In the News-New York State
Governor Hochul Highlights Plan to Expand New York’s Legal Cannabis Market and Crack Down on Illegal Sales
Applications to Legally Grow, Process, Distribute, and Sell Cannabis Are Now Open
Governor Kathy Hochul this week announced the largest expansion of New York State’s legal cannabis market to date, with hundreds of licenses being made available to individuals and businesses interested in legally growing, processing, distributing, and selling cannabis. The application period opened on October 4th and continues through December 4th.
Via OCM’s application portals and FAQs eligible applicants are now able to apply for licenses for cultivation, processing, distribution, sale, or to operate a microbusiness. OCM and the Cannabis Control Board (CCB) will accept applications for review and will begin awarding licenses for cultivators, processors, distributors, microbusinesses, and retail dispensaries in early 2024. During this application window, currently operational Adult-Use Conditional Cultivators and Conditional Processors will also be able to apply to transition to full, non-conditional licenses. Entrepreneurs seeking to apply for licenses will be able to file their applications through the New York Business Express (NYBE) platform, accessible here.
The Governor also announced that continued enforcement efforts to curtail the illegal sale of cannabis across the state by OCM and the Department of Taxation and Finance has yielded seizure of more than 8,500 pounds of illicit product with an estimated street value of more than $42 million.
New partnerships with localities will enable the agencies to pursue padlocking orders against businesses illegally selling cannabis from State courts, and a new multi-agency initiative to target illegal operators for labor violations, significantly increasing fines and penalties that businesses may face.
Chapters of the Laws of 2023
Chapter 499—Sponsored by AM Magnarelli/Senator May—Authorizes adjudication of traffic control signal indications at no more than thirty-six intersections in the city of Syracuse.
Chapter 500—Sponsored by AM Fahy/Senator–Establishes a school speed zone camera demonstration program in the city of Albany.
Chapter 501–Sponsored by AM Pretlow/Senator Majority Leader Stewart-Cousins–Relates to adjudications and owner liability for a violation of traffic-control signal indications in the county of Westchester.
Chapter 502—Sponsored by Senator May/AM Magnarelli–Authorizes the city of Syracuse to establish a demonstration program imposing monetary liability on the owner of a vehicle for failure of an operator thereof to comply with posted maximum speed limits in a school speed zone.
Chapter 511—Sponsored by AM Shimsky/Senator Scarcella-Spanton–Aligns state law with federal standards regarding safety equipment on recreational vessels, including the use of whistles and fire extinguishers, to promote boating safety.
In the News-New York City
Comptroller DiNapoli: MTA Avoided a Fiscal Crisis, Now It Has To Convince Riders To Come Back
In a turnaround from the fiscal crisis it faced a year ago, the Metropolitan Transportation Authority (MTA) stands on firmer financial ground, largely because the state budget provided dedicated sources of revenue to close projected budget gaps, according to New York State Comptroller Thomas DiNapoli’s annual report on the MTA’s fiscal outlook.
The Comptroller asserted that with this improved financial picture, the burden is now on the MTA to improve the region’s transit system and win riders back, while keeping its budget balanced.
“Some risks remain, but an influx of new funding has helped the MTA shore up its finances,” Comptroller DiNapoli said. “This newfound fiscal stability gives the MTA the opportunity to make improvements that will ensure a safe, clean and on time transit system that riders want to use. If riders don’t continue to come back, the MTA risks returning to its all too familiar cycles of crisis.”
At the start of 2023, the MTA faced a $600 million budget shortfall for the year with gaps of more than $1 billion in 2024 that could have ballooned to $1.6 billion in 2026. With new funds made available by the state and city, particularly the addition of over $1 billion annually from an increase in the Payroll Mobility Tax on large New York City employers, the MTA has balanced budgets throughout its five-year financial plan through 2027.
MTA projects its overall revenue will increase by 4.4% annually over the five-year plan, largely fueled by rising tax revenue, which the MTA expects will increase an average of 6.6% annually.
Dedicated state taxes provide more than 44% of MTA’s revenue in 2024, up from 37% in 2019, making up for the drop in ridership revenue brought on by the pandemic. Fares (26%) and tolls (13%) will combine to make up 39% of the MTA’s revenue in 2024, well below 2019 when they brought in more than half of the total.
Farebox revenue exceeded the MTA’s expectations by $36 million through August, fueled by ridership gains which could provide budget relief if the trend continues, according to the Comptroller.
MTA’s increased spending, rising an average of 4% annually from 2023 through 2027 is partially driven by an 8% increase in health and welfare costs for active employees and retirees. As in past years, personnel costs, including payroll, health, and other benefit costs, are the greatest expense, comprising 60% of the MTA’s 2024 spending.
Comptroller DiNapoli projected that the greatest potential fiscal risk to the MTA would be a recession that the MTA estimates could reduce its dedicated tax revenue by anywhere from $250 million to $750 million a year and reduce ridership. MTA is also relying on revenue from planned downstate casinos to provide $500 million in each of 2026 and 2027. Any delay in the casinos’ approval could throw the Authority’s budget off-track.
The MTA projects it will reach 69% of pre-pandemic ridership in 2023 and 80% by the end of 2026. The consequences of slower ridership recovery can be steep, Comptroller DiNapoli explained. Each drop of 5% in anticipated rider recovery means $325 million less in annual revenue.
Comptroller DiNapoli’s report notes that if the Authority fails to bring riders back, it will once again face fiscal pressures that could lead to higher-than-projected fares, reductions to service, or disinvestment in the system.
Also this week, the MTA received an upgraded credit rating from Standard & Poor’s Global Ratings, which improved the MTA’s Transportation Revenue Bonds rating from “BBB+” to “A-” and the rating outlook from “stable” to “positive.” This news follows an improved rating outlook by Moody’s Investors Service in September.
According to Governor Kathy Hochul, the improved rating is expected to boost investor confidence in the MTA and could lead to reduced interest rates paid by the MTA on future capital program bonds issued using the Transportation Revenue Credit.
Bills Passed by the City Council
Introduction 78-A—Sponsored by Council Member Gale A. Brewer–Requires the Department of Consumer and Worker Protection to conduct an outreach campaign to employers, job applicants and employees about their rights under the Earned Safe and Sick Time Act of 2013.
Introduction 576-A—Sponsored by Council Member Rita Joseph–Require the Department of Parks and Recreation (DPR), to inspect and issue a report on each public restroom under its jurisdiction that has routinely been given an unacceptable rating after having been inspected by DPR.
Introduction 703-A–Sponsored by Council Member Shaun Abreu–Requires the Department of Social Services (DSS) to submit a quarterly report on the timeliness of rental assistance payments to the Council and for publication on its website, starting March 1, 2024.
Introduction 818-A–Sponsored by Council Member Gale A. Brewer-–Requires the Department of Consumer and Worker Protection to conduct an outreach campaign to employers, employees and members of the public about the Temporary Schedule Change Act.
Introduction 857-A— Sponsored by Council Member Rita Joseph—Expands current data captured by Department of Education reports, including related to special education services, to include students in foster care or temporary housing.
Introduction 1065-A–Sponsored by Council Member Erik Bottcher–Requires the City to create an Urban Forest Plan that aims to expand the tree canopy from the current 22% coverage to 30% coverage.
Introduction 1094-A—Sponsored by Council Member Carlina Rivera–Requires the Department of Correction to record all interactions when an incarcerated individual is informed of their scheduled court appearance.
Briefs
Comptroller DiNapoli: Cybercrime in New York Rises 53%
Cyberattacks in New York state increased 53% between 2016 and 2022, jumping from 16,426 incidents in 2016 to 25,112 in 2022. The number of attacks targeting critical infrastructure in New York state nearly doubled to 83 in the first half of 2023 compared to 48 during the entirety of last year, according to a report released this week by State Comptroller Thomas DiNapoli.
Estimated losses in New York from cyberattacks in 2022 totaled over $775 million, while losses nationwide totaled $10.3 billion.
Relative to other states, New York had the third highest number of ransomware attacks (135) and corporate data breaches (238) in 2022, trailing only California and Texas for ransomware attacks and California and Florida for corporate data breaches. New York also had the fourth-highest number of cybercrime victims in the nation in 2022 with losses skyrocketing 632% since 2016.
The two most attacked critical infrastructure sectors through ransomware and data breaches in New York were Healthcare and Public Health (9) and Financial Services (8). Commercial Facilities and Government Facilities (7) tied for third.
Governor Hochul Announces 18,000 Jobs Available to Asylum Seekers and Migrants
Governor Kathy Hochul this week announced the State has identified more than 18,000 job openings with nearly 400 employers who are willing to hire migrants and asylum seekers who have attained legal work status in the United States.
In August, Governor Hochul directed the State Department of Labor (NYSDOL) to begin connecting businesses with job openings to migrants and asylum seekers who have attained legal work status. This initiative has identified more than 18,000 private sector job openings at 379 companies with positions available in accommodation and food services, healthcare and social assistance, manufacturing, and administrative support.
New York Launches $60 Million Nonprofit Infrastructure Capital Investment Program
New York State is launching a $60 million capital grant program for nonprofit human services organizations across the State. The Nonprofit Infrastructure Capital Investment Program (NICIP) will support the delivery of critical services to New Yorkers.
Eligible nonprofit organizations that provide direct programs and services to New Yorkers may receive grants ranging from $50,000 to $500,000 for the completion of small- and large-scale construction projects. The Request For Applications is available here. The Dormitory Authority of the State of New York (DASNY) will administer the program for the State.
This NICIP opportunity will utilize a first come, first served process for this competitive grant program. Applications can be submitted at any point from December 1, 2023 through January 12, 2024. Applications will be scored as they are received and scoring the applications will begin as early as December 2, 2023.
All applicants scoring the minimum threshold will be advanced to DASNY for grant processing until all funding has been utilized. The emphasis for scoring applications will be on capital projects that are ‘shovel ready’ and expected to be completed on or before December 2026.
If an advanced Qualifying NICIP Applicant cannot complete the required reviews or its proposed project, that funding would be returned to the NICIP pool and awarded to the next successive NICIP Qualifying Applicant on the list of Applications.
New York City to Provide Access to Affordable Housing More Quickly, Eliminates Credit Checks For Voucher Holders
New York City households with housing vouchers will no longer undergo credit checks when selected for affordable housing — accelerating the process of entering new, affordable homes for over 4,000 families every year.
The Adams Administration made the announcement by issuing an amendment — detailed in the HPD-HDC Marketing Handbook — that prohibits marketing agents from conducting credit checks, utilizing credit score information, or requiring rental history in lieu of a credit check to determine eligibility for voucher holders.
Mayor Adams Makes Abortion Care Available Via Telehealth To New Yorkers Through NYC Health + Hospitals
New York City Mayor Eric Adams and NYC Health + Hospitals this week launched telehealth abortion access through Virtual ExpressCare.
Beginning this week, patients in New York City seeking abortion care will be able to schedule a Virtual ExpressCare appointment to speak with a New York state-licensed health care professional by video or phone, on-demand, for an assessment and counseling. If clinically appropriate and prescribed, patients will be able to receive a medication abortion kit at their New York City address within a few days.
This service will be available seven days a week, between 9 a.m. and 9 p.m., and will provide patients with access to safe, legal abortion care. NYC Health + Hospitals offers access to a full spectrum of medication and procedural abortion services at their hospital-based clinics, and this launch will expand care to include telehealth medication abortion.
Coming Up
New York State
Tuesday, October 10th
Legislative Agenda Working Group Meeting
New York State Commission on Ethics and Lobbying in Government
25 Beaver Street, 5th Floor, New York & 540 Broadway, 1st Floor Conference Room, Albany, 10 a.m.
Wednesday, October 11th
Partnerships Between School Districts and Colleges and Universities
Assembly Committees on Education & Higher Education
Roosevelt Hearing Room C, Legislative Office Building, 2nd Floor, Albany, 10 a.m.
To Discuss Retention and Recruitment for Civil Service Jobs in New York State, the New York State Pension Fund, Pensions, and Civil Service Benefits
New York State Senate Committee on Civil Service and Pensions
Van Buren Hearing Room A, Legislative Office Building, 2nd Floor, Albany, 11 a.m.
New York City
Wednesday, October 11th
Committees on Public Safety & Technology, Council Chambers – City Hall, 10 a.m.
Oversight – NYPD’s Implementation of the Public Oversight of Surveillance Technology (POST) ACT.
Subcommittee on Landmarks, Public Sitings and Dispositions, 250 Broadway, 16th Floor, 11 a.m.
Committee on Parks and Recreation & Environmental Protection, Resiliency and Waterfronts, Council Chambers – City Hall, 1 p.m.
Oversight – New York City’s Climate Resiliency Efforts.
Thursday, October 12th
Committees on Health & Youth Services, Council Chambers – City Hall, 10 a.m.
Oversight – Addressing the DOHMH Childcare Clearance Backlog.
Friday, October 13th
Committee on Transportation and Infrastructure, Council Chambers – City Hall, 10 a.m.
Oversight – An Update on TLC’s Regulated Industries.
Committee on Education, General Welfare and Criminal Justice, Committee Room – City Hall, 10 a.m.
Oversight – Educational Programming in Detention Facilities.
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