Legislative Updates
| The Riddell Group, LLC 119 Washington Ave., 2nd Flr. Albany, N.Y. 12210 Phone: (518) 434-7400/Fax: 434-0558 |
Memo
| To: | All Clients |
| From: | Glenn T. Riddell |
| Date: | June 9, 2011 |
| Re: | Client Update |
Ethics bill expands disclosure rule:
Governor Andrew M. Cuomo announced on Wednesday that he, Senate Majority Leader Dean Skelos and Assembly Speaker Sheldon Silver have reached a three-way agreement on an ethics reform package that creates unprecedented transparency, strict disclosure requirements, and an enforcement unit with broad oversight of New York State government. The Governor, the Legislative Leaders and good government groups will hold a formal public announcement of the agreement on Monday in Albany.
The Clean Up Albany Act of 2011 establishes an independent Joint Commission on Public Ethics with enforcement powers to investigate violations of law by members of both the executive and legislative branches, oversee their financial disclosure requirements, and oversee lobbyists with newly expanded disclosure rules and definition of lobbying.
State officials would be required to disclose their outside income within $100,000. The increased disclosure would begin for earnings in 2012, and become available in 2013. The time frame spares the current 212 members of the Legislature from providing information about their outside earnings until after the 2012 elections.
The bill provides much greater detail. Lawmakers must pick among 109 narrow bands of annual income topping out at $10 million under the new disclosure rules. Lawmakers now choose among six categories, with the top level as "$250,000 or more." The ranges are redacted from public view. Similar, slightly larger bands, are required for the disclosure of assets.
In addition, the public would know more about the personal wealth of Cuomo, a Democrat, whose liquid assets are all in one account at AMG National Bank.
Lawmakers would also be required to disclose clients, subject to several conditions. If a client paid less than $10,000 for the lawmakers' service, for example, it would not have to be disclosed. And if the client had no business before the state -- such as an interest in a bill, an application before an agency, a bid for a contract, grant or legislative member item -- there would be no need for disclosure.
Finally, lawyers working on criminal defense, bankruptcy, or domestic relations matters would not need to disclose any client. Officials who are insurance brokers or residential real estate brokers are not required to disclose their clients. And medical, dental and mental health clients are protected.
Still, the client disclosures would apply for an official even if he never directly worked for the client, provided he "intentionally and knowingly" took "a specific act or series of acts" to refer or solicit the client's business.
Senate Democrats, meanwhile, raised concern about who would appoint members of the Joint Commission on Public Ethics, a proposed investigatory body with authority over the Legislature and executive branch, as well as lobbyists.
The Senate and Assembly have four appointees each, but they are stacked in favor of the majority in each chamber: three for Assembly Democrats and three for Senate Republicans. Even if the political makeup of the chambers change -- the GOP controls the Senate by a razor-thin 32 to 30 majority -- the appointments would be locked in.
Democratic Senate Leader John Sampson "supports the broad concepts behind the bill, but has some concerns that a provision for permanent partisan control could detract from its independence and effectiveness," said Austin Shafran, his spokesman. Provisions for partisan balance were inserted at the insistence of Senate Republicans. The "safeguards" are needed "so no one political party can unfairly target the other," said Scott Reif, the GOP conference spokesman.
But the commission would also require two members of the same party and branch as the target of an investigation to approve its continuation. This means Senate Republicans and Assembly Democrats, each controlling three appointees, could hold a trump card to stop the investigation of one of their members.
And the trump card would never be passed to Assembly Republicans or Senate Democrats, regardless of whether they take the majority.
"This bill takes the unprecedented step of providing independent oversight of both branches of government under one commission," Cuomo spokesman Josh Vlasto said. "Checks and balances, between both branches and both parties, in order to avoid partisan witch hunts are essential."
State layoffs will start July 15th:
Gov. Andrew Cuomo's administration pushed forward Wednesday with its plan to lay off up to 9,800 state workers, setting July 15 as the date for the first wave of terminations, according to a memo obtained by the Times Union.
The memo states, starting Monday, specific jobs slated for layoff will be declared agency-by-agency by the state Budget Division so that individuals in those positions who have greater seniority have the option of transferring to jobs that are not planned for elimination.
The practice, known as "bumping," is laid out in Civil Service rules. Last month, several agencies received seniority rosters, which administrators will use to determine who will be eligible to bump another employee.
Cuomo's representatives have been at the negotiating table with two large public employee unions, the Civil Service Employees Association and the Public Employees Federation, since their contracts expired April 1. Cuomo is seeking $450 million in state workforce savings in the current fiscal year.
The memo is signed by Budget Director Robert Megna and Director of Operations Howard Glaser.
"Employees serving in titles targeted for elimination may be eligible for transfer," it says. "Not later than Monday, June 13, and subject to DOB clearance, agencies should provide to DOB a list of titles impacted by workforce reductions, and prepare to contact employees eligible for transfer." Because of bumping rights, about 30,000 employees will be affected by the plan despite the worst-case scenario of 9,800 actual layoffs. By July 15, the employees being cut will begin receiving pink slips.
Layoffs will take place in waves so that government service isn't thrown off dramatically, an administration official said. Public safety agencies would see the smallest number of reductions, if any.
The official noted the total number of layoffs could be reduced depending on savings achieved through labor concessions. The memo was sent to commissioners on Wednesday afternoon -- just as Cuomo's office was publicly releasing his proposed legislation to establish a less-generous "Tier VI" pension package for public employees.
Cuomo wants to cut state pensions for new hires:
In another sign that Gov. Andrew Cuomo is raising the stakes at the negotiating table with public workers, the governor has called for the creation of a "Tier VI" pension package that would require employees to work longer for less money in their retirement years. The governor's plan, detailed in legislation released Wednesday afternoon, comes less than two years after the Legislature passed a less-generous Tier V system secured by Gov. David Paterson.
Among the proposed changes: Raising the standard retirement age from 62 to 65; eliminating early retirement; requiring a 6 percent employee contributions for a workers' entire career rather than a limited period of time; excluding the use of overtime from calculating retirement pay; and banning the cashing in of unused sick days or vacation time.
Cuomo said the changes would save taxpayers $93 billion over 30 years -- excluding New York City, which is included in the plan but has a separate system. Tier V, which affects workers hired since the beginning of 2010, is projected to save taxpayers $35 billion over the next 30 years.
While Cuomo's bill calls for Tier VI to apply to workers hired after July 1, it remains unclear if lawmakers would take up and pass the bill within the six legislative days remaining in this year's regular session, which is set to end June 20.
The governor said skyrocketing pension costs are forcing his hand.
"The numbers speak for themselves -- the pension system as we know it is unsustainable," Cuomo said in a statement accompanying the legislation. "This bill institutes common-sense reforms to bring government benefits more in line with the private sector while still serving our employees and protecting our retirees."
Cuomo has said he would have to lay off up to 9,800 state workers as a last resort if he can't get $450 million in negotiated workforce savings this year. Much of that is expected to come from labor savings.
Legislative leaders had little immediate reaction to the pension bill Wednesday. In the Assembly, Speaker Sheldon Silver was unavailable and Mark Hansen, spokesman for Dean Skelos, said the Senate Republican majority leader "recognizes the need to address rising pension costs, and we are reviewing the governor's proposal.
Assembly passes moratorium on fracking permits:
Arguing that the state needs more time to assess the potential effects of the natural gas drilling technique known as hydrofracking, the state Assembly on Monday passed a moratorium on the issuance of new permits until June 1, 2012.
Hydrofracking involves the use of high volumes of water, mixed with chemicals, to crack open gas-bearing shale. Environmentalists have raised concerns about almost every step in the process, from the components of the fracking mixture to the potential damage done to rural roads by gas and construction vehicles
The measure would cover drilling for oil as well as gas, and would cover vertical drilling using hydrofracking -- a method already in use around the state -- as well as the horizontal drilling that the drilling industry wants to begin using to tap the Marcellus and Utica shale formations, massive gas-bearing regions that stretch from Pennsylvania into New York's Southern Tier.
The measure passed the Assembly 91-46, according to a preliminary tally. It faces an uncertain future in the Senate, where the narrow Republican majority views natural gas drilling as a major economic opportunity for hard-pressed upstate regions.
In that chamber, the moratorium is currently sponsored by Sen. David Carlucci, a freshman member of the Independent Democratic Conference. Scott Reif, a spokesman for the Republican majority, said the bill had not yet been discussed in conference.
A similar moratorium made it to Gov. David Paterson's desk last fall, when Democrats held sway in the Senate by an equally slender margin. Paterson vetoed it, but simultaneously issued an executive order blocking new permits until the state Department of Environmental Conservation finishes its long-gestating Draft Supplemental Generic Environmental Impact Statement, which will guide the way the process is regulated.
Gov. Andrew Cuomo has asked the DEC to complete that work by July 1. Assembly Speaker Sheldon Silver, a Democrat, said that while he sympathizes with both upstate's economic woes and the larger problem of the nation's ethics policy, recent environmental disasters such as the BP oil spill in the Gulf of Mexico and the nuclear catastrophe in coastal Japan show "what happens when you rely too heavily on the expertise of profit-driven industries."
The drilling industry, however, insists the process is safe. "Further delays simply are unwise and unnecessary," said Brad Gill, executive director of the state Independent Oil & Gas Association. "(The moratorium) is premised on bad science and misinformation. This bill would hurt people and places that have endured significant economic hardship and job loss."
New York could see $11.4 billion in economic activity by 2020 and up to 18,000 new jobs by 2015 if the state allows gas companies to drill into the massive Marcellus Shale formation, according to a report released Tuesday by a conservative think tank.
The study's authors — who also penned a report in 2009 that was partially commissioned by the natural-gas industry — also found that the typical Marcellus Shale gas well reaps about $4 million in economic benefits, while the environmental impacts come to about $14,000 per well.
Their study is based on a prediction of 330 horizontal wells in New York, which primary author Timothy Considine, a professor at the University of Wyoming, said is a conservative estimate. The number could expand five-fold, he said, if gas companies tap into the Utica Shale below the Marcellus.
Both formations lie below large portions of New York, with the Marcellus region taking up much of the Southern Tier and part of the Hudson Valley.
Make that five assembly vacancies:
Governor Andrew M. Cuomo announced on Wednesday the appointment of Assemblyman Jonathan Bing to serve as Special Deputy Superintendent of the New York Liquidation Bureau.
Most recently, Jonathan Bing was serving his fifth term in the New York State Assembly where he represented the 73rd Assembly District since November of 2002. During his eight years in office Assemblyman Bing has authored 70 pieces of legislation, 30 of which have been signed into law. His 2010 legislative successes included the law which provides for no fault divorce in New York State, ending the State's notoriety as the only jurisdiction in the nation without this provision. Continuing his efforts from past sessions to cut red tape for New York's small businesses, Assemblyman Bing authored two laws in 2010 that will reduce administrative burdens in the insurance and real estate brokerage industries.
The Assemblyman served on the Assembly's Health; Housing; Insurance; Judiciary; Social Services; and Tourism, Parks, Arts & Sports Development Committees. He was appointed Chairman of the Assembly Committee on Oversight, Analysis and Investigation in February 2011, after previously serving as the chair of the Committee on Libraries and Education Technology, the Legislative Task Force on People with Disabilities and the Subcommittee on Mitchell-Lama Housing.
"Assemblyman Bing is an incredibly talented and committed public servant and I am pleased to welcome him in to our administration," Governor Cuomo said. Once Bing does resign, there will be five vacant seats in the Assembly chamber.
Anthony Weiner Twitter Scandal:
As an increasing number of his fellow Democrats have been calling for his ouster, Rep. Anthony Weiner is dealing with the aftermath of his online sexting scandal, including news that an alleged nude photo of the Democratic congressman has hit the Internet. After adamantly proclaiming for a week that he had been the victim of a hacker, Rep. Weiner admitted during a tearful news conference on Monday that he had sent suggestive photographs and messages to at least six women and had repeatedly lied to cover up his actions.
Meanwhile, the public learned that Weiner's wife is three months pregnant with their first child. His wife, Huma Abedin is a high-profile aide to Secretary of State Hillary Clinton, and the two were married last July.
Weiner represents New York's 9th congressional district, serving since 1999. The district includes parts of southern Brooklyn and south and central Queens. Sadly, prior to this incident Weiner was considered a rising star in the New York congressional delegation who many believed would be the next mayor of New York.
Weiner confessed Monday to lying about sending a lewd photo of himself via Twitter to 21-year-old Seattle college student and five other women over the past three years. He also has admitted that he sent explicit photos over the Internet. The congressman said he had never personally met the women with whom he had corresponded. "I don't know what I was thinking," he said. "This was a destructive thing to do. I'm apologetic for doing it."
Weiner has refused to resign, stating that he has not broken any law however, some of his fellow lawmakers think differently. Republicans called for his resignation and leading members of his own Democratic Party have distanced themselves from him. The party's leader in the House, Rep. Nancy Pelosi of California, has called for an ethics committee investigation to see whether Weiner's actions violated any House rules.
With the ethics bill likely done rent regulations, property tax cap and marriage equality are still up for grabs. The legislature returns on Monday, with only six scheduled session days remaining.