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:	July 28, 2011
Re:	Client Update for the Week of January 19th

Cuomo appoints three regional councils:

During a swing through Upstate New York, Governor Andrew Cuomo announced the members of Regional Economic Councils covering Western New York, the Finger Lakes and Central New York.

Cuomo first promised these councils in January, and is finally unveiling their make-up after announcing "phase II" of his administration last week, with a top priority of "jobs, jobs, jobs."

Each council is co-vice chaired by an academic leader and area business owner. Lt. Gov. Robert Duffy will chair all three counties. They are tasked with developing strategic plans that will compete for up to $1 billion in state funding from various streams, to be awarded in December.

MTA Chief Walder leaving:

Metropolitan Transportation Authority Chairman Jay Walder announced his surprising resignation last week. Walder, a holdover from the Paterson regime, is leaving the MTA to join the MTR Corporation in Hong Kong as CEO and board member. He officially becomes CEO on the first day of 2012, but will take over in an interim capacity in November.

Walder was kept on by Cuomo after he was credited for finding millions of dollars in savings from a notriously costly authority, which provides commuter rail, bus and subway service to the New York City area.

"In challenging times, we brought stability and credibility to the MTA by making every dollar count, by delivering long overdue improvements and by refusing to settle for business as usual," Walder said.

Before joining the MTA, Walder worked as the managing finance director for Transport for London.

Richard Kessel resigns:

State Power Authority CEO Richard Kessel, a longtime operative for Democrats and Republicans, resigned his $240,000-a-year post under pressure yesterday after coming under investigation by the inspector general.

Kessel is being probed for the possible improper distribution of more than $1 million in grants from the NYPA and the Long Island Power Authority, which he once headed, to politically connected groups on Long Island.

"It is clear that Kessel was using ratepayer funds to ingratiate himself with some powerful friends," said a source close to the probe being conducted by Inspector General Ellen Biben. "The investigation of Richie Kessel is ongoing."

Kessel said he would leave his post after Labor Day.

Director of State Thruway Authority steps down:

Longtime executive director of the state Thruway Authority Michael Fleischer said Wednesday that he will step down Aug. 2 from the $165,700 post for a private sector job. The departure of Fleisher comes just a day after New York Power Authority President and CEO Richard Kessel announced his departure in September. Fleischer's departure also came a month after Cuomo named a new chairman to the Thruway board -- billionaire banker and political donor Howard Milstein.

With 41 state authorities that have boards controlled by the Governor, it's a good bet that more leadership changes are ahead for the organizations, which are publicly funded but operated as distinct entities. The authorities impact a broad cross-section of life in the state.

Fleischer started as the Thruway Authority's executive director in 2003. He had been a protégé of the late John Daly, a state senator and state transportation commissioner. Fleischer was previously a first deputy commissioner at the Department of Transportation.

During his tenure, Fleischer oversaw improvements to the E-Z Pass system and other efficiencies at the 570-mile Thruway. The authority is also responsible for the 524-mile state canal system. Day-to-day operation of the Thruway Authority will be under the jurisdiction of Chief of Staff Thomas J. Ryan until a replacement for Fleischer is named.

PEF will count contract vote Sept. 27:

The Public Employees Federation has set a schedule for considering the tentative contract agreement it reached earlier this month with the Cuomo administration. A ratification vote won't be known until late September.

Here's the schedule:

• August 11-12 – Executive Board Reviews and Votes on Sending Tentative Agreement to Members.
• August 11 or 12 – Contract Communicator Supplement Sent to Members – *Supplement Will Include Complete Text of Contract, Summary of Changes, and a Table of Gains and Trade-offs in The Agreement.
• August/September – Regional Informational Meetings scheduled
• September 2 – Ballots Mailed to Members.
• September 26 – Deadline For Receipt of Ballots.
• September 27 – Ballots Counted.

This seems to ensure legislators won't return to the Capitol this summer. Top senators had planned a return pegged to the PEF deal, but it's unclear if they would wait for the votes to come in or authorize

necessary changes in payroll structure before final ratification.

Regarding the CSEA vote, ballots were sent out to members on July 22nd. Due back August 12th, they will decide if the agreement is a go. Members who helped negotiate believe it will pass.

Legislative Updates-The following bills were acted upon by Governor Cuomo:

Cuomo signs law to make NY friendlier to farm wineries:

Gov. Andrew Cuomo signed legislation that he said will reduce regulatory burdens the State Liquor Authority places on farm wineries.

"This bill is a huge boost for wineries across the state. Reducing the regulatory burdens on farm wineries will allow them to continue to thrive as a key tourism, agricultural, and economic engine for our state," Cuomo stated.

The law implements several recommendations the New York State Wine Grape Task Force made in its 2008 report to the commissioner of the state Department of Agriculture and Markets. For example, it will allow farm wineries to operate up to five branch stores without having to obtain separate licenses or being subject to the same off-premise restrictions that liquor stores have under existing state law. The branch stores will be considered extensions of the winery and not separate entities. Also, the bill lifts a restriction that limits wineries' participation in charitable events to five a year.

The state's wine and grape industry includes 1,400 vineyards statewide, in 51 of 62 counties. The five major wine-producing regions are the Finger Lakes, Long Island, the Hudson Valley, Lake Erie and the Niagara Escarpment. New York wineries produce almost 200 million bottles a year, a 50 percent increase in the last 20 years.

Immunity for overdose call signed into law:

Gov. Andrew M. Cuomo has signed into law a measure that encourages a witness or victim of a drug overdose to call 911 for medical help by protecting them from certain drug prosecutions. New York joins Washington state and New Mexico, which have adopted similar "Good Samaritan 911" measures.

Under New York's law, a person who calls 911 to report an overdose would not be charged with drug possession, possession of drug paraphernalia or certain alcohol-related offenses. Responding to the state District Attorneys Association's concerns that criminals might use the new law to duck prosecution, lawmakers agreed to allow police to initially detain and interview someone who might have called 911.

Accidental drug overdose is the fourth leading cause of death among adults in New York. About 85 percent of overdoses occur in the company of others; no medical help is sought in half of those cases. On Long Island, 370 overdose deaths from heroin, prescription drugs or alcohol -- or a combination -- were reported in 2009, said Jeffrey Reynolds, executive director of the Long Island Council on Alcoholism and Drug Dependence.

Det. Lt. Andrew Fal, commanding officer of the Nassau police Narcotics/Vice Squad, said usually people who are taking pills or shooting heroin don't do so alone.

"The basic concept for the law is good, in that it would encourage someone to get on the phone and help, without abandoning them to die," Fal said. "But if someone is providing drugs as a business, they should never receive a way out."

Teri Kroll, coordinator for People United to Stop Heroin on Long Island, traveled to Albany in June to advocate for the bill and sent letters to the governor. Her son, Timothy Kroll, 23, died of a heart attack at their Copiague home in 2009 after four years of drug addiction. Kroll said she expects the law will give drug users courage to fight their addictions.

Gov. Cuomo signs law that protects public workers who leave their jobs for active military duty:

Gov. Cuomo signed a new law that gives stronger employment protections to public workers who leave their jobs for active military duty.

The new law prohibits the state and other public employers from abolishing jobs that are open simply because a worker has been shipped overseas by the military. If a job is axed because of a broader downsizing in tight economic times, active military personnel must be offered employment in an equal position within four years of their stateside return, the new law mandates.

Sen. Greg Ball (R-Putnam) and Assemblyman Robert Castelli (R-Westchester) introduced the legislation after the Metropolitan Transportation Authority bounced an Army reservist and a National Guardsman - both bus drivers.

Reserve Sgt. Alvin Taylor was fighting in Afghanistan while the Guardsman Sgt. Andy Moreno was deployed as a supply soldier in Iraq when they received pink slips. Both were later put back on the payroll after a series of Daily News articles.

"It was unconscionable a loophole allowed those serving to basically have their livelihoods be disposed of," Ball said. "We just have to be proactive in protecting those who serve."

Gov. Andrew Cuomo's veto ends life of Task Force on Retired Race Horses:

Governor Andrew Cuomo vetoed a bill this week that would have extended the life of the New York State Task Force on Retired Race Horses, calling it an example of needless government bureaucracy.

Established in 2005, the Task Force's mission was to address the future of retired race horses and make findings and recommendations to develop and promote their use and well-being. The Task Force's report was originally due in 2006. The new deadline for its report is Dec. 31.

Bills sponsored by Assemblyman William Magee, D-Nelson, and Sen. John Bonacic, R-Mount Hope would have extended the life of the Task Force for two more years. During debate in the Senate, Sen. Liz Kreuger asked, "So we created the task force in 2005. Nobody's figured out what to do with retired racehorses between then and 2011?"

Bonacic noted that the Task Force had not issued a report yet, and defended the mission of the Task Force. The Senate passed the bill 61-0 on June 21. The Assembly passed the bill 144-0 on June 13.

In his veto message, Governor Cuomo said, "Upon taking office, I pledged to New Yorkers that it was a new day in Albany. I promised that the days of the needless proliferation of government bureaucracy were over. Approving this bill – for which there exists no compelling reason – would be contrary to my pledge to the people of this State."