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For Cuomo, Passing Ethics Bill was Urgent, Signing It is Not


cuomo state of the state ethics podium

Gov. Cuomo during his 2016 State of the State (via The Governor's Office)


After nearly two months, Governor Andrew Cuomo requested on Friday that the Legislature send him an ethics reform package he personally designed and pushed the Legislature to pass in June with the assistance of a message of necessity he issued to speed the process. The governor now has 10 days to sign it, which he is expected to do.

Announced by Cuomo late in the legislative session, the actual bill was then a mystery for days before being introduced in the wee hours of the morning on the final day of the session. Thanks to the governor’s message, the bill was not required to age the otherwise-mandatory three days and legislators passed it within hours despite mostly not being familiar with it.

The legislation deals with putting more scrutiny and regulations on independent expenditure campaigns and non-profit advocacy groups, known at times as 501(c)(4)s (for their tax classification) and Super PACs, which can support or oppose candidates for office, but not coordinate with them. The legislation requires greater disclosure of donors and donations, and gives stricter guidelines of who can work for the groups and what constitutes coordination between a group and a candidate.

“For the first time, independent expenditure groups and PACs will be required to adhere to unprecedented disclosure requirements, and New York will have the nation’s strongest rules defining and governing coordination and independence,” Cuomo said in a statement announcing an agreement on the legislation in June.

Cuomo has already received hundreds of bills from the Legislature since session ended in June and it has not been clear why he took weeks to request one of his own signature bills. Just before Cuomo asked the Legislature for the bill, spokesperson Dani Lever told Gotham Gazette, “We plan to call the bill down and sign it in the coming weeks.” 

The matter of prioritization for the bill-signing also underscores questions about the bill being necessary in the first place, but also issue that many took with Cuomo’s abandonment of other, more pressing government ethics and campaign finance reform proposals, many of which he had previously claimed to champion.

Many legislators and advocates disagreed with Cuomo’s assessment that the new bill required emergency action, saying that super PACs were not an issue in the major corruption convictions of former Assembly Speaker Sheldon Silver, former Senate Majority Leader Dean Skelos, and other recently disgraced legislators. It was a distraction, critics say, from the real issues facing Albany like closing the LLC loophole, eliminating current and potential conflicts of interest, and more. Some say the bill seeks to stifle contributions to issue advocacy groups that campaign for changes to environmental, education, criminal justice, government ethics, and other policies.

Discussing the legislation, Robert Perry, legislative director of the New York Civil Liberties Union (NYCLU) said, "This is a complex regulatory scheme that requires nonprofits to report not only the donations they make but that they receive, as well as their communications on issues that are important to the public. This should be of grave concern to the public as it reaches out to groups that do not engage in lobbying or campaigns but work on issues that impact us all. The lobbying law is not a place to insert reporting requirements and restrictions. They are running headlong into constitutionally protected activities."

Cuomo put the bill on the table late in the legislative session after it had become clear that the majority of the ethics reforms he proposed in his State of the State address would not pass in the Legislature, especially the Republican-controlled Senate. Many have questioned Cuomo’s commitment to his reform agenda, which he held no events to promote. When announcing the new bill June 8, Cuomo gave a booming speech about money in politics at Fordham Law School, decrying the Supreme Court’s Citizens United decision and calling his proposal a national model.

Before Cuomo even called the legislation to his desk, the Joint Commission on Public Ethics (JCOPE) passed a series of emergency regulations prompted by the bill that will go into effect 30 days after the governor does sign it. Observers see JCOPE moving at an unprecedented pace.

JCOPE regulations would change the donor disclosure limits that currently require groups spending more than $50,000 in a year on an issue or on behalf of a candidate for office disclose their donors of more than $5,000. Under the new law, groups that spend more than $15,000 would have to disclose donors of more than $2,500.

Even more irksome to many lobbyists and nonprofits is the fact that the regulations are set to be retroactive for five months before the bill was actually introduced, going back to the beginning of the year.

“I am mystified at how an agency can push through regulations that are retroactive for a bill that hasn't even become law,” said Blair Horner of The New York Public Interest Research Group. “I’m not sure why it matters so much right now as [Albany] lobbyists won’t be at work until January and the Legislature is not in session right now.”

Seth Agata, executive director of JCOPE, responded to concerns raised by Horner and others in a statement:

“The timetable in the emergency regulations the Joint Commission on Public Ethics has begun promulgating was set by the Governor and Legislature in the bill that was passed near-unanimously. The regulations only become effective 30 days after the Governor signs the legislation which is when the law becomes effective – there is no retroactive application. By acting now, JCOPE has released these emergency regulations for extended public comment before they become effective, and indeed, before they even become permanent. The Legislature and Governor have clearly spoken and enacted a law that expands the disclosure of sources of funding, and imposes those new disclosure requirements as soon as the law becomes effective, regardless of when contributions were made. JCOPE must effectuate that mandate. ”

Issues of speed and timing are at play for other portions of the bill. As Politico NY reported on Thursday, 11 sections of the bill go into effect 30 days after it is signed. One of those includes language detailing what kind of interaction is forbidden between a candidate campaign and a Super PAC. Since the bill was not signed by Sunday, the rules will not be in effect for the September primaries, when all 213 seats in the Legislature are on the ballot. Some Super PACS have been spending in city races already.

Senate Majority Leader John Flanagan embraced Cuomo’s push, introducing the bill himself in the Senate. Both Flanagan and Assembly Speaker Carl Heastie, a Democrat, appeared behind Cuomo’s use of a message of necessity to rush the bill through. Such messages are supposed to only be used in the case of emergency as the three-day aging period is designed to give the public and legislators a chance to review a measure before it comes to a vote.

***
by David King, Albany editor, Gotham Gazette
     

Read more by this writer.

Note: this article has been updated to reflect the fact that Gov. Cuomo called the bill from the Legislature.

Cuomo Cabinet Boat Trip Highlights Campaign Finance Law Concerns


Cuomo Hochul Hudson

Lt. Gov. Hochul, left, and Gov. Cuomo, right, on the Hudson (@NYGovCuomo)


On Monday, the highest ranking members of the Cuomo administration boarded a boat in the city of Hudson in Columbia County and embarked for New York City. The trip, according to Cuomo administration officials, was strictly work-related. There was a cabinet meeting; strategy sessions for the Governor’s 2017 State of the State address, and inspections of infrastructure projects like the “New New York Bridge,” which is replacing the Tappan Zee.

It was formally called a cabinet retreat, and all of the administration’s stated purposes for the journey were government related, separate from any strategizing for Cuomo’s 2018 re-election bid. And yet the administration says the cost of the boat trip was paid from Cuomo’s campaign funds.

The use of campaign funds to pay for government staff to take a working field trip appears to be completely legal under New York State campaign finance law, but critics of the system say the law is too loose, including around blurred lines like the cabinet retreat. Those who want to see campaign finance reform say the current system allows elected officials to take in significant donations, including from entities with government business, and enhance their lifestyles by paying for extravagant meals, cars, and trips; and even legal defense in criminal cases as former Assembly Speaker Sheldon Silver, former Senate Majority Leader Dean Skelos, and several others have done.

Critics say Gov. Cuomo should set an example and use campaign funds strictly for campaign-related activities. “We are old fashioned in that we think campaign funds should be used for campaigns,” said Blair Horner of the New York Public Interest Research Group. “If the governor believes such a trip is useful then taxpayers should pay for it; if he doesn't think taxpayers want pay for it then he shouldn’t do it.”

group shot on hudsonThe Cuomo administration did not respond to inquiries about why campaign funds were used to pay for the trip and whether any campaign-related activities took place. State of Politics first reported the use of the campaign money for the excursion.

Administration officials did note that attendees included Cuomo; Lieutenant Governor Kathy Hochul; the governor’s secretary, Bill Murrow; Director of State Operations Jim Malatras; Cuomo’s counsel, Alphonso David; Chief of Staff Melissa DeRosa; and Budget Director Robert Mujica; among others.

Cuomo’s official Twitter account was updated with pictures of the event but photos were not archived on the governor’s Flickr account, where almost all events Cuomo participates in are chronicled.

Dick Dadey, executive director of Citizens Union, said that he finds Cuomo’s use of campaign funds to make meetings “more pleasurable” for staff preferable to some of what others have spent campaign money on, like making car payments and pool improvements.

“I think it is an allowable expense, even though I haven't seen it before,” said Dadey. “Our position is that campaign funds should be used for conducting campaigns. But there are exceptions where there is a clear furtherance of governmental activities; where it serves a clear public interest, and what the governor did would fit into that rubric.”

While Cuomo’s use of campaign funds for a boat trip for his staff is permissible under state law; New York City campaign finance law - seen by some as a model for what the state should adopt - sets out strict restrictions for those who participate in the public matching system. The boat trip would likely not be permissible under city law, according to experts.

The city campaign finance law states: “Expenditures for non-campaign related travel, food, drink or entertainment; if a candidate uses campaign funds to pay expenses associated with travel that involves both personal activities and campaign activities, the incremental expenses that result from the personal activities shall be considered for personal use unless the candidate benefiting from the use reimburses the campaign account within thirty days for the full amount of the incremental expenses.”

Horner of NYPIRG said one of his concerns about using campaign funds in the way the governor did for the boat trip is that it can lead to staff seeing donors as having influence on their day-to-day work.

“Campaign laws do allow them to use cash to further governmental duties,” said Dadey. “So making work more pleasurable by holding a meeting on a boat rather than a stuffy room in Albany is far better than what others have used campaign cash on, like legal defenses for criminal activities.”

To that point, the Cuomo administration has also been spending significant sums of campaign money on legal services as United States Attorney Preet Bharara has opened investigations into several former and current administration officials and the governor’s major economic development programs. A July campaign finance filing shows the Cuomo campaign spent $230,000 in efforts to defend administration officials and Joe Percoco, a former top governmental aide to Cuomo, from an investigation into the premature closing of The Moreland Commission on Public Corruption.

The Cuomo campaign paid $150,000 to the firm Morvillo Abramowitz Grand Iason & Anello, which represented the administration in the Moreland investigation, which eventually resulted in Bharara announcing no charges would be brought. The campaign paid $80,000 to Schulte, Roth & Zabel, the firm that represented Percoco in the matter.

Percoco is now one focus of Bharara’s investigation into possible corruption and bid rigging in the state’s economic development initiatives. He also carries a reputation for pressuring Cuomo donors for more campaign donations.

“That is a much-less desirable use of campaign funds,” said Dadey of legal bills that relate to government work, “because it is unclear what greater government purpose is being served.”

New York City law, by comparison, does allow for the use of campaign funds for legal defense in non-criminal matters that arise during the conduct of a campaign. But, city elected officials who’ve used public matching funds are not allowed to use campaign cash for legal defense in criminal matters. These lines are being tested as Mayor Bill de Blasio faces investigations into his administration as well as campaign related activities.

***
by David King, Albany editor, Gotham Gazette
     

Read more by this writer.

inset photo via @melissadderosa

Note: Gotham Gazette is an independent publication of Citizens Union Foundation, sister organization of Citizens Union.

The Week Ahead in New York Politics, August 8


New York City Hall

New York City Hall


What to watch for this week in New York politics:

August is hitting its stride and this week looks somewhat quiet on the surface, at least by New York politics standards. After a couple of weeks with no hearings, the City Council gets back into action, but only with a few committee hearings on Tuesday. The Council will have its lone full-body Stated Meeting of the month on August 18, Thursday of next week.

Mayor Bill de Blasio starts the week coming off a rather busy one - this past week the mayor celebrated students' gains on state tests, the planned building of a new YMCA in the Bronx, and continued positive trends in city crime numbers. He also announced the impending retirement of NYPD Commissioner Bill Bratton and the promotion Chief of Department Jimmy O'Neill to the role. De Blasio also discussed policing during his weekly appearance on WNYC radio's The Brian Lehrer Show.

On Sunday, de Blasio and O'Neill marched in the Ecuadorian Parade in Queens. Then the mayor and O'Neill walked the Orchard Beach boardwalk and neighborhood and met with local residents and small business owners in the Bronx.

De Blasio starts this week with no public events Monday.

Governor Andrew Cuomo made several announcements last week in various parts of the state, including on expanding broadband internet service. He also defended his economic development programs when asked by reporters, just as his state economic development leader did so in front of an Assembly committee at a rare August hearing in Albany. Cuomo also has no public events Monday.

As always, there are several events to be aware of this week - see our day-by-day rundown below.

***Do you have events or topics for us to include in an upcoming Week Ahead in New York Politics?
e-mail Gotham Gazette editor Ben Max: This email address is being protected from spambots. You need JavaScript enabled to view it.***

The run of the week in detail:

Monday
At 10 a.m. on Monday, the New York City Department of Consumer Affairs is holding a public hearing on the “proposal to repeal and replace Chapter 6 of Title 6 of the Rules of the City of New York,” which will allow for the transfer of DCA adjudications to the Office of Administrative Trials and Hearings as required by Executive Order No. 18.

At 11 a.m. at City Hall on Monday, there wil be a "where's our park?" rally, at which Public Advocate Letitia James will be among the speakers.

At 1 p.m. on Monday, the New York City Planning Commission will hold its bi-weekly review session.

At 5 p.m. Monday, Urban Youth Collaborative will hold a press conference on school discipline at High School for Fashion Industries in Manhattan. Manhattan Borough President Gale Brewer is among those who will participate.

Tuesday
At 8:30 a.m. on Tuesday the New York Community Trust and Muslim-American leaders will host a breakfast briefing for journalists on a new effort to combat Islamophobia in New York City and throughout the country. The discussion at the briefing will be focused on counteracting negative images and rhetoric about Muslims and Islam in the media. Speakers include Shawn Morehead and Kerry McCarthy, Program Officers for the New York Community Trust; Linda Sarsour, Executive Director of the Arab American Association of New York; Tazmin Uddin, Youth Coordinator at Turning Point for Women and Families; Josh Seftel, film director at Seftel Productions; and Jaclyn Bishop, associate producer at Seftel Productions.

At 10 a.m. on Tuesday, the New York City Campaign Finance Board will hold a public meeting.

At 10:30 a.m on Tuesday the New York State Joint Commission on Public Ethics will hold a meeting. The meeting will be made available to those who cannot attend in person over live webstream.

At the City Council Tuesday:

  • At 9:30 a.m. the Subcommittee on Zoning and Franchises will meet to consider several land use applications.
  • At 11:00 a.m. the Subcommittee on Landmarks, Public Siting and Maritime Uses will meet to consider three land use applications.
  • At 11:30 a.m. the Committee on Land Use will meet to address applications and business considered by the the Subcommittee on Zoning and Franchises and the Subcommittee on Landmarks, Public Siting and Maritime Uses in their meetings earlier in the day.

At 10 a.m. and 11 a.m. on Tuesday the Department of Consumer Affairs will continue its Open House Training Series with sessions on New York City’s Paid Sick Leave Law and New York City’s Commuter Benefits Law.

At 10:30 a.m. Tuesday, schools Chancellor Carmen Fariña will visit a STEM Summer in the City program at P.S. 166 in Manhattan.

On Tuesday at 6 p.m., Manhattan Borough President Gale Brewer will host a Dominican Day Parade Launch Reception at United Palace Theater Lobby.

On Tuesday at 7 p.m. at Gracie Mansion, "Mayor de Blasio and First Lady Chirlane McCray will attend and deliver remarks at the Annual ADA Sapolin Awards in honor of the 26th Anniversary of the Americans with Disabilities Act."

Wednesday
At 10 a.m. on Wednesday, the New York City Planning Commission will hold its bi-weekly public meeting.

At 6:30 p.m. on Wednesday, the Brooklyn Historical Society will host Crown Heights Encounters: Listening Back, Moving Forward, an evening of discussion, performance, and reflection on the Crown Heights riot of August 1991 and Crown Heights’ past, present, and future. Topics of discussion include racial justice and urban renewal, and panelists include Errol Louis, host of Inside City Hall; Mark Winston Griffith, Executive Director of the Brooklyn Movement Center; Rabbi Eli Cohen, Executive Director of the Crown Heights Jewish Community Council; Natherlene Bolden, a Crown Heights Tenants Union member; and artist, Kameelah Rasheed.

At 6:30 p.m. on Wednesday, the New York Urban League and the New York Urban League Young Professionals will host Black & Blue: A Struggle for Justice at John Jay College for Criminal Justice, a town hall meeting in which various New York City stakeholders will discuss plans for law enforcement reform. Speakers will include President and CEO of the New York Urban Justice League, Arva R. Rice; New York Urban League Young Professional, Stanley Fritz; Senior Campaign Director for the MomsRising.org Food Justice and Children’s Nutritution Campaign, Monifa Bandele; Senior Community Organizer at the NAACP Legal Defense and Educational Fund Inc., Lumumba Bandele; founder of NoEqualityNoEconomy.com, Tamika Malloy; New York State Senator, Kevin Parker; President of Brooklyn NAACP, L. Joy Williams; and New York City Council Member, Jumaane Williams.

Thursday
On Thursday at John Jay College, from 9:30 a.m. to 10:15 a.m., "Alphonso B. David, counsel to Governor Andrew Cuomo, New York State Assemblywoman Rodneyse Bichotte, chair of the State Assembly’s subcommittee on the oversight of minority and women owned businesses, and CUNY Chancellor James B. Milliken speak to more than 700 MWBE (Minority and Women-Owned Business Enterprise) and SDVOB (Service Disabled Veteran Owned Business) owners from New York State and the Tri-State region at the eighth annual MWBE and SDVOB Conference on Contract Opportunities with the City University of New York (CUNY) and with the City University Construction Fund (CUCF)." The panel is part of a one-day conference, 9:30 a.m. to 3 p.m., which "includes workshops, boot camp sessions and – for those who have certification - exclusive meet-ups with procurement decision makers in various market sectors."

At 6:30 p.m. on Thursday, the Civilian Complaint Review Board will hold a public board meeting.

Friday and the weekend
No events on the calendar as of now.

***
Have events or topics for us to include in an upcoming Week Ahead in New York Politics? E-mail Gotham Gazette executive editor Ben Max any time: This email address is being protected from spambots. You need JavaScript enabled to view it. (please use "For Week Ahead" as email subject).

***
by Libby Wetzler and Ben Max
@GothamGazette



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