In the News – New York State 

Executive Budget 30-Day Amendments Will Include Revisions to Adult-Use Cannabis Legislation 

Governor Andrew Cuomo this week announced 30-day amendments to the Executive Budget proposal to establish an adult-use cannabis program in New York. Specifically, these amendments will detail how the $100 Million in Social Equity funding will be allocated, enable the use of delivery services, and refine which criminal charges will be enforced as it relates to the improper sale of cannabis. 

 

Allocation of $100 Million Cannabis Social Equity Fund 

Under the amended proposal, the Department of State would allocate the funding, through grants administered by Empire State Development Corporation, in collaboration with the departments of Labor and Health, as well as with the Division of Housing and Community Renewal, and the offices of Addiction Services and Supports and Children and Family Services. Final allocations and administration of funding would also be contingent upon approval from the Division of the Budget. 

Through this fund, qualified community-based nonprofit organizations and local governments would apply for funding to support a number of different community revitalization efforts, including, but not limited to: 

➢ Job placement and skills services 

➢ Adult education 

➢ Mental health treatment 

➢ Substance use disorder treatment 

➢ Housing 

➢ Financial literacy 

➢ Community banking 

➢ Nutrition services 

➢ Services to address adverse childhood experiences 

➢ Afterschool and childcare services, system navigation services 

➢ Legal services to address barriers to reentry 

➢ Linkages to medical care, women’s health services and other community-based supportive services. 

 

Enabling the Use of Delivery Services 

According to Governor Cuomo, legalization is projected to create more than 60,000 new jobs, and spur $3.5 billion in economic activity while generating an estimated $350 million in tax revenue once fully implemented. 

The Governor is amending his proposal to allow for the permitting of delivery services as a way to open access to the industry. Local governments would have the opportunity to opt out from delivery services occurring within their jurisdiction. 

 

Criminality of Improper Sales 

Under the Governor’s amended proposal, specific penalties will be reduced as follows: 

➢ Criminal sale in the third degree (sale to under 21-year old) will be made a class A 

Misdemeanor. 

➢ Criminal sale in the second degree (sale of over 16 ounces or 80 grams of concentrate) 

will be made a class E felony. 

➢ Criminal sale in the first degree (sale of over 64 ounces or 320 grams of concentrate) will 

be made a class D felony. 

 

NYS Department of Financial Services Issues Report on Facebook Investigation 

The New York State Department of Financial Services (DFS) this week issued a report on its investigation into the transmission of sensitive user data by application and website designers to Facebook, finding that Facebook did little to prevent apps from sharing sensitive user data. 

Specifically, DFS found that consumer data was regularly shared with Facebook by app developers who downloaded Facebook’s Software Development Kit as part of Facebook’s free online data analytics services. Personal data that was wrongfully shared included sensitive and/or medical data such as health diagnoses, blood pressure readings, and fertility data. 

Following a report by the Wall Street Journal, Governor Andrew Cuomo directed DFS to perform an investigation which found that app developers regularly sent Facebook sensitive data, including medical and personal data, derived from consumers’ usage of third-party websites and applications. Though such data-sharing violated Facebook policy, according to DFS, Facebook took few steps to enforce the policy or to block the flow of sensitive data prior to the state’s investigation.

“Consumer protection is at the center of everything we do at DFS, and data privacy is increasingly important to consumers. Facebook instructed app developers and websites not to share medical, financial, and other sensitive personal consumer data but took no steps to police this rule,” said Superintendent of Financial Services Linda A. Lacewell. “By continuing to do business with app developers that broke the rule, Facebook put itself in a position to profit from sensitive data that it was never supposed to receive in the first place. Consumers deserve better.” 

The report focuses on the inadequate controls at Facebook that allowed it to happen, the remedial measures Facebook has undertaken as a result of the DFS investigation, and the Department’s recommendations on how to better protect consumer privacy: 

➢ Inadequate Controls: Despite the fact that sensitive data has been transmitted to Facebook every day in violation of Facebook policy, prior to the DFS investigation, Facebook did little to track whether app developers were violating its policies and to this day takes no real action against developers that do. 

➢ Remediation Efforts as a Result of the Department’s Investigation: As a result of the DFS investigation, Facebook built and implemented a screening system that is designed to identify and block sensitive information before it enters the Facebook system. Facebook also enhanced app developer education to better inform developers of their obligations to avoid transmitting sensitive data and took steps to give users more control over data that is collected about them, including from off-Facebook activity. 

➢ Recommended Further Action: Although Facebook’s remediation efforts are important first steps, Facebook must ensure that developers are fully aware of its prohibition on transmitting sensitive data, and the report recommends Facebook do more to prevent developers from transmitting sensitive data in the first place rather than simply relying on a back-end screening system. The report further urges Facebook to take additional steps to police its own rules by putting in place appropriate consequences for doing so. 

➢ Federal Regulatory Oversight: Current laws and regulations have not kept pace with the technological advancements of the “big data” industry. Although the U.S. Federal Trade Commission has taken some action, consumers would benefit from a comprehensive federal regulatory approach, as noted in the DFS’s Twitter report. 

The report also supports the adoption of Governor Cuomo’s State of the State proposal to enact NYDATA, a data privacy law that would mandate that any entity that collects data on large numbers of New Yorkers disclose the purposes of such collection, and limit the data collected to that purpose. 

 

Legislative Hearings on Executive Budget 

 

 

 

In the News – City 

New York City Promotes Double Mask Use 

New York City’s Health Department is now recommending that City residents wear two face masks instead of one to stop the spread of COVID-19. 

The City’s new face-covering guidance from the Department of Health comes after the federal Centers for Disease Control and Prevention recently updated its own guidance, indicating additional layers of material “is a good way to reduce the number of respiratory droplets containing the virus that come through the mask.” 

City Health Commissioner Dr. Dave Chokshi said the department’s double-mask guidance is based on the guidance from the CDC. 

“The single most important thing remains — wearing a face covering consistently and properly so that it covers both your nose and mouth and you wear it both indoors and outdoors,” Dr. Chokshi said. 

In addition, the Commissioner Chokshi suggested that those 65 and older and those with underlying conditions should “consider” using a higher-grade face mask like a KN95. 

MTA Approves Toll Increase But Avoids “Worst Case” Service Cuts 

The Metropolitan Transportation Authority (MTA) Board this week approved a toll increase for commuters effective in April, but the Authority was able to avoid “worst case” service cuts in both 2021 and 2022 and the associated layoffs due to federal funding approved in December. 

However, MTA Chairman and CEO Patrick Foye noted that further funding is necessary to stave off service cuts in 2023 and 2024.

“The Federal funding provided by Congress in December…has allowed the MTA to avoid the worst case cuts not just in 2021 but also 2022,” said Chairman Foye. “But the pandemic is projected to continue to wreak havoc on the MTA’s finances for the next four years as ridership gradually rebuilds. We continue to urgently request $8 billion in additional Federal aid as part of the American Rescue Plan so we can serve as the economic engine leading New York’s recovery from this devastating pandemic.” 

In addition to the receipt of $4 billion in federal aid, this short-term stability was a result of $2.9 billion in deficit financing through the Federal Municipal Liquidity Facility and improved re-estimates in dedicated taxes and fees. 

Also, the MTA predicts a gradual return to normal ridership levels, with increases in 2021 and 2022 leading to a “new normal” ridership that stabilizes in 2023 and 2024 between 80% and 92% of pre-pandemic levels. The financial plan detailed this week anticipates that the MTA will generate $62 million in 2021 and $116 million annually as of 2022 via a 7% increase in toll rates at its nine bridges and tunnels that will take effect in April. 

The Board also approved the creation of a new mid-tier toll rate for motorists who are NYCSC E-ZPass holders but are tolled via license plate because they are not using their E-ZPass tags properly. Motorists with NYCSC E-ZPass who properly use their tags will continue to get the lowest rate. Motorists who hold NYCSC E-ZPass accounts, but who do not properly use their E-ZPass tag at the time they cross an MTA bridge or tunnel will be now be charged a special rate that is lower than the Tolls by Mail rate, but higher than they would be charged had they properly used their E-ZPass tag. NYCSC E-ZPass. 

The new rates for motorists to take effect in April are below:

 

Bridge / Tunnel	Current auto toll	Auto toll to take effect in April
Bronx-Whitestone Bridge Hugh L. Carey Tunnel Queens-Midtown Tunnel RFK Bridge Throgs Neck Bridge Verrazzano-Narrows Bridge	$6.12 NYCSC E-ZPass $9.50 Tolls By Mail/non-NYCSC Tag Holders	$6.55 for tolls transacted by NYCSC E-ZPass $8.36 for NYCSC E-ZPass account holders who do not properly use their tags $10.17 for Tolls By Mail or non-NYCSC Tag Holders
Henry Hudson Bridge	$2.80 NYCSC E-ZPass $7.00 Tolls By Mail/non-NYCSC Tag Holders	$3.00 for tolls transacted by NYCSC E-ZPass $4.62 for NYCSC E-ZPass account holders who do not properly use their tags $7.50 for Tolls By Mail or non-NYCSC Tag Holders
Cross Bay Bridge Marine Parkway-Gil Hodges Memorial Bridge	$2.29 NYCSC E-ZPass $4.75 Tolls By Mail/non-NYCSC Tag Holders	$2.45 for tolls transacted by NYCSC E-ZPass $3.77 for NYCSC E-ZPass account holders who do not properly use their tags $5.09 for Tolls By Mail or non-NYCSC Tag Holders
Verrazzano-Narrows Bridge Staten Island Resident Including Discount and Rebate	$2.75 (effective rate after high- frequency discounts and rebates)	$2.95 for ALL trips (including rebates) when the NYCSC E-ZPass tag with the plan discount is properly used

 

Source: MTA
Toll rates for trucks, buses and motorcycles will be posted online at MTA.info.

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