 Legislature Prepares for Home Stretch
Due to the extended holiday weekend, the State Legislature met just two days this week. However, preparations are underway for the home stretch in June. For the next three weeks, lawmakers will convene for four days instead of three each week in an effort to wrap up business by June 22. With many controversial issues to address, such as same-sex marriage, spending and property tax caps, and ethics reform, the legislature has its work cut out for it.
Dinallo Considering Run for Attorney General
Although no formal announcement has been made, it is widely expected that state Attorney General Andrew Cuomo will make a second run for governor in 2010. With that assumption in place, discussions have taken place over who would succeed Cuomo as attorney general. One potential contender is Superintendent of Insurance Eric Dinallo, who is said to be quietly considering a run for the position. Dinallo served as a top deputy to former Gov. Eliot Spitzer during Spitzer's early years as attorney general. When Spitzer became governor, he appointed Dinallo to head the state Insurance Department, and he has remained in the position under Gov. David Paterson. Dinallo is among several prominent Democrats said to be considering a run for attorney general. Governor Proposes Ethics Reform
Gov. Paterson introduced legislation this week that would reform the state's ethics laws. The reform proposal comes after findings that the executive director of the state's Commission on Public Integrity improperly leaked confidential information concerning the Spitzer Administration. The governor's reform proposal includes some changes that government watchdog groups have sought for some time. If adopted, they would be the second major overhaul of state ethics enforcement in less than three years. However, the reforms are likely to be resisted by lawmakers, who are largely responsible for policing themselves under current rules. The governor's proposal would create a new Government Ethics Commission, similar to those in 29 other states. The commission would be responsible for overseeing the executive and legislative branches of New York government and consist of only five members, with each appointed by a special screening panel rather than by elected officials, as is now the case. The commission would have broad authority to enforce laws regarding lobbying, open meetings and gifts to officials. It would also be charged with enforcing campaign finance laws, a power currently held by the state Board of Elections, which has been criticized by watchdog groups for being too passive. The commission would also more closely regulate placement agents paid by private firms to persuade the state pension fund to invest with them. A continuing investigation by Attorney General Cuomo has charged a string of prominent political consultants and former elected officials with selling access to the fund. Governor Serious about Spending Cap
Recently Gov. Paterson proposed a spending cap on state operating growth, and he let legislative leaders know that he is serious about capping state spending even if his proposal is not passed by the legislature. At a recent legislative leaders meeting, Paterson warned that if his spending cap proposal is not passed, he will take matters into his own hands by vetoing any legislation that calls for state spending. Paterson's spending cap proposal would limit state operating fund growth to the average rate of inflation from the three previous years. Critics say a statutory cap would not be effective because it could easily be changed going forward as opposed to a constitutional amendment. Legislation of Interest
The Assembly Insurance Committee met this week and reported two bills of interest. Headed to the Assembly floor is A. 8400, a program bill from the governor's office that would extend the period of continuation coverage under a group health contract from 18 months to 36 months. Heading to the Assembly Codes Committee is A.7131, an Insurance Department program bill that would regulate the life settlement industry. Insurance Committee chairman Joseph Morelle (D-Rochester) noted that the bill would have a number of amendments added to it in the Codes Committee. Similar legislation nearly passed the legislature last year. IIABNY representatives met last fall with the Insurance Department to discuss this legislative proposal and provided the agent's perspective on the life settlement business. Recent Legislation | 
