Plugged In @ Hinman Straub

June 13, 2022

What’s Inside

  • State Appellate Court Rules NYS Assembly Lines Invalid, Though Will Be Used for 2022 Elections
  • Governor Signs Legislative Package to Strengthen Gun Laws
  • Governor Announces Consumer Advocate for the Department of Public Service
  • Governor Announces Launch of 43North’s Eighth Startup Competition
  • DFS Announces Regulatory Guidance on Cryptocurrency Stablecoins
  • Governor Hochul Issues Proclamation for Special Elections
  • Political Updates
  • Coming Up

State Appellate Court Rules NYS Assembly Lines Invalid, Though Will Be Used for 2022 Elections

The State’s Supreme Court, Appellate Division issued a decision ruling the NYS Assembly district lines to be “invalid” based on its procedural infirmity as previously determined by the Court of Appeals in matter of Harkenrider v. Hochul on April 27, 2022.

The Appellate Court decision however, denies the petitioners’ request to delay the 2022 Assembly primary elections – “…because the redrawing and implementing of a new assembly map before a 2022 primary election delayed even until September is, at this late date, no longer feasible“.

The now-invalid Assembly district lines will remain in place for the June 28 primary and the Nov. 8 general election, upon the formal adoption and implementation of new legally compliant NYS Assembly map. The matter regarding proceedings connected with the redrawing of the Assembly map is remanded to Supreme Court, New York County in advance of the 2024 elections.

Governor Signs Legislative Package to Strengthen Gun Laws

The Governor signed a legislative package to strengthen the state’s gun laws and close loopholes exposed by shooters in Buffalo and Uvalde. The Governor signed ten bills into law including the following:

Raise the Age to Purchase Semi-Automatic Rifles

S.9458/A.10503 requires individuals to obtain a license prior to purchasing a semiautomatic rifle. Under existing New York State law, individuals must be 21 years or older to acquire a gun license.

Banning Body Armor

S.9407-B/A.10497 makes it illegal to purchase and sell body vests for anyone who is not engaged in an eligible profession. Eligible professions include law enforcement officers and other professions, which will be designated by the Department of State in consultation with other agencies. It also requires that all body vest sales are completed in-person.

Strengthening the Red Flag Law

S.9113-A/A.10502 expands who may file an Extreme Risk Protection Order (ERPO) petition to include health care practitioners who have examined an individual within the last six months.

It amends the firearm licensing statute to ensure that mental health practitioners’ reports on potentially harmful individuals are considered closely when determining whether to issue a firearm license.

It also requires police and district attorneys to file ERPO petitions when they have acquired credible information that an individual is likely to engage in conduct that would result in serious harm—either to themselves or others.

It requires State Police and the Municipal Police Training Council to create and disseminate policies and procedures to identify when an ERPO petition may be warranted.

Microstamping 

S.4116-A/A.7926-A requires the Division of Criminal Justice Services to certify or decline to certify that microstamping-enabled pistols are technologically viable and if certified as viable, to establish programs and processes for the implementation of such technology; and establishes the crime of the unlawful sale of a non-microstamping-enabled firearm.

Closing Loopholes 

S.9456/A.10504 expands the definition of a “firearm” to include any weapon not defined in the Penal Law that is designed or may readily be converted to expel a projectile by action of an explosive. This is intended to capture firearms that have been modified to be shot from an arm brace, which are evading our current definitions of firearms and rifles.

S.9229-A/A.10428-A eliminates the grandfathering of large capacity ammunition feeding devices that were lawfully possessed prior to the enactment of the Safe Act or manufactured prior to 1994.

S.89-B/A.6716-A creates the crimes of making a threat of mass harm and aggravated making a threat of mass harm.

Enhancing Information Sharing 

S.4970-A/A.1023-A requires enhanced reporting by law enforcement to the state and federal gun databases. Agencies must report seized or recovered guns to the criminal gun clearinghouse; participate in the ATF’s collective data sharing program; and enter the make, model, caliber, and serial number of the gun into the national crime information center.

The law also requires gun dealers to enact uniform security and reporting standards. It prohibits those under 18 and not accompanied by a parent from entering certain locations of a gun dealer’s premises and requires training for all employees on conducting firearm, rifle, and shotgun transfers, including identification of and response to illegal purchases. It also requires State Police to conduct inspections of gun dealers every three years.

Reporting of Hateful and Threatening Social Media Content 

S.4511-A/A.7865-A requires social media networks in New York to provide a clear and concise policy regarding how they would respond to incidents of hateful conduct on their platform and maintain easily accessible mechanisms for reporting hateful conduct on those platforms

S.9465/A.10501 creates a new Task Force on Social Media and Violent Extremism. Housed in the Office of the Attorney General, the Task Force will study and investigate the role of social media companies in promoting and facilitating violent extremism and domestic terrorism online.

Governor Hochul said:

Gun violence is an epidemic that is tearing our country apart. Thoughts and prayers won’t fix this, but taking strong action will. In New York, we’re taking bold steps to protect the people of our state. I am proud to sign a comprehensive bill package that prohibits the sale of semiautomatic weapons to people under 21, bans body armor sales outside of people in select professions, closes critical gun law loopholes and strengthens our Red Flag Law to keep guns away from dangerous people—new measures that I believe will save lives. I am thankful to Majority Leader Stewart-Cousins, Speaker Heastie, and all our legislative partners for acting with the urgency and thoughtfulness that this issue demands. While we are taking expedient action to enhance New York State’s nation-leading gun laws, we recognize that gun violence is a nationwide problem. I once again urge Congress to follow our lead and take immediate action to pass meaningful gun violence prevention measures. Lives depend on it.

Governor Announces Consumer Advocate for the Department of Public Service

The Governor announced that Richard Berkley has been appointed by the New York State Department of Public Service as the state’s Consumer Advocate. Berkley most recently served as the Director of the Public Utility Law Project – a leading utility consumer watchdog group in New York. In this role, Mr. Berkley will lead the Department’s Office of Consumer Services, and will advise the CEO of the Department on matters pertaining to consumer protection, customer complaints, consumer trends that require investigation, and affordability policy.

The Governor said:

My administration is committed to recruiting the best and brightest to serve and advocate on behalf of New Yorkers. Richard Berkley has a long record of public service and consumer advocacy, and is uniquely qualified to protect the interests of New York’s utility customers.

Governor Announces Launch of 43North’s Eighth Startup Competition

The Governor announced that applications are now being accepted for the eighth year of 43North, the state-funded accelerator that invests $5 million annually to attract entrepreneurs to grow their businesses in Buffalo. 43North will select five seed-stage startups to receive an investment of $1 million each. The winners will join 43North’s accelerator program.

On October 20, 2022, 43North will host a live competition where a panel of judges will consider pitches from ten finalists. The judges will then select and announce the five winning companies. The startups selected to join 43North’s 2023 cohort will each receive a $1 million investment, as well as office space, mentorship, and support from 43North. They will also have access to 43North’s network of more than 600 North American investors. Companies will also have the opportunity to enroll in the START-UP NY program, and 43North’s mentorship and support program, which includes:

  • One-to-one mentorship, workshops, and access to a bank of consultant hours;
  • Access to recruitment support services to help them grow their teams in Buffalo;
  • Connections for business development;
  • Marketing and media relations support; Investor introductions

Selected companies agree to provide 5 percent equity to 43North and to locate their CEO and a minimum of half of their staff in Buffalo for at least a year.

DFS Announces Regulatory Guidance on Cryptocurrency Stablecoins

New York State Department of Financial Services (DFS) issued new Regulatory Guidance, setting foundational criteria for U.S. Dollar-backed stablecoins issued by DFS-regulated entities. A stablecoin is any cryptocurrency designed to have a relatively stable price, typically through being pegged to a commodity or currency or having its supply regulated by an algorithm. This guidance relates specifically to stablecoins with value tied directly to the value of the U.S. dollar. The new regulatory guidance addresses the following:

Backing and Redeemability

The stablecoin must be fully backed by a Reserve of assets, meaning that the market value of the Reserve is at least equal to the nominal value of all outstanding units of the stablecoin as of the end of each business day. The issuer of the stablecoin (the “Issuer”) must adopt clear, conspicuous redemption policies, approved in advance by DFS in writing, that confer on any lawful holder of the stablecoin a right to redeem units of the stablecoin from the Issuer in a timely fashion at par for the U.S. dollar.

Reserve Requirements

The assets in the Reserve must be segregated from the proprietary assets of the issuing entity and must be held in custody with U.S. state or federally chartered depository institutions and/or asset custodians.

The Reserve must consist of the following assets: U.S. Treasury Bills acquired by the Issuer three months or less from their respective maturities, Reverse repurchase agreements fully collateralized by U.S. Treasury bills, U.S. Treasury notes, and/or U.S. Treasury bonds on an overnight basis, subject to DFS-approved requirements concerning overcollateralization, and Deposit accounts at U.S. state or federally chartered depository institutions, subject to DFS-approved restrictions.

Independent Audits

The Reserve must be subject to an examination of management’s assertions at least once per month by an independent Certified Public Accountant (“CPA”) licensed in the United States and applying the attestation standards of the American Institute of Certified Public Accountants (“AICPA”)

Governor Hochul Issues Proclamation for Special Elections

The Governor issued a proclamation declaring that special elections to fill the vacancies in the 19th and 23rd Congressional Districts will be held on Tuesday, August 23. The special elections will fill the vacancies created by the resignations of Antonio Delgado and Tom Reed.

Political Updates

City & State NY’s Weekly Winners and Losers here.

Senator Brooks announces he will not seek reelection only to reverse course.

Senator Biaggi announces congressional primary against Sean Patrick Maloney.

With New York district maps comes challenges for long-time incumbents.

New district map creates eight congressional battlegrounds in New York.

What was he thinking? Mapmaker provides rationale for NY’s congressional lines.

AOC aims to topple Albany incumbents.

Assemblyman Mike Lawler announces Congressional Run in the 17th District.

Rep. Jacobs will run in new Southern Tier congressional district.

Two county executives go head-to-head in Hudson Valley congressional race.

Who’s running for what? In the Hudson Valley, shifted lines fuel slew of new races.

GOP governor candidates on negotiating budget with Dem-controlled state legislature.

Smullen may seek North Country’s state senate seat.

Sen. Tedisco barreling ahead in new district over protests from Sen. Jordan, leadership.

Andrew Giuliani holds slight lead over Lee Zeldin in GOP primary for governor.

Congressional district 10 poll, voters not sold on de Blasio.

Stringer prepares for state senate primary challenge to Hoylman.

Alexandria Ocasio-Cortez pits socialist David Alexis against NY Democrat Kevin Parker.

Coming Up

The Board of Regents will hold their next meeting on June 13 and 14.

The Public Service Commission will hold its next meeting on June 16.

JCOPE will hold its next meeting on June 28.

The Assembly will hold a public hearing to discuss the “Build Public Renewables Act” on July 28.