Plugged In @ Hinman Straub – November 22, 2019

What’s Inside

  • Mid-Year Financial Plan Update Released
  • DFS Directed to Propose New Regulations Regarding Access to Health Insurance for Transgender and Gender Non-Conforming Individuals
  • Sienna Research Institute Releases Poll
  • Governor Appoints Members to Cyber Security Advisory Board
  • Attorney General Files Lawsuit Against JUUL Labs
  • Availability of Funds for Green and Clean Energy Solutions Program Announced
  • $60 Million Pledged to Support 2020 Census
  • Assemblyman Schimminger Announces Retirement
  • Challengers to State Legislators Announce Campaigns
  • Updates, Reminders, and Links
  • Coming Up

Mid-Year Financial Plan Update Released

The Division of Budget released their mid-year update to the State’s Financial Plan which projects a shortfall of over $6 billion for the next fiscal year. The report points to Medicaid cost overruns as the culprit, specifically singling out increases in the minimum wage for health care providers, a phase out of enhanced funding by the federal government, an increase in enrollment and costs for managed long-term care, and payments to financially-distressed hospitals.

The report identifies two steps to address the current-year deficit. The first step will be to permanently adjust the timing of payments, alleviating $2.2 billion of the current-year deficit. The second step calls for a savings plan that may include across the board reductions in rates paid to providers and plans as well as other actions that can be done administratively to create another $1.8 billion in savings. Details on the “FY2020 Savings Plan” will not be released until next year’s Executive Budget in January.

DFS Directed to Propose New Regulations Regarding Access to Health Insurance for Transgender and Gender Non-Conforming Individuals

The Governor has directed the Department of Financial Services (DFS) to issue new regulations to bolster access to health insurance for transgender and gender non-conforming individuals. DFS has been directed to undertake the following actions:

  • Issue regulations to clarify prohibitions of gender identity discrimination in health insurance;
  • Require external appeal agents with experience in transgender health, to the extent practicable;
  • Work with the Office of Mental Health to prohibit categorical exclusions in insurance plans for gender-affirming services.

Superintendent of Financial Services Linda A. Lacewell said:

“New York has zero tolerance for any attempts to encroach on the rights of individuals, especially access to quality healthcare. As the federal government continues to trample on protections for transgender and gender non-conforming individuals, New York will continue to uphold these unquestionable, basic human rights and we remind Washington to do their job to protect all individuals, especially those who have historically faced discrimination.”

Sienna Research Institute Releases Poll

Sienna College Research Institute released its latest poll this week, focusing on a few New York issues, favorability ratings and the presidential primary candidates. Support for legalizing recreational marijuana is still holding a majority of support from New Yorker’s polled. A majority of New Yorker’s oppose the new law allowing undocumented immigrants to obtain a driver’s license, though there has been a slight uptick in support from the last poll. Over half of those polled support the impeachment and removal of the President, however, independent voters who were evenly split when last polled, now oppose impeachment and removal by a majority 59-37. 

Governor Cuomo’s favorability rating dipped since October when he posted a 49-47 favorability rating.

Joe Biden takes a plurality of support for the Democratic presidential candidate of preference with Elizabeth Warren not far behind and Bernie Sanders solidly in third place with almost a third polled remaining undecided. Biden’s lead increase fairly significantly when New Yorkers weigh in on which candidate is most likely to defeat President Trump.

Governor Appoints Members to Cyber Security Advisory Board

Governor Cuomo announced additional appointments to the Cyber Security Advisory Board. The Cyber Security Advisory Board was created in 2013 and exists to advise the Governor’s administration on protecting the state’s critical infrastructure and information systems. In addition, Governor Cuomo directed the Board to assess the threats to the security and integrity of our elections and recommend steps to bolster election security.

The newly appointed members include:

  • Luke Dembosky: Mr. Dembosky is a partner at the law firm of Debevoise Plimpton, where he is Co-Chair of the firm’s Cybersecurity & Data Privacy practice and a member of the White Collar & Regulatory Defense Group. Mr. Dembosky previously served as a federal prosecutor, most recently as the Deputy Assistant Attorney General for National Security at the U.S. Department of Justice where he oversaw all national security cyber cases.
  • Eric Friedberg: Mr. Friedberg has 30 years of public and private sector experience in law, cyber incident response, cyber-governance, IT security, forensics, investigations, and e-discovery. He is Co-President of Stroz Friedberg, a cyber consultancy and technical services firm acquired by Aon in 2016, and of Aon’s Cyber Solutions, its cyber risk management division.
  • Justin Herring: Mr. Herring is the Executive Deputy Superintendent for the Cybersecurity Division at the New York Department of Financial Services, where he oversees the Department’s cybersecurity regulation for the financial industry. He previously served as a senior cybercrimes prosecutor with the Department of Justice.
  • Erez Liebermann: Mr. Liebermann served for a decade as prosecutor at the Department of Justice, where he led the prosecutions of cyber and white-collar criminals. He is now Chief Counsel, Cybersecurity and Privacy; and Vice President, Regulatory Law, at Prudential Financial. There he built one of the first cybersecurity and privacy legal teams in a Fortune 500 company and oversees cyber investigations. He was an aerospace engineer prior to law school.
  • Debora Plunkett: Ms. Plunkett served for decades at the National Security Agency (NSA), where she was Senior Advisor to the Director of the NSA and Director of Information Assurance. She is Principal of Plunkett Associates, a cybersecurity consulting business. Since 2016, Ms. Plunkett has been a Senior Fellow in the Digital Democracy Project, launched by the Belfer Center for Science and International Affairs at Harvard’s Kennedy School of Government, providing security advice to campaigns. 

Attorney General Files Lawsuit Against JUUL Labs

New York Attorney General Letitia James announced a lawsuit against the electronic cigarette company JUUL Labs, Inc. (JUUL) for deceptive and misleading marketing of its e-cigarettes. The lawsuit alleges that JUUL engaged in deceptive business practices when marketing and advertising its products, and illegally sold its products to minors through its website and in third-party retail stores. The suit also alleges that JUUL’s advertising campaign misled consumers by failing to warn that they contained nicotine, and by misrepresenting its products as a safer alternative to traditional cigarettes.

Attorney General James said:

“There can be no doubt that JUUL’s aggressive advertising has significantly contributed to the public health crisis that has left youth in New York and across the country addicted to its products. By glamorizing vaping, while at the same time downplaying the nicotine found in vaping products, JUUL is putting countless New Yorkers at risk. I am prepared to use every legal tool in our arsenal to protect the health and safety of our youth.”

Availability of Funds for Green and Clean Energy Solutions Program Announced

Governor Cuomo announced the availability of $4 million under the P-12 Schools: Green and Clean Energy Solutions program to reduce energy use and assist with the conversion to carbon free energy solutions for schools serving Prekindergarten through Grade 12 students. The program offers up to $250,000 for energy studies to reduce energy loads as well as up to another $250,000 for design assistance for the installation of clean heating and cooling systems. Schools are also eligible for direct incentives for the installation of measures that reduce the building’s energy use through eligible mechanical, equipment and building envelope efficiency efforts. Applications will be accepted on a first-come, first-served basis dependent on resource availability until December 31, 2022.

$60 Million Pledged to Support 2020 Census

Governor Cuomo announced that New York State will spend as much as $60 million to prepare for the upcoming 2020 U.S. Census to bolster participation. The State will leverage resources across dozens of agencies, public authorities, CUNY and SUNY that regularly interact with millions of New Yorkers. Together, they will launch a campaign valued at up to $40 million from existing resources that will inform the public about the Census and support efforts to encourage residents to complete the questionnaire. Additionally, $20 million from the FY 2020 Budget is being made available to support targeted efforts in hard to reach communities.

A Request for Expressions of Interest will be released next week with a response due back in 30 days. The funding will be targeted to “trusted voice” not-for-profit organizations and will be focused on reaching hard to count communities, including those with high populations of immigrants, children under 5 years old, and seniors. Funding awards will be determined based on plans evaluated on a variety of factors, including presence of cooperating libraries and other institutions, proven capability of the organizations, and other factors.

Assemblyman Schimminger Announces Retirement

Assemblyman Robin Schimminger, first elected in 1976, has announced his intention to retire at the end of the current term. Schimminger has led the Assembly Committee on Economic Development for over twenty years. The long occupied seat will likely result in a long list of potential challengers to replace the Assemblyman.

Assemblyman Schimminger said:

“After considerable reflection, I have decided that I will not be seeking re-election next year in 2020. I will, however, continue to represent the people and places that have been a part of my life for the duration of my present term, after which time I look forward to spending more time with my family”

Challengers to State Legislators Announce Campaigns

This week, announcements were made signaling intentions to challenge sitting members of the legislature. Among the members that will now have a race is Assemblyman Jeff Aubry from Queens. Hiram Monserrate, a former state senator who was removed from office for a misdemeanor domestic violence conviction announced he would be challenging Aubry to a primary. Monserrate had previously sought and lost an Assembly seat following his expulsion from the Senate. Monserrate also lost a run for city council in 2017.

A democratic challenger to Senator Ken LaValle announced this week he would be seeking to represent the 1st Senate District. Thomas “Tommy John” Schiavoni, a Southampton Town Councilman from North Haven, a former teacher hopes to mount a competitive race. Senator LaValle has held the seat since 1976 and has not announced whether or not he will seek reelection. LaValle is also being challenged by Laura Ahearn, who has been endorsed by a number of labor unions.

Senator Rich Funke also picked up a challenge from a political newcomer. Samra Brouk, a board member of REACH – an advocacy group focused on homelessness – will seek the democratic nomination to run for the 55th Senate District.

Updates, Reminders, and Links

City & State NY’s Winners and Losers here.

City & State NY’s 2019 Women Power 100 here.

Unshackle Upstate Survey Finds Pessimistic Outlook for 2020 here.

Coming Up

**POSTPONED TDB** The Senate and Assembly will hold a joint public hearing on natural gas moratoriums has been postponed – new date to be determined.

The Senate and Assembly Health Committees will hold a public hearing on the New York Health Act on November 25.

The Assembly Committees on Housing and Cities will hold a public hearing on affordable housing development on November 25.

The Assembly will hold a public hearing on Economic development programs that leverage State funds to foster viable long-term business development and economic growth on November 25.

The Senate Committee on Social Services will hold a public meeting to engage social service providers and advocates in a discussion of public assistance income and resource limits on November 26.

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.

The Senate Committee on Budget and Revenues will hold a roundtable discussion of real property tax reform in New York City on December 4.

The Assembly Committee on Transportation will hold a public hearing on the Department of Transportation Capital Program on December 6.

The Assembly will hold a public hearing on youthful offender status and the sealing of criminal records on December 10.

The Assembly will hold a public hearing to examine capital funding for arts and cultural organizations on December 12.

The Assembly Committee on Libraries and Education Technology will hold a public hearing on funding of public libraries on December 13.

The Senate Committee on Higher Education has rescheduled a public hearing on the funding of public colleges for December 16.

The Senate Racing Committee will hold a public hearing on the economic impact of the three unused downstate casino licenses on January 22.