2025 NY Slip Op 00902

The New York Court of Appeals held that the Ethics Commission Reform Act of 2022, which created an independent ethics commission, was not facially unconstitutional despite concerns about the separation of powers and executive oversight.

Summary

The case concerned the constitutionality of the Ethics Commission Reform Act of 2022, which replaced the Joint Commission on Public Ethics (JCOPE) with a new Commission on Ethics and Lobbying in Government. The former Governor, Andrew M. Cuomo, challenged the Act, arguing it violated the separation of powers by granting excessive power to a commission not sufficiently accountable to the Governor. The Court of Appeals reversed the lower court’s decision, upholding the Act. It reasoned that the Act was designed to address the unique problem of self-regulation within the Executive Branch, which undermines public trust. The Court emphasized the importance of a flexible approach to separation of powers, allowing for overlap between branches, and noted that the Governor does not possess sole appointment and removal powers under the New York Constitution. The Court found that the Act, despite extending close to the boundary of permissible legislation, did not unconstitutionally encroach upon the Governor’s powers and was not facially unconstitutional.

Facts

In 2011, New York established the Joint Commission on Public Ethics (JCOPE) to enforce ethics and lobbying laws. JCOPE faced criticism for its lack of independence and ineffectiveness. The Ethics Commission Reform Act of 2022 replaced JCOPE with the Commission on Ethics and Lobbying in Government. The new Commission has 11 members appointed by various officials, including the Governor, legislative leaders, the Attorney General, and the Comptroller. The Act also created an Independent Review Committee (IRC) to vet nominees. Commission members could be removed by a majority vote of the Commission, and the Commission has the power to investigate ethics violations, impose penalties, and refer matters for criminal investigation. Former Governor Cuomo filed suit challenging the Act’s constitutionality, arguing violations of the separation of powers, Article V of the State Constitution, and the impeachment process.

Procedural History

Cuomo filed suit against the Commission in Supreme Court, seeking a declaration that the Act was unconstitutional. The Supreme Court granted Cuomo’s motion for preliminary injunction and the Commission’s cross-motion for summary judgement and declared specific sections unconstitutional. The Appellate Division affirmed the lower court’s decision. The Court of Appeals granted the Commission’s motion for leave to appeal and certified the question whether it erred in affirming the order of the Supreme Court. The Court of Appeals reversed the Appellate Division’s decision.

Issue(s)

1. Whether the Ethics Commission Reform Act of 2022 is facially unconstitutional because it violates the separation of powers doctrine by unconstitutionally vesting executive power in the State Commission on Ethics and Lobbying in Government.
2. Whether the Commission, established within the Department of State, violates Article V of the State Constitution, which concerns the appointment and removal of state officers.
3. Whether the Commission’s powers to investigate and potentially impose fines on the Governor unconstitutionally interfere with the Legislature’s impeachment power.

Holding

1. No, because the Act is not facially unconstitutional.
2. No, because the Commission’s placement within the Department of State does not violate Article V of the State Constitution.
3. No, because the Commission’s power to investigate and fine the Governor does not encroach on the Legislature’s impeachment power.

Court’s Reasoning

The Court applied a flexible approach to the separation of powers doctrine, recognizing that some overlap between branches is permissible. The Court emphasized that the New York Constitution does not grant the Governor exclusive appointment and removal powers. The Court held that the Act’s purpose of promoting public confidence in government justified its structure and functions, and the limitations built into the Act – a majority of commissioners are appointed by legislative officials, but vetted by an independent review committee; executive branch also retains supervisory powers such as investigations under the Moreland Act; Executive branch maintains concurrent enforcement authority- ensured that it remained within constitutional bounds. The Court determined that the Commission is not a department under Article V, thus not requiring a governor-appointed head. Finally, the Court found that the Commission’s disciplinary actions do not interfere with the Legislature’s power to impeach the Governor.

Practical Implications

The ruling provides guidance on the balance of power between the executive and legislative branches in New York. The decision emphasizes that the legislature has broad power to structure state agencies and create checks and balances on executive authority, particularly when addressing issues of public trust and ethics. Legal practitioners should understand that courts will take a functional and flexible approach to separation of powers challenges, considering the intent of the legislation and the realities of governing. This case also highlights the limits of the Governor’s appointment and removal powers and the permissibility of independent agencies tasked with enforcement powers, as long as there is a balance of executive and legislative control. It suggests that the creation of independent commissions to oversee ethics and lobbying matters may be a constitutionally viable way to address concerns of self-regulation and public confidence in government.