Plugged In @ Hinman Straub – July 17, 2018

What’s Inside

• Governor Issues Executive Order, Launches Campaign to Pressure GOP Senators on Reproductive Rights
• Guilty Verdicts in ‘Buffalo Billion’ Case
• DOH Issues Report On Legalized Recreational Marijuana
• Governor Signs Drug Take Back Legislation into Law
• GOP Senator Calls for Senate to Return to Albany to Extend NYC Speed Cameras
• PSC Approves Offshore Wind Procurement
• DFS Report Calls for Regulation of Online Lenders
• New York’s Opioid Tax Challenged
• Political Update
• Coming Up

Governor Issues Executive Order, Launches Campaign to Pressure GOP Senators on Reproductive Rights

Last week, Gov. Cuomo focused on President Trump’s nomination of Judge Brett Kavanaugh to the U.S. Supreme Court – and the possibility that Roe v. Wade could be overturned by the U.S. Supreme Court – as a key issue in his re-election effort. 

On Monday, Gov. Cuomo on Monday emphasized his support for abortion rights by issuing an Executive Order that requires health insurers to cover over the counter emergency contraception in addition to all other contraceptive drugs, devices or other products for women approved by the FDA, as well as the dispensing of 12 months of contraceptive at one time, all without co-insurance, co-pays or deductibles.

The Governor also called on the State Senate to return to Albany to approve the Reproductive Health Act, which would codify the protections of Roe. v. Wade into state law.  (New York’s current laws regarding abortion pre-date that 1973 decision.) The Assembly has approved the measure in each of the last six years. The bill was defeated in the Senate Health Committee in May. The Governor re-election is running a digital and television ad campaign calling on the Senate to act. He is targeting individual Republican State Senators – he campaign this week in the districts of state Senators Terrence Murphy (R-Westchester County), Elaine Phillips (R-Nassau County) and Sue Serino (R-Dutchess County).

On Wednesday, Planned Parenthood Empire State endorsed Gov. Cuomo and Lt. Gov. Hochul in their re-election races.

Guilty Verdicts in ‘Buffalo Billion’ Case

On Thursday, former SUNY Polytechnic Institute President Dr. Alain Kaloyeros and three co-defendants were found guilty of bid-rigging by a federal jury. Three co-defendants were also found guilty of providing hundreds of millions of dollars in state contracts to favored companies in Buffalo and Syracuse.

The convictions stemmed from the Governor’s ‘Buffalo Billion’ initiative, an effort to spur investment and job creation in Western New York, and similar efforts in Central New York. At the trial, the prosecution presented evidence that Dr. Kaloyeros and Todd Howe, a former lobbyist with ties to the Governor, conspired to defraud a nonprofit real estate arm of SUNY Polytechnic by steering lucrative contracts to two firms whose executives were significant donors to the Governor’s campaign.

In a statement, Gov. Cuomo said:

“The jury has spoken and justice has been done. There can be no tolerance for those who seek to defraud the system to advance their own personal interests. Anyone who has committed such an egregious act should be punished to the full extent of the law.”

The Governor’s political opponents criticized the Governor, who has not been accused of wrongdoing, for enabling a culture of corruption in his administration.  Cynthia Nixon, who is challenging the Governor in the Democratic primary, said “Andrew Cuomo is either corrupt or he is spectacularly incompetent.” Her campaign released a video highlighting the Governor’s relationship with the convicted men.

Judge Valerie Caproni has scheduled sentencing for October.

DOH Issues Report On Legalized Recreational Marijuana

On Friday, the state Department of Health (DOH) released a report assessing the potential impact of regulated marijuana in New York. The report finds that “[t]he positive effects of regulating an adult (21 and over) marijuana market in NYS outweigh the potential negative impacts.”

The report recommends that “harm reduction principles can and should be incorporated into a regulated marijuana program to help ensure consumer and industry safety,” and states that “legalization of marijuana will address an important social justice issue by reducing disproportionate criminalization and incarceration of certain racial and ethnic minority communities.” It also addresses a number of other issues, including public education about the potential harms associated with marijuana use and public safety impacts.

The report estimates there would be 1.29 million consumers of marijuana in New York if a recreational system was legalized. Depending on the tax rate, the report estimates that recreational marijuana could generate between $248.1 million and $677.7 million in state and local revenue during the first year of implementation.

The report now goes to the Governor for his review.  The legalization of marijuana in New York would require action by the state Legislature.

Governor Signs Drug Take Back Legislation into Law

On Tuesday, Gov. Cuomo signed the Drug Take-Back Act into law.  The new statewide program is intended to reduce medication misuse protect the state’s water supplies by preventing drugs from being improperly disposed of by flushing or other means that result in contamination of water bodies.

The new law requires pharmaceutical manufacturers to finance and manage the safe collection and disposal of unused medications. Pharmacies with ten or more U.S. locations are required to participate as drug collection sites to help ensure convenient access for residents. The new program will begin in mid-2019.

GOP Senator Calls for Senate to Return to Albany to Extend NYC Speed Cameras

On Wednesday, State Senator Martin Golden (R-Brooklyn) Senator wants Senate to return to Albany to approve legislation that would expand and extend the speed violation monitoring systems program for school speed zones in New York City.

The Assembly approved the measure on June 18; it would expand the use of speed cameras to 290 school zones within the city and extend the program through July 1, 2022. If it is not extended, the city’s program will expire on July 25.

PSC Approves Offshore Wind Procurement

On Thursday, Gov. Cuomo announced that the state Public Service Commission (PSC) announced that the state will hold its first offshore wind auction – for 800 MW – by the end of 2018. This is the first step toward the state’s goal of 2,400 megawatts of new offshore wind generation by 2030, enough to power 1.2 million households.

The New York State Energy Research & Development Authority (NYSERDA) will procure approximately 800 MW of offshore wind through a solicitation issued in the fourth quarter of 2018, in consultation and coordination with the New York Power Authority (NYPA) and the Long Island Power Authority (LIPA). Awards are expected to be announced in the second quarter of 2019. If needed, a second solicitation will be issued in 2019.

Gov. Cuomo said:

“This action represents another major step toward establishing a clean energy future that is secure, reliable and cost-effective.  Robust offshore wind development is not only critical to meeting our clean energy and carbon reduction goals, this investment has the potential to create thousands of jobs and fuel a $6 billion industry for New York as it combats climate change.”

DFS Report Calls for Regulation of Online Lenders

On Wednesday, the state’s Department of Financial Services (DFS) released a report which finds that online lenders should be licensed and supervised by the state to “prevent risk” to the state’s financial markets.

The report recommends that the state’s consumer protection laws and regulations, including those relating to transparency in pricing, fair lending, fair debt collection practices, and data protection, should apply to all consumer lending and small business lending activities; that the state’s usury limits should apply to all lending in the state; and that online lenders should be licensed and supervised by the state.

DFS Superintendent Maria Vullo said:

“Our review shows that while online lending has grown in recent years, our banking industry still supports the overwhelming majority of lending in New York while being subject to strong safeguards and oversight.  DFS supports the promise that new technologies are able to reach more consumers, but innovation must also be responsible, and all associated risks must be appropriately managed, including by strong underwriting standards, compliance with usury laws, and capital requirements….As the regulator of the financial services industry in New York, DFS has and will continue to be a leader in enforcing robust market safeguards and consumer protections through strong state regulation, licensing and supervision.”

New York’s Opioid Tax Challenged

A national trade group representing drug distributors has filed a lawsuit challenging New York’s State’s new Opioid Stewardship Act, under which the state Health Department (DOH) will impose an annual $100 million surcharge on opioid manufacturers and distributors through 2024. The surcharge will be divided and apportioned based on each entity’s share of the market.

The Healthcare Distribution Alliance argues that the law is unconstitutional and should be enjoined because it singles out and punishes drug manufacturers and distributors for their alleged role in a “complex public health epidemic” that attempts “to scapegoat an entire industry for a crisis with complex societal roots.”

Political Update

Molinaro Releases State Government Reform Plan 

On Thursday, Republican gubernatorial candidate Marc Molinaro released his Albany Accountability Act, a comprehensive ethics reform plan that “will fundamentally alter New York State government and protect New Yorkers from the corruption that has made New York unbearably expensive for millions of middle class families.” (Read the plan here.)

Among others, Molinaro’s proposal includes term limits for statewide elected officials and members of the Legislature; convening a new Moreland Commission to investigate public corruption; banning political contributions from individuals and entities seeking state contracts; closing the LLC loophole; enacting initiative and referendum; independent redistricting; empowering an independent auditor to review all state government contracts; and replacing the Joint Commission on Public Ethics (JCOPE).

Molinaro said:

“New York State government is a cesspool of corruption under Governor Andrew Cuomo and the people of New York don’t have to put up with it anymore. The 2019 Albany Accountability is the cleansing agent New Yorkers need to wipe Albany clean of corruption, lethargy, legislative careerism, and unacceptable personal behavior. This Act may make me an unpopular incoming governor, but I’m not going to Albany to win a popularity contests — but New Yorkers deserve better and these things need to get done.”

Nixon Releases Voter Access Platform

On Wednesday, gubernatorial candidate Cynthia Nixon released a package of proposals that are intended to expand ballot access for New York’s voters. (Watch her explain her proposal here.)

She is proposing automatic voter registration; a constitutional amendment to enact same day voter registration; moving party registration deadlines to a date closer to Election Day (they are currently 11 months before party primaries); allowing state residents who are on parole to vote; consolidating the state’s federal and state primary elections; and ensuring that all polling places in the state are accessible to people with disabilities.

1199SEIU Announces Endorsements for Lt. Governor, Legislature

On Wednesday, 1199SEIU United Healthcare Workers East announced its support for Kathy Hochul in the Democratic primary for Lt. Governor, as well as the union’s slate of 2018 endorsements for the New York State Legislature.

The group endorsed Gov. Cuomo for re-election in February.

Winners & Losers

Each week, City & State New York publishes a list of the week’s political “winners” and “losers.”  Read last week’s list here.

Coming Up

Later today, the Senate Labor Committee and Economic Development Committee are holding a public hearing in Watertown “to examine the Minority and Women-Owned Business Enterprises program, and consider potential legislative solutions to create a more effective and efficient program to enhance New York’s business climate.”

Consolidated Funding Applications for Regional Economic Development Council (REDC) funds are due by July 27^th.

The Joint Commission on Public Ethics (JCOPE) holds its next meeting on July 31.

The state Board of Elections holds its next meeting on August 8.

The Public Service Commission (PSC) holds its next meeting on August 9.

New York’s primary elections will be held on Thursday, Sept. 13.