[SCROLL DOWN FOR UPDATE AT BOTTOM] In a statement issued Sunday evening, Governor Andrew Cuomo's office signaled that he will relent to Attorney General Letitia James's demands for specific powers to fully investigate sexual harassment allegations against him.

"The Governor's office wants a thorough and independent review that is above reproach and beyond political interference," special counsel and senior advisor to the governor, Beth Garvey, said in a statement. "Therefore, the Governor's office has asked Attorney General Tish James to select a qualified private lawyer to do an independent review of allegations of sexual harassment."

The independent lawyer will be considered the "special independent deputy attorney general" and have powers under state law 63(8). The change appeared to meet the demands from James, who wanted such powers under that state law in order to be able to issue subpoenas, but she could not do so until the governor issued an official referral.

In a statement, James said her office expects the particular referral she demanded earlier in the day.

"We expect to receive a 63(8) referral with subpoena power to investigate allegations of sexual harassment against the governor, in line with our demands and New York state law," James said in a statement. "The referral would be made solely to the attorney general's office. This is not a responsibility we take lightly. We will hire a law firm, deputize them as attorneys of our office, and oversee a rigorous and independent investigation."

The Attorney General's office confirmed on Sunday night that it had not yet received an official referral from the governor's office. A referral would need to be in a letter with specific language around the state law referenced in statements to the press from the two offices.

The change-up came after a dizzying 24 hours of back-and-forth over how an independent investigation into claims that the governor had sexually harassed two former aides would carry out. At first, Cuomo put a former judge, Barbara Jones, in charge of reviewing the allegations. Then, he instead asked Chief Judge DiFiore and Attorney General James to choose a private lawyer to investigate. Neither satisfied the growing calls for a "truly independent" investigation. Critics noted that Jones had once worked with a longtime Cuomo ally and former aide, Steve Cohen, and DiFiore is also appointed by the governor and considered an ally to him.

Garvey said the independent lawyer would publicly report findings and the governor's office would cooperate fully.

"As necessary, other lawyers from the appointed lawyer's firm shall be similarly designated to assist in the review," Garvey said. It is unclear if DiFiore will still work with James on the investigation or not. The Governor's office did not immediately clarify.

Following Garvey's statement, Cuomo himself issued a statement seemingly regretful of his behavior, acknowledging what he saw as teasing in the office may have offended people.

"I never intended to offend anyone or cause any harm," Cuomo said in a statement. "I spend most of my life at work and colleagues are often also personal friends."

He said he is sometimes "playful" and makes jokes at work and teases people in what he sees as a "good-natured way," noting he does so publicly at press briefings too. In the statement, he said he now realizes how those interactions may have been made others feel in a way he did not intend, especially given his position as governor.

"I acknowledge some of the things I have said have been misinterpreted as an unwanted flirtation. To the extent anyone felt that way, I am truly sorry about that," Cuomo said.

He still denied that he had ever "inappropriately touched anybody" or "propositioned anybody."

One of his accusers, former aide Lindsey Boylan, had alleged the governor forcibly kissed her and the second accuser, Charlotte Bennett, interpreted his remarks as "grooming" and sexual advances in nature.

"To be clear I never inappropriately touched anybody and I never propositioned anybody and I never intended to make anyone feel uncomfortable, but these are allegations that New Yorkers deserve answers to," Cuomo said. "That's why I have asked for an outside, independent review that looks at these allegations."

Update, March 1st: The Attorney General's investigation into sexual harassment allegations against Governor Andrew Cuomo has officially begun. A letter sent from Beth Garvey, the Governor’s Special Counsel and Senior Advisor, to Attorney General Letitia James’s office on Monday afternoon officially allows the probe to begin. Under state law, the Governor has to authorize certain kinds of investigations in order for the Attorney General to have subpoena powers.

“Nothing in this letter is intended to constrain or limit any of the powers inherent in Executive Law,” the letter reads. “All New York state employees have been directed to cooperate fully with this review.”

Garvey's letter notes that at the end of "the review, the findings will be disclosed in a public report.”

In a statement, James said the letter provides her office with "the authority to move forward with an independent investigation into allegations of sexual harassment claims made against Governor Cuomo. This is not a responsibility we take lightly as allegations of sexual harassment should always be taken seriously."

The Cuomo administration has retained high profile white-collar defense attorney Elkan Abramowitz, who previously represented Harvey Weinstein, to represent Cuomo and members of his staff in the sexual harassment investigation and a federal probe into his administration's handling of nursing homes during the height of the pandemic, the Wall Street Journal reports.

Additional reporting by Gwynne Hogan.