Plugged In @ Hinman Straub – January 31, 2020

What’s Inside

  • Senate Passes Package of Payroll Firm Bills
  • Judge Rules Prosecutorial Conduct Commission Unconstitutional
  • Climate Action Council Appointments Announced
  • Governor Announces Approval of $300 Million for Reimagine the Canals Initiative
  • Assembly Speaker Announces Work Group on Mitchell-Lama Housing Developments
  • Attorney General Files Lawsuit Against Vyera Pharmaceuticals
  • Senate Republicans Announce Bail Reform Roundtables
  • Additional Assembly Committee Changes
  • Additional Senate Committee Changes
  • Political Updates
  • Updates, Reminders, and Links
  • Coming Up

Senate Passes Package of Payroll Firm Bills

On Tuesday, the Senate passed a package of bills in response to sudden closing of a capital region payroll company last fall. In the immediate aftermath of the sudden closing, clients of the firm were not able to pay employees for work already performed. The CEO of the company was arrested and charged with fraud. The package of bills would increase penalties for intentional misappropriation a funds, increases damages that can be sought, and directs the Department of Financial Services to review regulations relating to payroll firms. Bills included in the package are as follows:

S6725-A Carlucci – Establishes the crime of misappropriation of payroll funds.

This bill adds the crime of misappropriation of payroll funds to the penal code and makes the crime a class E felony.

S6726-A Ramos – Relates to the overpayment of wages.

This bill amends the labor law to establish that recovery of wages due to a clerical error by the employer or any vendor working on behalf of the employer is prohibited if such clerical error did not result in an overpayment or other inaccuracy in the amount of wages paid or the time in which wages were dispersed. Though targeted at the situation that resulted from the closure of the payroll company, this bill could have a broader impact.

S6727-B Thomas – Relates to the liability of payroll processing companies.

This bill provides that payroll processing companies that intentionally and wrongfully prevent the distribution of payroll shall be liable to employees that failed to receive an expected payment for an amount up to three times the expected amount and provides an action to recover damages may be maintained as a class action.

S6728 Breslin – Provides for a study regarding insurance or other risk mitigation tools and third-party payroll service providers.

This bill requires DFS and the Department of Taxation and Finance to conduct a study regarding insurance or other risk mitigation tools and third-party payroll service providers. The bill also requires the superintendent of financial services to submit a report to the governor, the temporary president of the senate and the speaker of the assembly regarding the department’s findings, conclusions, and recommendations.

Senate Majority Leader Stewart-Cousins said:

“New Yorkers deserve the peace of mind that they will be paid for their hard work. The crisis caused by MyPayrollHR revealed gaping holes in payroll service policies and severely damaged our confidence in the entire payroll industry. The bills advanced by the Senate will help ensure greater oversight and accountability on this industry that millions of New Yorkers rely on to receive their paychecks. I applaud my colleagues for their swift action protecting workers and safeguarding against future payroll company-caused problems.”

Judge Rules Prosecutorial Conduct Commission Unconstitutional

An Albany Supreme Court judge ruled this week that the commission to provide oversight of county prosecutors was unconstitutional. The Commission on Prosecutorial Conduct, created in 2018 by an act of the legislature, would have impaneled a commission with appointments by the Governor, legislature, and chief judge of the Court of Appeals. The commission would have been empowered to receive complaints and initiate investigations of the conduct and performance of district attorneys and assistant district attorneys. Upon investigation, the commission could dismiss the complaint, censure the prosecutor, or recommend that the governor dismiss the prosecutor.

The judge concluded that the commission would unconstitutionally infringe on the Appellate Division’s power to carry out attorney discipline. The judge wrote in his decision that “a court or administrative agency may opine on questions of official misconduct as incident to and necessary to decide matters properly before that tribunal, the exclusive jurisdiction of the Appellate Division over attorney discipline does not allow any other body to impose sanction as a form of discipline for professional misconduct”. The judge determined the Appellate Division’s role in attorney discipline was constitutional in nature, and that the commission would be playing a role that was beyond the powers that legislation could grant.

It remains to be seen if the legislature will make a second attempt at creating a commission that can withstand a challenge in court. Governor Cuomo said in an interview on WAMC Roundtable that “I believe there should be checks and balances across the board, I think district attorneys should have a check and balance.” The Governor’s spokesperson said they are reviewing the decision to determine if a legislative fix is an option.

Albany County District Attorney David Soares said:

“As we included in our filings, it is a bedrock principle of our democracy that no statute, no matter how noble its ostensible purpose, may violate the constitutional structure. As a sitting district attorney I look forward to being a part of the conversation to develop meaningful and transparent oversight of all actors in the criminal justice system moving forward.”

Climate Action Council Appointments Announced

According to news reports, it is expected that the Governor will announce the appointments of SUNY Empire President Jim Malatras and former Parks, Recreation, and Historic Preservation Commissioner Rose Harvey to a climate change council. The Climate Action Council is being tasked with determining how the state will reach emissions goals of an 85 percent reduction from 1990 levels by 2050 with a deadline of January 2022. Much of the council will consist of various state agency commissioners. At-large appointments by the Governor and Legislative leaders are as follows:

Governor Appointments:

  • Jim Malatras, President, SUNY Empire State College
  • Rose Harvey, former commissioner, Parks, Recreation, and Historic Preservation

Senate Majority Appointments:

  • Anne Reynolds, Executive Director, Alliance for Clean Energy New York
  • Raya Salter, environmental attorney
  • Dennis Eisenbeck, energy consultant

Assembly Majority Appointments:

  • Peter Iwanowicz, Executive Director, Environmental Advocates of New York
  • Bob Howarth, environmental biology professor at Cornell University
  • Bob Shepson, Dean, Stony Brook University

Senate Minority Appointment:

  • Gavin Donohue, Independent Power Producers of New York

Assembly Minority Appointment:

  • Donna DeCarolis, President, National Fuel Gas

Governor Announces Approval of $300 Million for Reimagine the Canals Initiative

Governor Cuomo announced the New York Power Authority Board of Trustees has authorized a five-year funding plan for the Reimagine the Canals Initiative, designed to help expand tourism, boost economic development, and reduce flooding along the Erie Canal corridor. The NYPA board also approved $30 million to fund Reimagine initiative projects in 2020 as part of the five-year plan. Details and spending for each project will be finalized as the projects are designed and developed. The full report from the Reimagine the Canals Task Force can be read here.

Projects that will move forward with the initial funding include:

Connecting Communities: The “Brockport Loop” project in Monroe County will connect SUNY College at Brockport to the Empire State Trail and the village of Brockport through the transformation of a canal guard-gate into a pedestrian bridge and overlook 

Celebrating “Iconic Infrastructure”: Interactive, hydro-powered illumination of Canal “movable dams” – initially in Amsterdam and Canajoharie in the Mohawk Valley – to celebrate the Canal’s heritage and history 

Adapting Industrial Property for New Uses: Winner of the Reimagine the Canals competition, a canalside pocket neighborhood, will be developed by Madison County at a former industrial property in Canastota along the Old Erie Canal – demonstrating a model for 21st century canalside living. 

Expanding Water Recreation: A new whitewater destination, at the north end of Cayuga Lake near Seneca Falls, to increase eco-tourism and sport visitors to the region. 

Developing Destination Accommodations: The historic Guy Park Manor, on the Mohawk River in Amsterdam, will be reborn as a hospitality and recreation destination. A pedestrian bridge constructed across a canal lock will provide access to the Empire State Trail on the opposite side of the river.

Assembly Speaker Announces Work Group on Mitchell-Lama Housing Developments

Assembly Speaker Carl Heastie announced the formation of a working group to examine issue surrounding limited-profit housing companies, known colloquially as Mitchell-Lama housing developments. These developments provide rental and cooperative housing to moderate and middle income families and may voluntarily exit the program, usually 20 years after initiation, and return to market rates. The work group will examine issues such as, greater standardization and transparency in application processing, requiring increased agency reporting on developments leaving the program, allowing residents to access financial records relating to their development, and expanding the pool of applicants eligible for Mitchell-Lama housing by raising admission income limits. Members of the work group include:

  • Assemblymember Steven Cymbrowitz, Chair
  • Assemblymember Michael Blake
  • Assemblymember Maritza Davila
  • Assemblymember Charles D. Fall
  • Assemblymember Stacey Pheffer Amato
  • Assemblymember Robert J. Rodriguez

Speaker Heastie said:

“Mitchell-Lama developments are an important tool in helping New Yorkers access safe, affordable housing. This working group will allow the Assembly Majority to address the complex issues around these developments, and help families stay in their homes and their communities.”

Attorney General Files Lawsuit Against Vyera Pharmaceuticals

Attorney General Letitia James announced a lawsuit against Vyera Pharmaceuticals and two of its former CEOs for intentionally stifling competition after a massive and unexplained price increase for the drug Daraprim (pyrimethamine). Daraprim is used to treat the parasitic disease toxoplasmosis, and despite Vyera Pharmaceuticals being the only FDA-approved source of the medication, Vyera raised the price of the drug by more than 4,000 percent overnight, to $750 per pill, after they purchased the rights to Daraprim in August 2015.

The complaint alleges that Vyera anticipated that its decision to increase the price of Daraprim by more than 4,000 percent would likely encourage entry into the market by other firms, so the pharmaceutical company took specific actions to impede and delay entry by competitors and preserve its monopoly. For example, the complaint claims that Vyera illegally restricted the sale and distribution of its own drug to prevent generic drug companies from obtaining sufficient pills to complete bioequivalence tests, which are necessary to obtain approval by the FDA. Vyera also allegedly prevented competitors from accessing a critical ingredient used to manufacture Daraprim. 

Attorney General James and the Federal Trade Commission (FTC) seek to enjoin Vyera’s conduct, as well as to obtain monetary relief. Additionally, the Attorney General and the FTC have asked the courts to issue an order banning both Martin Shkreli — who is already serving a seven-year sentence in federal prison for securities fraud — and his business partner Kevin Mulleady from the pharmaceutical industry for life.

Attorney General James said:

“Martin Shkreli and Vyera not only enriched themselves by despicably jacking up the price of this life-saving medication by 4,000 percent in a single day, but held this critical drug hostage from patients and competitors as they illegally sought to maintain their monopoly. We filed this lawsuit to stop Vyera’s egregious conduct, make the company pay for its illegal scheming, and block Martin Shkreli from ever working in the pharmaceutical industry again. We won’t allow ‘Pharma Bros’ to manipulate the market and line their pockets at the expense of vulnerable patients and the health care system.”

Senate Republicans Announce Bail Reform Roundtables

The State Senate Republicans announced a statewide ‘Repeal Bail Reform Taskforce’ to collect testimony from law enforcement officers, prosecutors, victims, local leaders, and the public regarding the bail reform law that recently took effect. The taskforce will hold public forums across the state, beginning in Buffalo on February 6 and following with additional hearings on Long Island, in the Hudson Valley, and Syracuse. A recent Siena poll shows the new law is losing support rapidly.

Senate Minority Leader John Flanagan said:

“Dangerous pro-criminal bail reform has made a mockery of the justice system, allowing violent criminals, serial bank robbers, and even killers to freely parade the streets. This is not justice. It is an insult to crime victims and their families, to the public and to every person who serves to uphold our law. The Senate Republican Repeal Bail Reform Taskforce will listen to the facts about how this is impacting communities as we continue to fight to repeal this disastrous law.”

Additional Assembly Committee Changes

The following additional changes to committee composition in the Assembly were executed this week:

Economic Development:

– Remove Bichotte

– Add Frontus

Education:

– Add Bichotte

Rules:

– Add Thiele

Social Services:

– Remove Joyner

Ways & Means:

– Add Joyner 

Additional Senate Committee Changes

Senator Gianaris made the following hand up, to make the following committee composition changes:

Majority Changes:

– Felder, Chair and member of Administrative Regulations Review Comm.

Domestic Animal Welfare:

– Add Felder

– Remove Myrie

Social Services:

– Add Felder

– Remove Kennedy

Children and Families:

– Add Felder

– Remove Addabbo

Budget and Revenue

– Add Felder

– Remove Kaminsky

Commerce:

– Add Felder

– Remove Harckham

Labor:

– Add Harckham

Minority Changes:

Transportation:

– Add Borrello

– Remove Jacobs

Cultural Affairs:

– Helming as Ranker

– Add Little

– Remove Funke

Civil Service:

– Add Borrello

– Remove Jordan

Political Updates

State Senator Chris Jacobs wins party support for congressional race to replace Rep. Collins.

Nate McMurray wins Democratic Party support for Rep. Collins seat.

Assemblyman Palumbo announces candidacy for LaValle’s seat.

Assemblymen McDonald primary challenger announces run.

Race to replace Assemblyman Crouch appears to be headed to a primary between Joe Angelino and Nick Libous.

Another candidate for the Assembly 137th district (Rochester) announces.

UFT warns Senate Democrats not to allow charter school friendly legislation through.

Endorsements

Chris Jacobs gets an endorsement from Rep. Stefanik.

Chris Jacobs gets Independence Party endorsement.

Senator Biaggi endorses in Westchester DA race.

Cynthia Nixon endorses Democratic Socialist candidates.

Updates, Reminders, and Links

City & State NY’s This Week’s Biggest Winners & Losers here.

City & State NY’s The 2020 New York 50 over 50 here.

Assembly Yellow Book (staff budget analysis) here.

Senate Blue Book (staff budget analysis) here.

Deadline approaches for changing party enrollment in time for primary voting.

Cuomo on WAMC Roundtable with Alan Chartock 1/29/20.

Coming Up

*POSTPONED* The Legislative Commission on Rural Resources public hearing to examine the effectiveness of current flooding emergency and mitigation efforts, and to discuss the need for future assistance due to the increase in extreme weather events has been postponed.

The 2020-21 Joint Legislative Budget Hearing on Mental Hygiene will be held at 11:00 A.M. on Monday, February 3rd in Hearing Room B, Legislative Office Building.

The 2020-21 Joint Legislative Budget Hearing on Higher Education will be held at 9:30 A.M. on Tuesday, February 4th in Hearing Room B, Legislative Office Building.

The 2020-21 Joint Legislative Budget Hearing on Workforce Development will be held at 9:30 A.M. on Wednesday, February 5th in Hearing Room B, Legislative Office Building.

The 2020-21 Joint Legislative Budget Hearing on Housing will be held at 1:00 P.M. on Wednesday, February 5th in Hearing Room B, Legislative Office Building.

The Board of Regents will hold their next meeting on February 10th and 11th.

The 2020-21 Joint Legislative Budget Hearing on Local Government will be held at 11:00 A.M. on Monday, February 10th in Hearing Room B, Legislative Office Building.

The 2020-21 Joint Legislative Budget Hearing on Elementary Education will be held at 9:30 A.M. on Tuesday, February 11th in Hearing Room B, Legislative Office Building.

The Senate Racing Committee will hold a public meeting on the economic impact of the three unused downstate casino licenses on February 12.

The 2020-21 Joint Legislative Budget Hearing on Public Protection will be held at 9:30 A.M. on Wednesday, February 12th in Hearing Room B, Legislative Office Building.

The 2020-21 Joint Legislative Budget Hearing on Economic Development will be held at 9:30 A.M. on Thursday, February 13th in Hearing Room B, Legislative Office Building.

The 2020-21 Joint Legislative Budget Hearing on Taxes will be held at 1:00 P.M. on Wednesday, February 13th in Hearing Room B, Legislative Office Building.

The Assembly will hold a public hearing on incentives for community solar on February 18.