ALBANY, N.Y. (Legal Newsline) – New York Attorney General Eric Schneiderman said in a speech Monday he wants to ban outside income for New York state lawmakers.
Schneiderman made the proposal, and others, in remarks delivered at a forum hosted by the non-partisan good government group Citizens Union.
During his speech — in which he offered a sharp critique of Albany’s history of ethical lapses — the attorney general said a total ban on outside income is needed to help “cure the disease” of public corruption in the state.
Schneiderman
“In the 21st Century, it is impossible to avoid conflicts — or the appearance of conflicts — if legislators have outside employment,” Schneiderman said.
“We have more vigorous cops on the beat, defending the public trust, than ever before — but prosecutors can only respond to the symptoms of a system that is very, very ill. We must break a pattern in which scandal is followed by outrage, which is followed by reforms that largely tinker at the margins, and a press conference declaring that the problem has been solved, which is ultimately followed by another scandal. It looks to the people of New York like one charade after another.”
New York House Assembly Speaker Sheldon Silver was arrested in January and indicted last month on corruption charges.
Among other things, Silver is accused of steering state funding to a doctor whose asbestos research center referred patients to asbestos-injury law firm Weitz & Luxenberg, resulting in millions in fees for Silver.
That physician, Dr. Robert Taub, headed a mesothelioma research facility at Columbia University until Silver’s arrest. According to the New York Post, Taub is a cooperating witness for federal prosecutors.
Silver was “of counsel” at Weitz up until his arrest.
Grand jurors indicted Silver, finding he deprived citizens of his honest services by masking bribes and kickbacks as legitimate income.
They found he had no prior experience in asbestos cases, had no contact with clients, did not evaluate claims and did not advise attorneys at Weitz, which has denied knowledge of the alleged scheme.
Jurors also found he went to great lengths to conceal his relationship with Taub.
They also found he kept secret from Weitz that he allocated state funds to the doctor’s research center.
Silver has moved to dismiss the indictment.
On Monday, Schneiderman praised Gov. Andrew Cuomo for pushing ethics reform as part of the state budget process, but said more changes — drastic ones — are needed.
In addition to a ban on outside income for lawmakers, the attorney general’s plan includes:
– A “significant” salary increase for lawmakers, and automatic cost-of-living increases going forward;
– An end to per diem payments, which provide a daily allowance for lawmakers while in the Capitol, and replacing them with reimbursements for the actual costs of travel and a cap on reimbursements;
– Making changes to the way the state Senate and Assembly operate in order to empower “rank-and-file” lawmakers, in hopes of attracting more talented people to legislative service;
– A four-year term for state lawmakers;
– Amending the penal law to prohibit undisclosed self-dealing by public officials;
– Providing the Attorney General’s Office with concurrent jurisdiction over public corruption crimes; and
– Changes to the state’s campaign finance system.
Among those changes to the campaign finance system, Schneiderman proposes:
– Public matching funds;
– Dramatically-reduced contribution limits;
– Eliminating a loophole that allows limited liability corporations to funnel cash to campaigns;
– Eliminating so-called “housekeeping” committees, which, the attorney general contends, currently operate as “barely regulated slush funds” for political parties and legislative campaign committees;
– Limiting “pay-to-play” contributions; and
– Strengthening enforcement of election laws.
In 2011, Schneiderman and State Comptroller Tom DiNapoli formed “Operation Integrity,” a joint task force using the state comptroller’s power to refer cases involving the abuse of public funds to the Attorney General’s Office to investigate and prosecute public corruption. The task force’s efforts have led to more than 60 cases against state and local officials.
However, marginal reforms, enacted in the wake of past public corruption scandals, have had a negligible impact, Schneiderman said.
Lawrence Norden, deputy director of the Brennan Center’s Democracy Program, agreed there has been too much “patting ourselves on the back” for passing piecemeal reforms.
“The nexus of big money, lack of enforcement, and some unscrupulous elected officials has entrenched a political system constantly beset by scandal,” he said. “The only answer is comprehensive campaign finance reform, starting with a statewide public financing system to elevate the voices of average voters, who are too often forgotten amidst the search for big money.
“If coupled with other changes to address the conflicts of interest that pervade Albany and corrupt public policy, a cleaner, more representative New York State government is attainable.”
Daniel R. Alonso, a former federal prosecutor who recently served as Manhattan Chief Assistant District Attorney, said recent scandals have shown that incremental steps simply are not enough.
“Attorney General Schneiderman’s comprehensive set of reforms wisely focuses on preventing corruption before it happens, and puts New York State front and center in the fight against corruption in our midst,” he said.
Richard Briffault, a Columbia Law professor and panelist at Monday’s public forum, said the attorney general has proposed a comprehensive set of reforms that, if adopted, “would go far to reduce conflicts of interest and transform the ethical climate in Albany.”
Citizen Action of New York also applauded Schneiderman’s proposals.
“New Yorkers can no longer afford a state government that is being bought by billionaires and their campaign cash,” Executive Director Karen Scharff said.
When asked for comment on the attorney general’s plan, the Lawsuit Reform Alliance of New York said it would “hold off” on making any statements.
LRANY has been quite vocal in its support for new leadership in Albany.
In a letter to the editor to the Albany Times Union last week, Phoebe Stonbely, manager of operations and outreach for LRANY, wrote that the state “may finally see an opportunity for justice, fairness and common sense” following Silver’s indictment.
“Mr. Silver’s more than 20-year reign as speaker is now under federal investigation by U.S. Attorney Preet Bharara, and the Legislature finally has a chance to shake the influence of the trial lawyers and work for the people of New York,” she wrote.
“Year after year, Mr. Silver blocked sensible changes and reforms to our legal system. He adamantly opposed any reforms that would hurt of the bottom line of the trial lawyers, passed laws that would further expand liability and consistently told New Yorkers that there was no conflict of interest between his role as speaker and his six-figure income from a personal injury law firm.”
From Legal Newsline: Reach Jessica Karmasek by email at [email protected].
