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POLITICO New York Playbook, presented by PhRMA: PREET bails out -- CHELSEA, changed -- CUOMO's transgender rights push

10/23/2015 07:32 AM EDT

By Azi Paybarah in Manhattan, Jimmy Vielkind in Albany, and Mike Allen in D.C., with Daniel Lippman

THE TALK OF WALL STREET -- WSJ, p. A1, below fold, "Prosecutor Pulls Plug On Insider Charges," by Christopher M. Matthews and Aruna Viswanatha: " Manhattan U.S. Attorney Preet Bharara will drop charges against seven people, dealing a blow to what had been one of the most successful insider-trading prosecutions and a marquee case in his tenure. Not long ago, Mr. Bharara boasted a near-perfect conviction rate in the dozens of insider-trading cases pursued by his office. But on Thursday he moved to dismiss charges against former SAC Capital Advisors LP portfolio manager Michael Steinberg and six analysts. ... The prosecutions were pursued in good faith, Mr. Bharara said in a short statement, but he had come to believe that 'insisting on maintaining guilty pleas in these cases wouldn't be in the interests of justice.' He cited an appeals-court ruling last year that found prosecutors had stretched the limits of insider-trading law and that effectively undermined the legal foundations of those cases."

CUOMO MOVES ON TRANSGENDER RIGHTS - POLITICO New York's Jimmy Vielkind: With legislation stalled, the Cuomo administration will use the state's regulatory process to prohibit discrimination against transgender New Yorkers, a senior administration official said. Gov. Andrew Cuomo announced his plan late Thursday at the Empire State Pride Agenda dinner. (The proposal was earlier reported by The New York Times and Daily News.) He plans propose regulations next month based on "a progressive interpretation of the Human Rights Law," the administration official said, that would make transgender New Yorkers a protected class of citizens who cannot be discriminated in housing, employment or public accommodations. The official acknowledged that the plan would face a legal challenge and was aware of no previous use of the regulatory process to create a new protected class of citizens. But if affirmed by the courts, the official said the regulations would be "effectively the same" as passing the Gender Expression Non-Discrimination Act (GENDA), a bill that would amend the state's human rights law.

Cuomo's move was cheered by Democrats and LGBT rights activists. It marked another effort to shore up his support among Democrats, after the legislative session concluded without action on some marquee items. It also marked another instance of his taking executive action rather than working with the State Legislature - an extremely rare occurrence during his first term, but one of several in the last few months.

-- The speech: "The law of the state of New York says, and I quote, 'It is illegal to discriminate against any person because of his or her race, creed, color, disability, national origin, sexual orientation, military status, age, sex, marital status or familial status.' The law also says that the state Division of Human Rights has the legal authority to interpret the application of the law. ... As governor of New York, it is my opinion that in 2015 it is clear that the fair, legal interpretation and definition of a person's sex includes gender identity and gender expression."

-- The pushback: New Yorkers for Constitutional Freedoms, a conservative Christian group, promised "a full court press" against the maneuver, including a legal challenge "if necessary." The group has framed GENDA as the "Bathroom Bill" and says Cuomo's move would allow a man to enter a women's locker room with impunity.

DE BLASIO SEEKS CHANGES TO STATE BAIL LAW -- WSJ's Zolan Kanno-Youngs, Melanie Grace West and Josh Dawsey: "Mayor Bill de Blasio on Thursday called for changes to state law that would allow judges to consider defendants' risk to public safety when setting bail or considering incarceration-alternative programs such as the one approved last year for Tyrone Howard, who now stands accused of fatally shooting a police officer. ... Mr. de Blasio said he disagreed with a judge's decision to approve Mr. Howard for a diversion program after he was arrested last year in a drug bust. Mr. Howard, 30 years old, is accused of fatally shooting New York Police Department Officer Randolph Holder on Tuesday. The mayor said New York's bail system is broken and noted that 47 other states already consider future danger in bail determinations."

-- Related: "Scrutiny Over Diversion Program for Suspect Now Charged in NYPD Officer's Death" via WSJ:

-- Counterprogramming -- "Randolph Holder Shooting Had Nothing to Do With Jail Diversion and Bill de Blasio Knows It" -- Gawker's Andy Kush: "[I]f anyone knew Howard would go on to kill a cop, he would have been sentenced to jail. But it would not have made a lick of difference on Tuesday night. After his drug arrest, Howard posted $35,000 bail, meaning that if he had opted to go to trial instead of pleading guilty and taking the diversion program, he would have been a free man until his court date, which was scheduled for later this month. He would have been on the street firing at officer Holder whether he was placed in rehab or not.

"[I]f gun violence and the addiction and poverty that so often surround it are going to be reduced in New York, we need more sentences like the one Howard was given, not fewer. The alleged cop killer appears to have dived headlong into violent crime as soon as he was granted a reprieve from jail time, but his case is the exception, not the rule."

THE GUN used to kill Officer Randolph Holder has not yet been recovered, an NYPD official told POLITICO New York. A shell casing believed to be connected to the murder was found in the East River, and is being tested, according to the official. -- Azi

CUOMO'S NYCHA AID -- Not what de Blasio sought -- News' Greg Smith: "Gov. Cuomo is turning over $41.6 million to help fix up the Housing Authority, but not the way Mayor de Blasio wants. He will announce Friday the state has begun steering big taxpayer bucks exclusively to upgrade security at 76 NYCHA projects. That's contrary to the detailed plan de Blasio crafted to spend this money on NYCHA's worst roofs. Cuomo's spending on security comes three days after Officer Randolph Holder, who patrolled NYCHA developments, was allegedly shot by a career criminal who lived in the authority's East River Houses."

UNSTATED SWEETENER IN STUY TOWN DEAL -- WSJ's Eliot Brown and Laura Kusisto: "[T]he accord also contained an inducement that went unmentioned at Tuesday's announcement: Blackstone has New York City's backing to sell the 80-acre property's large cache of unused development rights to developers elsewhere in Manhattan.

"The benefit could be worth hundreds of millions of dollars for Blackstone and clear the way for creation of as many as 1,000 apartments, real-estate executives said. Still, the value heavily depends on where exactly the rights could be sold. They could be worth far less.

"The incentive offers a window into why Blackstone may have agreed to a deal to preserve middle-income housing that was viewed as a low-cost win for the city-one far cheaper for City Hall than plans proffered by other developers that have vied for the property. ... Asked why it wasn't included in Tuesday's announcement with the mayor and Blackstone executives, the spokesman said there was no specific proposal up for approval."

-- Crain's Greg David: "Another measure of the riskiness of the deal is that adjusted for inflation, Blackstone is actually paying less than Tishman, whose 2006 deal would have been worth $6.4 billion today."

METS CITY: Queens Borough President Melinda Katz is hosting a rally to celebrate the NLCS-series winning Mets on Monday. Post's Carl Campanile:

-- "[Rep. King] is probably the biggest New York Mets fan in any elected body. Anywhere." -- Observer's Ross Barkan:

** A message from PhRMA: In 2013 alone, the biopharmaceutical industry invested more than $553 million dollars in clinical trials in New York. Learn more about the economic impact of clinical trials in our communities at **

QUOTE OF THE DAY: "New York state is absolutely out of step with the rest of the nation." -- Mayor Bill de Blasio, on bail laws, via WSJ:

BONUS QUOTE OF THE DAY: "I've decided maybe out of frustration and exasperation, why not?" Supreme Court Justice Edward J. McLaughlin last December, on readmitting Tyrone Howard to a drug diversion program, via WSJ: READ THE TRANSCRIPT via WNYC:

EXTRA BONUS QUOTE OF THE DAY: "I'm in great danger." -- Ben Carson, the Republican presidential candidate recalling what he was told when he received Secret Service protection, in an interview with WABC radio host Rita Cosby:

DISCOVERY OF THE DAY: Gothamist writers read meanest messages from their comments section. "I thought Jen Chung was white."

ON THE MOVE: Carol Gerstl, the longtime lobbyist for the United Federation of Teachers and its chief representative in Albany, has retired. She will be succeeded by Jasaun Boone, a current member of the UFT team who has been appointed director of city and state legislative affairs. And yesterday's "On the Move" misspelled the latest edition to the Wilson Elser team: It's Bradley Pryba, not Brian. Our apologies.

PHOTO OF THE DAY: Check out the beautiful afterlife of New York City's decommissioned subway cars.

HAPPY BIRTHDAY: Ken Kurson, editor of the NY Observer, lobbyist Theresa Cassiack, flack Kristin Lowman, Nicole Bode of DNA Info and John Koblin, Times reporter(Friday), liberal antagonist Zephyr Teachout, City Councilwoman Helen Rosenthal, Joel Rivera, former majority leader of the City Council and spokesmen Dennis Tompkins and Tony Sclafani (Saturday), former GOP candidate Harry Wilson, Irene Baker of Madison Square Garden, L. Joy Williams, Democratic political consultant, NAACP Brooklyn Chapter leader, veteran of Thompson's 2009 campaign, YouTube sensation, Eddie Gibbs, Manhattan-based Democratic activist, and Russell Schaffer, senior communications manager at Kaplan, Twitter pro (Sunday). And a belated birthday shout out to the Observer's Ross Barkan, who is among the few reporters (along with Politico's Daniel Lippman) never to drink a cup of coffee.

TABS -- Post: "IT's A BIT LATE: Now soft judge slams cop killer" -- News: "Bey-ography drops bombshells: STRAY-Z: Jay, Beyonce split in '05 Over RiRi rumor; Played field until he put a ring on it" -- Newsday: "HAD TO LET GO OF THE ANGER" -- amNY: "PAINTING THE TOWN ORANGE & BLUE" -- The Nation: "THE GOP CRACK-UP: Now there's open war between the old elites and Tea Party firebrands" -- Hamodia: "NY Police Pay Their Respects" and "NY Top Court Reverses Ruling Denying Bloomberg's a Mikveh" -- El Diario: "METS MANIA"

FRONT PAGES -- NYT, 1-col. above the fold: "BENGHAZI PANEL ENGAGES CLINTON IN TENSE SESSION: Often Testy Exchanges: Questioning Goes Into Night, but Little New Is Revealed"

LOCAL -- Queens Chronicle, northeast: "THE END IS NEAR; To their race for City Council, that is"; QC eastern: "DOWN TO THE WIRE: Experience vs CHANGE" -- Southeast Queens Press: "A PLACE TO STAY: Panel discusses Jamaica's 'unlimited potential' for hotel development" -- Ridged Times: "MISSING CHRISTMAS? Community rallying to save Glendale lighting ceremony" -- Times Ledger: "Riker reforms fail: Stringer" -- Bronx Weekly: "MIXED VIEWS ON HOUSING" -- Brooklyn Courier: "LICH GOES DORMITORY" -- The Villager: "Politicians put push for Obama to hurry up on Stonewall park"

FRONT PAGE FLASHBACK, Post, Oct. 24, 2008: "MIIIKE: Historic vote paves the way for third term"

HILLARY GETS REVIVED -- TODD PURDUM in the Friday Cover of Politico Magazine, "Hillary's Best Week Yet: The once-beleaguered candidate looks like a frontrunner again": "If in January 2017, Hillary Clinton is sworn in as the 45th president of the United States, historians may well point to this month as the moment her campaign turned around. Like the first brisk snap of fall, Clinton's terrible, horrible, no good, very bad summer has morphed overnight into the best week of her campaign: Joe Biden is out, her poll numbers are up, her crisp debate performance reassured nervous Democrats and her measured resolution before the House Benghazi committee made her interrogators (of both parties) seem small by comparison. Meanwhile, with every passing week, the GOP looks less united, more angry and less able to govern."

CHANGING CITY -- "In Chelsea, a Great Wealth Divide," by Times' Mireya Navarro: "Today's Chelsea, the swath west of Sixth Avenue between 14th and 34th Streets, could be the poster neighborhood for what Mayor Bill de Blasio calls the tale of two cities. ... Census and city figures show that the average household income in Chelsea, about $140,000, is almost five times the average for households in public housing in the area. The neighborhood now ranks among those in the city with the greatest income inequality ... as the share of households in the highest income brackets - over $250,000 - has grown."

HAMPTONS BUZZ -- "Hamptons Mansions Pile Up on Market as Luxury-Home Sales Dip," by Bloomberg's Oshrat Carmiel: "New Yorkers who want to buy a high-end retreat in the Hamptons have plenty of options to choose from. Sales of luxury homes in the area ... tumbled 16 percent in the third quarter from a year earlier to 52 transactions ... The inventory of such properties ... climbed 34 percent to 292. Wealthy buyers on Long Island's East End are taking a pause after several years of heated sales, leading prices to fall as more houses come to the market. The median price of Hamptons deals completed at the luxury level dropped 18 percent from a year earlier to $5.3 million."

NEVER MIND - "Twitter Fury Misplaced? M.T.A. Is Fine With Underwear Ads on Subway," by Times' Katie Rogers: "A set of ads from a company that sells underwear to women during their periods will be coming to New York's subways, amid several days of rampant criticism on Twitter from people who were upset that the ads could be rejected. 'Of course they will be approved,' said a spokesman with the Metropolitan Transportation Authority, ... Miki Agrawal, the co-founder of the company, Thinx, had said that Outfront Media, the company that evaluates ads for the M.T.A., unfairly turned away her company's ads for being too suggestive. She believes the public pressure had an effect. The Thinx ads use frank text and imagery to sell the underwear. In one of the ads, a pink grapefruit is placed next to text: 'Underwear for Women With Periods.' In another ad, a runny egg yolk is seen alongside a woman wearing the underwear."

DONORS WALK AWAY AFTER NAME CHANGE REJECTION - Times' Kristen Hussey: "Sanford Weill, a Wall Street billionaire, and his wife, Joan, have decided not to donate $20 million to a struggling northern New York college after a judge ruled that the school could not be renamed for Mrs. Weill, a spokesman for the college said on Thursday. The donation had been offered on the condition that the school, Paul Smith's College, change its name to Joan Weill-Paul Smith's College. But a state judge this month refused to allow the college to break the terms of its founder's will, which stipulated that the college be named Paul Smith's in perpetuity, in order to accept the donation. On Thursday, the college's board of trustees announced that it would not appeal the court's decision."

A $300 MILLION LIFELINE - POLITICO New York's Dan Goldberg: New York state is making available up to $300 million for hospitals that are losing money in communities that lack other options. The money comes from the state's Essential Healthcare Provider Support Program, which was allocated in this year's budget and seeded with $355 million from bank settlements. Applicants must explain how they will use the money to improve their financial outlook or preserve essential health services in their community, but the health commissioner, who will award the grants, appears to allow wide leeway for how the money may be spent.

MEDIA MORNING -- Tonight at 9 p.m., NBC's Dateline airs the story of Johnny Hincapie, who served 25 years in prison for one of the city's most famous murders, but has recently been granted a new trial based on new witness testimony. In 1990 Hincapie was among a group of teens arrested and convicted of the murder of Brian Watkins, a Utah tourist who defended his parents from a mugging on a subway platform as they headed to the U.S. Open. Bill Bratton, who was in charge of the transit police at the time, later described the incident as a pivotal turning point in the city's fight against crime. In Bratton's memoir, he wrote, "The murder made international headlines. Through good police work, we made arrests within two hours, but that wasn't going to bring the young man back."

In an interview with POLITICO New York, NBC Nightly News Anchor Lester Holt said when he first interviewed Hincapie, "I was very skeptical ... but as the case unfolded and these witnesses appeared in court, there was obviously something to it." He recalled having his cameras rolling in the courtroom when "an honest to goodness surprise witness" materialized. The network said they worked on the story for four years.

As a teenager, Hincapie confessed to being part of the "wolfpack" that attacked Watkins, but later denied physically assaulting him. Recently, a judge granted Hincapie a new trial based on new witnesses who came forward saying he was not on the platform what Watkins was assaulted. Holt reserved judgement of Hincapie, and the police work that sent him away. "Do I think Hincapie is innocent? I don't know" and it is "a little unclear if there is a village in the story." -- Azi

REGULATING DOLLAR VANS -- Taxi chair questions proposed commuter-van regulations -- POLITICO New York's Gloria Pazmino: Only 585 of the city's low-cost commuter vans are operating with proper licensing from the city's Taxi and Limousine Commission, but the commission's chair cast doubt on new regulations proposed by the City Council at a hearing on Thursday. The ubiquitous "dollar vans" are most common in neighborhoods where public transportation is not easily accessible. The quick and cheap mode of transportation is popular among immigrant communities in Flushing, Sunset Park, Chinatown, Eastern Queens and neighborhoods surrounding Flatbush Avenue in Brooklyn. "An example of this is the existing commuter van service between Flushing and Manhattan's Chinatown - where on average, a commuter van can provide this trip, which might be a 70-minute subway ride, in about 35 minutes," TLC commissioner Meera Joshi told the council during testimony about her agency's attempts to regulate the industry.

LANDER OPEN TO COMPROMISE ON PLASTIC BAG FEE -- Post's Yoav Gonen: "A 2-year-old City Council proposal to impose a 10-cent fee on plastic and paper bags at grocery stores is getting a renewed push under a compromise that would lower the fee to 5 cents, The Post has learned. Councilman Brad Lander (D-Brooklyn), who is co-sponsoring the bill with Councilwoman Margaret Chin (D-Manhattan), said it's one of several options on the table, including banning plastic bags outright while imposing a fee just on paper bags. ... The initial proposal had come close to the 26-vote majority needed to pass the council but never won the support of Speaker Melissa Mark-Viverito or Mayor de Blasio."

CUOMO COMMENTS, AND POLICE DEATHS, IN CONTEXT - POLITICO New York's Azi Paybarah: Governor Andrew Cuomo, who was born in Queens in 1957, said yesterday that the spate of four line-of-duty New York Police Department fatalities in ten months is something he doesn't remember ever happening here.

"I'm old enough to remember a time when police officers' death was rare, if ever anyone ever touched a police officer. And now four, in the past ten months - I believe, and we'll check the statistics, that might be the highest rate in the nation," Cuomo said,

During Michael Bloomberg's 12-year tenure as mayor that ended in 2013, ten officers were shot and killed, and an additional 67 were shot and injured, according to statistics from the NYPD. But those statistics also show officers were shot and injured, and even killed, more frequently back in the 1970s and 1980s. According to the NYPD's Annual Firearms Discharge Report, there were 47 officers shot by suspects, and an additional 12 died after being shot by perpetrators, in 1971. In 1973, 50 officers were shot and seven were killed by gunfire.

OUT AND ABOUT in LA -- NYT's T Magazine editor Deborah Needleman hosted a party last night to celebrate T's inaugural "The Greats" issue at the Chateau Marmont in LA. The issue features six different magazine covers, including Jonathan Franzen, Karl Lagerfeld, director Steve McQueen, Rihanna, Quentin Tarantino and tech entrepreneur Elizabeth Holmes. SPOTTED: T editor Deborah Needleman, T publisher Brendan Monaghan, Solange Knowles, Rashida Jones, Miranda July, Mary Elizabeth Winstead, Nikki Reed, Kiernan Shipka of Mad Men, Courtney Love, Grace Gummer of The Newsroom, Carrie Brownstein of Portlandia, Dylan Byers, Nadia Szold.

HILLARYWATCH -- LATE-NIGHT BEST - The Daily Show's Trevor Noah on the Benghazi hearing: "Ahh McCarthy. You just admitted to convening the committee to hurt Hillary Clinton. Classic supervillian mistake. You have to wait until your enemy's dead before you reveal your plot. [Then a pic of McCarthy as Dr. Evil, stroking his cat, appears on screen:] 'Yes Hillary, now that I have you strapped to the Benghazi laser of doom, I'm going to tell you my plan. Wait, she's escaping!'" 7-min. video

- "What 12,000 Emails Tell Us About Being Hillary Clinton: My window into four years of HRC's over-scheduled, under-rested, BlackBerry-centric life," by Politico's Michael Kruse: "'I hope we can achieve both power and poetry,' Secretary of State Hillary Clinton writes to Jake Sullivan, one of her top deputies, before giving a speech in Berlin in 2009. 'You're a softie underneath that tough-girl exterior - which I am too!' she gushes to Cheryl Mills ... in 2010."

- Correct the Record's hearing stats : "Number of questions asked: 316 ... Number of times Hillary Clinton was interrupted by GOP members: 144 ... Gowdy mentions of her emails: 78 ... Gowdy mentions of Sidney Blumenthal: 36 ... Gowdy mentions of Benghazi: 18 ... Minutes she was in the chair: 500 Average time between interruptions: 3 minutes and 28 seconds ... Lozenges: 1."

TRUMP TALK -- "Here's Why Donald Trump Really Could Be Elected President," by David Burstein in Vanity Fair: "From Brentwood mansions to Embassy Row in Washington, D.C., the idea that Donald Trump could become president has alternately set off fits of laughter and terror. While some political insiders, including a growing number of establishment Republicans, concede that Trump could win the nomination, few believe that Trump could actually become president. But a close analysis of the political climate and electoral path to the presidency shows that the possibility of a Donald in chief is less far-fetched than people imagine."

REAL ESTATE -- THE REAL DEAL- "The Stuyvesant Town Deal Sweetener," by the Wall Street Journal's Eliot Brown and Laura Kusisto: "Behind Blackstone Group LP's $5.3 billion deal this week to buy the sprawling Stuyvesant Town and Cooper Village complex was a widely praised agreement to reserve 5,000 units for low- and middle-income residents. But the accord also contained an inducement that went unmentioned at Tuesday's announcement: Blackstone has New York City's backing to sell the 80-acre property's large cache of unused development rights to developers elsewhere in Manhattan. The benefit could be worth hundreds of millions of dollars for Blackstone and clear the way for creation of as many as 1,000 apartments, real-estate executives said. Still, the value heavily depends on where exactly the rights could be sold. They could be worth far less. The incentive offers a window into why Blackstone may have agreed to a deal to preserve middle-income housing that was viewed as a low-cost win for the city-one far cheaper for City Hall than plans proffered by other developers that have vied for the property."

OUT OF THE QUESTION-"De Blasio official dismisses commercial rent control idea," by POLITICO New York's Dana Rubinstein: "'Should New York adopt commercial rent control?' That was the question posed to Mayor Bill de Blasio's deputy mayor, Alicia Glen, on Thursday morning, during an urbanist conference in Midtown Manhattan. Behind Glen's interlocutor, a Municipal Art Society board member, a slide flashed on the screen seeming to show that 100 percent of the people polled in the audience supported commercial rent control. (An MAS spokesperson later clarified that the poll was a live tally, and the final results were 63 percent in favor, 37 percent against.) ...'100 percent!' said Glen, asking whether there really wasn't 'anybody in the audience who actually [has] done any real estate finance?'"

DECISION 2016-"Port Authority punts bus terminal decision to next September," by POLITICO New York's Dana Rubinstein: "The hundreds of thousands of commuters who every week travel to their jobs in Manhattan by way of the Port Authority Bus Terminal will get a new, more efficient, and dramatically less dreary bus terminal, it's just not clear when, or where exactly that new terminal will be. On Thursday afternoon - a month after one commissioner issued a stirring lament about the Port Authority's decision-making prowess (or lack thereof) - the board of the Port Authority of New York and New Jersey unanimously approved a resolution calling for an international competition for 'conceptual designs for a new bus terminal' and that those designers should take, as their geographical focus, the area 'one block west of the current structure, between Ninth and Eleventh Avenues.' That is, unless someone participating in said design competition has a better idea. 'No decision's been made,' said Pat Foye, the Port Authority's executive director ... The resolution specifies that the Board select a preferred design concept for a new bus terminal 'no later than its September 2016 meeting.'"

THE HOME TEAMS -- POLITICO New York's Howard Megdal: Rangers 4, Coyotes 1: Henrik Lundqvist had 34 saves in the win.

-- The day ahead: Workout day for the NL champion Mets at Citi Field. Islanders host the Bruins. Sabres play the Canadiens in Buffalo.

#UpstateAmerica: What was on former Secretary of State's Hillary Clinton's mind on a break during the brutal Benghazi hearings Thursday? Russo's Italian restaurant in Amsterdam, of course.

** A message from PhRMA: Every day in New York, countless people fight life-threatening diseases. Their bravery inspires countless researchers and scientists across the country in their quest to develop medicines that help patients live longer, healthier lives. Here in New York, the biopharmaceutical industry has invested more than $553 million during the 2,476 clinical trials that took place in 2013 alone. Each step brings us closer to a cure. To learn more, please visit **

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