Plugged In @ Hinman Straub

February 21, 2025

What’s Inside

30-Day Amendments to the Executive Budget Released
Governor Announces Decision to Not Remove NYC Mayor
Federal Approval for Congestion Pricing Withdrawn
NY Ethics Panel Ruled Constitutional
Governor Reacts to Correction Officers’ Wildcat Strike
In the News
Coming Up

30-Day Amendments to the Executive Budget Released

On February 20, Governor Hochul released formal amendments to the 2025-26 Executive Budget, referred to as “30-Day Amendments.”

The Governor’s 30-Day Amendments include the following proposals – which are by-in-large technical – that impact the health care industry:

Managed Care Organization (“MCO”) Tax and Healthcare Stability Fund. The Executive modified its proposal by making technical changes to statutory references to the Children’s Health Insurance Program (“CHIP”) and the Essential Plan.
Updates to the Temporary Operator (“TO”) Law. The Executive modified its proposal to provide that the authority of temporary operators – including to hire or fire facility administrators and other key management employees, maintain and control the books and records, dispossess assets and incur liabilities on behalf of facilities, and adopt and enforce policies regarding the operations – is granted “notwithstanding any other provision of law,” in order to avoid unintended conflicts.
Remove Unnecessary Restrictions on Workers. The Executive modified its proposal to transfer the licensing and oversight of physicians, physician assistants, and specialist assistants from the State Education Department (“SED”) to the Department of Health (“DOH”) “pursuant to a plan to be proposed” by instead moving relevant provisions from the Education Law to the Public Health Law. Further, language formerly set forth in “Subpart F” related to Physician Assistant Modernization was merged with the above.
Community-Based Paramedicine Demonstration. The Executive modified its proposal by making conforming changes regarding its proposal to extend the demonstration program by two years.
EMS Performance Standards and Essential Services. The Executive modified its proposal to: (1) provide that New York City may participate in the Emergency Medical Community Assessment Program (“EMCAP”) program; (2) allow, as opposed to require, municipalities to provide EMS services; (3) allow, as opposed to require, counties to establish a “special district” for ambulance and EMS services, and remove cities, towns and villages from such provisions; and (4) provide that New York City may participate in creating special ambulance districts.
Update the State Schedule of Controlled Substances. The Executive modified its proposal by making typographical and wording changes to further conform the New York controlled substances schedules with those of the federal Drug Enforcement Agency (“DEA”).
Increase Access to Drugs to Opioid Addiction. The Executive modified its proposal by making several technical changes and to clarify that a practitioner’s duty to report would be triggered by the practitioner – not the Commissioner of Health – finding that the patient is “a person with an opioid use disorder or habitual user of any narcotic drug.”
Make the Preferred Source Program Permanent. The Executive modified its proposal to reference Chapter 565 of 2022, which amended the underlying law.
School Based Health Centers. The Executive modified its proposal to allocate $22 million – an increase of $2 million – for School Based Health Centers.
Healthy NY Program. The Executive modified its proposal to allocate $21 million – an increase of $1.7 million – for the Healthy NY Program.

Other amendments include the following:

Student Use of Internet-Enabled Devices During the School Day. The Executive modified its proposal to also allow school principals to authorize use of internet-enabled devices during the school day.
Scholarships Awarded to Part-Time Students by HESC. The Executive modified its proposal to make a technical amendment to maintain a cross reference which would remain relevant after the repeal of section 666 of the education law.
Enhance the Empire State Child Credit for Three Years. The Executive modified its proposal to make technical changes to clarify the intent.
Waiting Period Restrictions and Limit Deductions on Institutional Real Estate Investors. The Executive modified its proposal to make a technical amendment to clarify that a loan provided in exchange for a mortgage of the residence that is being purchased shall not be considered funding from an institutional real estate investor, provided that such mortgage must be of a type for which members of the general public can apply.
Regulation of Buy Now, Pay Later Loans. The Executive modified its proposal to remove references authorizing DFS to regulate “abusive act.”
Empower Financial Institutions to Combat Elder Fraud. The Executive modified its proposal by adding a subdivision title to conform language between sections.
Inactive Hazardous Waste Disposal Site Program. The Executive modified its proposal by adding “significant threat” to encompass Class 2 superfund sites.
Conservation Easements and Title Insurance. The Executive modified its proposal by adding a provision stating the attorney general may accept a title policy from any title company licensed by the state of New York that names the people of the State of New York as insured for the acquisition of real property.
Distinctive License Plates for Gold Star Families. The Executive includes a new proposal to authorize any family member or spouse of a gold star recipient to be issued a “gold star family” license plate.
Harriet Tubman Commission. The Executive includes a new proposal to amend unconsolidated law to establish the Harriet Tubman Commission and to replace the statue of Robert R. Livingston in the National Statuary Hall Collection at the U.S. Capitol with a statue of Harriet Tubman.
Sweeps and Transfers. The Executive modifies its proposal by making several changes related to the sweeping and transferring of funds between discrete funds and the general fund.
Unfunded Accrued Liabilities (“UAL”) for Certain NYC Retirement Plans. The Executive includes a new proposal to amortize the “UAL” of the New York City Employees’ Retirement System (“NYCERS”), the New York City Teachers’ Retirement System (“NYCTRS”), and the Board of Education Retirement System of the City of New York (“BERS”) on an alternate schedule. Further, the proposal changes the smoothing method used for investment gains and losses and allows the Actuary to reset the UAL amortization schedule under certain scenarios.
DOCCS Body Worn Camera Program. The Executive includes a new proposal to establish the DOCCS’ Body Worn Camera Program in law.
State Commission of Correction (“SCOC”) Inspections. The Executive includes a new proposal to require SCOC to visit and conduct annual inspections of all Department of Corrections and Community Supervision correctional facilities, jails, and Office of Children and Family Services secure facilities.
Prison Closures. The Executive includes a new proposal to authorize the closure of up to five Department of Corrections and Community Supervision correctional facilities within State Fiscal Year 2025-26.

Governor Announces Decision to Not Remove NYC Mayor

The Governor held a press conference at her New York City office to announce that, after consulting with New York City leaders, she will not be asserting her powers as Governor to remove Eric Adams from the Mayor’s office at this time.

Instead, the Governor unveiled a three point plan, along with new state and city legislation, that would increase oversight of the New York City Mayor’s office, including:

New Special Inspector General for New York City Affairs and Protection of City Commissioner of Investigation

A new Special Inspector General for New York City Affairs will be established within the Office of the New York State Inspector General. The Special Inspector General for New York City Affairs will receive updates and information directly from the New York City Department of Investigations (NYCDOI) about corruption investigations, and also be able to direct NYCDOI to commence investigations across city government.

The plan recommends that the New York City Charter be revised to provide that the Mayor of New York City will not be able to terminate the New York City Commissioner of Investigation without approval by the State Inspector General.

Empower Citywide Elected Leaders To Utilize Federal Litigation

The Governor’s plan would also allow the City Comptroller, Council and Public Advocate to be given explicit authority to bring litigation against the federal government using outside counsel if the City’s Law Department declines to do so promptly after a request. Such litigation could be filed against any federal government agency or entity.

Strengthen State Oversight of New York City’s Finances

The Governor is proposing additional funds for the Office of the State Comptroller of the City to support the State’s existing ability to continue to monitor the City and its finances. The State will expand the Office of the Deputy State Comptroller for City Oversight. The new funding will be paid for using New York City tax receipts.

Federal Approval for Congestion Pricing Withdrawn

On Wednesday, the United States Secretary of Transportation, Sean Duffy, sent a letter to Governor Kathy Hochul, terminating approval for New York’s recently enacted Congestion Pricing program. In the letter, the U.S. Department of Transportation rescinded a November 21, 2024, agreement signed under the Value Pricing Pilot Program (VPPP) that effectively ends tolling authority for New York City’s cordon pricing plan, which imposes tolls on drivers entering Manhattan below 60th Street.

Secretary Duffy has directed the Federal Highway Administration to work with project sponsors on an orderly termination of the tolls.

Shortly after the release of this letter, Governor Hochul issued the following written statement:

Public transit is the lifeblood of New York City and critical to our economic future — as a New Yorker, like President Trump, knows very well.

Since this first-in-the-nation program took effect last month, congestion has dropped dramatically and commuters are getting to work faster than ever. Broadway shows are selling out and foot traffic to local businesses is spiking. School buses are getting kids to class on time, and yellow cab trips increased by 10 percent. Transit ridership is up, drivers are having a better experience, and support for this program is growing every day.

We are a nation of laws, not ruled by a king. The MTA has initiated legal proceedings in the Southern District of New York to preserve this critical program. We’ll see you in court.

The Governor then held a press conference in New York City, with Janno Lieber, the Chairman and CEO of the MTA, regarding congestion pricing and their plan for moving forward, which can be watched here.

NY Ethics Commission Ruled Constitutional

The Court of Appeals, in a split decision, overruled a unanimous appellate court decision that upheld the lower court’s ruling that the Commission on Ethics and Lobbying in Government (COELIG) was formed in violation of the State Constitution. The case stems from a lawsuit brought by former Governor Andrew Cuomo against the commission over rescinding approval for his $5.1 million book deal.

The Court of Appeals, in the decision authored by Judge Jenny Rivera, asserted that although the act may have shaded the line of constitutionality the formation of the ethics commission had addressed “a threat to the legitimacy of government itself with an extraordinary response.” Chief Judge Rowan Wilson and Judges Caitlin Halligan and Shirley Troutman joined the majority decision.

The full ruling can be found here.

Following the decision, COELIG Chair, Leonard B. Austin said:

We are pleased with today’s ruling by the Court of Appeals validating the Governor’s and Legislature’s decision to create an ethics agency that is not dominated by those it oversees. That validation is especially important now, when the need for an agency with our mission is as great as it has ever been.

As it has done continuously from its inception, the Commission will administer and enforce the state’s ethics and lobbying laws, deliberately, fairly, and with zeal, pursuing its mission to restore New Yorkers’ faith in state government.

Attorney General Letitia James also weighed in on the court ruling and released the following statement:

The public deserves to have faith in their elected officials, and that requires a strong, independent, ethics watchdog. In New York, we value the rule of law, and my office will always work to ensure our laws are defended, no matter who attempts to sidestep or ignore them. I was proud to help defend the constitutionality of the Commission on Ethics and Lobbying in Government, and I commend my team for securing this decision that maintains the state’s ethics watchdog. New Yorkers can trust that my office will always faithfully defend the public’s interest.

Governor Reacts to Correction Officers’ Wildcat Strike

In light of the work stoppage and worker strike at several state-run correctional facilities, Governor Hochul has announced several actions to maintain safety and security at these facilities and their surrounding communities. The Governor has directed the Department of Corrections and Community Supervision (“DOCCS”) Commissioner Daniel Martuscello and senior Administration officials to meet with leaders from the New York State Correctional Officers & Police Benevolent Association to call for an end to the unlawful work stoppage.

On Wednesday, the Governor signed Executive Order No. 47, activating members of the New York National Guard to help ensure the safety and security of New York State’s correctional facilities while the work stoppage by correction officers continues. This Order also provides authority for additional overtime compensation for correction officers and other staff who are reporting for duty and actively working to secure our facilities.

Governor Hochul directed the Department of Corrections and Community Supervision and the Office of Employee Relations to retain independent mediator Martin Scheinman to help bring a quick and immediate end to work stoppage.

In a move toward the striking corrections officers, DOCCS commissioner Martuscello said the agency would agree to meet some of the CO’s demands, including a partial and temporary suspension of the HALT Law, which suspended the use of solitary confinement as punishment. The HALT Law authorizes the state to suspend the law in “exceptional circumstances” where there is a “significant and unreasonable risk to safety and security of other incarcerated persons, staff, or the facility.”

The Governor included several new provisions in her 30-Day Amendments to the Executive Budget, including a new provision authorizing the state to close an additional five prisons and one codifying the wearing of body cameras.

At this time, the strike has continued and a deal among these workers has not been met. More information can be found here.