it relates to pupil and district needs on December 3.