The bill would have required greater disclosure of campaign donors with an aim to curb widespread pay-to-play politics.
Along with GOP legislators, Paterson hammered on what the legislation would have exempted from oversight, like a clause that would have exempted legislators, who are also attorneys, from divulging their incomes outside the Senate.
Senate Democrats argued that requiring the disclosure of such information violates the attorney-client privilege.
Paterson and his new GOP allies have promised to introduce new ethics legislation that closes the loopholes within the next few weeks.
And for Little, the death of the ethics bill presents an opportunity.
"Now that the override has been upheld, we have a chance to negotiate openly and in a bipartisan manner," she said. "The manner in which this override attempt was rushed through today speaks volumes about a political process that isn't known for expediency."
The veto override breezed through the Assembly with little dissent.
As recent as last week, Senate Democrats were confident that they had the votes to successfully override the veto.