Wednesday, March 31, 2021

POLITICO New York Playbook: Legislature votes to legalize marijuana — Biden administration green lights congestion pricing — Deal close on relief fund

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By Erin Durkin and Anna Gronewold with Jonathan Custodio

Presented by Uber Driver Stories

New York will become the latest state to legalize marijuana, after a years-long push culminated in a vote by the state Legislature to approve a bill ending the prohibition of the drug.

The legislation passed the state Senate by a vote of 40-23 Tuesday night, followed by a 100-49 vote in the Assembly. Gov. Andrew Cuomo, who struck a deal with legislators over the weekend on the details of the legalization blueprint, plans to sign it.

Legal sales are expected to begin a year or more from now for adults 21 and over, eventually growing into a new industry generating $350 million in annual revenue for the state. There will be a 9 percent sales tax on the drug and another 4 percent for local and county governments. The money will be split with 40 percent going to a social equity fund, 20 percent to drug treatment, and 40 percent to schools.

The law will expunge past pot convictions, while eliminating penalties for possession of less than three ounces of cannabis. To backers, the legislation rights a historic injustice: Black and Latino New Yorkers facing the vast majority of arrests and punishment for a drug white people were just as likely to use. "I could not be more proud to cast my vote to end the failed policies of marijuana prohibition in our state, and begin the process of building a fair and inclusive legal market for adult-use cannabis," state Sen. Liz Krueger, the bill's longtime Senate sponsor, said after the vote. "It has been a long road to get here, but it will be worth the wait. The bill we have held out for will create a nation-leading model for legalization." "Today we are reversing 90 years of prohibition," added Assembly Majority Leader Crystal Peoples-Stokes.

The wide-ranging legislation also creates a state Office of Cannabis Management to oversee New York's recreational, medical and agricultural cannabis markets, and allows adults to grow up to three mature and three immature pot plants in their homes.

There was plenty of opposition from Republicans and heated debate on the measure, with Senate minority leader Rob Ortt calling it a "deeply flawed piece of legislation that will hurt the health and safety of New Yorkers." But with Democrats in firm control of Albany, it passed by a large margin anyway, clearing the way for the Empire State to officially join 16 other states that have embraced full legalization.

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WHAT ALBANY'S READING

STATE LAWMAKERS seem close to agreeing on a multibillion-dollar fund to provide unemployment benefits to undocumented immigrants and former convicts who have been excluded from federal aid packages since the start of the pandemic. Talks between officials have progressed to the point that they are now focused on how the relief plan, called the Excluded Workers Fund, would work "programmatically," said Sen. Jessica Ramos (D-Queens), one of the most vocal champions of the proposal. "Right now discussions are around eligibility and access." It would be the country's most-ambitious such program by a wide margin. California officials have gained national attention for a couple of relief programs for undocumented immigrants, including one last spring that provided $500 checks to a relatively small number of people who were able to connect with an overwhelmed phone system. New York's program would provide some recipients with $27,300. POLITICO's Bill Mahoney

"DEEP-POCKETED donors flooded New York Gov. Andrew Cuomo's campaign coffers with cash in recent months as the state's top Democrat repeatedly dismissed calls to increase taxes on the rich. An analysis of campaign contributions shows Cuomo took in more than $568,000 from 15 billionaire supporters over the second half of 2020. The flood of cash came as the governor voiced his opposition to raising revenue through new levies on the Empire State's wealthiest residents, arguing elites will simply pull up roots and move elsewhere. Cuomo's fellow Dems in the Legislature disagree and have proposed a raft of new taxes on corporations and the most well-off New Yorkers they say could raise $7 billion in new revenue." New York Daily News' Denis Slattery

AS THE CLOCK ticks closer to the budget deadline of 11:59 p.m. on Wednesday, is there any chance that lawmakers might find a way to pull off a surprise and finish up the state's spending plan on time? "That's extremely ambitious. I think later in the week is more likely," Senate Deputy Leader Mike Gianaris said early Tuesday afternoon. "Staff are working hard to get more bills in, but to expect all that to happen in the next 35 hours is probably too much to ask."...The biggest question still seems undecided — just how much the state might make in new revenue from increased taxes on high earners. Both houses of the Legislature have supported $7 billion in new taxes, while Gov. Andrew Cuomo has said that only about $2.5 billion is needed thanks to recent federal aid. "Discussions on the spending side are moving forward, but the large question of revenue generation is still outstanding," Gianaris said. POLITICO's Bill Mahoney, Marie J. French, and Garrett Downs

"COLLEGE SPORTS venues can begin bringing fans back to the stands with COVID-19 guidelines in just a few days. Governor Andrew Cuomo announced Tuesday afternoon that intercollegiate sports and large-scale venues that hold more than 1,500 indoors can host up to 10 percent capacity, and places that hold more than 2,500 outdoors can host up to 20 percent outdoor capacity, beginning April 2." Spectrum's Luke Parsnow

 

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WHAT CITY HALL'S READING

THE CROWDED New York City mayor's race features career politicians, experienced government hands, nonprofit executives and a former presidential contender. Only one person joined the throng by way of Wall Street — a reminder that investment bankers rarely flirt with public office. Now that candidate is the sole Democrat refusing to release his tax returns. Ray McGuire, a 64-year-old former Citigroup executive who has already spent nearly $4 million on his mayoral bid, declined POLITICO's request to review the past four years of tax returns — eschewing a standard practice in vetting candidates for any major office. His team would not commit to ever releasing his tax returns, simply saying he would make public financial disclosures that the city Conflicts of Interest Board requires of all candidates — and publicizes — anyway. POLITICO's Sally Goldenberg and Joe Anuta

"LENOX HILL Hospital in Manhattan advertised its 'Covid-19 Testing' on a large blue and white banner outside its Greenwich Village division's emergency room. The banner said nothing about cost. But cost turned out to be the testing's most noteworthy feature. Lenox Hill, one of the city's oldest and best-known hospitals, repeatedly billed patients more than $3,000 for the routine nasal swab test, about 30 times the test's typical cost. 'It was shocking to see a number like that, when I've gotten tested before for about $135,' said Ana Roa, who was billed $3,358 for a test at Lenox Hill last month. Ms. Roa's coronavirus test bill is among 16 that The New York Times reviewed from the site. They show that Lenox Hill arrives at its unusually high prices by charging a large fee for the test itself — about six times the typical charge — and by billing the encounter as a 'moderately complex' emergency room visit." The New York Times' Sarah Kliff

— Racial disparities in the city's vaccination push are slowly lessening, but many poorer neighborhoods are still being left behind.

— Newly eligible New Yorkers age 30 and over scrambled to find vaccine appointments.

"OVER THE LAST year, New Yorkers have seen (and smelled) an uptick in the amount of trash on our streets (and the number of rats luxuriating in said trash) because of pandemic-related budget cuts. The city restored some garbage collection services last fall, but Tuesday, Mayor Bill de Blasio announced three new initiatives to try to better cleanse the streets of the city before everyone starts frolicking outside this summer." Gothamist's Ben Yakas

AFTER YEARS OF DELAY the Metropolitan Transportation Authority is one step closer to implementing a first-in-the-nation congestion pricing system. The Biden administration has notified the transit agency that it should launch an environmental assessment of congestion pricing, a key step toward implementing a system that would charge drivers to enter Manhattan south of 60th Street. Transit officials have been waiting for the federal government to provide information on what type of environmental review it must conduct for years, but the Trump administration never weighed in — a delay MTA transit leaders chalked up to a "cynical" political maneuver. An environmental assessment is a far less rigorous process than the full scale environmental impact statement the federal government could have also directed state leaders to conduct, which typically take years to complete. The decision indicates the Biden administration is interested in moving the process forward as quickly as possible. POLITICO's Danielle Muoio

"THE MTA will reverse service cuts on the C and F subway lines in the coming weeks, nearly a year after transit officials quietly slashed the number of trains that run on the routes." New York Daily News' Clayton Guse

FIRST IN PLAYBOOK — The United Firefighters Association is endorsing state Sen. Brad Hoylman for Manhattan borough president. Union VP Bobby Eustace said Hoylman "has had the backs of firefighters in the senate, and we know he'll always look out for working people and the public employees." The nod follows his endorsement by the United Federation of Teachers. The union is also endorsing Council Member Robert Cornegy Jr. for Brooklyn BP.

ON THE TRAIL — At a criminal justice and reentry mayoral forum Tuesday night, five candidates all agreed on the need to close Rikers Island, and pushed for education and mental health investments to prevent incarceration "An ounce of prevention is worth a pound of cure," said former Sanitation commissioner Kathryn Garcia. Former housing commissioner Shaun Donovan plans to create a chief equity officer, a pre-trial agency, eliminate solitary confinement, and remove safety officers from schools regardless of which agency they work for, while Citigroup executive Ray McGuire touted plans to create an emergency social services bureau. — Jonathan Custodio

 

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FROM THE DELEGATION

A GROUP OF A blue-state Democrats is pushing for its top tax priority as part of President Joe Biden's next major legislative package — a possible voting bloc that could make or break the bill if they stay united on the House floor. The House Democrats stepping forward want to see a Biden infrastructure package that repeals the Trump-era limit on state and local tax deductions, known as the SALT deduction. The repeal is popular among blue-state members of their party but carries a significant budgetary cost, making it one of the emerging fault lines in Democrats' coming infrastructure talks. "I think that if it doesn't happen now, it's not going to happen," said Rep. Tom Suozzi (D-N.Y.), who this week became the first Democrat to vow he'd oppose any future tax increases without a restoration of the SALT deduction. POLITICO's Sarah Ferris

"PRESIDENT JOE BIDEN should include billions of dollars to fix beleaguered public housing as part of his forthcoming infrastructure legislation, say Rep. Ritchie Torres (D-N.Y.) and Sen. Jeff Merkley (D-Ore.) The Democrats wrote Biden on Tuesday saying he should include $70 billion for the nationwide backlog of public housing repairs, along with big funds for housing vouchers. New York Daily News' Shant Shahrigian

TRUMP'S NEW YORK

"THE LEGAL ISSUES facing former President Donald J. Trump compounded on Tuesday when the highest court in New York State allowed a defamation suit from a former contestant on his reality television show 'The Apprentice' to proceed. The suit was filed by the contestant, Summer Zervos, in 2017, after Mr. Trump said that she had lied when she accused him of having groped and kissed her against her will years earlier. Mr. Trump had tried to stop the suit, arguing that as president, he was protected from legal action. The New York Times' Jonah E. Bromwich

 

JOIN PLAYBOOK FOR A CONVERSATION WITH RON KLAIN ON THURSDAY : The Biden administration is full speed ahead with an ambitious vaccination timeline, the deployment of $1.9 trillion in pandemic relief, and a multitrillion dollar infrastructure plan. But the White House is also dealing with a mounting crisis at the border, the aftermath of back-to-back mass shootings, and a looming showdown over the Senate filibuster. Join Playbook co-author Ryan Lizza for a conversation with White House chief of staff Ron Klain to discuss Biden's agenda in the coming months and how the administration plans to address the challenges facing the nation. REGISTER HERE.

 
 
AROUND NEW YORK

— Rep. Alexandria Ocasio-Cortez is endorsing Council Member Brad Lander for comptroller.

— Scott Stringer once got a donation from Ivanka Trump.

— Governors Island will open on May 1 and add a second ferry pickup spot in Brooklyn.

— The city is looking into relocating concrete animal sculptures from local playgrounds.

— A Long Island woman tested positive for Covid-19 after getting vaccinated more than a month prior.

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SOCIAL DATA BY DANIEL LIPPMAN

HAPPY BIRTHDAY: Al Gore is 73 … MSNBC's Ari Melber … POLITICO's Ben White … NYT's Astead Herndon is 28 … CNN's Sara Murray … former Rep. Barney Frank (D-Mass.) (81) … Alan Zibel … Skadden's David ZornowRon Insana … WaPo's Marina Lopes

REAL ESTATE

"AN EXODUS OF New Yorkers to pieds-à-terre, new suburban homes or in some cases, South Florida, may finally be over. By April, the influx of people coming to New York City is expected to outpace those who jump ship, according to a new report by real estate consultant Nancy Packes Data Services and Eastdil Secured." The Real Deal's Kathryn Brenzel

 

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