government ethics in nys gra annual conference 2007 denver, colorado kent gardner, phd president...

Government Ethics in NYS

GRA Annual Conference 2007

Denver, ColoradoKent Gardner, PhDPresident & Chief Economist

Center for Governmental ResearchRochester & Albany, NY

2007 GRA Annual ConferenceInform &

Empower

OverviewProcurement Lobbying Law of

2005Lawsuits secure more disclosurePublic Employee Ethics Reform Act

of 2007Campaign Finance ReformThe Sheriff of Wall Street meets

Big Joe


Empower

Alan Hevesi, fmr Comptroller

Chauffeurgate Used state funds to support a full time driver &

other personal assistance for his wife—after having been caught previously

Republicans hadn’t fielded a strong candidate; Hevesi wins anyway; resigns in plea bargain with Albany County DA

Ongoing Daniel Hevesi under investigation for job at Third

Point Capital NYS pension fund invests; Andrew Hevesi gets campaign contribution from CA fund after investment

Jack Chartier, Hevesi aide, under investigation for providing state car & other favors to Peggy Lipton


Empower

Progress on Pork $200m per year in “member items” $3.5b in borrowed funds allocated; add’l $800m

appropriated Related: $400m in annual debt service on

economic development borrowing Worthy recipients:

National Museum of Catholic History and Art in Harlem ($4m)

Irish Reparatory Theater in Chelsea ($200k) St. Edward the Confessor RC in Albany ($100k) Christian Airmen in Buffalo

Lump sum in budget, secret MOU among leaders documents allocation


Empower

Progress on Pork (cont.)

Consortium of media organizations (led by Albany Times-Union) secured ruling that member items must be disclosed and lined-out in budget

Close associations revealed between legislators & recipients (I’m shocked!)

Capital pork, despite claims by Spitzer, still not subject to same level of scrutiny


Empower

Progress on Empire Zones

VERY generous benefits for economic development projects meeting specific criteria

Key provision: % tax credit driven by % increase in employment

Reporting? What reporting??Syracuse Post-Standard sues NYS & winsReveals millions to established firms—

including several very prominent law firms—who claimed “new company” status then increased employment 100% (“shirt changers”)


Empower

Procurement Lobbying Law of 2005

Lobbying law previously applied only to lobbying of NYS legislature—not state agencies

Established reporting requirements both for covered entities and private firms seeking contracts Affected entities include both state agencies and

state/local authoritiesPurpose

To limit undue influence on procurement process To improve ability of small & MWBE firms to

compete for state contracts


Empower

Procurement Lobbying Law of 2005 (cont.)

Advisory Council on Procurement Lobbying established to assess effectiveness of law

CGR engaged to conduct a survey of affected public entities and businesses Firms receiving contracts with state agencies since

enactment Certified MWBE firms Firms receiving NYS Contract Reporter

Findings 1/3 public entities thought it did not apply to them 50% of business firms hadn’t heard of the law Businesses doing regular business with the state reported

that cost of compliance was not insubstantial Conclusion: Did reduce ability of large firms to

improperly influence disposition of state contracts; Cost & complexity of compliance probably reduced competition


Empower

Public Employee Ethics Reform Act of 2007

Strongly supported by new governor, Eliot Spitzer

Expanded definition of what is reportable as lobbying activity Establishes $15,000 threshold: Any

determinations by public official or entity working in cooperation with public official for disbursement of more than $15,000 of public money (loan or grant) must be reported as lobbying

Definition now includes pork (“member items”) and disbursements under “economic assistance” rubric


Empower


(cont.)Re-defines allowable gift Formerly “anything of value” with $75 threshold Now defined specifically as "anything of more than nominal value given

to a Public Official in any form including, but not limited to money, service, loan, travel, lodging, meals, refreshment, entertainment, discount, forbearance or promise, having a monetary value“

No threshold—no gift "unless under the circumstances it is not reasonable to infer that the gift was intended to influence“ recipient


Empower


(cont.)Commission on Public Integrity Replaces Temporary State Commission on

Lobbying and State Ethics Commission Not yet implemented

Penalties increased Class A misdemeanor for first offense Can be barred from lobbying for one year for

repeated violation Four year debarment available under

provisions of procurement lobbying law Adds monetary penalty up to 3x amount not

reported (adds to existing fines of $25k/$50k)


Empower

Campaign Finance Reform

Spitzer holds congestion pricing grant, property tax “rebates,” $1B in pork, pay raise for legislators, etc hostage to reform agenda

Majority Leader Bruno weakened after July 1 revelations that he used state helicopter to attend political events

Agreement reached July 19 after 96 hour negotiation


Empower

Campaign Finance Reform (cont.)

Soft money to be limited to $300k initially, falling to $150k by 2013

“Sham” LLCs, corporate subsidiaries, registered lobbyists barred

More disclosure, enforcement, finesBundling must be disclosedNo limits on PACs, LLCsEffective date: January 2009

Now Proposed Now Proposed Now Proposed

Individual Contributions $55.9 $25.0 $15.5 $11.5 $7.6 $4.6

Statewide Office Senate Assembly


Empower

Oops . . .Troopergate July 23: Atty General

Andrew Cuomo releases report on use of state aircraft by Majority Leader Bruno

Implicates top Spitzer aides Misuse of state police to monitor Bruno Gather data from state police through sham

FOIL Phone call to reporter suggesting he

request dataWhat did he know? When did he know

it?


Empower

Troopergate continues

Aides (top flack, chief of staff, Homeland Security advisor) refused to speak to Cuomo under oath

Albany County DA begins criminal probe

Ex-flack hires prominent criminal defense attorney

What deal on campaign finance reform?????


Empower

Still troublingCampaign contributions for personal usePublic Integrity Commission appointed by GovWeak financial disclosure for elected officials

(the Shelly Silver issue)Weak conflict of interest rules for legislatorsDoor still revolves smartly for legislative aidesLegislators can receive generous honorariaBoard of Elections—still 2 and 2etc

government ethics in nys gra annual conference 2007 denver, colorado kent gardner, phd president...

Documents