In the News New York State

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1 This Week in New York This Week In New York/Page 1 Covering New York State and City Government A Publication of Pitta Bishop Del Giorno & Giblin LLC October 3, 2014 Edition In the News New York State 2015 State Budget Call Letter: Zero Growth (Again) State Budget Director Robert Megna this week launched the budget season with the annual release of the State agency call letter. He directed State agency heads to finalize their upcoming funding requests which must adhere to a Zero Growth spending plan regardless of next year s much publicized $4 billion budget surplus. Agencies are directed to submit budget requests for State Operations and Aid to Localities that assume zero growth from cash ceilings (excluding School Aid and Medicaid, which are subject to different caps, and federal funds). Planning for the out-years should not include an expectation of expense growth. The Capital Budget will continue to expedite priority infrastructure projects and focus on job creation while maintaining the Governor s commitment to debt affordability. The State will continue to abide by the debt limitations imposed by the State s Debt Reform Act, and agency capital requests should be consistent with what is already part of the State s first-ever ten year capital plan. In addition, Budget Director Megna reiterated Governor Andrew Cuomo s stance that the surplus will not go to recurring expenses. We expect that the current fiscal year will end with a record surplus due to four years of responsible fiscal management and a series of unbudgeted financial settlements reached with banks and insurance companies. These one-time revenues cannot be responsibly used for recurring expenses. The Executive is developing options for using the surplus prudently in ways that will improve the State s financial standing and not increase expectations for future State spending. State agencies must submit their spending plan to the Division of Budget by October 21 st.

2 This Week In New York/Page 2 Governor Sets NY s MWBE Bar at the Highest in the Nation Speaking at the State s annual Minority-and-Women-Owned Business Enterprise (MWBE) Conference in Albany, Governor Andrew Cuomo this week announced that his Administration is increasing its goal for state MWBE contracting to 30 percent. The 30 percent figure represents the highest goal in the country. New data on MWBE utilization in New York showed contracting of 25 percent in FY , surpassing State s former 20% bench march. The figure represents nearly $2 billion in contracts. "Discrimination and racism is alive and well and it is illegal. Government has an affirmative obligation to right these wrongs, and we need to have the same strength in enforcing these laws as we do with criminal and drug laws," Governor Cuomo said. "First, we worked hard to fix the MWBE program, looking at the goals set for the program and what had actually been achieved." In conjunction with the goal announcement, Governor Cuomo signed legislation designed to increase the number of certified MWBEs in New York State. The bill (A.9668/S.7314) authorizes the state to grant a one year provisional MWBE certification status to firms that are excluded from MWBE status because of size or net worth. In 2010, following a disparity study, New York revised its MWBE statute to increase opportunities for smaller businesses. Specifically, the State restricted MWBE participation to firms that employed less than 300 employees and MWBE owners with a personal net worth of less than $3.5 million, adjusted annually for inflation (which is approximately $3.7 million today). However, since 2010, a substantial number of firms have expressed concerns that the small business and personal net worth requirements have had the unintended consequence of excluding a significant number of MWBEs from participating on State contracts. According to Governor Cuomo, many of those unintentionally excluded businesses are firms that are still maturing and are participating in highly competitive industries where it is exceptionally difficult for them to be successful without exceeding the small business or personal net worth requirements. The bill signed this week by the Governor addresses this issue by authorizing the Director of the State s Division of Minority and Women-Owned Business Development to grant a one-year provisional MWBE certification status to firms in certain industries, without regard to the personal net worth and/or small business requirements.

3 This Week In New York/Page 3 State Gaming Commission Names New Inspector General Former New York City Health and Hospitals Corporation Deputy Inspector General Lisa Lee was announced this week as the NYS Gaming Inspector General, overseeing the State's casino development process. Speaking at the Gaming Commission s meeting, Ms. Lee indicated that she will report directly to Governor Andrew Cuomo and will investigate allegations of corruption, fraud, and misconduct in the casino siting process, according to published reports. As a part of the Upstate New York Gaming Economic Development Act of 2013, the Office of the Gaming Inspector General was created to promote transparency and accountability, and to ensure the honesty and integrity of all gaming activities, Commission employees, and those individuals and/or entities that conduct business with the Commission. The mandate of the Inspector General furthers the overall mission of the Gaming Commission which is to ensure that all lawful gaming and horse racing activity conducted in this State is of the highest integrity, credibility, and quality. Inspector General Lee served as Deputy Inspector General for the NYC Health and Hospitals Corporation for nine years. Prior to that, she served the New York City Department of Investigation as an Examining Attorney for six years, where she pursued corruption, misconduct and other violations of law, city and agency rules, regulations and ethical code of conduct. Ms. Lee also served as an Assistant District Attorney for the Kings County District Attorney s Office as well as an attorney for the NYC Human Resources Administration. The Inspector General graduated cum laude with a Bachelors of Science, Criminal Justice Planning and Administration from John Jay College of Criminal Justice and obtained a Juris Doctor from the Benjamin N. Cardozo School of Law at Yeshiva University. In the News New York City Mayor Signs Executive Order to Raise Living Wage Mayor Bill de Blasio this week signed an executive order enacting an expansion of New York City s Fair Wages for New Yorkers Act.

4 This Week In New York/Page 4 Effective immediately, commercial tenants at projects that receive more than $1 million in City subsidy will be covered by Living Wage provisions. The Living Wage will be set at $13.13 without benefits, or $11.50 per hour with benefits, and will be adjusted each year to match changes in the Consumer Price Index. It previously stood at $10.30 with benefits and $11.90 without. Based on past patterns, the City estimates the executive order will expand the reach of Living Wage provisions to 70 percent of all jobs at firms supported by City agencies. The analysis indicates Living Wage requirements would impact roughly 18,000 jobs over the next five years, compared to 1,200 under the current law. Approximately 4,100 jobs covered under the new standards would be held by employees in retail and fast-food businesses. For workers earning the state s minimum wage of $8 per hour, a Living Wage would increase their gross income from $16,640 to $27,310 per year. The order will not pertain to specific types of City-backed housing developments with high levels of affordability, small businesses with gross income under $3 million, and manufacturers. However, the Living Wage executive order eliminates an exemption for future development at Hudson Yards, according to the Mayor s office. The Living Wage will be enforced by the Department of Consumer Affairs. Comptroller Stringer Gives NYC a D for MWBE Procurement More than two-thirds of City agencies earned D s or F s on Comptroller Scott M. Stringer s inaugural assessment of how well New York City government is procuring goods and services through minority and women-owned business enterprises (M/WBEs). The letter grades, outlined in the Making the Grade report released this week, are intended as a diagnostic tool for agencies to improve performance and transparency in M/WBE spending, increase competition in City procurement, and save taxpayer dollars, according to the Comptroller. New York City spends more than $17 billion on goods and services each year, but less than four percent goes toward Minority and Women-Owned Business Enterprises, Comptroller Stringer said. When the City gets a D for how well it is meeting its own goals, it s clearly unacceptable. Local Law 1 of 2013 which updated citywide goals for M/WBE procurement, broken down along ethnic and industry lines provided the framework for the grading system. Thirty-one Mayoral Agencies and the Comptroller s Office received grades, which are based on actual spending by City agencies. The citywide average for M/WBE spending as measured against Local Law 1 in FY14 was a grade of D.

5 This Week In New York/Page 5 According to the report, two agencies in the Comptroller s report received a B grade: the Department of Cultural Affairs and the Landmarks Preservation Commission. Nine agencies received a C, including the Comptroller s Office. Seventeen agencies received a grade of D, and four Mayoral Agencies received a failing grade. Comptroller Stringer asserted the need to expand the parameters of Local Law 1 to increase the City s efforts. The next generation of the program should boost the number of agencies required to prepare utilization plans, offer enhanced training to M/WBE officers, and hold agencies accountable for spending further down their supply chain, Comptroller Stringer explained. For example, the Comptroller cited that while there are well over 100 City agencies, only mayoral agencies with annual procurement budgets over $5 million are required to prepare and submit agency utilization plans outlining their expected M/WBE procurement for the coming year. Smaller agencies and other Mayoral-controlled entities including several not held accountable to LL 1, such as the Department of Education and the New York City Economic Development Corporation spend billions of dollars annually on procurement. New York City has over 400,000 minority-owned firms and 300,000 women-owned firms, yet the M/WBE share of City procurement has dropped from a recent high of 5 percent in FY12 to only 3.9 percent in FY14. The Comptroller s letter grades examine agency spending, not contracting, and excludes spending not subject to Local Law 1, such as human services. To follow is a chart listing the agencies and their respective scores. AGENCIES ACRONYM GRADE Department of Cultural Affairs DCLA B Landmarks Preservation Commission LPC B Administration for Children s Services ACS C Civilian Complaint Review Board CCRB C Commission on Human Rights CCHR C Department of City Planning DCP C Department of Health and Mental Hygiene DOHMH C Department of Probation DOP C Department of Youth and Community Development DYCD C Law Department LAW C Office of the New York City Comptroller OCC C Business Integrity Commission BIC D Department for the Aging DFTA D Department of Buildings DOB D

6 This Week In New York/Page 6 Department of Citywide Administrative Services DCAS D Department of Consumer Affairs DCA D Department of Correction DOC D Department of Design and Construction DDC D Department of Homeless Services DHS D Department of Parks And Recreation DPR D Department of Small Business Services SBS D Department of Transportation DOT D Fire Department FDNY D Housing Preservation and Development HPD D Human Resources Administration HRA D NYC Taxi and Limousine Commission TLC D Office of Administrative Trials and Hearings OATH D Office of Emergency Management OEM D Department of Environmental Protection DEP F Department of Finance DOF F Department of Information Technology and Telecommunications DOITT F Department of Sanitation DSNY F Legislation Signed by the Mayor Intro. 48-A, sponsored by Council Member Fernando Cabrera, requires the Housing and Preservation Department to create an information guide for tenants and owners of buildings that contain multiple housing dwellings. This guide which would be offered by owners for tenants in their buildings will include responsibilities of landlords related to heat, hot water, pest management, repairs and maintenance, tenant organizations, rent-regulated leases, rental assistance for elderly or disabled tenants, and housing discrimination. Intro. 104-A, sponsored by Public Advocate Letitia James, requires ACS to submit information on youth aging out of foster care, including housing, education, and employment outcomes. Intro. 137-A, sponsored by Council Member Daniel Dromm mandates ACS to report on its efforts in obtaining government-issued personal identification for foster care youth.

7 This Week In New York/Page 7 Intro. 129-A, sponsored by Council Member Margaret Chin, increases civil penalties against owners that harass tenants from between $1,000 to $5,000 to between $5,000 and $10,000, in addition to posting the violator s information online. Intro, 187-A, sponsored by Council Member Laurie Cumbo, requires that ACS provide information regarding high school enrollment and graduation rates for youth in foster care. Intro, 371-A. sponsored by Council Member James Van Bramer allows for civil penalties for drivers who leave the scene of a crash without reporting their name, residence, license, and insurance information to the victim or a police officer. These penalties could be in addition to any other criminal or civil penalties under the State Vehicle and Traffic Law. Intro. 472-A, sponsored by Council Member Jumaane Williams, will fix 33 minor non-substantive typographical errors and drafting inconsistencies in the 2014 New York City Construction Codes. Intro. 474, sponsored by Council Member Jumaane Williams, extends the effective date of the 2014 Construction Codes from October 1, 2014 to December 31, 2014, allowing design professionals additional time to prepare plans and specifications in compliance with the new provisions. Briefs Governor Delays Decision on Court of Appeals Appointment Governor Andrew Cuomo will wait two weeks to make an appointment to the New York State Court of Appeal, opting to forgo today s deadline to avoid an election season return of the State Senate. Speaking this morning on The Capitol Pressroom, Governor Cuomo explained that if he met today s deadline to make his nomination from among the finalists recommended by the Commission on Judicial Nomination, the Senate would have to confirm with choice within 30 days. The general election is November 4 th. "I don't want this to be a decision that is to be considered at the heat and at the peak of the political season," Governor Cuomo said. "A Court of Appeals decision should have nothing to do with politics." The Governor indicated that he will make his decision prior to the election. The Commission on Judicial Nomination recommended seven candidates, including Justice Victoria Graffeo whose term expires November 29 th.

8 This Week In New York/Page 8 State Attorney General Reaches Agreement with Party City to End Discrimination in Hiring Based on Criminal Records Attorney General Eric T. Schneiderman announced a settlement today with Party City, a national retailer employing nearly 5,000 people in 49 stores across New York State. The settlement will ensure that the company complies with state laws prohibiting discrimination against individuals with criminal records. Under the terms of the agreement, Party City will no longer automatically disqualify individuals with felony convictions from advancing in the company. The Attorney General s investigation uncovered statements made by a human resources manager for Party City who, at a job fair, stated that the company did not hire individuals with felony convictions. Under New York State law, before an employer can reject applicants based on their criminal history, the employer must individually assess the applicant s record to determine whether it is relevant to the job. As part of the settlement, Party City has agreed to revise its hiring policies and procedures, conduct training for employees to ensure fair consideration of all job applicants, and pay a $95,000 penalty. Voter Registration Deadline Nears for General Election The State Board of Elections reminds all state residents to register to vote for the November 4th, 2014 general election. Candidates for Governor, Lt. Governor, Attorney General, Comptroller, U.S. House of Representatives, NYS Senate, NYS Assembly and State Supreme Court Justice as well as other local offices will be on the ballot this year, along with three statewide ballot propositions. Mail-in voter registration forms must be postmarked by midnight, October 10th and received by a board of elections no later than October 15th to be valid for the upcoming general election. New Yorkers wanting to register in-person may do so at their county boards of elections and at many state agency offices throughout the state, but must do so no later than October 24th, to be eligible to vote in the general election. Persons who are unsure whether they are registered, or wish to verify their current address, may look-up their status at the BOE website:

9 This Week In New York/Page 9 City Council Speaker Melissa Mark-Viverito Announces Legislation to Prohibit NYC From Honoring Civil Immigration Detainers Unless A Warrant is Issued by A Federal Judge City Council Speaker Melissa Mark-Viverito, along with Council Members Daniel Dromm, Rafael Espinal and Immigration Committee Chair Carlos Menchaca this week announced legislation toreduce the City s involvement in the enforcement of civil immigration laws by Immigration and Customs Enforcement (ICE). Under the legislation to be introduced by Speaker Melissa Mark-Viverito at the October 7th Stated meeting, the NYPD and the Department of Correction (DOC) may no longer honor detainer requests issued by ICE unless they are backed up by a warrant issued by a federal judge. If ICE provides a judicial warrant then the NYPD and DOC may only honor a detainer request if the subject was convicted of a violent or serious crime as defined in the bill, within the last five years or is found to be a possible match on the terrorist watch list. Speaker Mark-Viverito first addressed this issue in 2011 and again in 2013 by promoting legislation to limit the City s cooperation with ICE. Local Law 62 of 2011, Local Law 21 and Local Law 22 of 2013 established guidelines for DOC and NYPD to determine whether to honor immigration detainers. Under current law, the City honors detainer requests without a judicial warrant and if one is accused of a felony or certain misdemeanors. Coming Up New York State There are no meetings scheduled for the week of October 6 th. New York City Monday October 6th Committee on Cultural Affairs, Libraries, and International Intergroup Relations, City Hall Council Chambers, 10 a.m. Res Resolution supporting the Justice for Jazz Artists Campaign which seeks through collective bargaining to improve the lives of musicians working in New York City s jazz clubs by addressing workplace issues, including providing retirement security. Committee on Transportation, City Hall Council Chambers, 12:45 p.m. T Oversight: The MTA s Capital Plan. Int in relation to requiring certain qualified transportation benefits.

10 This Week In New York/Page 10 Int in relation to reducing the citywide speed limit to twenty-five miles per hour. Tuesday October 7th Committee on Finance, City Hall Committee Rm, 10 a.m. Int in relation to authorizing an increase in the amount to be expended annually in the Fordham Road business improvement district, extension of the Fordham Road business improvement district, and amending the district plan of the Fordham Road business improvement district to change the method of assessment upon which the district charge is based. T Resolution approving the new designation and changes in the designation of certain organizations to receive funding in the Expense Budget. City Council Stated Meeting, City Hall Council Chambers, 1:30 p.m. Wednesday October 8th Committees on Juvenile Justice and Fire and Criminal Justice Services, City Hall Council Chambers, 10 a.m. T Oversight - Examining the Treatment of Adolescents in New York City Jails and Reviewing the United States Department of Justices's Report on Violence at Rikers Island. Disclaimer: The materials in this This Week in New York report are provided for informational purposes only and are not intended to be a comprehensive review of legislative or governmental or political developments, to create a client-consultant/lobbyist relationship, or to provide consulting, lobbying or political advice. Readers are cautioned not to attempt to solve specific problems on the basis of information contained in this This Week in New York. If consulting, lobbying or government relations advice is required, please consult a professional expert in such matters. The information contained herein, does not necessarily reflect the opinions of Pitta Bishop Del Giorno & Giblin LLC, or any of its members or employees or its clients. Neither Pitta Bishop Del Giorno & Giblin LLC, nor its members or employees make any warranty, expressed or implied, and assume no legal liability with respect to the information in this report, and do not guarantee that the information is accurate, complete, useful or current. Accordingly, Pitta Bishop Del Giorno & Giblin LLC is not responsible for any claimed damages resulting from any alleged error, inaccuracy, or omission. This communication may be considered an advertisement or solicitation. To request that copies of this publication be sent to a new address or fax number, to unsubscribe, or to comment on its contents, please contact Theresa Cosgrove at tcosgrove@pittabishop.com or at (518) To Our Clients: If you have any questions regarding any of the matters addressed in this newsletter, or regarding any legislative, government relations or political or consulting or related issues in general, please contact the Pitta Bishop Del Giorno & Giblin LLC professional with whom you usually work.

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