During National Small Business Month, Governor Hochul Highlights Commitment to Supporting New York’s Business Community

Governor Secured Funding for Major Small Business Initiatives as Part of FY 2025 Budget – Including Expansions of Signature Local Economic Development Programs

Governor Launches $6 Million Innovation Matching Grant Program to Support Small Businesses Participating in Federal Small Business Innovation Research or Technology Transfer Programs – Application Here

Six Months After Historic Elimination of New York’s MWBE Backlog, Governor Announces Unprecedented Certification Response Time of Under 90 Days

Governor Unveils Package of Programming to Support NYSIF-Insured Businesses

Governor Kathy Hochul celebrated National Small Business Month, which occurs in May, by highlighting New York State’s unwavering support for its small business community. As part of the state’s celebration, Governor Hochul launched new programs to expand support for New York’s small businesses, including a $6 million Innovation Matching Grants Program to drive innovation at small businesses and a suite of programming to support nearly 100,000 businesses insured by the New York State Insurance Fund. In addition, the Governor announced a new milestone as processing times for New York’s minority- and women-owned business certification reached a historic new low. Together, these announcements build on the Governor’s vision to providing small businesses with the resources and support that they need to thrive.

“Small businesses are part of the core of New York State’s communities”, Governor Hochul said. “Through signature economic development programs, we are making sure small businesses in every corner of the state can compete, grow and thrive. We are building a modern 21st century economy and it could not be done without New York’s small business community, which is the backbone of our economy.”

There are nearly 695,000 small businesses in New York State, and approximately 98 percent of New York businesses have fewer than 100 employees. These businesses employ more than 4.5 million individuals in fields from retail and food service to financial services, to agriculture, innovation and construction.

As part of the FY 2025 Enacted Budget, Governor Hochul secured including expansions of New York’s signature Downtown Revitalization Initiative, NY Forward and FAST NY programs to strengthen local economies where small business can thrive. Under the Governor’s leadership, New York State has provided more than $1 billion in support for small businesses, including business recovery funding and seed funding for early-stage businesses during the pandemic. And at the Governor’s direction, Empire State Development has committed unprecedented support for New York’s small businesses and more than 60 percent of all funding is awarded to small businesses.

Innovation Grant Matching Program

Governor Hochul today launched ESD’s $6 million Innovation Matching Grants Program, which was first proposed in her 2023 State of the State address. This program provides application support and technical assistance to New York companies applying for the federal Small Business Innovation Research and Small Business Technology Transfer grant programs, which incentivize small businesses to engage in research and development with the potential for commercialization.

Under the program, ESD will match up to $100,000 for a successful concept development, or Phase I award, and up to $200,000 for a prototype development, or Phase II award. The Division will also provide technical assistance resources for Phase II and Phase III awardees. Applications and guidelines can be found here.

New Milestone for Minority and Women-Owned Business Certifications

Governor Hochul also announced that New York has not only exceeded its commitment to shortening response times for MWBE certification applications to 90 to 120 days – it has exceeded that commitment. Since August 1, 2023, ESD has certified and recertified over 1,500 businesses, with the average application processing time now taking less than 90 days. The announcement builds on the Governor’s strong support for MWBEs, including the historic elimination of New York’s yearslong MWBE certification backlog following an $11 million investment in the FY 2023 Budget.

Additional Support for NYSIF-Insured Businesses

Governor Hochul also unveiled new programs for NYSIF-insured businesses. NYSIF has created a Small Business Support Team to assist newly-established businesses obtain workers' compensation and to provide those policyholders with direct one-on-one support from NYSIF staff from initial underwriting through the renewal process. This includes preparing for audits, obtaining certificates of insurance, keeping accurate business records, managing claims and obtaining safety services.

The Governor also announced a Personal Protective Equipment proper fit premium credit for eligible NYSIF policyholders, establishing a one-time credit of up to 10 percent of the annual premium up to $1,000 for the purchase of related safety equipment and materials to protect New York workers. Eligible equipment includes masks, goggles, gloves, head covers and other safety-related items.

In addition, the Governor announced a new equal monthly billing option for NYSIF policyholders, allowing eligible businesses to spread their payments over the course of 12 months and eliminating larger deposits. This change will ultimately help small businesses managing cashflow throughout the annual billing cycle.

For more information on these and other programs, visit nysif.com.

Ongoing New York State Support for Small Businesses

Governor Hochul also reminded New Yorkers about existing small business support and services through New York State agencies. The New York State Department of Labor’s Business Services Representatives work with entrepreneurs to create customized solutions to help meet their business goals. DOL also offers free human resource service consultations, assists with workforce recruitment to help employers find skilled workers, and offers guidance on hiring incentives, tax credits and funding opportunities that can help employers curb costs.

Governor Hochul is also committed to supporting New York’s agricultural sector and has increased investments in agriculture by $114 million – or 60 percent – during her tenure. The FY 2025 Budget builds on the Governor’s progress by investing $55 million to maintain New York’s status as a leading producer of dairy as providing $50 million to help families access fresh food and support local small farmers. As part of the Budget, Governor Hochul has also secured an agreement to extend the sale of to-go alcoholic beverages for an additional five years.

Empire State Development also provides an array of support to New York’s small businesses through its Small Business Division. Capital access programs such as the New York Forward Loan Fund offers business-friendly loans of up to $150,000 and the Linked Deposit program helps existing businesses obtain reduced-rate financing of 2 to 3 percent to grow their footprint in New York. In addition, New York State’s venture fund invests in entrepreneurs, fund managers, and accelerators to fuel New York’s innovation ecosystem and is actively deploying over $300 million of capital for both direct and indirect investment.

Find a full array of programs to support the State’s small businesses online.

Bronx Chamber of Commerce Events - June 13: Join Us for Karaoke Night!

 

The Bronx Chamber Young Professionals Committee Presents

A Night of Karaoke at the Bronx Beer Hall

Join the newly-relaunched Bronx Chamber Young Professionals Committee at the Bronx Beer Hall on Arthur Ave. for for an evening of vibrant vocals, new connections, delicious light bites, and drink specials!

Click Here to Register



Date: Thursday, June 13

Time: 6:00 - 8:00pm

Location:

Bronx Beer Hall

2344 Arthur Avenue Bronx, NY 10458

Tickets: $25 for Members / $30 for Non-Members

Get Your Tickets

NYS Office of the Comptroller DiNapoli: MTA Faces Growing Risks to Its Capital Funding

 

Questions Leave Repairs, Maintenance and Upgrades in Doubt

New York state helped stabilize the MTA’s finances last year, but its capital program for maintaining and upgrading the regional transit system faces significant delays due to funding issues, which may also pressure its next capital plan, according to a report released by State Comptroller Thomas P. DiNapoli.

“The MTA’s capital program is critical to winning riders back to public transportation and increasing fare revenue. When capital projects are delayed, repairs and upgrades are put off, causing parts of the system to deteriorate further,” DiNapoli said. “There’s more at stake than just delayed projects. If the MTA covers the shortfall in capital funds by using its operating budget to pay for more borrowing, less money would be available for day-to-day operations and goals, like increasing service.”

Capital Program Progress

As outlined in prior reports by DiNapoli, numerous parts of the MTA’s system are in poor condition, and the MTA relies on debt to pay for the capital improvement projects to maintain and repair the system.

Delays, uncertainties, and lawsuits around congestion pricing’s implementation have slowed down the MTA’s capital work. Before the pandemic, the MTA averaged $7.1 billion in commitments to capital projects (2016-2019). In 2022, it put a record $11.4 billion toward capital work. However, those commitments slipped to $8 billion last year and the MTA’s target for 2024, once estimated at $12 billion, is now less than $3 billion.

Congestion pricing was supposed to provide about $15 billion of the MTA’s current $54.8 billion 2020-2024 capital program. Implementation delays have pushed back much-needed projects, with $9 billion in 2024 work currently at risk.

Questions over where funding will come from rise ahead of the 2025-2029 capital program, which is scheduled to be released by Oct. 1, 2024, laying out the priorities for work and repairs to the system. Given the MTA’s repair needs, its plans for resilience efforts, and its expansion projects, it is likely that the program will be at least the size of the previous program.  

If other dedicated capital revenue sources are not available, there could be at least a $25 billion funding gap in the next capital program, which would create pressure to increase debt and impact the operating budget. Without additional money from better-than-anticipated tax and fare revenues or added savings from cost efficiencies, the MTA would eventually have to raise fares or tolls or cut service to cover such a gap, which would negatively affect riders’ experience.

Debt and Borrowing

Long-term debt outstanding issued by the MTA and supported by its operating budget more than doubled from 2000 to 2010, from $11.4 billion in 2000 to $29 billion in 2010, as the MTA funded a significant portion of its capital programs with bonds. The pace of growth slowed to 22% from 2010 to 2019, to reach $35.4 billion, as state and federal support rose from the decade prior. Since 2019, however, debt has risen to accommodate increased capital spending, reaching $40.4 billion in long-term debt paid from the operating budget in 2023, a 14% increase.

The MTA’s total outstanding debt is expected to rise from $42.4 billion in 2023 to $59.9 billion in 2028. A small but growing portion of this is funded outside of the operating budget (known as capital lockbox debt and funded primarily by future congestion pricing revenues), which is projected to make up 5% of debt in 2023 and 32% in 2028.

Non-lockbox debt, which impacts the day-to-day operating budget, comprises $40.4 billion of all debt in 2023 but is estimated to decline to $38 billion in 2030 as the MTA increasingly relies on lockbox debt. This will not only help fund the capital program but also stabilize its operating budget by reducing the impact of annual debt payments on the operating budget.

Debt service, which is the amount the MTA spends to pay down debt each year (including for lockbox debt), is projected to reach $5 billion by 2031, an 83% increase over 2023’s $2.3 billion. Historically, about 16% of MTA’s annual revenue is spent on debt. Increased use of capital lockbox debt will keep that in check. If capital lockbox debt service and revenue were not kept separate from the operating budget, the MTA would be spending nearly 20% of its revenue on debt by 2031.

DiNapoli’s report calls on the MTA to explain how it intends to prioritize its needs so that its choices do not result in disinvestment in the system, noting that bringing riders back would be one of the most direct routes for the MTA to reduce its debt burden over the long term.

Report

Annual Update: Metropolitan Transportation Authority’s Debt Profile

Related Work

A Review of Capital Needs at the Metropolitan Transportation Authority (Feb. 2024)

Financial Outlook for the Metropolitan Transportation Authority (Oct. 2023)

New York City Hispanic Chamber of Commerce and JP Morgan Chase - Procurement

 

Mexico Extradites Cartel’s Precursor Chemical Broker to United States to Face Trial for Controlled Substances Manufacturing and Distribution Conspiracy

 

A Mexican national who allegedly supplied the Cártel de Jalisco Nueva Generación (CJNG or Jalisco Cartel) with precursor chemicals used to manufacture controlled substances was extradited from Mexico to Washington, D.C., to face trial.

Francisco Pulido Coracero, 66, will make his initial court appearance on May 13 before U.S. Magistrate Judge Moxila A. Upadhyaya in the District of Columbia.

In March 2021, a grand jury in Washington, D.C., charged Pulido Coracero and his co-conspirator, Carlos Algredo Vazquez, 58, with conspiracy to manufacture and distribute 500 grams or more of methamphetamine for importation into the United States, and conspiracy to distribute listed chemicals—including methylamine, nitroethane, phenylacetic acid, toluene, and acetone—to be used to manufacture methamphetamine for importation into the United States. The indictment was unsealed in February 2023.

In July 2023, Carlos Algredo Vazquez’s brother, Javier Algredo Vazquez, 56, was convicted at trial for his role in the same drug conspiracy and sentenced on Feb. 23 to 18 years and eight months in prison. 

“Precursor chemicals are the lifeblood of the Jalisco Cartel’s deadly drug trafficking operation,” said Attorney General Merrick B. Garland. “This extradition of one of the cartel’s alleged chemical suppliers, Francisco Pulido Coracero, demonstrates the long and relentless reach of the Justice Department. We are grateful to the government of Mexico for their partnership in this extradition. The Justice Department will stop at nothing to hold accountable those who devastate our communities with deadly drugs.” 

“The defendant allegedly conspired to distribute methamphetamine and its precursor chemicals into the United States for at least 10 years,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “His indictment and extradition demonstrate that the Criminal Division remains committed to disrupting and dismantling the supply chain that drug trafficking organizations use to manufacture deadly drugs and distribute them across the border. This effort reaffirms the importance of our enduring partnership with the Government of Mexico and we are thankful for the Mexican Attorney General’s Office’s help in facilitating the defendant’s extradition to the United States to face justice.”

According to court documents and evidence presented at Javier Algredo Vazquez’s trial, Pulido Coracero, Javier Algredo Vazquez, Carlos Algredo Vazquez, and other co-conspirators allegedly used seemingly legitimate companies in Mexico and the United States to acquire chemicals that are used to manufacture controlled substances from companies in China, India, and elsewhere. The chemicals were then distributed and used by the CJNG and other Mexican drug trafficking organizations to manufacture controlled substances, which were then imported into the United States.

“Pulido Coracero will now face justice for allegedly conspiring with the Jalisco Cartel, one of the two Mexican cartels responsible for the deadly methamphetamine in the United States,” said Administrator Anne Milgram of the Drug Enforcement Administration (DEA). “The Jalisco Cartel uses a variety of tactics to obtain precursor chemicals and conceal their crimes, including hiding behind the cover of legitimate businesses, which Pulido Coracero is alleged to have done. This investigation is another example of DEA’s commitment to save American lives by stopping the Jalisco and Sinaloa Cartels.”

Mexican authorities arrested both Pulido Coracero and Carlos Algredo Vazquez in October 2023. Carlos Algredo Vazquez’s extradition to the United States is still pending.

The DEA Los Angeles Field Division investigated the case with assistance from the U.S. Marshals Service’s Investigative Operations Division and Homeland Security Investigations Houston.

Trial Attorneys Kate Naseef and Jonathan Hornok, Acting Assistant Deputy Chief Nhan Nguyen, and Acting Deputy Chief Kaitlin Sahni of the Criminal Division’s Narcotic and Dangerous Drug Section are prosecuting the case.

The Justice Department’s Office of International Affairs contributed significantly to the investigation and in securing the arrest and extradition of Pulido Coracero. The Justice Department thanks Mexican authorities for their key role in securing the arrest and extradition of Pulido Coracero, including the Mexican Attorney General’s Office (FGR) and INTERPOL Mexico for providing critical assistance in support of the prosecution. 

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

D.A. Bragg: Private Air Travel Broker Pleads Guilty To Stealing Millions From Clients

 

William Boos to be Sentenced to 1 ¾-to-5 ¼ Years in Prison

Manhattan District Attorney Alvin L. Bragg, Jr. announced the guilty plea of WILLIAM BOOS, 55, a private air travel broker, for stealing more than $3 million from an international consulting firm, more than $1 million from an international art gallery, and $63,000 from a television journalist between December 2017 and December 2020. BOOS pleaded guilty in New York State Supreme Court to one count of Grand Larceny in the First Degree. He is expected to be sentenced on September 10, 2024 to a promised sentence of 1 ¾-to-5 ¼ years in state prison, and judgement orders will be issued on behalf of all three victims.

“William Boos stole millions from private air travel clients in just three years by taking advantage of his insider access to their accounts,” said District Attorney Bragg. “This prison sentence will ensure accountability for this multi-million-dollar fraud.”

According to court documents and statements made on the record in court, and as admitted in the defendant’s guilty plea, BOOS charged a major international consulting firm with an office in Manhattan millions of dollars for flights its employees did not take between December 2017 and May 2018. BOOS had a long-standing business relationship with the firm and had access to one of its American Express credit accounts to charge the firm for legitimate private charter flights. BOOS took advantage of this relationship and charged the firm’s credit card more than $3 million, without its knowledge, for flights the firm’s employees had never requested or taken.

BOOS also stole more than $1 million from an art gallery with a Manhattan office which he had provided private air travel services. Typically, the gallery paid Direct Airway directly for its trips via wire transfers. However, in September 2019, BOOS used the art gallery’s American Express account information, without its knowledge, to pay for the flights that he had booked for the art gallery — as well as for some of his other unrelated customers — essentially charging the gallery twice for the travel. When the gallery noticed the unauthorized travel charges and contacted BOOS, he claimed that the charges had been made in error and assured the art gallery that it would receive refunds. He then sent 24 forged documents to the art gallery purporting to show refunds to the American Express account.

BOOS also stole more than $63,000 from a Manhattan-based television journalist in December 2020 when the journalist booked a roundtrip flight. BOOS sent two forged contracts purportedly signed by the journalist to the charter plane provider he brokered for the flight. In those contracts, BOOS provided the journalist’s American Express credit card information without the journalist’s knowledge. Although the journalist paid BOOS for the flights by wiring funds directly to Direct Airway, BOOS did not send this money to the charter plane provider. The charter plane provider charged the journalist’s American Express credit card account instead, resulting in the journalist being billed twice for the same flights. When confronted, BOOS blamed the charter flight company and sent forged letters purportedly issued by the company apologizing for the error. He also sent the journalist’s personal assistant forged documents purporting to show refunds to the journalist’s American Express account in the amounts of the unauthorized charges.

The investigation into BOOS and his company, Direct Airways, began after American Express notified the Manhattan D.A.’s office about the suspicious activity.

Major Economic Crimes Bureau (“MECB”) Deputy Chief Christine Payne and Assistant D.A. John Cheever are handling the prosecution of the case under the supervision of MECB Bureau Chief Michael Ohm and Assistant D.A. Jodie Kane (Chief of the Rackets Bureau and Acting Chief of the Investigation Division). Principal Financial Investigator Michael Vecchio provided financial analysis for this investigation, supervised by Irene Serrapica, Principal Deputy Bureau Chief, and Robert Demarest, Chief of Forensic Accounting and Financial Investigations. Paralegals Madison Dyer and Emma Chung and former paralegals Miranda Coombe, Anna Bruckner and Anna Jurew provided analysis and assistance in the investigation.

D.A. Bragg thanked retired NYPD Detective Armando Coutinho and Detective Oscar Nieves of the NYPD-FBI Joint Major Theft Task Force for their assistance in the investigation. D.A. Bragg also thanked the Orange County, Florida, Sheriff’s Office’s Fugitive Unit for its assistance on this matter.

NYC Council Calls for Budget Restorations and Greater Investments in Programs to Address Recidivism, Mental Health and Keep New Yorkers Safe Ahead of Public Safety Executive Budget Hearing

 

Mayor’s FY25 Executive Budget fails to restore and provide funding for safety solutions that address intersecting mental health and housing crises

Ahead of the City Council’s Executive Budget hearing with the Committee on Finance and Committee on Public Safety, the Council called for restorations and greater investments into programs that would help the City reduce recidivism, respond to mental health challenges, and provide stability to New Yorkers.

There are several programs that face cuts or inadequate funding, which the Council prioritized in its Preliminary Budget Response but were left out of the Mayor’s FY25 Executive Budget.

These include:

Mental Health Courts and Diversion Programs

Mental health courts and their associated programs help facilitate appropriate mental health responses and reduce the likelihood of rearrest by diverting people into treatment with increased coordination of care to address underlying issues. These programs have lacked the capacity to fulfill the level of need, are too often unavailable, and can have average wait times of months for appropriate placement because of insufficient investments to operate at scale. The Council called upon the Administration to provide an additional $8.9 million for baseline funding for mental health courts that connect people to appropriate interventions: $4.7 million in additional resources for the Manhattan Mental Health Court and the Judicial Diversion Court’s Mental Health Track, and $4.2 million for alternative-to-incarceration programs (ATIs) and problem-solving courts.

15/15 Supportive Housing and Justice-Involved Supportive Housing

Supportive housing remains one of the most effective methods to address issues of mental health and homelessness by providing housing stability to individuals experiencing or at risk of homelessness with other challenges or involvement in the justice system. The Council called on the Administration to allocate $19.6 million to progress the 15/15 Supportive Housing program and $6.4 million for Justice Involved Supportive Housing (JISH) to ensure 500 supportive housing units are brought online for New Yorkers to successfully transition back into their communities.

Alternatives to Incarceration, Supervised Release and Re-entry Programming

For years, the Mayor’s Office of Criminal Justice has managed Alternatives to Incarceration, supervised release, and re-entry programming to reduce incarceration and recidivism. As part of the Mayor’s Program to Eliminate the Gap, these programs took a nearly $28 million cut and were only partially restored in the Executive Budget.

Forensic Assertive Community Treatment (FACT) teams

FACT teams are specialized units composed of experts including behavioral health specialists, clinicians, and case management experts that provide care and wraparound for individuals with serious mental illnesses (SMIs) outside of traditional clinical settings. They provide targeted support to people who have not been effectively served by traditional services and have cycled through the justice system without successful interventions to address their underlying challenges. The Council called for an additional $7 million investment to expand the City’s FACT teams.

Trauma Recovery Centers

Over the past two fiscal years, the Council has allocated nearly $5 million to establish New York State’s first trauma recovery centers (TRCs) in Brooklyn (2) and the Bronx (1). TRCs are designed to reach survivors of violent crime who lack access to traditional victim services and are less likely to engage in mainstream mental health or social services. They provide wraparound services and coordinated care, including mental health, physical health, and legal services, by utilizing multi-disciplinary staff that can include psychiatrists, psychologists, social workers, and outreach workers focused on providing survivor-centered healing and removing barriers to care. The Council called for $7.2 million in baselined funding to permanently sustain the existing TRCs and create one new center in both Queens and Staten Island in the Fiscal Year 2025 budget.

Community Justice Centers

Community Justice Centers have bridged the gap between the courts and communities to improve public safety and public trust in justice. By helping community members access stable housing, neighborhood safety, re-entry services, and youth programming, these Centers reduce recidivism and help prevent crime while solving neighborhood problems. The Council called on the Administration to provide the necessary capital funds to construct facilities to house Community Justice Centers in the Bronx and Staten Island, the only boroughs without centers.

Attorney General James’ Law Enforcement Misconduct Investigative Office Releases Report on Use of Force Incident in Binghamton

 

New York Attorney General Letitia James’ Law Enforcement Misconduct Investigative Office (LEMIO) released its report on a use of force incident involving an officer with the Binghamton Police Department (BPD). In January 2023, LEMIO received multiple complaints regarding a January 1, 2023 incident involving the use of force against a member of the public by a uniformed but off-duty BPD officer. After a thorough investigation, including review of documentary evidence, body-worn camera footage, civilian videos, and interviews, LEMIO concluded that Officer Brad Kaczynski used excessive force when he knelt on a handcuffed individual who was lying face-down on a sidewalk. The LEMIO also concluded that other officers who were present at the arrest did not intervene, that the individual was not secured properly during his transport to the station, and that the initial stages of BPD’s internal investigation of the incident, which has not officially concluded, did not follow best practices for impartial investigations. 

In the report released, LEMIO recommends that BPD discipline Officer Kaczynski, including potential termination, train all staff on use of force and duty to intervene, and update the agency’s internal affairs policies and procedures.

Overview of Incident

In the early morning hours of January 1, 2023, Officer Kaczynski was off-duty and working as a security guard at Dillinger’s Bar in Binghamton. Though he was off-duty, Officer Kaczynski was wearing his BPD uniform and body-worn camera (BWC) and carrying his service weapon. As patrons filled the street after the bar closed at 3 a.m., several fights began to break out. Officer Kaczynski intervened to attempt to stop the fights, as did several on-duty BPD officers who were in the vicinity.

At approximately 3:19 a.m., Officer Kaczynski started to arrest a person who had been involved in a fight, and another officer came over to help. Together, the officers brought the person to the ground and handcuffed him with his hands behind his back while he laid face down on the sidewalk. Officer Kaczynski then knelt with his right knee and shin on the person's upper back and neck area and remained in that position for over a minute. The person repeatedly shouted that he couldn’t breathe, but Officer Kaczynski did not remove his knee. Multiple bystanders at the scene spoke with the other BPD officers who were present and asked them to stop Officer Kaczynski, saying “the knee is on the neck,” and “he’s already in handcuffs, he’s not doing anything.” The officers did not intervene.

When the supervising officer observed the situation, he called for medics and directed Officer Kaczynski to stand the arrested person up. Officer Kaczynski and the supervising officer then placed the person in a police transport van without searching him or ensuring he was secured in the vehicle. At the police station, the person was evaluated by a medic and transported to a local hospital in an ambulance. Two on-duty officers accompanied him to the hospital, where he was issued an appearance ticket and charged with resisting arrest and disorderly conduct.

Conclusions and Recommendations

Following a thorough review of the evidence, LEMIO concluded that Officer Kaczynski used excessive force against the arrested person when he knelt on the person’s upper back and neck while he was prone and handcuffed, in violation of BPD’s use of force policy, the New York state model use of force policy, and the New York and U.S. Constitutions. By failing to search the arrested person before placing him in the police van and not securing him in place with a seatbelt, LEMIO concluded that the officers did not follow BPD’s standard arrest procedures. 

While Officer Kaczynski was kneeling on the arrested person, the other BPD officers who witnessed the incident did not intervene or try to stop him from doing so, in likely violation of their duty to intervene. Finally, LEMIO found that the initial stages of the internal affairs investigation BPD conducted was flawed: the investigators used leading questions when interviewing Officer Kaczynski and his fellow officers, did not fully review footage of the event before questioning the officers, and their write-up displayed bias in favor of the officers and treated the arrested person’s version of events with undue skepticism.

In the report released, LEMIO recommends that BPD take disciplinary action against Officer Kaczynski—including potential termination—as well as additional measures, including:

• Train all BPD staff on use of force principles and tactics involving people who are restrained, and in particular, that officers should not apply pressure to the upper back or neck areas of a prone and handcuffed individual; 
• Train all BPD staff on the duty to intervene and methods for effective intervention; and 
• Update BPD’s internal affairs policies and procedures to ensure that all evidence is reviewed prior to questioning an officer. 

The LEMIO was established by Executive Law Section 75 for the purpose of increasing public safety, protecting civil liberties and civil rights, ensuring compliance with constitutional protections and local, state, and federal laws, and increasing public confidence in law enforcement. Executive Law Section 75 authorizes LEMIO to receive and investigate complaints from any source regarding allegations of corruption, fraud, use of excessive force, criminal activity, conflicts of interest, or abuse in any covered agency. The LEMIO may then determine whether disciplinary or other remedial actions are warranted and prepare and release a public report. 

Governor Hochul Directs Operational Overhaul of the Office of Cannabis Management

Comprehensive Recommendations Will End Licensing Bottleneck, Improve Communications and Transform OCM Operations

Immediate Actions to be Implemented to Reform Licensing Processes and Increase Enforcement Against Illegal Storefronts

$5 Million Grant Program to Help CAURD Licensees

Launches Cannabis Enforcement Task Force

Overhaul Follows Review; Findings Available Here

Governor Kathy Hochul directed an operational overhaul of the Office of Cannabis Management. The overhaul follows the release of a 30-day assessment conducted by a team of individuals under the leadership of the Commissioner of the Office of General Services Jeanette Moy, that identified significant structural limitations to the Office of Cannabis Management that have affected the agency’s ability to fulfill its mandate to efficiently establish New York State’s cannabis marketplace. The assessment makes comprehensive recommendations to end the bottleneck of license applicants and improve communication with applicants and licensees – transforming the Office’s capacity to expand safe, legal cannabis operations across the state. Based on the assessment’s findings, Governor Hochul announced a series of immediate actions to reform the licensing processes and increase enforcement against illegal storefronts. The Governor also announced the establishment of a $5 million grant program to help CAURD licensees and previewed next week’s launch of the Cannabis Enforcement Task Force.

“We promised to build the strongest, most equitable legal cannabis market in the nation, and we’re announcing long-needed steps to make New York’s cannabis program work as promised,” Governor Hochul said. “I would like to thank Commissioner Jeanette Moy and her team for their hard work and thoughtful assessment, and I look forward to working with OCM to implement the report's recommendations and transform New York’s cannabis industry.”

The assessment identified significant impediments to the Office’s effective processing and approval of applicant licensure. Without best capability to fulfill the licensing role, the individuals this process is designed to help are exhausting substantial resources navigating it and risk being left behind. Delays in the legal marketplace have created a vacuum for illegal storefronts to proliferate and squeeze out CAURD licensees. The reforms announced today will create additional capacity for closing illegal storefronts and lifting up legal operators.

New York State Office of General Services Commissioner Jeanette Moy said, “The multi-agency task force created to assess the Office of Cannabis Management has identified several steps the agency can take to unclog the bottleneck of applications by improving communication with applicants and streamlining the application process. The proposals outlined in the task force’s report will improve transparency and open lines of communication in the application process while boosting the state’s efforts to meet Governor Hochul’s commitment to equity in New York’s cannabis market.”

New York State Police Superintendent Steven G. James said, “The trafficking of illegal Cannabis is supplying the illicit shops that have cropped up across the state, disrupting the regulated market and leading other issues. The State Police will work with its partners to target those who are bringing illegal Cannabis into New York, disrupt their operation and hold them accountable to the full extent of the law.”

Implementing Recommendations and Adopting a New Licensing Strategy

Governor Hochul announced a series of immediate actions to begin the overhaul of OCM, address illegal cannabis enforcement and put New York’s cannabis industry on the path to success. The actions include:

• Launching an enforcement task force to close illegal cannabis retail stores.
• Fixing the internal licensing process and clearing the backlog for retail establishments who were required to apply with site control.
• Committing to putting in place an SLA (service-level agreement) to allow for completion of retail license applications within 90 days for future application windows.
• Creating new communications tools, including regulatory bulletins and public dashboards to improve customer service.
• Launching OCM cannabis map to improve the transparency surrounding licensed retail locations in summer 2024.
• Adding staff to licensing, compliance and enforcement teams.
• Strengthening agency foundations and management including hiring senior positions for customer service, internal controls and audit and operations.
• Creating a 5-year strategic plan for the Office.

Providing Additional Capital to Justice-Involved Licensees

The state will establish a new program to provide financial support to CAURD licensees who have secured their own retail locations. In recognition of the delays CAURD applicants faced on the road to opening their businesses, including those due to private litigation that substantially paused the CAURD program until December 2023, Empire State Development, working in close collaboration with staff from OCM, will make a $5 million pool of funding available to eligible CAURD licensees in the form of micro-grants.

This one-time commitment of funding, which will come with no expectation of repayment if used for eligible purposes, will enable eligible CAURD licensees who have a license and have secured a location to receive a one-time grant to reimburse certain eligible initial costs that they have incurred.

In the coming months, ESD will procure an administrator for the program. With this step, the state will further one of the central goals of New York’s cannabis program: ensuring the participation in this new industry of individuals who have been disproportionately impacted by cannabis prohibition.

Additional information on the program will be shared with licensees by OCM as it becomes available.

Launching the Cannabis Enforcement Task Force

Governor Hochul also announced that the Cannabis Enforcement Task Force will be launching next week. The Task Force, led by the State Police First Deputy Superintendent, is a major statewide effort to coordinate staff from several agencies to combat the illicit cannabis market. Through collaboration between the State Police, OCM, local law enforcement and other state agencies, the task force will be well equipped to tackle the full scope of illegal cannabis activity. OCM will also lead a robust civil enforcement effort with more than 150 inspectors from OCM, the Department of Taxation and Finance, and other State agencies dedicated to padlocking as many illicit cannabis stores as possible over the next 90 days. All illicit stores throughout the state can expect to be inspected and padlocked if they're found to be an imminent threat to health and safety.

The Task Force will be deploying teams of investigators and analysts throughout the state in established operations to make sure each illicit cannabis shop is inspected and closed. State Police will lead the criminal enforcement effort targeting cannabis trafficking and the large-scale criminal enterprise surrounding the merchandise found in these illicit shops. Through the use of resources such as the Troop Violent Gang and Narcotics Enforcement Units, State Police will conduct operations to catch and prosecute the bad actors. The Task Force will also work with landlords to help evict illegal dispensaries, and work to penalize landlords who fail to take steps to evict tenants after they are informed they are operating illegally.

These reforms will only be successful with strong enforcement mechanisms and an aggressive effort to shut down the illegal marketplace.