Regular Session - March 3, 2014

                                                                   500

 1               NEW YORK STATE SENATE

 2                          

 3                          

 4              THE STENOGRAPHIC RECORD

 5                          

 6                          

 7                          

 8                          

 9                  ALBANY, NEW YORK

10                   March 3, 2014

11                     3:44 p.m.

12                          

13                          

14                  REGULAR SESSION

15  

16  

17  

18  SENATOR JOSEPH GRIFFO, Acting President

19  FRANCIS W. PATIENCE, Secretary

20  

21  

22  

23  

24  

25  


                                                               501

 1                P R O C E E D I N G S

 2                ACTING PRESIDENT GRIFFO:   The 

 3   Senate will come to order.  

 4                I ask all present to please rise and 

 5   join with me as we recite the Pledge of 

 6   Allegiance to our Flag.

 7                (Whereupon, the assemblage recited 

 8   the Pledge of Allegiance to the Flag.)

 9                ACTING PRESIDENT GRIFFO:   In the 

10   absence of clergy today, I ask everyone present 

11   to please bow their heads in a moment of silent 

12   reflection and prayer.

13                (Whereupon, the assemblage respected 

14   a moment of silence.)

15                ACTING PRESIDENT GRIFFO:   The 

16   reading of the Journal.

17                THE SECRETARY:   In Senate, Sunday, 

18   March 2nd, the Senate met pursuant to 

19   adjournment.  The Journal of Friday, 

20   February 28th, was read and approved.  On motion, 

21   Senate adjourned.

22                ACTING PRESIDENT GRIFFO:   Without 

23   objection, the Journal stands approved as read.

24                Presentation of petitions.

25                Messages from the Assembly.


                                                               502

 1                Messages from the Governor.

 2                Reports of standing committees.

 3                Reports of select committees.

 4                Communications and reports from 

 5   state officers.

 6                Motions and resolutions.

 7                Senator Libous.

 8                SENATOR LIBOUS:   Oh, Mr. President.  

 9   Did you call on me, sir?  

10                ACTING PRESIDENT GRIFFO:   Motions 

11   and resolutions.  

12                Senator Libous.

13                SENATOR LIBOUS:   Allow me to ask 

14   you to call on Senator David Valesky, please.

15                ACTING PRESIDENT GRIFFO:   Senator 

16   David Valesky.

17                SENATOR VALESKY:   Thank you, 

18   Mr. President.  

19                On page 12 I offer the following 

20   amendments to Calendar Number 57, Senate Bill 

21   5792A, and ask that said bill retain its place on 

22   the Third Reading Calendar.  And that's on behalf 

23   of Senator Savino.

24                ACTING PRESIDENT GRIFFO:   The 

25   amendments are received, and the bill shall 


                                                               503

 1   retain its place on third reading.

 2                Senator Libous.

 3                SENATOR LIBOUS:   Mr. President, on 

 4   behalf of Senator Ritchie, on page 11 I offer the 

 5   following amendments to Calendar Number 39, 

 6   Senate Print Number 2114, and ask that said bill 

 7   retain its place on the Third Reading Calendar.

 8                ACTING PRESIDENT GRIFFO:   The 

 9   amendments are received, and the bill shall 

10   retain its place on third reading.

11                SENATOR LIBOUS:   On behalf of 

12   Senator Boyle, Mr. President, I wish to call up 

13   his bill, Senate Print 6250, recalled from the 

14   Assembly, which is now at the desk.

15                ACTING PRESIDENT GRIFFO:   The 

16   Secretary will read.

17                THE SECRETARY:   Calendar Number 13, 

18   by Senator Boyle, Senate Print 6250, an act to 

19   amend the General Business Law.

20                SENATOR LIBOUS:   Mr. President, I 

21   now move to reconsider the vote by which this 

22   bill was passed.  

23                ACTING PRESIDENT GRIFFO:   The 

24   Secretary will call the roll on reconsideration.

25                (The Secretary called the roll.)


                                                               504

 1                THE SECRETARY:   Ayes, 56.

 2                SENATOR LIBOUS:   Mr. President, I 

 3   now offer up the following amendments.

 4                ACTING PRESIDENT GRIFFO:   The 

 5   amendments are received, and the bill shall 

 6   retain its place on third reading.

 7                SENATOR LIBOUS:   Mr. President, are 

 8   you ready, sir, for the reading of the 

 9   noncontroversial calendar?  

10                ACTING PRESIDENT GRIFFO:   I am most 

11   certainly, Senator Libous.

12                SENATOR LIBOUS:   Then we should 

13   proceed at this time.

14                ACTING PRESIDENT GRIFFO:   The 

15   Secretary will read.

16                THE SECRETARY:   Calendar Number 55, 

17   by Senator LaValle, Senate Print 347, an act to 

18   amend the Real Property Actions and Proceedings 

19   Law.

20                ACTING PRESIDENT GRIFFO:   Read the 

21   last section.

22                SENATOR GIANARIS:   Lay it aside.

23                ACTING PRESIDENT GRIFFO:   Lay it 

24   aside.

25                THE SECRETARY:   Calendar Number 


                                                               505

 1   129, by Senator Larkin, Senate Print 283, an act 

 2   to amend the Penal Law.

 3                ACTING PRESIDENT GRIFFO:   Read the 

 4   last section.

 5                THE SECRETARY:   Section 7.  This 

 6   act shall take effect on the 180th day.

 7                ACTING PRESIDENT GRIFFO:   Call the 

 8   roll.

 9                (The Secretary called the roll.)

10                THE SECRETARY:   Ayes, 56.

11                ACTING PRESIDENT GRIFFO:   The bill 

12   is passed.

13                THE SECRETARY:   Calendar Number 

14   164, by Senator Young, Senate Print 2677, an act 

15   to amend the Agriculture and Markets Law.

16                ACTING PRESIDENT GRIFFO:   Read the 

17   last section.

18                THE SECRETARY:   Section 4.  This 

19   act shall take effect immediately.

20                ACTING PRESIDENT GRIFFO:   Call the 

21   roll.

22                (The Secretary called the roll.)

23                ACTING PRESIDENT GRIFFO:   Senator 

24   Espaillat to explain his vote.

25                SENATOR ESPAILLAT:   Thank you, 


                                                               506

 1   Mr. President.

 2                This bill, Senate Bill 2677, on 

 3   surface seems to be a very good bill.  It calls 

 4   for a change in the current law that requires 

 5   that architects, professional engineers or land 

 6   surveyors licensed in the state stamp all plates 

 7   and reports relating to the construction or 

 8   alteration of buildings or structures prepared by 

 9   such professional engineers as it pertains to 

10   farms across the State of New York.

11                So it seems reasonable that this 

12   is -- on the surface, this bill looks very good.  

13   However, it's yet another bill in a series of 

14   bills which propose to help the farm industry in 

15   the state while they continue to not allow 

16   farmworkers to get paid overtime, to be able to 

17   collectively bargain, to get a day's rest.  

18                And today, when the Farm Bureau is 

19   here this evening treating us to some of the 

20   goods that are produced in New York State, I am 

21   sure we will be able to get a New York State 

22   apple or honey or other goods that are produced 

23   here in the Empire State.  And all of those 

24   products, or most of them, are picked and 

25   selected by farmworkers in this state that are 


                                                               507

 1   sometimes working under very adverse conditions 

 2   and are not entitled to the rights and privileges 

 3   extended to other New Yorkers.

 4                So again, as I did last year, I will 

 5   be voting no on all of the farm bills until 

 6   changes are made in the treatment of the 

 7   farmworkers.  

 8                I will be voting in the negative, 

 9   Mr. President.

10                ACTING PRESIDENT GRIFFO:   Senator 

11   Espaillat to be recorded in the negative.

12                Announce the results.

13                THE SECRETARY:   Ayes, 57.  Nays, 1.  

14   Senator Espaillat recorded in the negative.

15                ACTING PRESIDENT GRIFFO:   The bill 

16   is passed.

17                THE SECRETARY:   Calendar Number 

18   166, by Senator Libous, Senate Print 3580A, an 

19   act to amend the Environmental Conservation Law.

20                ACTING PRESIDENT GRIFFO:   Read the 

21   last section.

22                THE SECRETARY:   Section 5.  This 

23   act shall take effect immediately.

24                ACTING PRESIDENT GRIFFO:   Call the 

25   roll.


                                                               508

 1                (The Secretary called the roll.)

 2                ACTING PRESIDENT GRIFFO:   Announce 

 3   the results.

 4                THE SECRETARY:   In relation to 

 5   Calendar Number 166, those recorded in the 

 6   negative are Senators Espaillat, Hoylman, Perkins 

 7   and Serrano.  

 8                Ayes, 54.  Nays, 4.

 9                ACTING PRESIDENT GRIFFO:   The bill 

10   is passed.

11                THE SECRETARY:   Calendar Number 

12   167, by Senator Zeldin, Senate Print 3823B, an 

13   act to amend the Environmental Conservation Law.

14                ACTING PRESIDENT GRIFFO:   Read the 

15   last section.

16                THE SECRETARY:   Section 3.  This 

17   act shall take effect immediately.

18                ACTING PRESIDENT GRIFFO:   Call the 

19   roll.

20                (The Secretary called the roll.)

21                ACTING PRESIDENT GRIFFO:   Senator 

22   Krueger to explain her vote.

23                SENATOR KRUEGER:   Thank you, 

24   Mr. President.  I rise to explain my vote.  

25                I will be voting yes on this bill.  


                                                               509

 1   And I appreciate the fact that Senator Zeldin, 

 2   after discussions with me, had amended the bill 

 3   to address some of the concerns I had about 

 4   safety by ensuring that the spearfishing could 

 5   only take place underwater, not from boat to 

 6   water, and at a distance from where people might 

 7   be swimming, to hopefully prevent any dangerous 

 8   accidents from taking place.  

 9                But while I vote yes today, it was  

10   also brought to my attention that there might be 

11   some concern that in recreational spearfishing, 

12   fish that are legally too small to be taken might 

13   actually be speared and killed.  

14                And just to highlight to 

15   Senator Zeldin that we might need to think about 

16   that issue as well, that we don't want 

17   recreational fishermen to be unintentionally 

18   killing the small fish that are not legal under 

19   their licenses.  And we don't want them to have 

20   to cheat and throw the fish back in the water 

21   rather than come back to shore with too small a 

22   catch -- or a catch that is too small under their 

23   license.  

24                So it's amazing how complicated 

25   fishing can be.  Thank you, Mr. President.


                                                               510

 1                ACTING PRESIDENT GRIFFO:   Senator 

 2   Krueger to be recorded in the affirmative.  

 3                Announce the results.

 4                THE SECRETARY:   In relation to 

 5   Calendar Number 167, those recorded in the 

 6   negative are Senators Espaillat, Perkins and 

 7   Serrano.  

 8                Ayes, 55.  Nays, 3.

 9                ACTING PRESIDENT GRIFFO:   The bill 

10   is passed.

11                THE SECRETARY:   Calendar Number 

12   168, by Senator Young, Senate Print 4396, an act 

13   to amend the Soil and Water Conservation 

14   Districts Law.

15                ACTING PRESIDENT GRIFFO:   Read the 

16   last section.

17                THE SECRETARY:   Section 2.  This 

18   act shall take effect immediately.

19                ACTING PRESIDENT GRIFFO:   Call the 

20   roll.

21                (The Secretary called the roll.)

22                THE SECRETARY:   Ayes, 58.

23                ACTING PRESIDENT GRIFFO:   The bill 

24   is passed.

25                THE SECRETARY:   Calendar Number 


                                                               511

 1   170, by Senator LaValle, Senate Print 2405, an 

 2   act to amend the Education Law.

 3                ACTING PRESIDENT GRIFFO:   Read the 

 4   last section.

 5                THE SECRETARY:   Section 2.  This 

 6   act shall take effect immediately.

 7                ACTING PRESIDENT GRIFFO:   Call the 

 8   roll.

 9                (The Secretary called the roll.)

10                THE SECRETARY:   Ayes, 58.

11                ACTING PRESIDENT GRIFFO:   The bill 

12   is passed.

13                Senator Libous, that completes the 

14   noncontroversial reading of today's calendar.

15                SENATOR LIBOUS:   Thank you, 

16   Mr. President.

17                Are you ready for the controversial 

18   reading of the calendar?  

19                ACTING PRESIDENT GRIFFO:   We are.  

20                The Secretary will ring the bell.

21                SENATOR LIBOUS:   We will then 

22   proceed when you are ready, sir, with the 

23   controversial reading.

24                ACTING PRESIDENT GRIFFO:   The 

25   Secretary will read.


                                                               512

 1                THE SECRETARY:   Calendar Number 55, 

 2   by Senator LaValle, Senate Print 347, an act to 

 3   amend the Real Property actions and Proceedings 

 4   Law.

 5                SENATOR KRUEGER:   Explanation.

 6                ACTING PRESIDENT GRIFFO:   An 

 7   explanation has been requested by Senator 

 8   Krueger, Senator LaValle.

 9                SENATOR LaVALLE:   Yes.  This 

10   legislation, Senator, is very simple.  It says 

11   that the judgment direct that in the event such 

12   premises is purchased collectively by more than 

13   one individual, the names of each individual 

14   purchaser shall be disclosed in writing to such 

15   sheriff or referee.

16                So at a foreclosure sale, in most 

17   cases it's the referee that is appointed by a 

18   justice of the Supreme Court.  In the order the 

19   justice lays out what steps you are to take, what 

20   the deposit is to be.  

21                So what happens at the beginning of 

22   a sale is the referee says to those that are 

23   bidding:  Please come and sign the sheet with 

24   your telephone number so that I as the referee 

25   know who's bidding on the property.


                                                               513

 1                So, Senator Krueger, you bid, I bid, 

 2   we have signed our names separately.  But you and 

 3   I kind of wink at one another because we see -- 

 4   because you actually have to have the exact money 

 5   that you need for your deposit.  So if the sale 

 6   goes up higher than either you or I know, then I 

 7   don't have the deposit money.  So when the sale 

 8   is closed, I may have bid more.  

 9                But now when I go to the referee to 

10   sign the paperwork, I now notice, as the referee, 

11   that there are two people that are standing there 

12   and they now have made deal to both buy the 

13   property jointly.  When we started the sale, 

14   everyone believed that you and I were separate 

15   bidders and we were not in the sale together.

16                So this basically says you have to 

17   declare, you have to declare that you're not 

18   bidding individually, that you are bidding 

19   collectively.  And that's the sum total of the 

20   bill.

21                SENATOR KRUEGER:   Through you, 

22   Mr. President, if the sponsor would please yield.

23                ACTING PRESIDENT GRIFFO:   Senator 

24   LaValle, do you yield?  

25                SENATOR LaVALLE:   I guess.


                                                               514

 1                SENATOR KRUEGER:   Thank you.  

 2                ACTING PRESIDENT GRIFFO:   The 

 3   Senator yields, Senator Krueger.

 4                SENATOR KRUEGER:   Why should we 

 5   care that somebody has made a deal in the process 

 6   of the purchase to jointly purchase when they 

 7   originally signed it separately?  How does that 

 8   impact either the community when the home or 

 9   homes is purchased or the process of bidding?

10                SENATOR LaVALLE:   Senator, you of 

11   all people in this chamber should care, because 

12   you are a person who believes, one, in 

13   transparency and, two, in procedure.

14                So I would like -- you know, I'm in 

15   the bidding and I really want this but I don't 

16   have the money in my pocket for the deposit.  Now 

17   I might, I might, if I had a referee who had a 

18   good heart only, not by any other event, say:  

19   Would you let me go to the bank, Referee, so that 

20   I could get that extra money that I need for the 

21   deposit?  

22                So you're changing the rules.  If 

23   you and I are bidding, then we've got to play by 

24   the rules to have enough money in our pockets to 

25   be able to put down the requisite deposit that we 


                                                               515

 1   need, not change the rules.  

 2                And that's all we're doing with this 

 3   bill.

 4                SENATOR KRUEGER:   Through you, 

 5   Mr. President, if the sponsor would continue to 

 6   yield.

 7                SENATOR LaVALLE:   Yes.

 8                ACTING PRESIDENT GRIFFO:   The 

 9   sponsor yields.

10                SENATOR KRUEGER:   So under the 

11   sponsor's analysis, three of us might be bidding 

12   on one property, none of us might have adequate 

13   money to meet the bidding price.  But if two of 

14   us decide to get together because we made a 

15   private either wink discussion or a conversation 

16   discussion, the two of us bidding together might 

17   win over the third party.  

18                Is there something illegal about 

19   that under current law?  And/or would having to 

20   record this down to give to a sheriff change the 

21   legal status of the question?

22                SENATOR LaVALLE:   I don't know 

23   whether it's illegal.  But it smells a little 

24   like two people are going around the procedure.  

25                They are consorting to have a result 


                                                               516

 1   by the rules that no one else was playing by 

 2   those rules.  Everyone believed that they 

 3   themselves were bidding on the property and had 

 4   the requisite amount of deposit.  

 5                And that's always the key.  A lot of 

 6   the people who bid on these items, these sales, 

 7   bring with them certified checks, all sorts of 

 8   checks.  And they also -- because the only other 

 9   way you can put together that money is by cash.  

10                So sometimes a referee will leave a 

11   sale with some checks and cash.  And in some 

12   communities referees get a little antsy about 

13   walking away from a sale with a bunch of cash.  

14   And some of that cash, Senator, they could have 

15   gotten from another party.

16                This bill simply is we all play by 

17   the same rules and there is transparency, and you 

18   sign in at the sale either as a collective group 

19   or as a single group.

20                SENATOR KRUEGER:   Through you, 

21   Mr. President, if the sponsor would continue to 

22   yield.

23                ACTING PRESIDENT GRIFFO:   Senator 

24   LaValle, do you yield?  

25                SENATOR LaVALLE:   I will yield, but 


                                                               517

 1   I don't know how many ways I can say the same 

 2   thing.

 3                ACTING PRESIDENT GRIFFO:   Senator 

 4   LaValle yields, Senator Krueger.

 5                SENATOR KRUEGER:   I'll try to ask 

 6   questions that allow the sponsor to answer 

 7   different things.

 8                So right now three of us can go to a 

 9   foreclosure sale and two of us can, after the 

10   bidding starts, come together and say let's go in 

11   together on this property.  And under the law 

12   that Senator LaValle has proposed, will it stop 

13   us from doing that because we signed in 

14   separately, therefore we can't be a joint bidder?  

15   Or will it just allow that information to be 

16   known?  

17                So does our signing in separately on 

18   a document that goes to the referee and/or 

19   sheriff actually prevent us from becoming 

20   partners in the bidding at that specific auction?

21                SENATOR LaVALLE:   Everyone signs 

22   in.  And if we sign in together, we don't become 

23   business partners in the middle of the 

24   transaction.  And that's what this is trying to 

25   avoid.  It's very simple.


                                                               518

 1                SENATOR KRUEGER:   Through you, 

 2   Mr. President, if the sponsor would continue to 

 3   yield.

 4                ACTING PRESIDENT GRIFFO:   Senator 

 5   LaValle, do you yield?

 6                SENATOR LaVALLE:   This is the last 

 7   time I'm yielding.

 8                ACTING PRESIDENT GRIFFO:   Senator 

 9   Krueger.

10                SENATOR KRUEGER:   Well, I had more 

11   questions, but let me try to do this.  So again, 

12   where I'm confused is multiple-part.  And since I 

13   only get one more question, I have to make it a 

14   long complex question.  

15                So question one, if this were to 

16   become law, does it then become illegal for us to 

17   decide to become partners in the auction after we 

18   have signed into a document?  

19                Two, if that does make it illegal 

20   for us to do it, does that stop me from just 

21   selling it to the other party right after the 

22   auction?  

23                And three -- because I think most 

24   people who go to auctions probably do have more 

25   money with them than they actually intended to 


                                                               519

 1   spend.  You never know how high you're going to 

 2   go up.

 3                And then, three, so this would make 

 4   it illegal to come together at the auction, but I 

 5   think it wouldn't stop you from making the deal 

 6   two seconds afterwards outside the auction.  But, 

 7   three, accepting that it's good to know this 

 8   information and have everybody not be able to 

 9   make deals during auctions, why would we exempt 

10   LLCs and corporations?  They have deeper pockets 

11   to make these deals than anyone else.

12                So that's really three questions, I 

13   admit it.  But I was told I only had one more, so 

14   I was tying all three together.

15                ACTING PRESIDENT GRIFFO:   Senator 

16   LaValle on the multi-question.  

17                SENATOR LaVALLE:   I think you did a 

18   very good job.  

19                I'm going to answer, but what I 

20   would hope, that now I'm interested, as the 

21   sponsor -- because this is such a very 

22   straightforward bill and one that I think people 

23   would appreciate who bid on properties so that 

24   they know that they're playing by the same rule.

25                The one good question that you asked 


                                                               520

 1   is could not the individual at some point in time 

 2   after either sell, bring in, change the title on 

 3   the property.  And the answer is yes to that.

 4                 This bill, Senator, is one that I 

 5   thought someone like yourself who's interested in 

 6   fair play, is that everyone plays by the same 

 7   rule.  That's all this bill does.

 8                ACTING PRESIDENT GRIFFO:   Senator 

 9   Krueger, would you like to speak on the bill?  

10                SENATOR KRUEGER:   Thank you so 

11   much.

12                ACTING PRESIDENT GRIFFO:   Senator 

13   Krueger on the bill.

14                SENATOR KRUEGER:   Well, I agree 

15   with Senator LaValle, I am one of those people 

16   who likes fair play.  

17                So in fact I have voted for this 

18   bill in the past, but sometimes you're busy and 

19   you're not thinking as carefully as you ought to.  

20                So what really drove my concern 

21   today was the fact that this wouldn't be an even 

22   playing field because we're exempting LLCs.  Who 

23   can, by the way, be an individual or multiple 

24   individuals in multiple LLCs.  So you sort of can 

25   be an individual while you're a LLC.  Or you can 


                                                               521

 1   be a corporation.  I was concerned that we were 

 2   not including them in this effort for fair play.

 3                Second, I was concerned that the 

 4   bill is simple and says you sign in.  It doesn't 

 5   say anywhere explicitly "and you're not allowed 

 6   to change the rules of the game by becoming a 

 7   partnership without formal process during the 

 8   auction."

 9                So it's just:  Here, we'll let you 

10   know that we've signed in, Liz Krueger has signed 

11   in separately than Senator LaValle.  But I don't 

12   see where it would stop us from making a deal 

13   either during the auction, even though we signed 

14   in, because it's not explicit that if you signed 

15   in separately you can't make a deal.  

16                And it wouldn't stop us from 

17   deciding to make a deal for one to pay off the 

18   rest of it to the other the minute you walked out 

19   of the door.  

20                And it wouldn't stop us if we called 

21   ourselves LLCs when we signed in, which a lot of 

22   people in real estate are LLCs.  It wouldn't stop 

23   us from doing it if we were corporations or LLCs.

24                So I actually think this bill has 

25   been floating around for quite a while and not 


                                                               522

 1   moving anywhere in the Assembly because they also 

 2   couldn't quite figure out how it got us to the 

 3   stated goal.  

 4                After my discussion with 

 5   Senator LaValle on the floor -- and I appreciate 

 6   his answers -- I don't think it does get us to 

 7   the stated goal.  I could actually vote yes or 

 8   no, because I'm not clear that this resolves any 

 9   of the concerns he has.  

10                So I'm going to vote yes in the hope 

11   that this bill could be amended to answer the 

12   concerns and perhaps move through the Assembly, 

13   which it hasn't for many years.  I've learned 

14   there were three separate Assembly sponsors that 

15   have come and gone on that bill.

16                So I will vote yes, Senator LaValle.  

17   And yet I want to highlight to you I think this 

18   bill could be significantly improved if it 

19   covered corporations, LLCs, and it clarified that 

20   if you change the rules of the game during the 

21   auction, as described, that there's actually 

22   something that prevents you then from being able 

23   to purchase at that auction.

24                So thank you very much.

25                ACTING PRESIDENT GRIFFO:   Thank 


                                                               523

 1   you, Senator Krueger.

 2                Senator Sanders.

 3                SENATOR SANDERS:   Through you, 

 4   Mr. President, if the sponsor will yield for a 

 5   question.

 6                ACTING PRESIDENT GRIFFO:   Senator 

 7   LaValle, do you yield to a question from 

 8   Senator Sanders?

 9                SENATOR LaVALLE:   Yes.

10                SENATOR SANDERS:   Arguably, my 

11   district has been the hardest-hit district in 

12   New York City on foreclosures, so I look at this 

13   bill with great interest.  I like most of what 

14   it's doing.  I can certainly see myself 

15   supporting it.

16                My question, of course, is why have 

17   we removed from the LLCs from here?  They are 

18   some of the -- I'll be kind.  Arguably, one can 

19   say that they may be the ones who are most adept 

20   at -- at -- well, the words "taking advantage" 

21   does come to mind quickly.

22                Why did we remove those 

23   corporations?

24                ACTING PRESIDENT GRIFFO:   Senator 

25   LaValle.


                                                               524

 1                SENATOR LaVALLE:   Mr. President, 

 2   through you.  As I had said to -- and I think 

 3   Senator Krueger has drilled down to say that the 

 4   individual -- that's what we're talking about, 

 5   whoever signs in.  

 6                And that, by the way, happens now, 

 7   would happen later.  Because the person who is 

 8   the referee needs to know who the people are that 

 9   are bidding and that, at the end of the day, 

10   they're real, that they have a telephone number.  

11   Now, right now, those individuals sometimes put 

12   their corporate name after.  You know, LLC, LLP, 

13   whatever.  

14                But I think what we're trying to 

15   do -- and we can't, as you well know, Senator, 

16   get into each person's larcenous intent.  We try 

17   the best here.  And I put this bill in based, 

18   obviously, on some experience in this area.  And 

19   there are some other bills that I have.  

20                But I do believe that this takes 

21   care of, for the referee, the playing of games 

22   that go on in the bidding process when some of 

23   those people they think -- a lot of these people 

24   go to, within the course of a week, many, many, 

25   many sales, foreclosure sales.  Many.  They are 


                                                               525

 1   professionals.  So sometimes they do.  

 2                As I had said and Senator Krueger 

 3   said, they come with lots of checks, cash and 

 4   whatever.  But they should know going in that I 

 5   who am a first-timer -- and I've seen this with 

 6   first-time people, with good intentions, are up 

 7   against people who are professionals and they 

 8   know how they're going to put together their 

 9   money for the deposit to get through the sale and 

10   beyond.

11                So -- but I think this does it.  

12   We're only trying to cure one problem in the 

13   total sale.  There are lots of things that we 

14   might have included in this bill that take place 

15   after the sale.  But we didn't.  We tried to make 

16   it very simple to deal with the problem of people 

17   not playing fairly.

18                SENATOR SANDERS:   Mr. President.  

19                ACTING PRESIDENT GRIFFO:   Senator 

20   Sanders.

21                SENATOR SANDERS:   I applaud the 

22   sponsor, and I will support the bill.  But I urge 

23   him to amend it to include the corporations that 

24   he has left out.

25                Thank you very much.


                                                               526

 1                ACTING PRESIDENT GRIFFO:   Senator 

 2   O'Brien.

 3                SENATOR O'BRIEN:   Thank you, 

 4   Mr. President.  If the sponsor will yield to one 

 5   just very brief question.

 6                ACTING PRESIDENT GRIFFO:   Senator 

 7   LaValle, do you yield for a brief question?  

 8                SENATOR LaVALLE:   Just one second.

 9                ACTING PRESIDENT GRIFFO:   Senator 

10   O'Brien.

11                SENATOR O'BRIEN:   Thank you.  Just 

12   one quick question.  

13                As I understand it, the intent here 

14   is that when people arrive to bid at public 

15   auction or mortgage foreclosure, that this would 

16   limit the ability of individual bidders to kind 

17   of get together and pool their resources in a way 

18   that wasn't anticipated before they arrived at 

19   the time for the auction.  

20                And I guess my question would be 

21   whether or not in the sponsor's view that would 

22   limit potentially the sale proceeds that might 

23   otherwise be realized if bidders could act 

24   collectively at the time of the mortgage 

25   foreclosure.  And then perhaps that would happen 


                                                               527

 1   at the disadvantage of lienors or other people 

 2   expecting to be paid from the proceeds of the 

 3   sale, where oftentimes the attempt is to try to 

 4   maximize the bid price.

 5                ACTING PRESIDENT GRIFFO:   Senator 

 6   LaValle.

 7                SENATOR LaVALLE:   Through you, 

 8   Mr. President.  I do not believe that this limits 

 9   where people are going in terms of their bids.  

10                It is obvious that people want to 

11   come in with a sale, a purchase at the lowest 

12   possible price.  But as I had indicated, these 

13   potential purchasers are, for the most part, 

14   professionals.  They know where the property is.  

15   They've seen the property.  They have an idea of 

16   how much needs to go in to make that property 

17   whole.  

18                And so if it's a really good 

19   property, that will get bid up and the offers 

20   will become fast and furious.  And that's where 

21   the potential of an individual to come short in 

22   terms of the money, the requisite money they need 

23   for their deposit.

24                SENATOR O'BRIEN:   Thank you.  I'm 

25   not sure I would agree with the conclusion that 


                                                               528

 1   it doesn't necessarily limit the ultimate price 

 2   that could be obtained at auction, but I think I 

 3   will support the legislation in any event.  

 4                Thank you.

 5                ACTING PRESIDENT GRIFFO:   Thank 

 6   you, Senator O'Brien.  

 7                Any other member wishing to be 

 8   heard?

 9                Seeing none, hearing none, debate is 

10   closed.  The Secretary will ring the bell.  

11                The Secretary will read the last 

12   section.

13                THE SECRETARY:   Section 2.  This 

14   act shall take effect on the 30th day.

15                ACTING PRESIDENT GRIFFO:   Call the 

16   roll.

17                (The Secretary called the roll.)

18                THE SECRETARY:   Ayes, 60.

19                ACTING PRESIDENT GRIFFO:   The bill 

20   is passed.

21                Senator Libous, that completes the 

22   reading of the controversial calendar.

23                SENATOR LIBOUS:   Well, thank you, 

24   Mr. President.  I appreciate you notifying us.

25                Is there any further business at the 


                                                               529

 1   desk?  

 2                ACTING PRESIDENT GRIFFO:   There is 

 3   no further business before the desk.

 4                SENATOR LIBOUS:   All right.  Well, 

 5   we're not going to adjourn yet because I have 

 6   some hand-ups.

 7                ACTING PRESIDENT GRIFFO:   Can I 

 8   have some order in the house.

 9                SENATOR LIBOUS:   Mr. President, on 

10   behalf of Senator Klein, Senator Skelos, I'd like 

11   to hand up the following committee assignments 

12   and ask that such assignments be filed in the 

13   Journal.

14                ACTING PRESIDENT GRIFFO:   The 

15   assignments are received and will be filed in the 

16   Journal.

17                SENATOR LIBOUS:   And on behalf of 

18   Senator Skelos, Senator Klein, I'd like to hand 

19   up the following leadership assignments and ask 

20   that such assignments be filed in the Journal.

21                ACTING PRESIDENT GRIFFO:   The 

22   leadership assignments are also received and 

23   shall be filed accordingly.

24                SENATOR LIBOUS:   And, 

25   Mr. President, there being no further business, I 


                                                               530

 1   move that we adjourn until Tuesday, March 4th, at 

 2   3:00 p.m.

 3                ACTING PRESIDENT GRIFFO:   On 

 4   motion, the Senate stands adjourned until 

 5   Tuesday, March 4th, at 3:00 p.m.  

 6                Senate adjourned.  

 7                (Whereupon, the Senate adjourned at 

 8   4:23 p.m.)

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