In Albany's auto insurance fight, connections are at a premium

Daily Point

Lobbyists at full speed in auto insurance battle

As budget negotiations drag on, one of the key sticking points is Gov. Kathy Hochul's proposed auto insurance reforms.

Powerful lobbying organizations on both sides have been going at it for months, with Uber, through its super PAC, Citizens for Affordable Rates, as one of the loudest supporters of Hochul's plan, and the New York State Trial Lawyers Association as one of its loudest detractors.

But behind the power are the personalities.

Among them: Patrick Jenkins, a longtime lobbyist for the trial lawyers.

Jenkins' name may be familiar to those in Albany's inner circles, especially because of his close ties to Assembly Speaker Carl Heastie.

Jenkins worked for Heastie before the Bronx assemblyman became speaker and has since worked as a political consultant for Heastie's reelection campaigns.

But there's a deeper, personal connection as well. Jenkins and Heastie were college roommates at Stony Brook University in the late 1980s and have been friends ever since.

Jenkins' work has at times come under scrutiny, as good government groups have questioned Jenkins' work as both a lobbyist and political consultant. In 2021, the U.S. attorney for the Southern District subpoenaed Jenkins and two of his clients, though he was not accused of any wrongdoing.

Now, Jenkins is back in the spotlight as a key player in the auto insurance fight.

And in that context, his relationship with Heastie is again the focus. One source with knowledge of the negotiations told The Point that Jenkins' "influence over Heastie" is "the primary hold up" in getting Hochul's proposals through.

"Everyone on the inside is afraid to say it out loud, but they all know," the source said.

But Jenkins pushed back against that characterization.

"He's been my best friend for 38 years. It's an old story," Jenkins told The Point. "It doesn't play a role. I have to lobby all members of the Assembly, not just him."

An Assembly spokesman told The Point that all aspects of the auto insurance proposals are still under discussion.

"Contributions and lobbying have no bearing on what we do," the spokesman said. "The lobbying has no effect on the negotiations. We do listen to all sides, but we are still discussing this with everybody."

Nonetheless, Trial Lawyers Association spokeswoman Sabrina Rezzy said Jenkins' work has helped the lawyers push forward their priorities.

"He's the best of the best," Rezzy said. "He's worked with us for many, many years. It helps to have people in the legislature who are on the side of our clients, who are their constituents."

Sources told The Point that the trial lawyers have an uphill battle. Uber and its super PAC have spent $8 million just this year on lobbying and advertising. Jenkins, meanwhile, is receiving $50,000 a month for his work, according to state lobbying records.

Behind the back-and-forth are key differences in perspectives. Hochul has said her proposals will reduce auto insurance premiums by cutting down on fraud and limiting the definition of serious injuries. The trial lawyers and their supporters, meanwhile, say that they support measures to fight fraud but Hochul's proposals won't make a dent in auto insurance premiums and will instead harm the real victims of car accidents. The trial lawyers are focusing their opposition on key aspects of Hochul's proposal, including changes to specific liability and negligence standards, along with the serious injury terminology.

"There's still some time left," Rezzy said. "The governor is holding up the budget on our issues, but legislative leaders are saying no, as they don't think we should cut rights to give insurers a handout."

— Randi F. Marshall randi.marshall@newsday.com

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Final Point

Is D'Esposito willing to forfeit the clout of an executive post in Washington?

Anthony D'Esposito has a decision to make: remain inspector general of the U.S. Department of Labor with an eye on possibly becoming the next Cabinet-level secretary, or come back to Long Island to make a run for his former congressional seat in Nassau County.

If he decides not to run, the Nassau GOP could be left in the lurch.

There are a few big reasons why D'Esposito might not want to run, namely, the possibility of a juicy promotion. The Labor Department has been mired in scandal, and Secretary Lori Chavez-DeRemer is under investigation by D'Esposito for allegations of misconduct. And he has told people he wants to see that task through. President Donald Trump fired two Cabinet members recently — Homeland Security Secretary Kristi Noem and Attorney General Pam Bondi — leading to speculation that Chavez-DeRemer could be next. If Chavez-DeRemer is fired, D'Esposito could slide into the position.

Also, several political prognostication websites are predicting that Republicans will lose control of the House in November. Rep. Laura Gillen, who D'Esposito beat in 2022 but lost to in 2024, has $2.1 million cash on hand. A rematch would likely be an expensive uphill slog for D'Esposito with victory anything but guaranteed. If he runs and loses to Gillen, he will be out of a job.

If D'Esposito does decide to run, federal law requires him to resign from his inspector general position. Going from Labor to Congress would entail a pay cut of as much as $25,000 a year, but his experience and name recognition in the district would instantly boost Republicans' chances of reclaiming CD4.

Right now, with the Monday midnight deadline for candidates to file designating petitions for office, the GOP's pick is former Valley Stream Village Mayor John DeGrace. Publicly, the county GOP is backing DeGrace, but privately, rumors are swirling that he is a candidate in name only, holding the spot for D'Esposito or another GOP elected official with name recognition. Nassau County and state Democratic Party leader Jay Jacobs told Newsday news that DeGrace was a "placeholder" candidate.

Publicly, D'Esposito doesn't sound like someone ready to run for Congress. He's been getting national headlines for uncovering fraud, and last month was at the White House for the first meeting of the Task Force to Eliminate Fraud, headed by Vice President JD Vance and created by executive order by Trump. In a photo from the event, D'Esposito is prominently seated at the table alongside Vance and several top Washington power players, including Cabinet secretaries Scott Bessent, Linda McMahon and Robert F. Kennedy Jr., and deputy White House chief of staff Stephen Miller.

Is D'Esposito willing to walk away from that kind of influence for a run-of-the-mill congressional seat? And if not, will Nassau Republicans stick with DeGrace or search for another candidate? Either way, time is almost out.

— Mark Nolan mark.nolan@newsday.com

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