Regular Session - February 14, 1995

                                                                  952

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        11                    ALBANY, NEW YORK

        12                   February  14, 1995

        13                       3:07 p.m.

        14

        15

        16                   REGULAR SESSION

        17

        18

        19       SENATOR JOHN R. KUHL, JR., Acting President

        20       STEPHEN F. SLOAN, Secretary

        21

        22

        23











                                                              953

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

         2                      ACTING PRESIDENT KUHL:  The

         3       Senate will come to order; members please take

         4       their places.  Ask the staff to take their

         5       seats.  Ask everybody in the chamber to rise and

         6       join with me in saying the Pledge of Allegiance.

         7                      (The assemblage repeated the

         8       Pledge of Allegiance to the Flag.)

         9                      Reading of the Journal.

        10                      THE SECRETARY:  In Senate,

        11       Monday, February 13th.  The Senate met pursuant

        12       to adjournment, Senator DeFrancisco in the Chair

        13       upon designation of the Temporary President.

        14       The prayer by the Reverend Terry Troia of the

        15       Brighton Heights Reformed Church of Staten

        16       Island.  The Journal of Sunday, February 12th,

        17       was read and approved.  On motion, Senate

        18       adjourned.

        19                      ACTING PRESIDENT KUHL:  Hearing

        20       no objection, the Journal stands approved as

        21       read.

        22                      We're honored today to have

        23       visiting with us as a visiting clergy, the











                                                              954

         1       Reverend Wilma Jackson, who is the mother of a

         2       nominee who comes before us for confirmation,

         3       Richard E. Jackson, Jr.

         4                      REVEREND WILMA JACKSON:  This is

         5       a very joyous, happy occasion, and I thank God

         6       that He allowed me to live to see this day.

         7                      A few years back, Richard, Jr.

         8       chose a scripture that he claimed and I have

         9       been finding for him, and I would like to share

        10       that scripture with you this evening.  It is

        11       Micah, the 6th chapter and the 8th verse, and it

        12       says:

        13                      He has shown thee, O man, what is

        14       good; and what does the Lord require of thee,

        15       but to do justly, and to love mercy, and to walk

        16       humbly with thy God?

        17                      There are three things that stand

        18       out in that scripture, and the first one is to

        19       do justly, to love mercy and to walk humbly with

        20       thy God, and that's what Richard Jr.'s been

        21       doing, and we are very proud of him this day and

        22       very proud of all of you because you are part of

        23       this.











                                                              955

         1                      Secondly, I would like to do the

         2       first Psalm, and this is what it is says, and

         3       this is a Psalm of King David,  one of our

         4       greatest kings that we have.  It is:

         5                      Blessed is the man that walketh

         6       not in the counsel of the ungodly, nor standeth

         7       in the way of sinners, nor sitteth in the seat

         8       of the scornful; but his delight is in the law

         9       of the Lord; and in his law doth he meditate day

        10       and night.  And he shall be like a tree planted

        11       by the rivers of water, that bringeth forth his

        12       fruit in his season; his leaf also shall not

        13       wither; and whatsoever he doeth shall prosper.

        14       The ungodly are not so; but are like the chaff

        15       which the wind driveth away.  Therefore, the

        16       ungodly shall not stand in the judgment, nor

        17       sinners in the congregation of the righteous.

        18                      Let us pray.

        19                      Father God, we thank You this, my

        20       Abraham, for allowing me to send -- for all of

        21       us to speak here in this Senate.  We thank you,

        22       Father, for these our people, and you said in

        23       the scriptures that we, as people, should pray











                                                              956

         1       for the leaders of the nation and, Father, we

         2       pray for all of the leaders that is leading us,

         3       and we thank God for them.

         4                      Our Father, we just bless Your

         5       mind, and we ask You for the protection for each

         6       one as they go about their daily task, and we

         7       will just say, blessed is the man that cometh in

         8       the name of the Lord.

         9                      Amen.

        10                      ACTING PRESIDENT KUHL:  Amen.

        11                      Presentation of petitions.

        12                      Messages from the Assembly.

        13                      Messages from the Governor.

        14                      Reports of standing committees.

        15                      Reports of select committees.

        16                      Motions and resolutions.

        17                      Senator DiCarlo.

        18                      SENATOR DiCARLO:  Mr. President,

        19       on behalf of Senator Kuhl, on page 6, I offer

        20       the following amendments to Calendar 67, Senate

        21       Print 2081, and ask that said bill retain its

        22       place on the Third Reading Calendar.

        23                      ACTING PRESIDENT KUHL:











                                                              957

         1       Amendments are received and adopted.  The bill

         2       will retain its place on the Third Reading

         3       Calendar.

         4                      Senator Bruno, would you like to

         5       do the Resolution Calendar at this time?

         6                      SENATOR BRUNO:  Yes, Mr.

         7       President.  Can we now take up the Resolution

         8       Calendar?

         9                      ACTING PRESIDENT KUHL:  The

        10       question is on the adoption of the Resolution

        11       Calendar.  All those in favor signify by saying

        12       aye.

        13                      (Response of "Aye".)

        14                      Opposed, nay.

        15                      (There was no response.)

        16                      The Resolution Calendar is

        17       adopted.

        18                      Senator Bruno.

        19                      SENATOR BRUNO:  Mr. President, I

        20       would like to call an immediate meeting of the

        21       Rules Committee in Room 332.

        22                      ACTING PRESIDENT KUHL:  There

        23       will be an immediate meeting of the Rules











                                                              958

         1       Committee in Room 332, the Majority Conference

         2       Room.

         3                      SENATOR BRUNO:  Mr. President.

         4                      ACTING PRESIDENT KUHL:  Senator

         5       Bruno.

         6                      SENATOR BRUNO:  Can we now take

         7       up the non-controversial calendar?

         8                      ACTING PRESIDENT KUHL:  The

         9       Secretary will read the non-controversial

        10       calendar.

        11                      THE SECRETARY:  Calendar Number

        12       44, by Senator Farley, Senate Bill Number 568,

        13       an act to amend the Education Law, in relation

        14       to efficiency study grants.

        15                      ACTING PRESIDENT KUHL:  The

        16       Secretary will read the last section.

        17                      THE SECRETARY:  Section 2.  This

        18       act shall take effect immediately.

        19                      ACTING PRESIDENT KUHL:  Call the

        20       roll.

        21                      (The Secretary called the roll.)

        22                      THE SECRETARY:  Ayes 35.

        23                      ACTING PRESIDENT KUHL:  The bill











                                                              959

         1       is passed.

         2                      THE SECRETARY:  Calendar Number

         3       47, by Senator Levy, Senate Bill Number 390, an

         4       act to amend the General Business Law, in

         5       relation to disclosure of insurance coverage.

         6                      ACTING PRESIDENT KUHL:  The

         7       Secretary will read the last section.

         8                      THE SECRETARY:  Section 2.  This

         9       act shall take effect on the 120th day after it

        10       shall have become a law.

        11                      ACTING PRESIDENT KUHL:  Call the

        12       roll.

        13                      (The Secretary called the roll.)

        14                      THE SECRETARY:  Ayes 35.

        15                      ACTING PRESIDENT KUHL:  The bill

        16       is passed.

        17                      THE SECRETARY:  Calendar Number

        18       48, by Senator Skelos, Senate Bill Number 1075,

        19       an act to amend the Vehicle and Traffic Law, in

        20       relation to the enforcement of handicapped

        21       parking regulations.

        22                      ACTING PRESIDENT KUHL:  The

        23       Secretary will read the last section.











                                                              960

         1                      THE SECRETARY:  Section 2.  This

         2       act shall take effect immediately.

         3                      ACTING PRESIDENT KUHL:  Call the

         4       roll.

         5                      (The Secretary called the roll.)

         6                      THE SECRETARY:  Ayes 35.

         7                      ACTING PRESIDENT KUHL:  The bill

         8       is passed.

         9                      THE SECRETARY:  Calendar Number

        10       49, by Senator Volker, Senate Bill Number 1474,

        11       an act to amend the Vehicle and Traffic Law, in

        12       relation to suspensions for failure to answer.

        13                      ACTING PRESIDENT KUHL:  The

        14       Secretary will read the last section.

        15                      THE SECRETARY:  Section 2.  This

        16       act shall take effect immediately.

        17                      ACTING PRESIDENT KUHL:  Call the

        18       roll.

        19                      (The Secretary called the roll.)

        20                      THE SECRETARY:  Ayes 35.

        21                      ACTING PRESIDENT KUHL:  The bill

        22       is passed.

        23                      THE SECRETARY:  Calendar Number











                                                              961

         1       50, by Senator LaValle, Senate Bill Number 1491,

         2       an act to amend the Vehicle and Traffic Law, in

         3       relation to traffic control signal indicators.

         4                      ACTING PRESIDENT KUHL:  The

         5       Secretary will read the last section.

         6                      THE SECRETARY:  Section 2.  This

         7       act shall take effect on the first day of

         8       January.

         9                      ACTING PRESIDENT KUHL:  Call the

        10       roll.

        11                      (The Secretary called the roll.)

        12                      THE SECRETARY:  Ayes 35.

        13                      ACTING PRESIDENT KUHL:  The bill

        14       is passed.

        15                      Senator Bruno, that completes the

        16       non-controversial calendar.  We have a report of

        17       a standing committee at the desk, if you would

        18       like to return to reports of standing committees

        19       to receive that report?

        20                      SENATOR BRUNO:  Yes, Mr.

        21       President.

        22                      ACTING PRESIDENT KUHL:  The

        23       Secretary will read.











                                                              962

         1                      THE SECRETARY:  Senator Padavan,

         2       from the Committee on Cities, reports the

         3       following bill directly for third reading:

         4                      Senate Bill Number 1654, by

         5       Senators Maltese and others, Administrative Code

         6       of the city of New York, in relation to criminal

         7       possession of a knife.

         8                      Senator Lack, from the Committee

         9       on Judiciary, reports the following bills

        10       directly for third reading:

        11                      Senate Bill Number 546, by

        12       Senators Marchi and DiCarlo, Judiciary Law,

        13       creating the 13th Judicial District consisting

        14       of the county of Richmond;

        15                      1294, by Senator Lack, an act to

        16       amend the Estates, Powers and Trusts Law;

        17                      1623, by Senator Lack, proposing

        18       an amendment to the Constitution, in relation to

        19       the jurisdiction of the New York City Civil

        20       Court.

        21                      Senator Wright, from the

        22       Committee on Alcoholism and Drug abuse, reports

        23       the following bills directly for third reading:











                                                              963

         1                      Senate Bill Number 328, by

         2       Senator Levy, an act to amend the Public

         3       Authorities Law and the Railroad Law;

         4                      355, by Senator Levy, requiring

         5       the Department of Motor Vehicles to compile

         6       information on driving while under the influence

         7       of drugs;

         8                      384, by Senator Levy, an act to

         9       amend the Vehicle and Traffic Law, in relation

        10       to requiring school bus drivers involved in

        11       personal injury accidents;

        12                      1745, by Senator Velella, an act

        13       to amend the Vehicle and Traffic Law and the

        14       Criminal Procedure Law, authorizing the

        15       discovery of blood samples.

        16                      Senator DiCarlo, from the

        17       Committee on Aging, reports the following bills

        18       directly for third reading:

        19                      409, by Senator Skelos and

        20       others, Real Property Tax Law;

        21                      908, by Senator Goodman, an act

        22       to amend the General Business Law;

        23                      1278, by Senator Farley and











                                                              964

         1       others, Real Property Tax Law;

         2                      Also 1473, by Senator Padavan, an

         3       act to amend Chapter 420 of the Laws of 1991,

         4       amending the Real Property Tax Law;

         5                      1631, by Senators Farley and

         6       others, Education Law, authorizing the State

         7       University trustees to make courses available

         8       for certain persons 60 years of age or over.

         9                      Senator Cook, from the Committee

        10       on Education, reports the following bills

        11       directly for third reading:

        12                      Senate Bill Number 346, by

        13       Senators LaValle and Trunzo, approval of certain

        14       building aid to the William Floyd Union Free

        15       School District;

        16                      1247, by Senators Holland and

        17       Cook, Education Law, in relation to contracts

        18       for transportation of school children;

        19                      1303, by Senator Cook, Education

        20       Law, defining non-residents of a district for

        21       purposes of admission.

        22                      Senator Holland, from the

        23       Committee on Social Services, reports the











                                                              965

         1       following bills directly for third reading:

         2                      Senate Bill Numbers 139, by

         3       Senator Holland, Social Services Law and the

         4       Education Law, in relation to Medicaid fraud

         5       control;

         6                      290, by Senator Cook, an act to

         7       amend the Social Services Law, establishment of

         8       the Scenic Vistas program;

         9                      2046, by Senator Holland and

        10       others, Social Services Law and the Workers'

        11       Compensation Law.

        12                      Senator Goodman, from the

        13       Committee on Investigations, Taxation and

        14       Government Operations, reports the following

        15       bills:

        16                      Senate Bill Number 281, by

        17       Senator Holland, an act to amend the Tax Law;

        18                      436-A, by Senator Farley,

        19       Alcoholic Beverage Control Law, in relation to

        20       fee for a summer license for a vessel;

        21                      571, by Senator Johnson, an act

        22       to amend the Tax Law, procedures for written

        23       communications;











                                                              966

         1                      628, by Senators Stafford and

         2       Present, Tax Law, distribution of the additional

         3       mortgage recording tax;

         4                      699, by Senator Saland, Tax Law,

         5       waiving the $50 minimum penalty for late filing

         6       of certain -- certain sales taxes;

         7                      926, by Senator Goodman, an act

         8       to amend the Tax Law, in relation to additional

         9       tax on receipts from the sales of parking

        10       services;

        11                      1367, by Senator Goodman, an act

        12       to amend the Arts and Cultural Affairs Law, in

        13       relation to autographed sports collectibles;

        14                      Also, 1613, by Senator Goodman,

        15       an act to amend the Tax Law and the Administra

        16       tive Code of the city of New York.

        17                      All bills reported directly for

        18       third reading.

        19                      ACTING PRESIDENT KUHL:  Bills are

        20       received and reported directly to third reading.

        21                      Senator Bruno, we have a report

        22       from the Finance Committee at the desk.  Would

        23       you like that read?











                                                              967

         1                      SENATOR BRUNO:  Please -- please

         2       read the report, Mr. President.

         3                      ACTING PRESIDENT KUHL:  The

         4       Secretary will read.

         5                      THE SECRETARY:  Senator Stafford,

         6       from the Committee on Finance, reports the nom

         7       ination of Ambassador Charles A. Gargano of Bay

         8       Shore, Commissioner of Economic Development.

         9                      Senator Stafford also reports the

        10       nomination of Ambassador Charles A. Gargano of

        11       Bay Shore, Director and President of the New

        12       York State Urban Development Corporation.

        13                      ACTING PRESIDENT KUHL:  The Chair

        14       recognizes Senator Johnson on -- Senator Bruno

        15       on the nomination.

        16                      SENATOR GOLD:  Mr. President.

        17                      ACTING PRESIDENT KUHL:  Senator

        18       Gold, why do you rise?

        19                      SENATOR GOLD:  Yeah, with deep

        20       respect for my leader, I understand that the

        21       Governor has called a leaders' meeting and I

        22       know Senator Connor went down in response to

        23       that, and he's been interested in this











                                                              968

         1       nomination also.  Is it possible to hold this

         2       until you come back, Senator Bruno?  I know you

         3       certainly want to go to that meeting.

         4                      SENATOR BRUNO:  I'm five minutes

         5       late, Mr. President, and I don't like to be late

         6       for meetings, as you well know.  Are you talking

         7       about this nominee or all nominees?

         8                      SENATOR GOLD:  Oh, I think it's

         9       just this nominee.  Maybe you want to do the

        10       others and come back?  I don't know how long

        11       that meeting will be.

        12                      SENATOR BRUNO:  I would guess

        13       that it'll -- Mr. President, it'll probably run

        14       45 minutes to an hour, minimally.

        15                      SENATOR GOLD:  I can spend that

        16       much time if you want it on the other nominees.

        17                      SENATOR BRUNO:  Do we have the

        18       next nominee here?

        19                      SENATOR GOLD:  Senator, I'm not

        20       suggesting we don't work.  I know how you want

        21       to move it.  I'm not suggesting that -

        22                      ACTING PRESIDENT KUHL:  Senator

        23       Bruno, the -











                                                              969

         1                      SENATOR BRUNO:  We're going to

         2       run through them now.

         3                      ACTING PRESIDENT KUHL:  Senator

         4       Bruno, the desk informs me that the reports from

         5       the Finance Committee relative to, I think it's

         6       three or four nominations are at the desk, if

         7       that's of any help to you, sir.

         8                      SENATOR BRUNO:  Why don't we read

         9       the nominees that are at the desk, and we will

        10       indulge Senator Gold in moving past the

        11       ambassador presently and plan on coming back,

        12       hopefully, within the hour.

        13                      SENATOR GOLD:  I think that's a

        14       gentlemanly accommodation, and I do appreciate

        15       it, and I'm sure Senator Connor appreciates it.

        16                      SENATOR BRUNO:  And I'm sure that

        17       that will be reflected in his remarks on the

        18       floor, Senator.

        19                      (Laughter)

        20                      SENATOR GOLD:  I'm sure of it.

        21       I'm sure of it.

        22                      ACTING PRESIDENT KUHL:  Thank

        23       you, Senator Bruno.











                                                              970

         1                      We'll have the Secretary read the

         2       next nominee's nomination.

         3                      SENATOR BRUNO:  Thank you, Mr.

         4       President.

         5                      THE SECRETARY:  Senator Stafford,

         6       from the Committee on Finance, reports the

         7       nomination of Richard E. Jackson, Jr. of

         8       Peekskill as Commissioner of Motor Vehicles.

         9                      ACTING PRESIDENT KUHL:  The Chair

        10       recognizes Senator Leibell on the nomination.

        11                      SENATOR LEIBELL:  Thank you very

        12       much, Mr. President.

        13                      I'm greatly honored and pleased

        14       to have the opportunity today to speak in behalf

        15       of the nominee, Richard Jackson.

        16                      I think you already got a little

        17       inkling about Richard Jackson from the fact that

        18       his mother was here speaking this morning and

        19       giving the prayer to this chamber.

        20                      Richard has been joined here

        21       today by many of his friends and family from the

        22       district.  I would, of course, note that the

        23       mother of our favorite son from Peekskill,











                                                              971

         1       George Pataki, Mrs. Pataki, was here in the

         2       chamber today, as well as the mayor of the city

         3       of Peekskill and members of the city council.

         4                      Richard Jackson -- as I had an

         5       opportunity to speak earlier this morning at the

         6       Transportation Committee, I noted he's had a

         7       distinguished career in two fields.  He's had a

         8       distinugished career as an educator, having

         9       served as a teacher of mathematics in the

        10       Peekskill School District from 1968 through the

        11       end of last year.  He's also had a distinguished

        12       career in public service, his other career.

        13                      A brief read of Richard Jackson's

        14       resume would tell you what he has been about as

        15       a government official for the last many years,

        16       from 1984 through 1991, serving as the mayor of

        17       the city of Peekskill, deputy mayor of the city

        18       of Peekskill from 1982 to '84 and again in 1993

        19       through '94, councilman for the city of

        20       Peekskill 1979 to 1984 and 1993 through '94, a

        21       past board member of the Peekskill Housing

        22       Authority from 1982 through 1984.  He has served

        23       in the county of Westchester's Board of Ethics











                                                              972

         1       from 1984 through 1991 and chaired the Peekskill

         2       Industrial Development Agency from 1985 through

         3       1991.

         4                      These appointments have also been

         5       coupled with his numerous activities in the

         6       community, serving as a member of the Education

         7       Committee of the Peekskill area NAACP, member of

         8       the board of directors of the Peekskill Field

         9       Library, member of the board of directors of the

        10       United Way of Westchester and campaign chairman

        11       for the Peekskill United Fund Drive.

        12                      We are here today on this nomina

        13       tion to a very important position.  Commissioner

        14       of Motor Vehicles is one of our large depart

        15       ments.  It is certainly one of the departments

        16       that receives a great deal of attention from our

        17       constituents throughout New York State.  It is a

        18       high profile department.  It's also a department

        19       where the vision of Richard Jackson, both in

        20       utilizing new technology and in new techniques

        21       of administration will, I believe, bring great,

        22       great credit to that department.

        23                      I have served in the state











                                                              973

         1       Legislature -- this is the beginning of a

         2       seventh term for me -- and the first term -- the

         3       first time that I have had the opportunity to

         4       speak on behalf of a nominee.  I personally have

         5       known Richard Jackson.  I have worked with him.

         6       I know of his outstanding record.

         7                      One of the truly great architects

         8       of the revival of the city of Peekskill, he

         9       brings to this very important public position in

        10       this state, intelligence, dedication, energy,

        11       integrity.  There is really nothing more we

        12       could ask for someone to put in a position of

        13       such influence as these qualifications which

        14       Richard Jackson brings to us today.

        15                      I know he's held in great

        16       affection by the city of Peekskill and all of

        17       its people.  He has served them well over the

        18       years and he will continue to serve all of the

        19       people now of the state of New York.

        20                      Mr. President, I would like to

        21       move the nomination of Mr. Richard Jackson to be

        22       Commissioner of the Department of Motor

        23       Vehicles.











                                                              974

         1                      ACTING PRESIDENT KUHL:  The Chair

         2       recognizes Senator Markowitz on the nomination.

         3                      SENATOR MARKOWITZ:  Thank you

         4       very, very much.

         5                      Admittedly, I don't know Mr.

         6       Jackson very well, except that those that I

         7       respect who, at one point resided in Peekskill,

         8       tell me that he was the best mayor that

         9       Peekskill ever had.  Did I say anything wrong?

        10                      (Laughter)

        11                      I'm extremely impressed, not only

        12       by his resume, but I don't go by paper; I go by

        13       the feel, my feel of a person, and in meeting -

        14       in meeting him and listening to his professional

        15       background, his community affairs, I particular

        16       ly note his activism with the NAACP -- and I

        17       might add that that kind of dedicated, strong

        18       leadership is needed now more than ever in that

        19       organization and perhaps, after we confirm him,

        20       that he'll be able to lend his considerable

        21       talents both to the state and national efforts

        22       of the NAACP -- but also that he is certainly an

        23       individual who's ready to tackle one of the











                                                              975

         1       state departments most used by the residents

         2       that we all represent, that's for sure; and he

         3       is up to the new technologies.  He has ideas

         4       about how he's going to implement programs to

         5       make our Department of Motor Vehicles that much

         6       more responsive, user friendly, in our current

         7       terminology, user friendly to the residents of

         8       New York.

         9                      I have to say that we did speak

        10       for more than an hour.  He didn't rush me up one

        11       bit.  He didn't care that I was a Democrat or

        12       Republican. I want the Commissioner to know that

        13       in two years, they'll be begging for Democrats

        14       again, so it's good that you didn't rush up a

        15       Democrat, but that in listening to you and your

        16       courtesy, your generosity of time, genuine

        17       interest, that's what it takes to be a great

        18       commissioner of this very important department

        19       of New York State.

        20                      So I'm very delighted to lend my

        21       voice and to confirm that this, I believe, is an

        22       excellent appointment, and I know on behalf of

        23       the residents of my community, I will look











                                                              976

         1       forward to working with our commissioner in this

         2       department and its work.

         3                      Thank you.

         4                      ACTING PRESIDENT KUHL:  The Chair

         5       recognizes Senator Smith on the nomination.

         6                      SENATOR SMITH:  Thank you, Mr.

         7       President.

         8                      I, too, am very pleased to rise

         9       to second the nomination of Richard E. Jackson,

        10       Jr.  I have not had the pleasure that Senator

        11       Leibell has had of knowing him for a long time,

        12       but in the short period of time that I have had

        13       the pleasure of knowing him, I have found him to

        14       be an outstanding individual and I know that

        15       because of his caring, the caring for his family

        16       and the caring for the people of the state of

        17       New York, that he will do a wonderful job as the

        18       Commissioner of the Division of Motor Vehicles.

        19                      In interviewing him for this

        20       position, we found that he had new ideas,

        21       innovative ideas which will only redound to the

        22       benefit of all of all our constituents, and

        23       that's why I'm very pleased to be one of those











                                                              977

         1       who seconds his nomination.

         2                      Thank you.

         3                      ACTING PRESIDENT KUHL:  The Chair

         4       recognizes Senator Levy on the nomination.

         5                      SENATOR LEVY:  Thank you very

         6       much, Mr. President.

         7                      I'm just delighted to rise with

         8       my colleagues to join in moving the nomination

         9       of Richard Jackson.

        10                      I hadn't met him until after he

        11       was nominated by the Governor, but since then I

        12       have met with him.  I have talked to him, and he

        13       certainly, in a very, very short period of time,

        14       has developed an unusual command of knowledge

        15       about the Department of Motor Vehicles.  He has

        16       plans to make this department more consumer

        17       responsive.

        18                      I commend the Governor on this

        19       appointment.  I know that Richard Jackson will

        20       be an outstanding commissioner and an

        21       extraordinary leader.

        22                      Thank you very much.

        23                      ACTING PRESIDENT KUHL:  Senator











                                                              978

         1       Oppenheimer on the nomination.

         2                      SENATOR OPPENHEIMER:  Thank you.

         3                      Well, Richard Jackson is a fellow

         4       Westchester mayor, and I would second what was

         5       said earlier.  There is -- if you speak to any

         6       of the residents of that community, one of the

         7       things that you will hear as a constant is that

         8       they all miss him very much and wish that he

         9       could have been installed forever in that

        10       position because he did such a beautiful job and

        11       related so beautifully to all the people, and

        12       his concern for all of the people was so

        13       apparent to everyone.

        14                      He's a very thoughtful man, a

        15       calm man, a soft-spoken man, but someone that

        16       conveys the importance he assesses to listening

        17       to everyone on trying to respond to what those

        18       needs are of the people.

        19                      I was very, very pleased to see

        20       how quickly, in the space of only a matter of

        21       weeks, he has acquired so much knowledge about

        22       the DMV and, I mean, we should have expected

        23       it.  We know him to be bright, but he really did











                                                              979

         1       a magnificent job as far as picking up all the

         2       pieces of this department and understanding them

         3       very, very intimately.

         4                      I would say that I think some

         5       thing that's important for the Commissioner of

         6       the Department of Motor Vehicles is that he be a

         7       people person, and while I know Richard is going

         8       to do a beautiful job as far as the technology

         9        -- I mean, he was talking way above my ahead

        10       technologically, but I think his real strength

        11       and skill is going to be his ability to

        12       communicate with people and I think that of all

        13       of our commissionerships, I think the Department

        14       of Motor Vehicles needs that most because it has

        15       the most contact with the public.

        16                      So I wish Richard very well.  I

        17       know he's going to make us all very proud, and

        18       I'm very happy to second his nomination.

        19                      ACTING PRESIDENT KUHL:  Senator

        20       Paterson on the nomination.

        21                      SENATOR PATERSON:  Thank you, Mr.

        22       President.

        23                      I went to Peekskill in 1988 where











                                                              980

         1       I visited the local chapter of the NAACP, and in

         2       speaking at that point and getting to know some

         3       of the people in Pittsburgh, I was told of

         4       Richard Jackson.  Next time I heard about him

         5       was when he was a council member in 1993 but

         6       never got the opportunity to meet Mr. Jackson

         7       until this week, but as is so often the case in

         8       this chamber, it's people that you know and

         9       people that you respect who tell you a lot about

        10       individuals, their accomplishments, their

        11       ability, as Senator Oppenheimer just referred to

        12       his abilities with people and his interaction

        13       with individuals, and I think it's a credit to

        14       the Governor and a credit to this state that he

        15       will be serving as our Motor Vehicle

        16       Commissioner.

        17                      And, of course, it's a rare

        18       opportunity for me to demonstrate what I think

        19       would be a good government aspect of my

        20       personality since I have been accused of not

        21       always having one, but just to show that I

        22       really am a fair person and also to show that

        23       I'm a person that really doesn't hold any











                                                              981

         1       grudges in spite of the fact that the New York

         2       State Department of Motor Vehicles has never

         3       granted me a driver's license, I will support

         4       this nomination and will vote for Mr. Jackson.

         5                      Thank you.

         6                      ACTING PRESIDENT KUHL:  Senator

         7       Waldon on the confirmation.

         8                      SENATOR WALDON:  Thank you very

         9       much, Mr. President.

        10                      I am honored, indeed, to rise and

        11       second the nomination of Richard Jackson,

        12       someone whom I've only recently met.  My reasons

        13       for looking forward to his service as

        14       Commissioner at DMV are manifold, but let me

        15       just share a few thoughts.

        16                      He was a great athlete, and I

        17       think there's a saving grace in those who want

        18       to be public officials and having had some

        19       experience in understanding the ecstasy of

        20       victory and the agony of defeat.  It tempers

        21       one.  You don't get too high when things are

        22       going well and you don't get too low when things

        23       are going bad, and let me asure you, Mr.











                                                              982

         1       Commissioner, to be -- that -- in this position

         2       that you are in, where people go ballistic quite

         3       often when they're not serviced in a manner that

         4       they anticipate, you need not to overreact or

         5       underreact; you need to be a person who is very

         6       even tempered.

         7                      Secondly, I had the good fortune

         8       to meet with Mr. Jackson and to chat with him

         9       only briefly, but those of us who are in public

        10       life often do a thing that is called a "gut

        11       check".  We make an assessment of someone almost

        12       instantaneously, based on the vibrations we

        13       receive from that person.  In that evening in

        14       the Omni that I met him and chatted with him for

        15       a few minutes, I felt very positive about this

        16       man and felt very positively about his potential

        17       to serve in this administration.

        18                      Lastly, I am very happy and

        19       pleased that he will be the commissioner because

        20       of his family background and because of who he

        21       is as a person in terms of his math background.

        22       Someone who has to handle DMV has to understand

        23       numbers and has to understand the technology











                                                              983

         1       that is existent today to cause those files and

         2       applications to hum and go through the system

         3       with as little consternation as possible.

         4                      And for all of those reasons, I

         5       believe that Richard Jackson will make a marvel

         6       ous commissioner.  I applaud the Governor's

         7       choice.  I applaud his family for having had the

         8       wisdom to have him and stick with him, and I

         9       wish you well, sir.  All the best.

        10                      ACTING PRESIDENT KUHL:  The Chair

        11       recognizes Senator Mendez.

        12                      SENATOR MENDEZ:  Mr. President, I

        13       also rise in support of the nomination of Robert

        14       Jackson for Commissioner of the motor vehicle

        15       agency, and it certainly is a credit to the

        16       Governor in submitting this talented and

        17       bright -

        18                      ACTING PRESIDENT KUHL:  Senator,

        19       excuse me just a minute.  May we have some quiet

        20       in the chamber?  None of us at the desk can hear

        21       the Senator speak.  This is an important nomin

        22       ation; certainly you deserve respect, Senator.

        23       We hope our colleagues will give it to you.











                                                              984

         1                      Thank you.

         2                      SENATOR MENDEZ:  Thank you.

         3       Thank you, Mr. President.

         4                      As I was saying, most -- I, too,

         5       like most of my colleagues today that have

         6       spoken on behalf of the nomination of -- of

         7       Robert Jackson, also have met him during this

         8       week.  I was fortunate to meet with him and

         9       spoke to him for a little while, and I was

        10       highly impressed by his intelligence, his clear

        11       thinking, his way of relating to people, and

        12       also how dedicated he has been studying that

        13       agency and the kinds of new directions that he

        14       wants to give to that agency.

        15                      For example, he's looking for New

        16       York State to increase its revenues by having

        17       little offices in various places, and already he

        18       knows -- he cited a study in which revenues

        19       increase in smaller offices than in large, large

        20       offices, and people, then, are also more

        21       satisfied with a more informal small office

        22       where they could reach without having to travel

        23       long distances and also without having to wait











                                                              985

         1       in those long, long lines.

         2                      His political career has been

         3       incredible and he has performed so very well,

         4       I'm told by people who reside in the area, that

         5       everybody loves the guy over there in Peekskill,

         6       and that's why I can very well understand how he

         7       has been so successful, so -- because he's

         8       competent, because he's bright, because he's

         9       working hard in that agency and will bring about

        10       certain changes that are necessary.

        11                      I think that all of our

        12       constituents in the entire New York State are

        13       going to be wonderfully satisfied with this new

        14       commissioner.

        15                      So, Mr. Jackson, lots of luck -

        16       good luck.  You're going to be wonderful in your

        17       new job.

        18                      ACTING PRESIDENT KUHL:  Is there

        19       any other Senator wishing to speak on the

        20       confirmation?

        21                      (There was no response.)

        22                      Hearing none, the question is on

        23       the confirmation of the nominee, Richard E.











                                                              986

         1       Jackson, Jr. to serve as Commissioner of Motor

         2       Vehicles.  All those in favor signify by saying

         3       aye.

         4                      (Response of "Aye".)

         5                      Opposed, nay.

         6                      (There was no response.)

         7                      The confirmation is confirmed.

         8                      Commissioner Jackson,

         9       congratulations.

        10                      (Applause)

        11                      The Secretary will continue to

        12       read the nominations.

        13                      THE SECRETARY:  Senator Stafford,

        14       from the Committee on Finance, reports the

        15       nomination of Neil D. Levin of New York City as

        16       Superintendent of Banks.

        17                      ACTING PRESIDENT KUHL:  The Chair

        18       recognizes Senator Goodman on the confirmation.

        19                      SENATOR GOODMAN:  Mr. President,

        20       it is a special privilege and a pleasure for me

        21       today to place a nomination before our body, the

        22       name of Neil D. Levin, who comes to us with an

        23       exceptional background and is superbly equipped











                                                              987

         1       for the job of Banks Superintendent.

         2                      Just a quick overview of Mr.

         3       Levin's qualifications is most persuasive.

         4       First of all, he was a graduate of Lafayette

         5       College, C.W. Post Graduate School of Business,

         6       where he received an M.B.A. in finance, and the

         7       Hofstra University School of Law.

         8                      Immediately upon graduation from

         9       law school, he was recruited by United States

        10       Senator Alfonse D'Amato to serve in Washington,

        11       D.C. as his legislative assistant.  There he was

        12       responsible for advising on issues relating to

        13       securities, banking and insurance.  He

        14       represented the Senator in the Senate Banking

        15       Committee legislative drafting sessions,

        16       including those pertaining to the substantial

        17       issues of depository institutions active in

        18       1982.

        19                      Following that, he was in the

        20       United States Senate Banking, Housing and Urban

        21       Affairs Committee in Washington, where his

        22       worthy responsibilities included advising

        23       committee members, drafting legislation and











                                                              988

         1       planning hearings on specific issues pertaining

         2       to insider trading, corporate takeovers,

         3       regulation of the government securities market

         4       and authorization and oversight of the SEC, the

         5       Securities and Exchange Commission.

         6                      From there he went to the private

         7       sector with one of the best known and most

         8       prestigious of the Wall Street investment

         9       banking firms, Goldman Sachs & Company.  There,

        10       he was responsible for providing investment

        11       banking services to federal agencies including

        12       "Fannie Mae", "Freddie Mac", "Sallie Mae", the

        13       Resolution Trust Corporation, United States

        14       Postal Service.  Additional responsibilities

        15       included the development of Goldman Sachs'

        16       business in the state of Israel.

        17                      He was the vice-president of the

        18       mortgage finance -- Vice-President for Mortgage

        19       Finance is the title which he was given at

        20       Goldman Sachs, and in that capacity, it's quite

        21       evident that with that firm with its enormous

        22       reach and responsibility, he was called upon to

        23       assume some very weighty and indeed significant











                                                              989

         1       responsibilities himself.

         2                      Mr. President, let me just say

         3       that the job of Banks Superintendent is a highly

         4       sensitive one.  We've all been recently aware of

         5       the debacle with respect to the savings and loan

         6       industry in the United States and the immense

         7       complexity of the Argentina, Brazil and Chile

         8       problems with their faltering loans.  All of

         9       these international events and many national and

        10       state events have a direct impact upon the

        11       responsibilities of the Banks Superintendent

        12       because at the end of the day, it is he who is

        13       responsible for the soundness of our state

        14       chartered banks and our banking system here in

        15       the state of New York.

        16                      It is for that reason that I take

        17       particular pride and special comfort in knowing

        18       that Neil Levin, a man for whom I have had great

        19       personal regard over many years of a personal

        20       friendship, has been called upon by the Governor

        21       to assume this great responsibility.

        22                      Mr. President, it's with a good

        23       deal of pride that I present this name to you











                                                              990

         1       and nominate him for this post.

         2                      ACTING PRESIDENT KUHL:  The Chair

         3       recognizes Senator Farley on the confirmation.

         4                      SENATOR FARLEY:  Thank you, Mr.

         5       President.

         6                      It's always difficult to follow

         7       Senator Goodman, but let me just say in the 19

         8       years that I have been here on the Banking

         9       Committee the entire time, I've seen a lot of

        10       banking superintendents confirmed.  None comes

        11       through better qualified than Neil Levin.

        12                      New York State is still the

        13       financial center of the world.  It's one of our

        14       premiere industries; our banks are the finest in

        15       the nation, and this young man of boundless

        16       energy and superb preparation is committed to

        17       the dual banking system.  He's committed to

        18       promoting the New York State charter.  He has a

        19       working relationship with the banking industry

        20       and a legislative training which is refreshing.

        21                      It's with a great deal of

        22       enthusiasm and pride that I support the

        23       nomination of Neil Levin as Superintendent of











                                                              991

         1       Banks.  I look forward to working with him in

         2       New York State, and the Governor is very

         3       fortunate to have somebody of his caliber as our

         4       superintendent.

         5                      ACTING PRESIDENT KUHL:  The Chair

         6       recognizes Senator Maltese on the confirmation.

         7                      SENATOR MALTESE:  Mr. President,

         8       I rise to second the nomination of Neil Levin.

         9                      In the 14 years that I have come

        10       to know him, in those years he has served in

        11       most responsible positions in the federal

        12       government, in private industry.  It's almost as

        13       if you were looking to provide a background some

        14       14 or 15 years ago that would well suit him for

        15       this most high and critical position, you would

        16       have given him exactly the same training and

        17       background.  His education, his intelligence

        18       and, most of all, his integrity will suit him

        19       well in this position.

        20                      As Senator Goodman and Senator

        21       Farley have said, this is a position with

        22       awesome responsibilities, and the welfare and

        23       credit standing of our state rests in many











                                                              992

         1       instances on his shoulders.

         2                      I commend the Governor for this

         3       wonderful appointment and wish the nominee

         4       well.

         5                      ACTING PRESIDENT KUHL:  The Chair

         6       recognizes Senator Skelos on the confirmation.

         7                      SENATOR SKELOS:  Thank you very

         8       much, Mr. President.

         9                      I'm delighted to stand up and

        10       speak on behalf of my friend, Neil Levin, who

        11       may have moved to Senator Goodman's district but

        12       received his education, his upbringing and his

        13       fine character that he has in my senatorial

        14       district growing up in Atlantic Beach.

        15                      The credentials are there.  He's

        16       a wonderful choice by the Governor, but I know

        17       how proud his father is.  I think his father,

        18       Marty, may be down south enjoying the warmer

        19       weather, but Marty is just a wonderful,

        20       wonderful human being.  I know what a good

        21       father he has been to Neil, to his entire

        22       family, encouraging them to participate, not

        23       just in the private sector but to give back a











                                                              993

         1       bit by being active in public affairs, as Neil

         2       has over the years working for Senator D'Amato,

         3       working in Washington and now as our

         4       Superintendent of Banks.

         5                      So, Neil, I congratulate you.  My

         6       wife says that I have to be a little bit more

         7       active in finding you a wife now because you are

         8       single and, as you move up, you know, we have to

         9       settle you down a little bit.  But he's a great

        10       choice.  I know his brother is here.  We're

        11       proud of you, and I know -- I guess your father

        12       right now, if he was sitting here, would have

        13       tremendous nachas; and, Neil, I salute you.

        14                      ACTING PRESIDENT KUHL:  The Chair

        15       recognizes Senator Montgomery on the

        16       confirmation.

        17                      SENATOR MONTGOMERY:  Thank you,

        18       Mr. President.

        19                      Unlike Senator Skelos, I can't

        20       talk about how long I've known this nominee or

        21       how well I know him.  Except from his excellent

        22       qualifications, I don't know him, but I was

        23       impressed by the fact that when he was asked











                                                              994

         1       about his intentions and his -- his desire to

         2       look very specifically at ways in which he could

         3       use his position as Superintendent of Banks to

         4       encourage and enable the commercial institutions

         5       in our state to be more supportive of small

         6       minority/women-owned businesses in the

         7       neighborhoods throughout the state, he was very

         8       emphatic about it and excited about the

         9       possibility of being able to do that and has had

        10       experience specifically around those kinds of

        11       issues and, of course, we all know how important

        12       that is to the creation of jobs and to improving

        13       the vitality, the economic development and

        14       vitality in the neighborhoods and districts

        15       throughout the state, especially in those like

        16       mine.

        17                      So I am very pleased to be able

        18       to rise and speak to his nomination and look

        19       forward to working with -- with him, with you as

        20       you try to use your position as many of the

        21       other agency heads will be doing to stimulate

        22       the growth in the area that is most needed in

        23       our state, and that is our economy.











                                                              995

         1                      Thank you, Mr. President.

         2                      ACTING PRESIDENT KUHL:  The Chair

         3       recognizes Senator Leichter.

         4                      SENATOR LEICHTER:  Thank you, Mr.

         5       President.

         6                      I think the Governor has given us

         7       an exceptionally well-qualified nominee, and I'm

         8       really delighted to get up and second his

         9       nomination.

        10                      I also want to do so to point out

        11       that, while I may have been less than enthus

        12       iastic about some of the Governor's nominees,

        13       that I certainly find in Neil Levin that he's

        14       given us a Superintendent of Banks with an

        15       excellent background, a good understanding of

        16       the industry, and I think also a good under

        17       standing of the Legislature, and I want to

        18       express my appreciation.

        19                      He took the time to come to see

        20       me, to speak to me.  I guess there's a value and

        21       benefit for having worked for the Legislature

        22       and understanding how legislators act, and I'm

        23       sure we're going to have a very, very good











                                                              996

         1       relationship with him.  Senator Farley has a

         2       good relationship with everybody, every

         3       superintendent.

         4                      But I think it is important be

         5       cause, obviously, the industry is very important

         6       and I think that a lot of issues that we face,

         7       one that I've raised with the Superintendent -

         8       I think we can call him Superintendent since his

         9       confirmation is imminent -- is the need to

        10       provide banking services for all our people and

        11       the loss of branches and banking facilities in

        12       many of our communities and neighborhoods, and

        13       he was very responsive and sensitive to the

        14       problem.

        15                      I just want to point that out as

        16       an indication of what a -- I think, an excep

        17       tionally perceptive superintendent we have.  We

        18       were discussing the Mexican peso crisis and its

        19       impact on New York, the financial institutions,

        20       and we were discussing at that time the plan of

        21       President Clinton for the assistance of the $40

        22       billion, and he expressed how he would do it,

        23       which actually was pretty much the way that it











                                                              997

         1       then came to be done through the IMF.  So it was

         2       just a further indication to me that we have

         3       somebody who's going to be an outstanding

         4       superintendent, and I second the nomination.

         5                      ACTING PRESIDENT KUHL:  Is there

         6       any other Senator wishing to speak on the

         7       confirmation?

         8                      (There was no response.)

         9                      Hearing none, the question is on

        10       the confirmation of Neil D. Levin to the

        11       position of Superintendent of Banks.  All those

        12       in favor signify by saying aye.

        13                      (Response of "Aye".)

        14                      Those opposed, nay.

        15                      (There was no response.)

        16                      The confirmation of the nominee

        17       is confirmed.

        18                      Congratulations, Superintendent

        19       Levin.

        20                      (Applause)

        21                      The Secretary will read.

        22                      THE SECRETARY:  Senator Stafford,

        23       from the Committee on Finance, reports the











                                                              998

         1       nomination of Edward J. Muhl of New York City as

         2       Superintendent of Insurance.

         3                      ACTING PRESIDENT KUHL:  The Chair

         4       recognizes Senator Velella.

         5                      SENATOR VELELLA:  Mr. President,

         6       it's my pleasure this afternoon to present

         7       before this body the name of Edward J. Muhl for

         8       consideration as Superintendent of Insurance.

         9                      His qualifications certainly are

        10       on both sides of both the regulatory part of the

        11       insurance industry and the practical experience,

        12       having worked in many of the major companies

        13       throughout this country.

        14                      He has served as the

        15       Superintendent of Insurance in the state of

        16       Maryland and is president of the National

        17       Association of Insurance Commissioners, which is

        18       a national organization in this country which

        19       has really grown a great deal and has

        20       representatives of every insurance commissioner

        21       in the states.

        22                      Certainly, some of my recent

        23       involvement with that association leads me to











                                                              999

         1       believe that New York State will have a more -

         2       more active role to play in opening up that

         3       association, and I am sure that Mr. Muhl looks

         4       forward to working out the differences between

         5       this state and the National Association Of

         6       Insurance Commissioners.

         7                      He is chairman of the board of

         8       directors of the Motor Vehicle Accident Indemni

         9       fication Corporation of New York.  He is a mem

        10       ber of the board of directors of the Insurance

        11       Federation of New York.  Some of his memberships

        12       and affiliations include the board of directors,

        13       Insurance Federation of Pennsylvania; board of

        14       trustees, Maryland Auto Insurance Fund; board of

        15       directors, North Carolina Guarantee Association

        16       and Rates Bureau; board of trustees, the

        17       National Association Against Drunk Drivers.

        18                      He's part of a Congressional

        19       insurance advisory committee, has worked with

        20       the board of directors of the Ohio Medical

        21       Practice Joint Underwriting Association and has

        22       worked for several of the largest insurance

        23       companies in this country.  I think it's a great











                                                             
1000

         1       privilege for the state of New York to be able

         2       to obtain a person with such national experience

         3       and experience in the industry to help rebuild

         4       the insurance business in this state.

         5                      He's accompanied today by his

         6       wife Joan, who is in the balcony with him, and

         7       it is my pleasure to advance his name on behalf

         8       of the Senate Majority as Superintendent of

         9       Insurance in the state of New York.

        10                      ACTING PRESIDENT KUHL:  The Chair

        11       recognizes Senator Solomon on the confirmation.

        12                      SENATOR SOLOMON:  Thank you, Mr.

        13       President.

        14                      I would like to second the nom

        15       ination of Edward Muhl.  I have spoken to Acting

        16       Superintendent -- or Superintendent Muhl on

        17       numerous occasions regarding particular problems

        18       that we have in New York State, including

        19       problems with the NAIC, which has taken away the

        20       accreditation of the New York State Insurance

        21       Department, even though it's recognized as the

        22       premiere department in the United States today,

        23       and he has assured me that he intends to agree











                                                             
1001

         1       with the position that Senator Velella had

         2       originally put forth that, in fact, the

         3       Legislature really is the body that passes rules

         4        -- or passes laws, not the NAIC telling the

         5       Legislature what laws to pass, and I think

         6       that's a very important consideration regarding

         7       New York State and its current position in

         8       insurance regulation, still as the center of the

         9       insurance industry in the country.

        10                      We've also talked about numerous

        11       situations, including the fact that we have Home

        12       Insurance located in New York City which has

        13       approximately 3,000 jobs, and hopefully, we're

        14       going to be able to maintain those jobs in the

        15       takeover of Home by Zurich.

        16                      I do agree with Senator Velella.

        17       I think Ed Muhl is eminently qualified for this

        18       position, being a superintendent in the state of

        19       Maryland, being former president of the NAIC,

        20       even though when that came before the committee,

        21       I was not sure whether that would be a plus in

        22       our current fight with the NAIC in the way

        23       they've treated the state of New York, and I











                                                             
1002

         1       think he realizes that he has a daunting task in

         2       front of him, starting off this week and next

         3       week with the problems Blue Cross/Blue Shield

         4       has with its pending rate increse and the

         5       pending problems that they have with their -

         6       the fact that they, in fact, may be decertified

         7       by the national organization in Chicago, and I

         8       think Mr. Muhl will meet the tasks that he has

         9       before him, and I look forward to working with

        10       him on this and a number of other issues, and

        11       I'm glad that he will be receptive to all

        12       legislators and the people of the state of New

        13       York.

        14                      Thank you.

        15                      ACTING PRESIDENT KUHL:  Is there

        16       any other Senator wishing to speak on the

        17       confirmation?

        18                      Senator Leichter.

        19                      SENATOR LEICHTER:  Yeah, Mr.

        20       President.  I intend to vote for the

        21       confirmation, but I want to put something on the

        22       record because I think it's very important.

        23                      This is a matter that has been











                                                             
1003

         1       gone into in the Insurance Committee, was raised

         2       in the Finance Committee and it's been in the

         3       press.  There's pending before the Insurance

         4       Department a matter involving the Reliance

         5       Insurance Corporation -- I'm sorry, Relied

         6       Insurance Corporation.  I may not have the name

         7       perfectly correct, but it's Reliance, for whom

         8       Mr. Muhl either worked directly or he worked for

         9       Mr. Steinberg, who is the owner of the Reliance

        10       Group of companies.

        11                      The matter pending before the

        12       Insurance Department involves an issue of

        13       liquidation of two Reliance companies, and

        14       there's a substantial payment or substantial -

        15       I don't know whether penalty or fine is the

        16       correct word or if it's an assessment, that the

        17       Department intends to make against Reliance.

        18       That matter is pending and will have to be

        19       determined by the Department.

        20                      Now, Mr. Muhl, coming from his

        21       background with his association with Mr.

        22       Steinberg has rightly said, "I cannot make that

        23       determination.  I will recuse myself," but











                                                             
1004

         1       unfortunately, he said, "I'll let my deputy do

         2       it."  Now, the deputy happens to be someone who

         3       worked for the Senate, I think a very bright,

         4       very able person of high integrity, but it is so

         5       important to build a firewall between the

         6       Superintendent and that decision and, clearly,

         7       just saying, "Well, the deputy who I appoint and

         8       who reports to me is going to make that decision

         9       and not me," is just insufficient.  That's even

        10       more so, because Mr. Steinberg was one of the

        11       largest campaign contributors to Governor

        12       Pataki, to Senator D'Amato, and I think all

        13       sorts of issues, questions.  Are going to be

        14       raised, and I said to Mr. Muhl at the Senate

        15       Finance meeting, we may end up with a

        16       determination that is the best determination

        17       possible, but people will look at it and say,

        18       "Well, wait a second.  Was that influenced in

        19       some ways by the relationship that the

        20       Superintendent had to the -- to Mr. Steinberg

        21       and to Reliance?"

        22                      There's an easy way out of it,

        23       and that is to pick an independent person to











                                                             
1005

         1       make that determination.  That could be somebody

         2       appointed as a special deputy for this purpose.

         3       You could pick the former Superintendent of

         4       Insurance to do it, but to rely on the deputy

         5       that you appoint and who works for you to make

         6       that decision is not the firewall that's

         7       needed.

         8                      So I -- I will vote for the

         9       confirmation, but I strongly urge Mr. Muhl -

        10       and I want it publicly understood that there is

        11       a way that this matter can be handled in the

        12       public interest, and to do anything else would

        13       be, I think, unfair to the people of the state

        14       of New York, would frankly be unfair to the

        15       Governor.  So in voting, as I do, for the

        16       confirmation, I really urge this very strongly

        17       on the nominee.

        18                      ACTING PRESIDENT KUHL:  The Chair

        19       recognizes Senator Larkin on the confirmation.

        20                      SENATOR LARKIN:  Mr. Speaker, I

        21       rise in support of this nominee -- Mr.

        22       President.  I forgot.  I served in the other

        23       house so long, Randy.











                                                             
1006

         1                      ACTING PRESIDENT KUHL:  Another

         2       time, another place.

         3                      SENATOR LARKIN:  I rise in

         4       support of this nomination.  You know, I just

         5       heard my colleague, Franz Leichter, talk about

         6       the firewall and all of the rest, but I heard

         7       Mr. Muhl clearly enunciate how he would handle

         8       the situation.  As far as I'm concerned, when

         9       you look back at Mr. Muhl's career -- I have

        10       known him for over 15 years -- he's a man of

        11       clear, high integrity.  He is well-known through

        12       the industry.

        13                      Yes, some of us know his

        14       background with the NAIC, but here's a man who

        15       knows the industry, will be able to work with

        16       us, for us, for the people of the state of New

        17       York.  He has clearly stated that he would give

        18       this job to his deputy to look at certain of

        19       these things, and if there appeared to be a

        20       problem or conflict, he would resolve it with

        21       another independent individual.

        22                      I think we've picked -- the

        23       Governor has picked an individual who is clearly











                                                             
1007

         1       in the best interest of us, the people of the

         2       state of New York, and I support his nomination.

         3                      ACTING PRESIDENT KUHL:  Senator

         4       Leibell on the confirmation.

         5                      SENATOR LEIBELL:  Yes, Mr.

         6       President.  Briefly, I rise also in support of

         7       this nomination.  I had the opportunity over the

         8       course of many years in the other house to serve

         9       on the Insurance Committee, in fact, for all my

        10       time there, for six terms and now in this

        11       committee, in the Senate.

        12                      I have seen a number of

        13       superintendents throughout the years.  I have

        14       had the opportunity to meet with the nominee, to

        15       hear his concerns with the issues that confront

        16       the industry and our constituents.  I have had

        17       the opportunity to take a close examination of

        18       his resume.  I can congratulate the Governor for

        19       submitting this name to us for consideration.

        20       I'm convinced that Mr. Muhl is going to be an

        21       excellent superintendent, a great superintendent

        22       in terms of the industry, as well as in terms of

        23       our constituents and their insurance needs.











                                                             
1008

         1                      Thank you very much.

         2                      ACTING PRESIDENT KUHL:  Is there

         3       any other Senator wishing to speak on the

         4       confirmation?

         5                      (There was no response.)

         6                      Hearing none, the question is on

         7       the confirmation of the nominee, Edward J. Muhl

         8       to become Superintendent of Insurance.  All

         9       those in favor signify by saying aye.

        10                      (Response of "Aye".)

        11                      Opposed, nay.

        12                      (There was no response.)

        13                      The confirmation is confirmed.

        14                      Congratulations, Superintendent

        15       Muhl.

        16                      (Applause)

        17                      ACTING PRESIDENT RATH:  The

        18       Secretary will -- the Secretary will read.

        19                      THE SECRETARY:  Senator Stafford,

        20       from the Committee on Finance, reports the

        21       nomination of John Francis O'Mara, as a member

        22       of the Public Service Commission.

        23                      ACTING PRESIDENT RATH:  The Chair











                                                             
1009

         1       recognizes Senator Kuhl on the confirmation.

         2                      SENATOR KUHL:  Yes, Madam

         3       President.  It's my privilege, indeed an honor,

         4       to be able to stand before you to second the

         5       nomination of the Governor of John Francis

         6       O'Mara to the position of member of the Public

         7       Service Commission.

         8                      John O'Mara is not only a friend

         9       and a constituent but also he is what we know in

        10       the local district as Mr. Government.  John has

        11       had a varied background, went to school at

        12       LeMoyne College, graduated from Cornell Law

        13       School and has a very interesting job

        14       experience.  Among other things, John served in

        15       the position of judge of the Court of Claims

        16       back in the early '70s.  He's also been a

        17       Chemung County District Attorney, a Chemung

        18       County attorney.  He's worked in the Department

        19       of Law, been a confidential law clerk to a

        20       Supreme Court justice, done work as a village

        21       justice, a town justice, been a town attorney on

        22       several occasions.  Now, one might question as

        23       to whether or not John could hold a job or











                                                             
1010

         1       whether or not he just has a varied experience.

         2                      I can assure you that this man

         3       knows as much as anybody who's ever been in

         4       state or local government, and so it's with a

         5       great deal of privilege, as I said, and an honor

         6       for me to support the nomination of John Francis

         7       O'Mara to the position of a member of the Public

         8       Service Commission.

         9                      Don't, for instance, think that

        10       this man cannot help your constituents by

        11       lowering the utility rates, because if anybody

        12       can, John can.  He's charged with a tremendous

        13       responsibility by the Governor, and that is to

        14       undertake the responsibility of certainly

        15       reorganizing, looking at the Public Service

        16       Commission in a way that will make all of us

        17       proud and certainly will be beneficial to the

        18       economic development of businesses here in New

        19       York.

        20                      So, John, my congratulations to

        21       you on the nomination, your wife Ann and, Madam

        22       President, I move the nomination.

        23                      ACTING PRESIDENT RATH:  Thank











                                                             
1011

         1       you, Senator Kuhl.

         2                      The Chair recognizes Senator

         3       Seward on the confirmation.

         4                      SENATOR SEWARD:  Thank you, Madam

         5       President.

         6                      I also want to rise to support

         7       the nomination of John F. O'Mara to be a member

         8       of the Public Service Commission and also to

         9       congratulate the Governor on making an

        10       outstanding choice.

        11                      As Senator Kuhl, Judge O'Mara's

        12       home Senator, has outlined, Judge O'Mara has a

        13       most impressive record of service.  He appeared

        14       before our Energy Committee last week and won

        15       the unanimous recommendation of the Committee.

        16       This is a very critical time for the -- the

        17       utilities of New York State and our rate payers

        18       of New York State.

        19                      On the power side of the

        20       equation, our high electric rates have, I'm sad

        21       to say, contributed to the fact that New York

        22       State is less than it should be in terms of

        23       being competitive with other states, in terms of











                                                             
1012

         1       developing new jobs and keeping the jobs that we

         2       have in New York State, and our electric

         3       utilities are poised to enter a new era of

         4       competition in terms of electric service in this

         5       state.

         6                      On the telecommunications side,

         7       of course, our telephone companies and our cable

         8       TV companies are also poised to compete for

         9       customers.  This is very much a time of change

        10       when it comes to our electric utilities and our

        11       telecommunication industries in New York State.

        12                      For these reasons alone, it is no

        13       longer business as usual over at the Public

        14       Service Commission.  We must have new policies

        15       and we must break new ground, and I have every

        16       confidence that Judge O'Mara, as a member of the

        17       Public Service Commission, has the right

        18       combination of intelligence, integrity and

        19       independence to tackle the very serious

        20       challenges that lie ahead.  He also has a very

        21       keen awareness that the Public Service

        22       Commission, through its policies, can contribute

        23       to the economic revival of New York State.











                                                             
1013

         1                      So, for all of these reasons, I'm

         2       very pleased to stand in support of this

         3       nomination and to congratulate Judge O'Mara as

         4       being named to the Public Service Commission.

         5                      ACTING PRESIDENT KUHL:  The Chair

         6       recognizes Senator Nozzolio on the confirmation.

         7                      SENATOR NOZZOLIO:  Thank you, Mr.

         8       President, my colleagues.

         9                      I rise in support of this

        10       nomination and, Mr. President, I think you said

        11       it best when you said it is, in fact, an honor

        12       to speak in behalf of someone who, throughout

        13       his career in public service, has served in such

        14       an honorable fashion.

        15                      Mr. President, not a day goes by

        16       when a business doesn't come to one of our

        17       offices to discuss why it is going to leave New

        18       York State.  It says it is having trouble, not

        19       just with taxes and regulation, but citing very

        20       frequently, if not always, the high cost of

        21       utilities in damaging the competitiveness of the

        22       manufacturing and commercial sectors of this

        23       state.











                                                             
1014

         1                      John O'Mara is an individual that

         2       I believe is so uniquely qualified to serve as

         3       Commissioner of Public Service, that he will

         4       seek to make our businesses competitive once

         5       again, to help them in their quest to be managed

         6       well, to have utility rates that put them in

         7       line with other states and, unfortunately, our

         8       rates have gotten so far out of line with other

         9       states.

        10                      It is, indeed, Mr. President, an

        11       honor to speak on behalf of this nomination.  I

        12       encourage all my colleagues to join in support

        13       of this fine nomination and, most importantly,

        14       wish this new Public Service Commissioner all

        15       the luck in this great quest.

        16                      ACTING PRESIDENT KUHL:  The Chair

        17       recognizes Senator Libous on the confirmation.

        18                      SENATOR LIBOUS:  Thank you, Mr.

        19       President.

        20                      I, too, rise to support the

        21       nomination of a friend of the Southern Tier in

        22       John O'Mara.

        23                      Although I did not really get to











                                                             
1015

         1       know John until most recently, I have a cousin

         2       who is also a local attorney back home and who

         3       would frequently have to deal with John on

         4       different things, and when I asked him about

         5       John O'Mara, I said, "What kind of guy, what

         6       kind of person is he?" and my cousin would say

         7       that John O'Mara is a tough negotiator, he's

         8       fair, and you always know where he stands.

         9                      I think, Mr. President, we're

        10       putting John O'Mara on the Public Service

        11       Commission at a time when we need someone with a

        12       great degree of professionalism, someone who

        13       needs to really roll up his sleeves and get to

        14       the bottom of some of the problems that some of

        15       my colleagues have mentioned -- because indeed

        16       the Public Service Commission, in my opinion,

        17       needs a lot of work -- at a time when businesses

        18       are leaving the state and certainly at a time

        19       when we're doing everything we can to try to

        20       protect the people and the consumers of this

        21       state.

        22                      So, Mr. President, it is indeed

        23       an honor and a privilege for me to second the











                                                             
1016

         1       nomination of John O'Mara to the Public Service

         2       Commission, and Governor Pataki has sent us a

         3       real professional for this job.

         4                      ACTING PRESIDENT KUHL:  The Chair

         5       recognizes Senator Volker on the confirmation.

         6                      SENATOR VOLKER:  I would like to

         7       also reiterate the comments of my colleagues.

         8                      I've known John O'Mara for some

         9       time, but I have come to know him in the last

        10       several months on a much more intimate basis, as

        11       we have been dealing with a number of issues in

        12       the criminal justice area and, as I said, having

        13       come from Chairman of Energy to Chairman of

        14       Codes, Criminal Justice, I know how easily

        15       criminal justice people can go from one to the

        16       other, so I would just like to say that John is

        17       certainly one of the most competent and

        18       conscientious people that I have met in Albany,

        19       and having known a little bit about the Public

        20       Service Commission in my prior years as Chairman

        21       of Energy, there's no question in my mind that

        22       his knowledge and understanding of energy and

        23       business will put him in great stead as a











                                                             
1017

         1       Commissioner on the Public Service Commission.

         2                      I wish him the best of luck, and

         3       think it's a great appointment by the Governor.

         4                      ACTING PRESIDENT KUHL:  The Chair

         5       recognizes Senator Dollinger on the

         6       confirmation.

         7                      SENATOR DOLLINGER:  Mr.

         8       President, I'll be very brief.

         9                      I also rise to commend Governor

        10       Pataki for this nomination.  I commend John

        11       O'Mara.  As I said in the Energy Committee, I

        12       once litigated him in a somewhat protracted

        13       proceeding.  To clarify for Senator DeFrancisco,

        14       I was ahead on points when we settled the case,

        15       but I just -- I think it's important to

        16       recognize that this is someone who has combined

        17       a life in politics with a life as a lawyer.  His

        18       reputation is large enough from the Southern

        19       Tier that it's made its way to Rochester, and I

        20       think this is a good lawyer, a good mind and

        21       will be a good addition to the Public Service

        22       Commission.

        23                      ACTING PRESIDENT KUHL:  Is there











                                                             
1018

         1       any other Senator wishing to speak on the

         2       confirmation?

         3                      Senator Maltese on the

         4       confirmation.

         5                      SENATOR MALTESE:  Mr. President,

         6       I rise also to second the nomination of John

         7       O'Mara.

         8                      I think the fact that he left

         9       the, in a way, cloistered life of a Court of

        10       Claims judge to continue in public service says

        11       something about the man.  The fact that he has

        12       been recognized by his peers in so many

        13       different ways, appointed by a Democratic

        14       governor to positions of trust, serving as a

        15       member of a judicial screening panel for Senator

        16       D'Amato where I've come to know him, John can

        17       always be depended upon to go long distances,

        18       spend late hours in the consideration of

        19       judicial nominees, always be there despite the

        20       fact that many of the meetings took place in the

        21       city of New York, coming a long distance from

        22       western New York, to give his opinion.

        23                      His searching questions bespeak











                                                             
1019

         1       his knowledge of law enforcement, his background

         2       as a district attorney and with various

         3       positions of trust, with trial lawyers and

         4       attorney associations, tell us the type of man

         5       he is.  He's a no-nonsense, tough negotiator, as

         6       has been indicated here.

         7                      I think the Public Service

         8       Commission will be the better for his service.

         9       I commend the Governor for the appointment, and

        10       I congratulate John on his appointment.

        11                      ACTING PRESIDENT KUHL:  Senator

        12       Stafford on the confirmation.

        13                      SENATOR STAFFORD:  Thank you, Mr.

        14       President.

        15                      First, with everyone speaking

        16       upstate, obviously, I had to get up, and I would

        17       only say that he talked so long today in the

        18       Senate Finance meeting, but everyone understood

        19       and he did very well.

        20                      On a serious note, one's friends

        21       really recommend him, and every friend that I

        22       has -- that I have, that John O'Mara has, speaks

        23       so highly of him, his professional ability, as a











                                                             
1020

         1       person and his commitment to government, and

         2       Commissioner O'Mara will be much more than just

         3       a Public Service Commissioner.  I assure you

         4       that isn't just a small responsibility.  He'll

         5       be there as part of the Governor's team, and we

         6       will be much better for it.

         7                      ACTING PRESIDENT KUHL:  Senator

         8       Mendez on the confirmation.

         9                      SENATOR MENDEZ:  Mr. President, I

        10       also rise to commend Governor Pataki for submit

        11       ting the name of John O'Mara for Commissioner of

        12       the Civil Service Commission.  He's a lawyer's

        13       lawyer.  I mean, from trial lawyer, district

        14       attorney, judge, the whole legal profession,

        15       he's been there.  He's competent and there is

        16       something that I was very much impressed with

        17       when I met with him, and that is that I asked

        18       him how he felt about having the Governor

        19       appoint two members to the Commission, members

        20       that would be representative of consumers in the

        21       state of New York, and I was so pleasantly

        22       surprised that he thinks it's a good idea and is

        23       willing to explore it further, but most of all,











                                                             
1021

         1       Mr. President, he has full command of the

         2       leprechaun, and we have to respect that.

         3                      So, again, lots of good things in

         4       your new job, and we're looking forward to work

         5       with you and, again, my -- my congratulations to

         6       the Governor for such a splendid nominee.

         7                      ACTING PRESIDENT KUHL:  The Chair

         8       recognizes Senator DeFrancisco on the

         9       confirmation.

        10                      SENATOR DeFRANCISCO:  I would

        11       like to rise in support of the nominee.  Energy

        12       issues are just so complex in the state of New

        13       York and I don't believe they have to be and

        14       knowing John O'Mara as I do, we have an

        15       individual who has practical common sense that

        16       could fight through some of this complexity that

        17       is not necessary and make it into a common sense

        18       energy policy for the state of New York, and for

        19       that reason and for many others, I am very

        20       pleased to stand and have my voice heard in

        21       favor of the confirmation.

        22                      The only other thing I would like

        23       to say, knowing John O'Mara and knowing Senator











                                                             
1022

         1       Dollinger, I find it very hard to believe that

         2       he was ahead on the points at the time that case

         3       settled.

         4                      ACTING PRESIDENT KUHL:  Is there

         5       any other Senator wishing to speak on the

         6       confirmation?

         7                      (There was no response.)

         8                      Hearing none, the question is on

         9       the confirmation of John Francis O'Mara to the

        10       position of member of the Public Service

        11       Commission.  All those in favor signify by

        12       saying aye.

        13                      (Response of "Aye".)

        14                      Opposed, nay.

        15                      (There was no response.)

        16                      The confirmation of John Francis

        17       O'Mara to member of the Public Service

        18       Commission is confirmed.

        19                      Congratulations.

        20                      (Applause)

        21                      Senator Velella.

        22                      SENATOR VELELLA:  Mr. President,

        23       can we return to reports of standing











                                                             
1023

         1       committees?

         2                      ACTING PRESIDENT KUHL:  We're at

         3       reports of standing committees, Senator Velella.

         4                      SENATOR VELELLA:  I think there's

         5       a Rules report at the desk.

         6                      ACTING PRESIDENT KUHL:  There is

         7       a Rules report at the desk.

         8                      SENATOR VELELLA:  Can we have the

         9       clerk read?

        10                      ACTING PRESIDENT KUHL:  The clerk

        11       will read.

        12                      THE SECRETARY:  Senator Bruno,

        13       from the Committee on Rules, reports the

        14       following bill directly for third reading:

        15                      Senate Bill Number 2241, by

        16       Senator Volker, an act to amend the Penal Law,

        17       the Criminal Procedure Law, the Judiciary Law,

        18       the County Law and the Correction Law, in

        19       relation to the imposition of the death penalty.

        20                      SENATOR VELELLA:  Can we lay that

        21       bill aside temporarily?

        22                      ACTING PRESIDENT KUHL:  Adopt the

        23       Rules -











                                                             
1024

         1                      SENATOR VELELLA:  Oh, I'm sorry.

         2       Adopt, yes.  I move to adopt the Rules Committee

         3       report.

         4                      ACTING PRESIDENT KUHL:  Without

         5       objection, the Rules report is adopted.

         6                      Senator Velella.

         7                      SENATOR VELELLA:  Can you lay

         8       that bill aside temporarily now?

         9                      ACTING PRESIDENT KUHL:  The bill

        10       will be laid aside temporarily.

        11                      Senator -

        12                      SENATOR VELELLA:  Can we return

        13       to nominations, the nomination of Mr. Gargano?

        14                      ACTING PRESIDENT KUHL:  Return to

        15       nominations.  Secretary will continue to read.

        16                      THE SECRETARY:  Senator Stafford,

        17       from the Committee on Finance, reports the nom

        18       ination of Ambassador Charles A. Gargano of Bay

        19       Shore as Commissioner of Economic Development.

        20                      Senator Stafford, from the Com

        21       mittee on Finance, also reports the nomination

        22       of Ambassador Charles A. Gargano of Bay Shore as

        23       Director and President of the New York State











                                                             
1025

         1       Urban Development Corporation.

         2                      ACTING PRESIDENT KUHL:  The Chair

         3       recognizes Senator Johnson on the confirmation.

         4                      SENATOR JOHNSON:  Mr. President,

         5       I am honored to move the confirmation of

         6       Ambassador Charles Gargano, Governor Pataki's

         7       nominee for Commissioner of the Department of

         8       Economic Development and President of the Urban

         9       Development Corporation.

        10                      I have known Charlie Gargano, a

        11       resident of my 4th Senate District, for the

        12       better part of 20 years.  I'm delighted to speak

        13       on his behalf today.

        14                      Ambassador Charles Gargano

        15       combines a distinguished career in public

        16       service with a series of successes in business

        17       and in industry.

        18                      Serving our nation as the United

        19       States Ambassador to Trinidad and Tobago from

        20       1988 through 1991, Charlie Gargano earned the

        21       respect of the diplomatic community both here at

        22       home and abroad.

        23                      Prior to that, he was federal











                                                             
1026

         1       deputy administrator for the Urban Mass

         2       Transportation Administration, overseeing a

         3       staff and budget of mammoth proportion.  A

         4       seasoned professional executive with Master's

         5       Degrees in both engineering and business

         6       administration, Charlie Gargano's hard work and

         7       perseverence have made him a leading figure in

         8       the Long Island business community.

         9                      His success in the private sector

        10       is matched, if not surpassed, by his many

        11       achievements in charitable endeavors.  In these

        12       activities, he has shown great leadership,

        13       diligence and fortitude, which is essential in

        14       his new position.

        15                      I know Charlie Gargano and I know

        16       that he shares this Governor's vision for New

        17       York's future, a future of growth and prosper

        18       ity, where the shackles of bureaucratic control

        19       and overregulation are broken, where the entre

        20       preneurial spirit is set free to create jobs,

        21       establish new industries and develop state-of

        22       the-art technologies.

        23                      By his word and his deed, Charlie











                                                             
1027

         1       Gargano has proven he has what it takes to turn

         2       this Department of Economic Development and

         3       Urban Development Corporation into the catalyst

         4       for economic growth as our great state begins

         5       its journey toward economic renewal and reform.

         6       That journey began November 8th with a clarion

         7       call for change and continues today as we

         8       confirm Charlie Gargano.

         9                      Governor Pataki has announced

        10       that, under Charlie's stewardship, he will

        11       establish the new Empire State Development

        12       Corporation.  The state's economic development

        13       agencies will be consolidated and streamlined to

        14       refocus their mission of job creation and

        15       industrial development.

        16                      Once again, I take great pride in

        17       calling Charles Gargano my friend, and I take

        18       great pride in moving the confirmation of

        19       Ambassador Charles Gargano, nominee for

        20       Commissioner of Economic Development and

        21       President of the Urban Development Corporation.

        22                      ACTING PRESIDENT KUHL:  The Chair

        23       recognizes Senator Goodman.











                                                             
1028

         1                      SENATOR GOODMAN:  Mr. President,

         2       I am very pleased indeed to second the nomina

         3       tion of Charles Gargano and would like to take

         4       just a moment to reflect upon one or two of the

         5       very special characteristics of this uniquely

         6       qualified candidate.

         7                      First, however, let me remind

         8       this body that Charles Gargano, before he could

         9       become an ambassador of the United States of

        10       America, went through a procedure with which I'm

        11       somewhat familiar because I, too, was a Presi

        12       dential appointee subject to the advice and

        13       consent of the Senate.

        14                      This procedure, for those of you

        15       who are not aware of it, involves a very intens

        16       ive FBI check, an intensive check by the staff

        17       of the White House, and when all of that has

        18       been completed and the President forwards a

        19       nomination to the Senate for action, the

        20       appropriate Senate committee then proceeds to do

        21       its own very intensive examination of a

        22       candidate for office.  This is nowhere more true

        23       than in the sensitive selection of ambassadors











                                                             
1029

         1       to represent the United States of America

         2       because, quite self-evidently, these people are

         3       on their own in foreign countries far from home

         4       and must be relied upon to carry forward their

         5       duties with the highest integrity and the

         6       greatest skill.

         7                      Mr. President, Ambassador Gargano

         8       went through that process and emerged from it to

         9       achieve the overwhelming approval of the United

        10       States Senate for his duties.  In addition to

        11       that, I would like to just reminisce for a

        12       moment about a lunch that I had with Ambassador

        13       Gargano, which he himself might not remember

        14       because it occurred some time ago.  We were

        15       lunching at a restaurant in New York City and we

        16       had just learned of the catastrophic earthquake

        17       which had shaken southern Italy, and Charles

        18       Gargano at that time, never imagining, I'm sure,

        19       that we would be speaking of him today in this

        20       context, said to me, "There's been a catastrophe

        21       in southern Italy and I'm going to drop

        22       everything that I have on my docket to make

        23       supreme efforts to try to be helpful to











                                                             
1030

         1       alleviate the suffering of the people who have

         2       been ravaged by this earthquake."

         3                      We have just recently seen the

         4       effects of the earthquake in Kobe, Japan, and

         5       I'm quite certain that what occurred in southern

         6       Italy at that time was not at all dissimilar to

         7       the tragic suffering that we had experienced at

         8       that time in southern Italy.

         9                      Mr. Gargano has made it very

        10       clear in his extremely elevated action in this

        11       matter that he was willing to sacrifice personal

        12       income, personal consideration and devote an

        13       enormous amount of his own time and treasure and

        14       persuasive effort to gathering every ounce of

        15       assistance that he could from people in the New

        16       York and other communities, and he became the

        17       head of a national disaster relief effort.

        18                      I submit to you, Mr. President,

        19       that anyone capable of doing this type of very,

        20       very altruistic action is someone of whom we can

        21       be duly proud.  There is a long record of such

        22       community involvement as well on the part of the

        23       Ambassador, who is noted as a leading











                                                             
1031

         1       philanthropist and organizer of good efforts in

         2       his home community in Long Island and in New

         3       York City.

         4                      Now, I have personally worked

         5       with this nominee in connection with his already

         6       well-known work as a supremely effective fund

         7       raiser because I, too, in my capacity as

         8       Republican County Chairman in New York and as a

         9       co-chairman of the Reagan for President Campaign

        10       and as a co-chairman for the Bush for President

        11       Campaign, found myself involved and from time to

        12       time directly with him in fund raising, and I

        13       can testify to you personally that, in his

        14       techniques in that connection, in his entire

        15       approach to those duties, he was always an

        16       ethical man who was sensitive to the situation

        17       in which he was involved and never pressed

        18       unduly nor departed from what I would regard as

        19       his code of gentlemanly behavior which is

        20       evident to me in all of his activities.

        21                      Mr. President, I share these

        22       personal observations with you because we're

        23       best able to judge people when they don't know











                                                             
1032

         1       they're being judged, and when we have a long

         2       track record from which we can extrapolate a

         3       pattern of behavior, I think we're entitled to

         4       share it at a moment like this.

         5                      This is an altruist of high

         6       character, a businessman of high skill, a

         7       straight shooter, an honorable individual and

         8       someone who richly deserves our support today

         9       for the very important post for which he has

        10       been nominated, and let me just say, he will be

        11       the pivotal executive in the Governor's effort

        12       to try to build and develop the business

        13       community in the state of New York.

        14                      Unfortunately, we've lagged in

        15       the national economic effort to try to bring New

        16       York abreast of the national recovery, and no

        17       where is the effort more significant than in the

        18       work that he will be doing to build the state's

        19       job economy.  I need not remind this chamber

        20       that jobs and good, solid, long-term job

        21       commitments exceed any efforts which we can make

        22       in the welfare area to assure the well-being of

        23       the rank and file of New Yorkers.  Put them to











                                                             
1033

         1       work, and put them to work not with Band-Aids or

         2       superficial cover-over employment, but real

         3       genuine involvement in the texture of our

         4       society, and there you build a strong society

         5       for the future.

         6                      In that effort, Charles Gargano,

         7       I am absolutely convinced, will be superb in his

         8       effort on behalf of the state of New York and,

         9       for that reason, I enthusiastically second his

        10       nomination.

        11                      ACTING PRESIDENT KUHL:  The Chair

        12       recognizes Senator Trunzo.

        13                      SENATOR TRUNZO:  Mr. President,

        14       it's a great honor for me to also second the

        15       nomination of Charlie Gargano who -- I've known

        16       Charlie Gargano for over 25 years.  My first

        17       meeting with him was way back when I was a

        18       councilman in the town of Islip.

        19                      Charlie has been my constituent

        20       for many years and, when we did the last

        21       reapportionment, I had to turn him over to Owen

        22       Johnson, to Senator Johnson, as part of the

        23       reapportionment.  Owen just said thanks.











                                                             
1034

         1                      But knowing Charlie and knowing

         2       the work which he has done within the community

         3       of Islip and the work that he has done over the

         4       years for the many, many organizations that he's

         5       worked for, that he's done -- he was really a

         6       tremendous asset to our community and when

         7       President Reagan made him an ambassador, we were

         8       so proud of Charlie Gargano when that happened

         9       back in those years.

        10                      And now it gives me great

        11       pleasure to second the nomination and commend

        12       the Governor for nominating Charlie Gargano as

        13       Commissioner of the Economic Development and as

        14       also of the Urban Development Corporation and,

        15       again, a great man who's going to do an

        16       outstanding job, as has already been pointed out

        17       by Senator Johnson and Senator Goodman.  I

        18       commend the Governor once again for this

        19       appointment.

        20                      ACTING PRESIDENT KUHL:  The Chair

        21       recognizes Senator Farley on the confirmation.

        22                      SENATOR FARLEY:  Thank you, Mr.

        23       President.











                                                             
1035

         1                      I rise to support the nomination

         2       of Charlie Gargano with enthusiasm.  If this

         3       state has a problem, it's in the area of

         4       economic development and jobs, and this man is a

         5       shaker and a mover.

         6                      As Senator Goodman said, this is

         7       a pivotal appointment and one that is absolutely

         8       crucial to this state, and this is the man for

         9       the job.  I think he's an outstanding person, a

        10       man of integrity and ability, and I support him

        11       enthusiastically and look forward to remarkable

        12       results as a result of his appointment, and we

        13       wish you well, Ambassador.

        14                      ACTING PRESIDENT KUHL:  The Chair

        15       recognizes Senator Maltese.

        16                      SENATOR MALTESE:  Mr. President,

        17       I rise to second the nomination.

        18                      It is with a great deal of pleas

        19       ure and pride that I second that nomination.  I

        20       speak not only as a Senator, not only as an

        21       American, but an Italian-American.  Charlie

        22       Gargano has been known for more than 20 years

        23       for his altruistic, humanitarian efforts on











                                                             
1036

         1       behalf of Italians.  Senator Goodman mentioned

         2       earlier his immediate stance upon hearing about

         3       a tragedy in southern Italy, but it's much more

         4       than that.  It's the day-to-day, hour-by-hour,

         5       week-by-week time that he spends with Italian

         6       American organizations and on behalf of

         7       Italian-American and Italian organizations, the

         8       land of birth of many of our constituents and

         9       many of the people from New York State.

        10                      These efforts have been recog

        11       nized by so many organizations and so many

        12       people.  I see that he's been recognized by the

        13       president of Italy, by officials in Italy, by

        14       officials in the Vatican, by religious,

        15       governmental officials and by people -- and

        16       Italian-American leaders and organizations here,

        17       with every accolade and every honor.

        18                      Mr. President, many people

        19       complain that there are too many lawyers in

        20       public service.  Mr. Gargano is an engineer, a

        21       graduate of Manhattan College, where he received

        22       his Master's.  He served as an engineer and a

        23       builder -- a builder building New York.  It's in











                                                             
1037

         1       that capacity that Governor Pataki has chosen to

         2       give him this most important position so that he

         3       can bring jobs and revitalize the economy of New

         4       York State.

         5                      Mr. President, I'm proud to

         6       second the nomination of a good man, a good

         7       friend, Charlie Gargano.

         8                      ACTING PRESIDENT KUHL:  The Chair

         9       recognizes Senator DiCarlo on the confirmation.

        10                      SENATOR DiCARLO:  Thank you, Mr.

        11       President.

        12                      I rise also to second the nomina

        13       tion -- nomination of Ambassador Gargano.  I

        14       have known the ambassador for a number of years,

        15       and the best thing that you can say about an

        16       individual is that they are honorable and they

        17       are a gentleman.  Ambassador Gargano fits both

        18       of those very well.  It has been said that he

        19       has the qualifications.  I know he has the

        20       qualifications.  I know that the Governor has

        21       made a wise choice, and one of the things that

        22       those here might not know and those who serve as

        23       their -- his Senator now in Long Island is that











                                                             
1038

         1       the best thing about Charlie Gargano is that he

         2       comes from Brooklyn.

         3                      Good luck.

         4                      ACTING PRESIDENT KUHL:  The Chair

         5       recognizes Senator Stavisky on the confirmation.

         6                      SENATOR STAVISKY:  Mr. President,

         7       not everyone in this chamber is a member of the

         8       Finance Committee, and not everyone in this

         9       chamber has had the opportunity for a long

        10       friendship or an intimate friendship with the

        11       designees who are presented for confirmation by

        12       the Senate.  We have to rely upon information

        13       that has been provided or information that has

        14       been withheld or information that has been given

        15       in one forum and then given in another forum.

        16                      This is not a unique situation in

        17       the Senate of New York State.  You will notice

        18       that there are similar questions that are raised

        19       in the Senate of the United States when one body

        20       of information is presented at one time, and

        21       then is questioned by a body of information that

        22       emerges subsequently, and I ask the members who

        23       know the facts to comment on that possibility.











                                                             
1039

         1                      We are not proposing an

         2       international appointment regarding Trinidad or

         3       Tobago or even Italy.  If we were, a different

         4       set of qualifications would be expected.  We are

         5       proposing someone who will have vast powers and

         6       responsibilities with regard to economic

         7       development, and with economic development,

         8       objective judgments must be made that are not

         9       clouded in any way by personal or private

        10       interests.

        11                      I have heard, and I seek

        12       clarification of this point, that some of the

        13       points of economic investments or directorships

        14       or positions that the applicant -- the candidate

        15        -- may have were not always provided in the

        16       initial presentations.

        17                      There is a similar debate going

        18       on in Washington with regard to the Surgeon

        19       General of the United States as to whether at

        20       the very beginning all of the information was

        21       made available or whether it was subsequently

        22       amended or omitted in later presentations, and I

        23       ask those of you who know this candidate to











                                                             
1040

         1       share with us, was there information on the

         2       table before us at the very beginning or was

         3       that revised, updated, corrected afterwards,

         4       because there were serious omissions, and if the

         5       answer is that there were no serious omissions,

         6       if the answer is that this candidate does not

         7       have economic interests that have to be decided

         8       by agencies of the state of New York, that there

         9       are no taxes owed, that there are no things that

        10       were left in the closet that have been brought

        11       out now -

        12                      SENATOR GOODMAN:  Mr. President.

        13                      SENATOR STAVISKY:  I will yield

        14       at the conclusion, Senator, unless it's a point

        15       of high personal privilege for yourself.

        16                      SENATOR GOODMAN:  You merely

        17       raised a question which I think we can

        18       illuminate, and I didn't want to -

        19                      SENATOR STAVISKY:  Well -- well,

        20       I'm raising the question and, by all means,

        21       answer.

        22                      SENATOR GOODMAN:  Mr. President,

        23       in the course -











                                                             
1041

         1                      SENATOR STAVISKY:  But not at

         2       this point, Senator.

         3                      ACTING PRESIDENT KUHL:  Senator

         4       Stavisky, are you asking a question of Senator

         5       Goodman?

         6                      SENATOR STAVISKY:  No, he's

         7       apparently going to ask a question.

         8                      ACTING PRESIDENT KUHL:  Are you

         9       asking a question?

        10                      SENATOR STAVISKY:  I'm asking for

        11       an answer after I've finished with my remarks.

        12                      SENATOR GOODMAN:  Mr. President,

        13       I understand.  I think the Senator raised a

        14       general question, which I'd be happy to respond

        15       to when he's finished.

        16                      SENATOR STAVISKY:  Thank you, and

        17       I would be happy to hear the answer.

        18                      ACTING PRESIDENT KUHL:  Please

        19       continue.

        20                      SENATOR STAVISKY: These are not

        21       irresponsible questions.  These are questions

        22       that would be asked under similar circumstances

        23       by United States Senator Robert Dole, by Speaker











                                                             
1042

         1       Newt Gingrich and by U.S. Senator Alphonse

         2       D'Amato, if there were questions, if there were

         3       omissions, if there were changes in the dossier

         4       involving anyone up for Senate confirmation in

         5       Washington, and so I say the same standard

         6       should apply.

         7                      If Alphonse D'Amato was sitting

         8       here or Bob Dole was sitting here or Newt

         9       Gingrich was sitting here, would they be

        10       comfortable with the addendum of the dossier

        11       that occurred after the initial presentation?

        12       Were all of the facts known before today?  Were

        13       all of the facts of economic involvement,

        14       economic relationships with state agencies known

        15       prior to this time; or were they filled in

        16       subsequently the way people in Washington often

        17       update the information that may have been

        18       available on a preliminary basis at first and

        19       then is added to as more facts become

        20       available?

        21                      And I ask those of you who know

        22       him best, not in criticism of the candidate but

        23       rather what was the sequence?  When did we know











                                                             
1043

         1       it?  When was that information provided; and

         2       have there been serious or simply minor

         3       omissions of facts that we should have known at

         4       the very beginning?  And it's in that spirit,

         5       not in an argumentative or pejorative manner

         6       that I have raise these questions.

         7                      What would Senator D'Amato do

         8       when confronted with a similar changing script?

         9                      And now Senator Goodman, if he

        10       will return, I will be happy to hear from him.

        11                      ACTING PRESIDENT KUHL:  Chair

        12       recognizes Senator Mendez.

        13                      SENATOR MENDEZ:  Mr. President.

        14       I also rise in support of the nomination of

        15       Ambassador Charles Gargano to the position of

        16       Commissioner of UDC Economic Development

        17       Corporation, and I attended today a Finance

        18       Committee meeting where Mr. Gargano stayed for

        19       an hour and 45 minutes.  All the questions that

        20       could possibly be asked pertaining to his

        21       financial involvement were answered

        22       satisfactorily.  As far as I'm concerned, I

        23       believe so.











                                                             
1044

         1                      Secondly, I want to congratulate

         2       the Governor for submitting his name for this

         3       position because the man has shown through his

         4       life that he is not only intelligent and well

         5       qualified but he has also -- as has been

         6       expressed here by some of my colleagues before

         7       me that he has run an extra mile in his effort

         8       of being -- of cooperating with humanitarian

         9       concerns.

        10                      But, above all, Mr. President, I

        11       believe Mr. Gargano as a businessman that he is,

        12       he understands fully that the economic situation

        13       of the State of New York is not proceeding -

        14       the rate of growth is not proceeding at the pace

        15       that it should be in order for the state to

        16       provide jobs for people.

        17                      So I think that his vision of the

        18       agency will, in fact, make it possible for the

        19       development of more jobs that New Yorkers so

        20       badly need.  He is also a workhorse.  The man

        21       works 12 hours a day at the job.

        22                      And I think that once he's

        23       confirmed, he'll keep working very hard, because











                                                             
1045

         1       he's very much committed to insure that the

         2       economic stake yp our CP in our state is fully

         3       developed for the satisfaction of all New

         4       Yorkers.

         5                      One thing that he is particularly

         6       interested in is in working with small

         7       businessmen.  We do know that is not the big

         8       corporations that provide the greatest number of

         9       jobs in New York State.  It is in fact 94 -- in

        10       fact, 94 percent of the jobs are produced by

        11       small businesses, and that's no surprise to us

        12       because small businesses have to have the

        13       potentiality to expand and, therefore, create

        14       jobs.

        15                      So it is with great satisfaction

        16       that I believe that he is an excellent nominee

        17       and that he, in fact, will do a great job for

        18       the people of the State of New York.

        19                      ACTING PRESIDENT KUHL:  Chair

        20       recognizes -

        21                      Senator Waldon.

        22                      SENATOR WALDON:  Would Senator

        23       Mendez yield for a question?











                                                             
1046

         1                      ACTING PRESIDENT KUHL:  Senator

         2       Mendez, do you yield to Senator Waldon?

         3                      SENATOR MENDEZ:  Yes.

         4                      ACTING PRESIDENT KUHL:  Senator

         5       yields, Senator Waldon.

         6                      SENATOR WALDON:  Thank you very

         7       much, Mr. President.

         8                      Senator, I heard you remark on

         9       another occasion that you have a very personal

        10       relationship with the nominee.  Recognizing that

        11       both you and I -

        12                      SENATOR MENDEZ:  I'm sorry.  I'm

        13       sorry.  Would you repeat that, please?

        14                      SENATOR WALDON:  I said I've

        15       heard you remark or at least I recall that you

        16       remarked you have a personal awareness and

        17       relationship with the nominee.  Is that

        18       correct?

        19                      SENATOR MENDEZ:  No, that is not

        20       correct.  I met Mr. Gargano when I was appointed

        21       to the transition committee by Governor Pataki.

        22       After that, I met the gentleman only on two

        23       other occasions.











                                                             
1047

         1                      SENATOR WALDON:  May I continue,

         2       Mr. President.

         3                      ACTING PRESIDENT KUHL:  You're

         4       asking the Senator to continue to yield?

         5                      SENATOR WALDON:  Yes.

         6                      ACTING PRESIDENT KUHL:  Senator

         7       Mendez, do you continue to yield?

         8                      SENATOR WALDON:  There is no trap

         9       involved here, Senator.

        10                      SENATOR MENDEZ:  Just in case.

        11       My dear colleague, just in case.

        12                      SENATOR WALDON:  I want to do

        13       something that perhaps will help both your

        14       community and my community.  We both are so

        15       labeled minorities.  From the limited awareness

        16       that you have of this nominee, do you perceive

        17       that he will take steps to ensure that Latinos,

        18       be they Puerto Rican or Dominican or from South

        19       America or Venezuelan or wherever, as well as

        20       African-Americans and Caribbean-Americans, be

        21       permitted to participate in the construction

        22       industry in numbers which reflect the numbers

        23       that we are in this state.











                                                             
1048

         1                      SENATOR MENDEZ:  Well, I believe

         2       that Mr. Gargano is committed to ensure that

         3       minorities, Puerto Ricans, Hispanics,

         4       African-Americans and other protected classes

         5       will in fact have an equal opportunity to

         6       benefit from the programs and services that the

         7       agency will be offering.

         8                      SENATOR WALDON:  One more

         9       question.

        10                      ACTING PRESIDENT KUHL:  Senator

        11       Mendez, do you -

        12                      SENATOR MENDEZ:  In fact, Senator

        13       Waldon, I forgot to mention when I rose to

        14       support his nomination that I read somewhere

        15       that he had made statements to that effect.

        16                      ACTING PRESIDENT KUHL:  Senator

        17       Mendez, do you yield to one more question from

        18       Senator Waldon?

        19                      SENATOR MENDEZ:  Yes, one more.

        20                      ACTING PRESIDENT KUHL:  Senator

        21       yields.

        22                      SENATOR MENDEZ:  And even two.

        23                      SENATOR WALDON:  Thank you, Mr.











                                                             
1049

         1       President.  Please, Senator Mendez, let me thank

         2       you for your indulgence.  This was not a

         3       prepared situation by me.  On the spur of the

         4       moment, as I sometimes do, I rise because

         5       questions pop into my head.

         6                      Is it your considered opinion

         7       from your awareness and from your reading and

         8       your analysis from your meetings -- I would

         9       assume you have a vibration from Mr. Gargano -

        10       that you support his candidacy because you

        11       believe that he will give us -- when I say "us,"

        12       I mean your community and my community -- a fair

        13       shake at the table, especially regarding

        14       construction industry situations, set-asides and

        15       other kinds of opportunities in an

        16       entrepreneurial sense that will be under his

        17       jurisdiction as the head of UDC?

        18                      SENATOR MENDEZ:  Senator Waldon,

        19       I really believe that he will do that.  In fact,

        20       since I am a woman that do not believe in double

        21       standards pertaining to the record of the

        22       previous person that was head of the agency, I

        23       can tell you that in terms of the statistics -











                                                             
1050

         1       and I love the man, but love has nothing to do

         2       with it.  I'm talking about the previous

         3       Commissioner of, at that time, UDC.  We Puerto

         4       Ricans -- I don't know how you African-Americans

         5       did, but certainly we Puerto Ricans and

         6       Hispanics did not do well at all in that

         7       immense, rich agency.

         8                      I have the vibrations, as you put

         9       it, that this gentleman will in fact do much

        10       better, more so to the satisfaction of you as a

        11       representative who care for your people and to

        12       my satisfaction for myself that I also care

        13       about Puerto Rican and Hispanics and African

        14       Americans and everybody.  If I wouldn't feel

        15       that way, my dear colleague, I wouldn't be

        16       standing here supporting him.

        17                      I feel very certain that he will

        18       do so, and it is refreshing and nice and hopeful

        19       to feel that way.

        20                      SENATOR WALDON:  Thank you very

        21       much, Mr. President, for your indulgence.  I

        22       want to publicly thank here in the chamber the

        23       learned Senator for her remarks, and may I just











                                                             
1051

         1       add a caveat as I sit -

         2                      ACTING PRESIDENT KUHL:  Senator

         3       Waldon, the floor was given up by Senator

         4       Mendez.  There is a whole series of people who

         5       are on the list.  If you'd like to speak, I will

         6       put you down on the list.

         7                      SENATOR WALDON:  With due

         8       deference to the procedure, I will sit.

         9                      Thank you, Mr. President.

        10                      ACTING PRESIDENT KUHL:  Thank

        11       you, Senator Waldon.

        12                      SENATOR GOLD:  Mr. President.

        13                      ACTING PRESIDENT KUHL:  Senator

        14       Gold, why do you rise?

        15                      SENATOR GOLD:  I also wanted to

        16       ask Senator Mendez just one question based upon

        17       what she said to Senator Waldon, if she was

        18       still available for a question.

        19                      SENATOR MENDEZ:  Yes.

        20                      ACTING PRESIDENT KUHL:  Senator

        21       Mendez?

        22                      SENATOR GOLD:  The confirmation

        23       process is supposed to be an enlightenment, and











                                                             
1052

         1       I'm just curious.  You say that you got the

         2       vibrations that it would be better.  Can I ask

         3       you what was the basis of the vibrations?  Was

         4       it something that he said at the meeting,

         5       something you learned in a different source.  I

         6       would like to know where they come from.

         7                      SENATOR MENDEZ:  Senator Gold,

         8       the issue of the vibrations came because I

         9       wanted to be a little bit sardonic when my

        10       colleague used that word in terms of possibly

        11       imagining -- I don't know what he had in mind,

        12       and I wanted to retort back to him, and I did

        13       so.

        14                      SENATOR GOLD:  I see.  Would the

        15       Senator please yield to one more question?

        16                      SENATOR MENDEZ:  Yes.

        17                      ACTING PRESIDENT KUHL:  Senator

        18       yields, Senator Gold.

        19                      SENATOR GOLD:  Senator, I also

        20       have minority groups in my district that I am

        21       concerned about and I think my record as a state

        22       Senator over the years indicates that I have

        23       been sensitive to so-called minority needs.  I











                                                             
1053

         1       can understand why some people might want this

         2       nominee or might not want the nominee.  I don't

         3       understand the minority issue.  What was it that

         4       the man either did in his life or said at the

         5       committee meeting which gives an impression that

         6       he would in some way be good for minorities?

         7       I'm not saying he is or not.  I'm just curious

         8       what it is you are relying on since I respect

         9       you so much.

        10                      SENATOR MENDEZ:  First of all, my

        11       professional -- the graduate work that I did is

        12       in the behavioral sciences; and we, all of us

        13       here, do deal with all sorts of people.  We meet

        14       all sorts of people during the -- performing the

        15       functions of being a state Senator; right?  So

        16       we're not naive.  Once you meet with somebody

        17       and you talk and you ask certain questions, you

        18       keep in mind the emotional tone in which things

        19       are said, and you end up with a picture of

        20       whether that person is sincere or whether the

        21       person is not, besides the statements that the

        22       gentleman has done to that effect.

        23                      SENATOR GOLD:  Yes, Mr.











                                                             
1054

         1       President.  Would the Senator be kind enough to

         2       yield to one last question?

         3                      ACTING PRESIDENT KUHL:  Senator

         4       Mendez, do you yield to one last question from

         5       Senator Gold?

         6                      SENATOR MENDEZ:  Yes.

         7                      ACTING PRESIDENT KUHL:  Senator

         8       yields.

         9                      SENATOR GOLD:  Senator, what I'm

        10       trying to find out is what were the questions

        11       you asked and the responses you got that made

        12       you have this feeling.  There must have been

        13       something.  I know you have a great concern for

        14       the people you represent, and you must have

        15       asked what were very, very important questions

        16       for which the answers you got were very, very

        17       significant for your community.  I'm wondering

        18       what those were.

        19                      I was at the committee meeting

        20       and I didn't hear any of that.  Perhaps I missed

        21       something.

        22                      SENATOR MENDEZ:  But, Senator

        23       Gold, as I said before, I met the gentleman when











                                                             
1055

         1       I was appointed by Governor Pataki to his

         2       transition committee.  I had an opportunity to

         3       talk to him about different things, and one of

         4       the first things that I ask anybody that I meet

         5       and I try to dig into his attitudes towards

         6       Puerto Ricans, African-Americans and others,

         7       because anyhow I am also a member of a

         8       minority.  As you know, I am Puerto Rican.

         9                      And in his history, this man was

        10       an Ambassador to Tobago and Trinidad.  Tobago

        11       and Trinidad are minority islands, are not

        12       they?  And he did a great job over there, so the

        13       inference is that he has no problem whatsoever

        14       in relating to people who have a different

        15       racial or ethnic background, and that is a big

        16       plus.

        17                      SENATOR GOLD:  Thank you,

        18       Senator.

        19                      SENATOR MENDEZ:  You're welcome.

        20                      ACTING PRESIDENT KUHL:  Chair

        21       recognizes Senator Marchi on the confirmation.

        22                      SENATOR MARCHI:  Mr. President.

        23       The process by which the nominee is before us, I











                                                             
1056

         1       assisted personally over a period of 16 years

         2       confirmation of thousands of nominees and the

         3       process is a sound one.  There is an intensive

         4       investigation of each and every nominee to spot

         5       the negatives, to spot those things that are not

         6       harbinger of good things to come, and they

         7       accompany the evaluations of the affirmative

         8       qualities that a nominee brings to the office

         9       that he has been designated by the Governor, and

        10       that is submitted and experiences a very

        11       exacting process.

        12                      Everything that I have seen with

        13       Senator Stafford, he has continued that with the

        14       same enthusiasm and the same zealous pursuit of

        15       fulfilling the requirements that the Finance

        16       Committee must take in making a recommendation

        17       that finally ends up before us on this floor.

        18                      Why are all of the circumstances

        19        -- and Charles Gargano brings a wealth of

        20       experiences.  I know that he is not being

        21       offered as an international ambassador at this

        22       point, but all of the experiences that he has

        23       had are relevant to the office that he will be











                                                             
1057

         1       serving very shortly.  He will be interacting on

         2       an intergovernmental plane with people from the

         3       nation, even internationally.  The office that

         4       he will occupy will require, if he is going

         5       serve his responsibilities with any degree of

         6       effectiveness, will require and bring into play

         7       those experiences that he has had before coming

         8       here tonight, and he has had them and he has

         9       passed with flying colors the exacting process

        10       that he survived in the Senate, not just for

        11       negatives, because that should be a given for

        12       anyone entrusted with the responsibility, a

        13       public responsibility, but also weighing very

        14       carefully the qualities that are brought to an

        15       office.

        16                      Mention was made of his response

        17       to charitable endeavors, how he dropped

        18       everything.  Senator Goodman made a very good

        19       point on the disaster that befell southern Italy

        20       which a grateful Italian government conferred a

        21       knighthood on him.  His charitable endeavors in

        22       this nation and in this community which received

        23       recognition by another exacting process because











                                                             
1058

         1       he also received a knighthood from the Knights

         2       of Malta and the Knights of the Holy Sepulcher.

         3       Now, these are organizations that are very

         4       serious and make a very intensive review of the

         5       life and the strength of the character of an

         6       individual, and these are important, the

         7       strength of an individual's character, his

         8       willingness to embrace some heavy lifting and

         9       duty, and he was not found wanting in any of

        10       these evaluations.

        11                      So we do need Ambassador

        12       Gargano.  We do need him to take over the reins

        13       in economic development.  We have suffered in

        14       the Northeast.  I don't want to place blame on

        15       anybody, but we have suffered generally, but he

        16       brings a wealth of experience with none of the

        17       negatives, indeed confirmation of his strength

        18       of character and his integrity.  He brings these

        19       qualities to serve this state combined with

        20       excellence in service in both public and private

        21       sectors, which is very reassuring, I think, as

        22       we attempt to reverse the picture and restore

        23       New York State to the preeminence that it really











                                                             
1059

         1       deserves to have, and I'm sure that with support

         2       given by this body, he is going to embrace those

         3       things; and he does this with our encouragement

         4       because I am confident that he will give a good

         5       account of himself and that will also reflect a

         6       great benefit to the people of this state as he

         7       coordinates efforts to reverse a picture of

         8       economic stagnancy.

         9                      So we wish him well, and I do

        10       hope that he does get a good vote here today by

        11       way of encouragement.

        12                      ACTING PRESIDENT KUHL:  Chair

        13       recognizes Senator Nozzolio on the

        14       confirmation.

        15                      SENATOR NOZZOLIO:  Thank you, Mr.

        16       President.

        17                      My colleagues, I rise to second

        18       the nomination of Ambassador Charles Gargano for

        19       this important position.

        20                      Ladies and gentlemen, you all

        21       know we live in troubled times.  Governor Pataki

        22       recognizes that.  We recognize that now more

        23       than ever.  The competitive world we have today











                                                             
1060

         1       puts business leaders in a quandary.  The siren

         2       songs of the South where businesses have gone

         3       from New York to set up operations, where we

         4       have now today more manufacturing jobs in the

         5       state of Alabama than here are in the State of

         6       New York, the once Empire State of New York.  We

         7       have less manufacturing jobs today than when

         8       Roosevelt was President; and, unfortunately,

         9       that's Theodore Roosevelt not Franklin

        10       Roosevelt.

        11                      The Governor recognizes this

        12       problem, and that's why he has chosen a leader

        13       to lead us out of the economic doldrums that we

        14       are in, a leader who can talk the talk and walk

        15       the walk with the business leaders of this

        16       state, of this nation and of this world, one who

        17       understands policies matter, one that

        18       understands that leadership is required in order

        19       to keep jobs in New York.

        20                      I'm very honored, my colleagues,

        21       to have first met Charles Gargano 14 years ago.

        22       I watched him do great work on behalf of the

        23       citizens of this state, and I know the











                                                             
1061

         1       Governor's faith and our confidence in him, our

         2       efforts to work with him are critical during

         3       these next years if we are to gain our economic

         4       competitiveness again and be called, once again,

         5       the Empire State.

         6                      Our nominee today is up to the

         7       task of that great challenge, and I'm honored to

         8       support his nomination and urge my colleagues to

         9       do likewise.

        10                      Thank you, Mr. President.

        11                      ACTING PRESIDENT KUHL:  Chair

        12       recognizes Senator Libous on the confirmation.

        13                      SENATOR LIBOUS:  Thank you, Mr.

        14       President.

        15                      I, too, rise to second the

        16       nomination of Ambassador Gargano; and, unlike my

        17       colleagues, I can't stand before you and tell

        18       you that I have known him for 20 or 25 years,

        19       but I can tell you that in the short time that I

        20       have known him, Ambassador Gargano because of

        21       his sincerity, because of his honesty, you feel

        22       like you have known the man for some 25 or 30

        23       years.











                                                             
1062

         1                      Mr. President, that's the kind of

         2       sincerity and feeling that we have to give to

         3       business in this state.  That's the kind of

         4       leader that we need.  You know, I live in the

         5       Southern Tier.  I represent the Southern Tier of

         6       New York, and I have to tell you that every day

         7       the state of Pennsylvania is coming across the

         8       county line, the state borderline and taking

         9       jobs away, and they are not taking one and two

        10       at a time.  They are taking them factories at a

        11       time, offering them incentives, taking them away

        12       from this great Empire State.

        13                      Ambassador Gargano's resume, if

        14       you take the time to look at it, tells you that

        15       he is overqualified for this position.  He is in

        16       a position to lead this state to economic

        17       recovery, something that is desperately needed.

        18       There is not a colleague in this chamber that

        19       wouldn't take one additional job in their

        20       district today if that could be delivered, and

        21       that is the role that Ambassador Gargano will

        22       play as economic development director to bring

        23       more jobs to this state for all New Yorkers.











                                                             
1063

         1                      Mr. President, once again,

         2       Governor Pataki has delivered us a very, very

         3       well-qualified candidate and it is a pleasure

         4       and honor for me to second the nomination of

         5       this good candidate.

         6                      ACTING PRESIDENT KUHL:  Chair

         7       recognizes Senator Smith on the confirmation.

         8                      SENATOR SMITH:  Thank you, Mr.

         9       President.  Let me first say that I met with

        10       Ambassador Gargano, and I found him to be

        11       immensely charming.  I also praise him for being

        12       from Brooklyn and for going to New York City

        13       Tech, which I did, for also being involved with

        14       the developmentally disabled young people, and

        15       many in this room know that I have been an

        16       advocate for the developmentally disabled.

        17                      I also praise him for being

        18       licensed in five states, but I have great

        19       reservations when I sit in a committee room and

        20       I ask the Governor's nominee about his legal

        21       residence and he tells me that his legal

        22       residence is Bay Shore, and I ask him if he

        23       voted from that address in the previous











                                                             
1064

         1       election, and he tells me "Yes," and then he

         2       also tells me that he has voted there for the

         3       past five elections, and I'm greatly dismayed

         4       when the Board of Elections can find no

         5       registration for Charles Gargano in Bay Shore,

         6       and I'm even more dismayed when the only

         7       registration I find is in Dix Hills and that

         8       registration was canceled in August of '94 prior

         9       to the election based upon two letters going

        10       out, one in '93 and one in '94, and coming back

        11       to the Board of Elections showing that he no

        12       longer lived in Dix Hills.

        13                      These are the kinds of omissions

        14       and the kinds of things that bother me.  If I

        15       can't get the truth about someone's real

        16       residence, then I certainly can not vote for

        17       them to become a Commissioner of the State of

        18       New York in such an important position.

        19                      ACTING PRESIDENT KUHL:  Chair

        20       recognizes Senator Gold on the confirmation.

        21                      SENATOR GOLD:  Thank you very

        22       much.  I would like to congratulate Governor

        23       D'Amato on this nomination.  Governor Pataki











                                                             
1065

         1       didn't do so well.

         2                      If you like the resume, Senator

         3       Libous, can you imagine how much you would like

         4       it if it was all there?

         5                      Now, to begin with, I want to say

         6       one thing to people like Senator Marchi and

         7       Senator Maltese.  This is not in my opinion a

         8       Italo-American issue.  Certainly I, who went out

         9       every day campaigning for a guy named Cuomo and

        10       who holds Serph Maltese in a personal way on the

        11       highest level and Senator Marchi on the highest

        12       level, I don't have to explain and account for

        13       myself if I'm going to oppose somebody who

        14       happens to be Italian; and I'm glad that there

        15       are organizations that feel proud of him because

        16       of his heritage, and I respect someone who is

        17       what they are.  I respect that, but that is not

        18       my issue as I see it.

        19                      Senator Stavisky asked questions,

        20       questions similar to those I asked earlier

        21       today, and why leave it hanging, Senator?  What

        22       would Al D'Amato do?  What would Bob Dole do?

        23       You know darn well what they would do.  They











                                                             
1066

         1       would say, "President Clinton, you got some

         2       nerve, some nerve to send us someone and not

         3       answer questions; and if it takes a few days or

         4       a week, President Clinton, that's what it's

         5       going to take."

         6                      But not around here.  Not around

         7       here.  Well, I try, you know, to learn from

         8       everybody, and I certainly am going to think

         9       very hard the way the junior Senator from New

        10       York would act under these situations.

        11                      Just a couple things.  I mean

        12       Senator Smith said something that disturbed

        13       her.  Well, at the committee meeting, there were

        14       questions asked and this is after, after there

        15       has been criticism for a lack of candor.

        16                      And Senator Leichter asked some

        17       questions about some company, G M Development;

        18       and the way I remember the answers and I think

        19       I'm giving it to you right, the answer was, yes,

        20       they've got some kind of tax problem but he was

        21       a consultant that came in to help his son and

        22       whatever.  Well, the resume I found on my desk

        23       says from '84 to '88 he was the president of the











                                                             
1067

         1       company.  Well, he was either the president of

         2       the company and he worked for the company or he

         3       was a consultant.  You know, it's one or the

         4       another.

         5                      And why doesn't that bother

         6       anybody on the other side to at least understand

         7       it?  Now, I'm not saying that if he was

         8       President he did anything wrong, and I'm not

         9       saying if he was a consultant he did anything

        10       wrong.

        11                      And then a question was asked as

        12       to the particular tax problem of which I know

        13       nothing, but one of the counsel's for the

        14       committee said, "We checked that out, and it's

        15       fine."  Well, when I heard that, I had some

        16       questions in my mind, so I said, "Well, was

        17       there any permission given by the candidate, the

        18       Ambassador, in writing to the Tax Department to

        19       release information?" because I said to myself,

        20       you know, God forbid that the Tax Department

        21       even though it's all Republicans now is giving

        22       information without authorizations; and to my

        23       delight, I found out that, in fact, no











                                                             
1068

         1       authorization was given and the Tax Department

         2       did nothing wrong, they didn't give

         3       information.

         4                      But I'll tell you this.  The

         5       answer that the counsel gave was a truthful

         6       answer but it was misleading.  As the movie -

         7       what is that movie? -- "Absence of Malice," they

         8       say, "Well, it's true but it's not accurate."

         9                      And it turned out that the only

        10       record that was checked was the record that we

        11       have provided by the candidate who said

        12       nothing's wrong; and since it's a Republican

        13       nominee from a Republican governor, the

        14       Republican staff of the Republican Finance

        15       Committee said, "We don't see anything wrong."

        16                      I think that's terrible.  I think

        17       it's misleading.  I think the thing should be

        18       looked at; and as was with Mr. Sweeney, if

        19       everything falls into place, then fine; and,

        20       then, if we have a gentleman before us with

        21       extraordinary experience who can do the job,

        22       fine.  But when there are questions raised as to

        23       integrity, they shouldn't be left hanging, and











                                                             
1069

         1       I'm not saying the man has no integrity.  I'm

         2       not saying that.

         3                      SENATOR VELELLA:  Point of order,

         4       Mr. President.  I heard no questions raised as

         5       to his integrity.  I believe you said that you

         6       believe Ambassador Gargano was a man of the

         7       highest integrity.  Maybe you misspoke.

         8                      SENATOR GOLD:  I didn't say the

         9       word "highest."  I said, as far as I know, the

        10       man has integrity.  What I'm saying is -

        11                      SENATOR VELELLA:  Then what -

        12                      ACTING PRESIDENT KUHL:  Senator

        13       Velella, are you asking Senator Gold to yield?

        14                      SENATOR VELELLA:  Yes, I ask him

        15       to yield.

        16                      SENATOR GOLD:  To you, always.

        17                      ACTING PRESIDENT KUHL:  Senator

        18       yields.  Do you have a question?

        19                      SENATOR VELELLA:  Are you saying

        20       that an issue has been raised as to the

        21       integrity of Ambassador Gargano on the floor

        22       here?

        23                      SENATOR GOLD:  Yes.  Do you want











                                                             
1070

         1       it explained?

         2                      SENATOR VELELLA:  Would you yield

         3       to a question?

         4                      SENATOR GOLD:  Do you want it

         5       explained?

         6                      SENATOR VELELLA:  Do you yield to

         7       another question?

         8                      SENATOR GOLD:  Absolutely.

         9                      ACTING PRESIDENT KUHL:  Senator

        10       yields to another question.

        11                      SENATOR VELELLA:  Innuendo, in

        12       the absence of any facts, just the political

        13       slights that you are making now and trying to

        14       allege that there is some kind of impropriety?

        15       Is there not some kind of burden on your part to

        16       come forward with something that you show that

        17       is wrong -

        18                      SENATOR GOLD:  Yes!

        19                      SENATOR VELELLA:  -- not maybe

        20       there is something there?

        21                      SENATOR GOLD:  Yes.

        22                      SENATOR VELELLA:  Come forward

        23       with it.











                                                             
1071

         1                      SENATOR GOLD:  Thank you.  Thank

         2       you.  I didn't plant that, did I?

         3                      SENATOR VELELLA:  No.

         4                      SENATOR GOLD:  Okay.

         5                      ACTING PRESIDENT KUHL:  Senator

         6       Gold on the confirmation.

         7                      SENATOR GOLD:  You asked me,

         8       Senator, whether or not the issue of integrity

         9       is on this floor, and I tell you that if it

        10       doesn't bother you with every candidate that's

        11       appointed by every governor, then I don't think

        12       you are doing your job.  The issue of integrity

        13       is always a question.

        14                      Now, if you have a situation

        15       where questions are asked and the answers that

        16       come forward are either not accurate or they are

        17       missing the mark or they're intending to be

        18       misleading, that raises an issue of integrity,

        19       and that issue should be resolved.

        20                      Now, I didn't say that this

        21       gentleman has done anything wrong.  I've said

        22       that things were raised that require questions

        23       and answers and not in a rush, either.  Not in a











                                                             
1072

         1       rush.  The Ambassador if he is confirmed will

         2       have huge jurisdiction.

         3                      Now, he says -- and I don't know

         4       what all of his stock holdings are.  He says

         5       that a lot of his stock, when you hear 80,000

         6       shares or 100,000 shares, don't get excited,

         7       these are only start-up companies.

         8                      Well, with all respect, I have a

         9       friend who bought some stock in a start-up

        10       company, put it away, forgot she had it or he

        11       had it, and the next thing you know a few years

        12       went by; the start-up company was a pretty big

        13       company and the amount of money was very

        14       substantial.  I know people whose fortunes were

        15       made because they got in at 10 cents a share and

        16       then when it was three dollars a share -- do you

        17       want to multiply that out and see what it's all

        18       about?

        19                      So I don't know what these

        20       start-up companies do, but it would seem to me

        21       that if the economic climate of New York gets

        22       better -- God willing, it should get better, no

        23       matter what it's at -- I don't know how it











                                                             
1073

         1       affects any of these companies.  I don't know

         2       what these companies are.  But I can not believe

         3       that if this was a nomination in front of the

         4       United States Congress put forth by President

         5       Clinton, you would want to know everything those

         6       companies did, you would want to see the

         7       payrolls of those companies, you would want to

         8       see their contracts, you would want to know who

         9       their lawyers were, you would want to know where

        10       their lawyers ate dinner and who was at the

        11       table with them, and don't tell me anything

        12       different because this is the real world and we

        13       look each other in the eye and we know what the

        14       truth is.

        15                      My colleague, Senator Mendez,

        16       said that this gentleman was so forthright that

        17       he was in front of the committee for an hour and

        18       a half and went the extra mile.  Well, he was in

        19       front of the committee for an hour and a half

        20       because there were questions.  There have been

        21       nominees in front of our committees for ten

        22       seconds because there were no questions.  All of

        23       a sudden, you get a medal because there's so











                                                             
1074

         1       much to be asked and there was a lot more that

         2       you should have gone into.  So I don't see

         3       anything terrific about that.

         4                      I am very disturbed about the

         5       nomination, and I shouldn't be disturbed.  I

         6       shouldn't.  I have been around here a lot of

         7       years.  Some of you think too long, I know.  But

         8       I have voted for nominees of Republican

         9       governors and I've worked with nominees of

        10       Republican governors, and there is nothing wrong

        11       with us analyzing each other's nominees, and the

        12       issue of confirmation is not one of agreement.

        13                      When I asked the Health

        14       Commissioner questions and she wouldn't answer,

        15       I thought that was terrible because she doesn't

        16       have to agree with me but at least answer, and

        17       your answer can be in disagreement with me but a

        18       competent answer, and I as a state Senator would

        19       have to say, "Madam, I don't agree with you but

        20       you're competent and we vote yes."

        21                      But there is a process, and we

        22       ought to be embarrassed by a process where we

        23       take the attitude we don't care.  Now, George











                                                             
1075

         1       Pataki in my opinion -- and I said this behind

         2       his back; I would say it to his face -- is an

         3       honest man, and I don't agree with his political

         4       views but I have to believe he wants to do the

         5       right thing, but somebody is missing the boat.

         6                      I have seen the nominees.  I know

         7       where they come from.  Long Island is getting

         8       its share.  The junior Senator is getting his

         9       share, and it's interesting where these nominees

        10       are going; and I want to tell you since I intend

        11       to live in the state a little longer, I pray for

        12       George Pataki to be a good governor.  Why not?

        13       I live here.  But, Governor Pataki, I just hope

        14       that all the things you are trying to do don't

        15       get sabotaged by the kind of haste that's being

        16       used in examining these nominees.

        17                      I don't even believe, Senator

        18       Bruno, that the Governor's people have answers

        19       to questions they've asked, and then everybody

        20       gets very nervous.  I believe that there are

        21       Republicans on your side of the aisle who in

        22       private say, "Boy, if this were a Democrat I'd

        23       love to vote no."  But we're all great soldiers











                                                             
1076

         1       and if you're Republicans you vote yes.  But in

         2       my opinion, it's only my opinion, with great

         3       respect for every one of you, we demean the

         4       process when we do it.  These are significant

         5       jobs, and in my opinion to allow someone to

         6       wield the kind of power that this man will yield

         7       in the next few years without him going through

         8       a process which brings us answers diverts the

         9       constitutional intention and doesn't help the

        10       system.

        11                      ACTING PRESIDENT KUHL:  Chair

        12       recognizes Senator Levy on the confirmation.

        13                      SENATOR LEVY:  Thank you very

        14       much, Mr. President.  I am privileged to rise to

        15       join in moving the confirmation of the

        16       nomination of Charlie Gargano.  I have known

        17       Charlie Gargano for almost 25 years, and I know

        18       him to be an honorable man of integrity.  The

        19       hallmark and the tradition, indeed the legacy of

        20       his endeavors has been leadership and success.

        21       Leadership and success, whether it was in the

        22       private sector, the public sector, on behalf of

        23       charitable or philanthropic endeavors.











                                                             
1077

         1                      As we have heard time and time

         2       again this afternoon on this floor, he takes

         3       over probably second to the Governor New York

         4       State's most vital responsibility, and he's

         5       charged with meeting New York State's most vital

         6       concern.  We've heard it over and over again,

         7       and it's true.  It's his job to get this economy

         8       jump started to create and to maintain jobs;

         9       and, heaven knows, given our economy, we need a

        10       hot hand of success.  Charlie Gargano is an

        11       outstanding leader.  He is going to do an

        12       extraordinary job in his new position, and the

        13       Governor is to be congratulated upon this

        14       appointment.

        15                      ACTING PRESIDENT KUHL:  Chair

        16       recognizes Senator Dollinger on the

        17       confirmation.

        18                      SENATOR DOLLINGER:  Mr.

        19       President.  I rise today in what I think is

        20       perhaps the most difficult task that a member of

        21       this Senate is required to do, and that's to

        22       exercise the constitutional power of advice and

        23       consent on a nominee to the Governor to the











                                                             
1078

         1       position that Senator Levy I think properly

         2       describes, really the number two position in

         3       this state from the point of view of economic

         4       development and growth in this state.

         5                      Senator Libous is also correct.

         6       There isn't a person in this chamber that

         7       wouldn't want more jobs in their districts.  I

         8       want certainly more.  My people want more.  I

         9       think we all want that.

        10                      Today, we face a debate over a

        11       nominee that I guess like other nominees that

        12       I've discussed on the floor certainly brings a

        13       lot to the table.  First of all, let me tell you

        14       about what I think are the good and strong parts

        15       that commend Charlie Gargano to this job.

        16                      He's been a successful

        17       businessman.  I give them that.  He's got a

        18       history of doing that.  He was in the business

        19       of economic development in a real estate

        20       business, which he acknowledges, through G M

        21       Development.  It survived an economic downturn.

        22       That, too, is commendable.  I think both Senator

        23       Marchi and Senator Maltese mentioned his work on











                                                             
1079

         1       behalf of Italian earthquake victims.  I believe

         2       that deserves the highest commendation.  In

         3       addition, he was the Ambassador to Trinidad and

         4       Tobago, something that we can't ignore.  Best

         5       information that I can receive suggests he did a

         6       very good job in that position.  I even got a

         7       chance to read a couple of articles he wrote

         8       about the Caribbean Basin initiative.

         9                      In addition, he's been a

        10       participant in the political process.  Several

        11       people have talked about the relationship

        12       between Senator D'Amato and Mr. Gargano.  I

        13       don't believe that that fact that there is a

        14       relationship disqualifies him from this

        15       position.  I think, frankly, business people as

        16       many people in our society get involved in

        17       politics, get involved in the mother's milk of

        18       politics which is fund raising.  Certainly,

        19       there is no one in this chamber who hasn't

        20       called a business person and asked them for

        21       money to fund a campaign.  So that's no reason

        22       to disqualify Charles Gargano.

        23                      In addition, the best I can tell











                                                             
1080

         1       he's been a family man.  He testified in front

         2       of the Economic Development Committee that when

         3       his son's business was in trouble -- I believe

         4       he said he spent about a million and a half

         5       dollars baling him out.

         6                      But let me tell you what I think

         7       is important, Senator Marchi.  You talked about

         8       advice and consent of other bodies, that this

         9       gentleman had been through the United States

        10       Senate; and while the Senate may have reviewed

        11       him, and other bodies including Governor Pataki

        12       have reviewed his qualifications, I believe it

        13       is this body and this body alone that has a

        14       constitutional obligation to give advice and

        15       consent on this nominee.

        16                      And what is at issue in this

        17       debate today?  Our integrity and the integrity

        18       of the process that we follow.

        19                      I was at the Finance Committee

        20       meeting today.  I frankly think that Senator

        21       Galiber's motion to delay was very appropriate.

        22       I will describe in a minute why the questions

        23       still remain regarding this nominee and why we











                                                             
1081

         1       need better answers.  But that's what is at

         2       stake today, the integrity of the process and

         3       the integrity of this body.

         4                      Let me tell you why I'm going to

         5       vote against Charles Gargano despite having said

         6       that he has many commendable qualities.  I'm

         7       concerned as Senator Gold is about the fact that

         8       the nominee has on several occasions given what

         9       I believe are at least misleading answers to

        10       questions.  Let me start with the first one.

        11                      When in front of the United

        12       States Senate, he happened to mention under -- I

        13       don't know whether he was under oath.  I should

        14       back off on that.  But certainly while -- during

        15       his confirmation as Ambassador to Trinidad and

        16       Tobago, he was asked to give a statement, which

        17       he did, and he said, "My experience in the

        18       private sector including membership on the board

        19       of directors of a commercial bank," a fact which

        20       he acknowledged I believe to Newsday just wasn't

        21       true.  He wasn't a member of the board of

        22       directors of a commercial bank, but yet that's

        23       what he told the United States Senate when his











                                                             
1082

         1       nomination to be an Ambassador was at stake.

         2                      Second, I'm concerned about a

         3       report in the newspaper, which I've also checked

         4       out, about disclosures that he made when he was

         5       on the board of directors yp two publicly-traded

         6       companies, disclosures that were made in the

         7       form of reports to the Securities and Exchange

         8       Commission, a government agency charged with the

         9       regulation of the securities industry in this

        10       country.  Apparently, Mr. Gargano forgot in his

        11       discussions with those companies to disclose his

        12       directorships in other companies.  He omitted

        13       them.  Apparently, he has acknowledged that he

        14       omitted them, but he said that they weren't made

        15       to mislead anyone.  I find that troubling.

        16                      Then he comes to this body, the

        17       New York State Senate, a body that has a

        18       constitutional obligation to provide advice and

        19       consent on this nominee.  He provides to the

        20       Economic Development Committee to I believe my

        21       colleague Senator Present -- he provides a

        22       resume which contains a description of his

        23       current activities.  It's not sworn to under











                                                             
1083

         1       oath, but it's a compilation so that we in

         2       exercising our power of advice and consent can

         3       determine what he does, determine how well he

         4       does it, check out his resume.  Frankly, just as

         5       any one of you would do if you were hiring a

         6       member of your staff, you would look at the

         7       resume and say, "Gee, I can rely on this resume;

         8       it is a fair and accurate picture of what this

         9       candidate is all about and what his

        10       qualifications are all about."  What do we find

        11       out in perusing his resume?  That he's left off

        12       two companies on which he serves as a member of

        13       the board of directors -- LGI Group, Inc., and a

        14       company called Winners International which he

        15       describes as a start-up company.  It's actually

        16       an offspring of a company called Natural Child

        17       Care that got into business to try to develop

        18       new products, and, sure enough, has a very

        19       interesting product which I will talk about in a

        20       minute, which is the other reason why I'm

        21       concerned about this nominee.  But he doesn't

        22       disclose that to us.

        23                      When he wants a job, he fails to











                                                             
1084

         1       make a critical disclosure to us.  I think we're

         2       entitled to ask why.  I think we're entitled to

         3       ask why he didn't make accurate disclosure to

         4       the companies he was on the board of directors

         5       when he knew as every shrewd and prudent

         6       businessman would know that they would report it

         7       to the federal Securities and Exchange

         8       Commission.  I think we're entitled to ask why

         9       he misled, in my judgment, the United States

        10       Senate when he said I'm a member of the board of

        11       a commercial bank, board of directors of a

        12       commercial bank.

        13                      But let me tell you the other

        14       thing that leads me to be concerned, and I

        15       listened very carefully during the Finance

        16       Committee deliberation to Senator Leichter's

        17       questioning of the nominee regarding an

        18       affidavit that he submitted in a piece of

        19       litigation.  Let me just explain the background

        20       of this.

        21                      This was a piece of litigation

        22       that related to a foreclosure of a mortgage

        23       brought by Key Bank of New York.  Everybody











                                                             
1085

         1       knows Key Bank.  It was brought against a

         2       company called DelGar Realty Corp.  There were a

         3       series of individual defendants who were

         4       guarantors on about a million dollar note.  What

         5       Key Bank did in this litigation, what caused

         6       this affidavit to be written, they do probably

         7       what most of you who are lawyers are familiar

         8       with, they tried to get personal service over

         9       all of the defendants so that they could take a

        10       judgment against each of the individual

        11       defendants, record that judgment; and if for

        12       some reason the mortgage they were seeking to

        13       foreclose was not sufficient to pay off the debt

        14       that was guaranteed under the note, they would

        15       then have access to the individuals.  I have a

        16       copy of the complaint here.  I have read the

        17       complaint.  I have been through the responses;

        18       and, sure enough, Mr. Gargano submitted in -

        19       excuse me.  Back up for a second.

        20                      In order to get jurisdiction over

        21       Mr. Gargano, the bank served the Summons and

        22       Complaint upon the receptionist at the home of a

        23       business called G M Development, Inc., a











                                                             
1086

         1       business that Senator Gold mentioned earlier.

         2       They tried to get personal jurisdiction over Mr.

         3       Gargano by serving him under the CPLR, which is

         4       a law that this body had a hand in creating,

         5       that would give him jurisdiction over Mr.

         6       Gargano by serving him at a place of business.

         7       Senator Leichter asked Mr. Gargano about what he

         8       was doing in 1993 when this litigation was

         9       commenced.

        10                      He testified -- or I believe he

        11       did and please correct me if I'm wrong.  I was

        12       in the back of the room and had difficulty

        13       hearing.  I believe he testified that he had a

        14       consulting contract, that he was working as a

        15       consultant to his family company, G M

        16       Development Inc., and I also believe he

        17       testified that he was compensated approximately

        18       $75,000 as a consultant.  Yet in his affidavit

        19       that was submitted to the Court and submitted in

        20       an attempt to avoid this judgment, to avoid

        21       personal jurisdiction.

        22                      ACTING PRESIDENT KUHL:  Senator

        23       Paterson -- excuse me, Senator Dollinger -- why











                                                             
1087

         1       do you rise?

         2                      SENATOR PATERSON:  Would Senator

         3       Dollinger yield for just a moment?

         4                      ACTING PRESIDENT KUHL:  Senator

         5       Dollinger, would you yield?

         6                      SENATOR PATERSON:  Mr.

         7       President.  We would like unanimous consent to

         8       open the roll to allow Senator Galiber to vote,

         9       who has to leave.

        10                      SENATOR BRUNO:  Without

        11       objection, Mr. President.

        12                      SENATOR GALIBER:  No.

        13                      ACTING PRESIDENT KUHL:  Hold on,

        14       Senator Galiber.

        15                      Secretary will read the last

        16       section.  I don't have a last section.

        17                      Call the roll.

        18                      THE SECRETARY:  Senator Galiber.

        19                      SENATOR GALIBER:  No.

        20                      ACTING PRESIDENT KUHL:  Senator

        21       Galiber is recorded in the negative.

        22                      Roll call is withdrawn.

        23                      Senator Dollinger, the floor is











                                                             
1088

         1       yours.

         2                      SENATOR DOLLINGER:  Thank you,

         3       Mr. President.

         4                      In the course of attempting to

         5       avoid personal jurisdiction, the Court's

         6       exercise of personal jurisdiction over him, in

         7       an attempt to avoid the possible consequence of

         8       having what could have been a million dollar

         9       judgment, $895,000 judgment taken against him,

        10       Mr. Gargano, despite having told Senator

        11       Leichter that he was a consultant for the

        12       corporation, made the following statement under

        13       oath, "The address where Plaintiff Key Bank

        14       attempted to serve process, 130 East Main

        15       Street, Bay Shore, is not my actual place of

        16       business.  I am retired and do not work;

        17       therefore, I have no actual place of business."

        18                      Seems to me, my colleagues that

        19       the statement that I am retired and that I do

        20       not work is inconsistent with what this nominee

        21       told Senator Leichter before the Senate Finance

        22       Committee today.  Why are those

        23       misrepresentations, however you wish to











                                                             
1089

         1       characterize them, misleading statements, to the

         2       United States Senate, to companies in their

         3       Securities and Exchange Commission reports, to

         4       Key Bank and the State Supreme Court, why are

         5       they important in considering this nominee?

         6                      Let me just give you my view.

         7       One of the things that Senator Leichter also

         8       mentioned in the Finance Committee was that this

         9       nominee had done a great deal of fund raising,

        10       appropriate fund raising, fund raising that I

        11       don't quibble with and I don't criticize, on

        12       behalf of both the junior Senator from New York

        13       and the Governor who sits on the second floor.

        14       In a question to a question from Senator

        15       Leichter about appearances of conflict, how do

        16       we send a message to the people of this state

        17       that this nominee won't cross that line between

        18       being a fund raiser for the Governor and a fund

        19       raiser for Senator D'Amato and the chief

        20       economic development expert in this state?

        21                      He said, "I will erect a wall.  I

        22       will recuse myself.  I will take whatever steps

        23       are necessary to avoid a conflict of interest."











                                                             
1090

         1       I submit to my colleagues that the fact that

         2       there have been misleading statements made

         3       before at least raises a question about whether

         4       in this context that statement might not be

         5       misleading, as well.

         6                      I will close with one other

         7       note.  I think it should become apparent to

         8       everyone in this chamber that this nominee is

         9       very active in an industry which is a part of

        10       the major debate in this state.  It's called the

        11       casino and gaming industry.  One of the things

        12       the nominee said before the Senate Finance

        13       Committee was that -- when we talked about his

        14       investment in Winners All, one of the things he

        15       said was that I inadvertently left off my

        16       investment in Winners All.  My understanding is

        17       that that's a $400,000 investment that he

        18       inadvertently left off his resume submitted to

        19       this body.

        20                      He also said, "I hope they come

        21       to the State of New York."  I hope Winners All

        22       brings their little portable slot-machine-like

        23       device that allows gaming to occur.  It's now











                                                             
1091

         1       being done on a not-for-profit basis or a

         2       gratuity basis, but at least based on what I

         3       know it might easily become the next generation

         4       of slot machine.  He said, I do hope they come

         5       to the State of New York.  I disagree with this

         6       nominee.  I hope they don't.  I hope casino

         7       gambling doesn't come to this state.  I've been

         8       against casino gambling.  I continue to be

         9       against it.

        10                      I point out that Hospitality

        11       Systems and Hospitality Financing which owns a

        12       portion of Alpha Hospitality is a big player in

        13       the casino business throughout this country.  It

        14       owns a casino down in Mississippi.  It tried to

        15       work out a joint venture for casinos with the

        16       Mohawk reservation.  This is the next step on

        17       the road down the path toward casino gambling in

        18       this state.

        19                      The chief economic development

        20       czar will be someone whose background is in

        21       casinos, who has substantial holdings in a

        22       casino operating company.  I don't think we

        23       should go down that road.  I think there are











                                                             
1092

         1       questions about this nominee that remain

         2       unanswered.  The Senate Finance Committee in its

         3       wisdom decided not to delay this nomination.  I

         4       believe personally, as I stand here today, that

         5       this nominee may have answers to all the

         6       questions I have asked.  He may be able to

         7       describe and satisfy all my curiosity about what

         8       I see as potential inconsistencies in his

         9       record.  I would invite him, I would encourage

        10       him to take the chance to come back to the

        11       Senate Finance Committee, listen to these

        12       questions, explain these questions.

        13                      In my opinion, there is no more

        14       difficult task than to sit here and analyze

        15       someone I never met, look at a public record

        16       about him, look at questions that are raised

        17       about him and try to make an overall judgment

        18       about his fitness and his character.  In my

        19       opinion, because the Finance Committee has not

        20       asked these questions, in my judgment because

        21       there are additional questions that need to be

        22       answered, I believe my only alternative in

        23       exercising the power of advice and consent is to











                                                             
1093

         1       vote no.

         2                      I wish this body for the

         3       integrity of this body would send this

         4       nomination back to the Finance Committee.  Let's

         5       ask these questions, find out whether these are

         6       really misleading or untruthful statements, and

         7       then make a judgment about the fitness of this

         8       nominee.  In the absence of that, I will be

         9       voting in the negative.

        10                      ACTING PRESIDENT KUHL:  Just for

        11       the benefit of the membership, this debate on

        12       this nomination started at 4:22.  There are

        13       currently seven members who still wish to

        14       speak.

        15                      With that, Senator Leichter, on

        16       the confirmation.

        17                      SENATOR LEICHTER:  Thank you, Mr.

        18       President.

        19                      I'm troubled, sincerely troubled

        20       by this nomination.  The Urban Development

        21       Corporation, the economic development agency,

        22       are terribly important for the New York, but

        23       they are also very sensitive positions and Urban











                                                             
1094

         1       Development Corporation has enormous power, so

         2       Urban Development Corporation is the most

         3       financially potent agency that this state has.

         4       It's a cash cow, gives out millions of dollars

         5       in grants and contracts, and I think those

         6       members who have been here for some years know

         7       that nobody has been more critical of the Urban

         8       Development Corporation than I have; and if John

         9       Daly were here, he would tell you how often I

        10       would go up to him and say, "John, you got to do

        11       more about the Urban Development Corporation,"

        12       and he agreed with me that the powers that

        13       corporation has, the potential that it has for

        14       overriding local zoning, for giving out

        15       contracts, really required much more supervision

        16       by us.

        17                      And it's, therefore, clear to me

        18       that any nominee in that position has to be,

        19       yes, close to the Governor, have the Governor's

        20       trust, and I think we all know that Vince Tese

        21       was probably one of Governor Cuomo's closest

        22       confidants, and I'm pleased that Governor Pataki

        23       seems to have great faith in Charles Gargano,











                                                             
1095

         1       but there is another qualification, and that is

         2       the qualification that all of us have an

         3       obligation to see is provided by this nominee;

         4       and that is, a record, a background without any

         5       question, without any doubt, as to the way that

         6       he has conducted himself in his financial

         7       affairs and matters.

         8                      We're not just here to be

         9       doormats for the Governor, and I really plead

        10       with my Republican colleagues that we don't just

        11       make this a -- where the Constitution says with

        12       the advice and consent, that we don't make it as

        13       I said in another occasion "advice and applaud";

        14       and the questions and the issues that we have

        15       raised today are genuine.  They are legitimate,

        16       they are factual, and they deserve answers; and

        17       I know at the Finance Committee, one my good

        18       friends and our colleague got up and said this

        19       is all political and so on.  It's not.  It is

        20       absolutely not.

        21                      We have raised facts.  If you

        22       heard Senator Dollinger, he gave you chapter and

        23       verse of instances where this nominee failed to











                                                             
1096

         1       be as forthcoming as is required by the law and

         2       certainly as is required, it seems to me by the

         3       important position that he has been nominated

         4       for.

         5                      I am concerned about two

         6       aspects.  One, the omissions in the resume and

         7       the failure to give clear answers to questions

         8       that were posed to him.  Now, one omission, two

         9       omissions, that can happen, particularly if,

        10       like Mr. Gargano, you have had a very active

        11       financial and business life, you leave something

        12       out.  But when you have a pattern here, that is

        13       disturbing.  So we're not just talking about

        14       failure to list $400,000 worth of stock; and

        15       maybe in my financial situation, it's

        16       unthinkable how you could fail to list stock

        17       ownership worth $400,000, but maybe for some

        18       people in their assets $400,000 is something

        19       that you can overlook.

        20                      But then I asked Mr. Gargano

        21       today about a lawsuit that he filed in the tax

        22       court, he and his wife filed, that he had no

        23       recollection of; and, again, I accept even that











                                                             
1097

         1       it was some years ago.  He is had a lot of other

         2       things on his mind, but I can not understand how

         3       a nomination of this importance that he doesn't

         4       go to accountants and lawyers that there isn't

         5       care taken with the financial statement and the

         6       resume.  I think we have a right to demand

         7       that.  I think we have an obligation to demand

         8       it.

         9                      And the fact that there was this

        10       carelessness, if you will, cutting corners, and

        11       I don't think there was an intent to

        12       intentionally mislead the Senate and, oh, I'm

        13       going to keep those things hidden.  As I

        14       understand it, there was an attitude; and I

        15       understand this was also true in dealing with

        16       the second floor, like, "Listen my matters are

        17       my matters; it's really not that important."

        18       Well, I think it is important, and I am

        19       concerned when a nominee for this sort of a

        20       position -- frankly, for any position but for

        21       this sort of a position feels, well, he doesn't

        22       have to really work at making that disclosure,

        23       at sharing that information.











                                                             
1098

         1                      Senator Dollinger talked about

         2       the affidavit that was filed in court.  I think

         3       that's a serious matter.  I don't think it's

         4       just well, it's a game; I wanted to get away

         5       from being served.  I think to file an affidavit

         6       with a court to say that you are not working for

         7       a particular corporation at a particular place

         8       when the financial records show that you have

         9       received compensation of $75,000 and when the

        10       nominee himself stated, "Yes, I did consulting

        11       work for that corporation which happened to be

        12       the family corporation," I find that disturbing.

        13                      I'm also disturbed about the fact

        14       that the nominee would not make a commitment

        15       that he was not going to engage in fund

        16       raising.  Now, let me say the fund raising that

        17       he did, we have no criticism of it.  I have

        18       never heard anybody say that he did it

        19       improperly or illegally or that any issue has

        20       ever been raised about him strong-arming

        21       people.  But in the position which he is going

        22       to hold, to go out and fund raise, inevitably

        23       raises a conflict in view of the importance and











                                                             
1099

         1       powers of the UDC and the Department of Economic

         2       Development, and I find it very hard, even all

         3       the other things aside, to vote for a nominee

         4       who is going to hold that position who won't

         5       make that pledge.  Now, some people are going to

         6       say, well, Vince Tese went and he raised money

         7       for Governor Cuomo.  Is that the standard that

         8       you want to accept?  Is that the standard now

         9       that we're going to say?  And I think there is a

        10       difference because while Vince Tese went and

        11       raised some money, he was not -

        12                      ACTING PRESIDENT KUHL:  Senator

        13       Leichter, excuse me just a minute.

        14                      Senator Libous, why do you rise?

        15                      SENATOR LIBOUS:  Senator, will

        16       you yield to one question?

        17                      SENATOR LEICHTER:  Yes, as soon

        18       as I finish this sentence.  I was just going to

        19       say that Vince Tese was not the consummate

        20       professional, almost, fund raiser that Mr.

        21       Gargano was and, therefore, there is certainly a

        22       difference.

        23                      I'll yield, Senator.











                                                             
1100

         1                      ACTING PRESIDENT KUHL:  Senator

         2       Libous, the Senator yields.

         3                      SENATOR LIBOUS:  My question was

         4       going to be you obviously must have accepted

         5       that standard when you supported Vince Tese's

         6       nomination?

         7                      SENATOR LEICHTER:  Let me tell

         8       you, when Vince Tese's nomination came before us

         9       there was no question of his being a massive

        10       fund raiser because he had never engaged in it.

        11       I assure you that if he had done that and had

        12       the same background as this nominee that I would

        13       have insisted that he take the same pledge that

        14       I have asked of this nominee.

        15                      ACTING PRESIDENT KUHL:  Senator

        16       Libous, are you asking the Senator to yield?

        17                      SENATOR LIBOUS:  Yes, certainly.

        18                      ACTING PRESIDENT KUHL:  Senator

        19       yields to another question.

        20                      SENATOR LIBOUS:  So you're

        21       telling me at the time of that confirmation you

        22       were unaware of any fund raising that that

        23       candidate did for the Governor at that time?











                                                             
1101

         1                      SENATOR LEICHTER:  Absolutely,

         2       and I don't think that Vince Tese at any time,

         3       certainly not before he became the head of the

         4       UDC and I don't believe after, did fund raising

         5       in the amounts that Mr. Gargano did, but I think

         6       it was wrong.  I think it was wrong, and I don't

         7       think that I want to establish as the standard

         8       of what is right for New York State what

         9       happened in other administrations.  I think that

        10       we learn.  I think that we get better, and I

        11       have no problem in saying we are going to impose

        12       standards that we didn't impose sometime ago.

        13       If you want to argue on the basis that -

        14                      SENATOR LACK:  Senator Leichter

        15       will you yield for a question?

        16                      SENATOR LEICHTER:  If I may just

        17       finish, Senator Lack.

        18                      ACTING PRESIDENT KUHL:  Senator

        19       Lack, the Senator refuses to yield at this time.

        20                      SENATOR LEICHTER:  If you want to

        21       argue that you see no ethical problem, no

        22       difficulty, no risk of any conflict in the head

        23       of the Urban Development Corporation going out











                                                             
1102

         1       and raising money, I can accept that argument.

         2       I will disagree with you.  But if your argument

         3       is going to be, well, it was done before.  Boss

         4       Tweed did it, so we can do it now.  I don't

         5       think that that's really your position because I

         6       know you to be somebody of very high ethical

         7       standards.

         8                      ACTING PRESIDENT KUHL:  Senator

         9       Libous, why do you rise?

        10                      SENATOR LIBOUS:  Mr. President,

        11       and, Senator Leichter, that wasn't my argument.

        12       My argument was -

        13                      ACTING PRESIDENT KUHL:  Senator

        14       Libous, are you rising to ask a question of

        15       Senator Leichter?  Are you asking him to yield

        16       the floor?  Senator Leichter has the floor.

        17                      SENATOR LIBOUS:  I'll put it in

        18       the form of a question, then.

        19                      SENATOR LEICHTER:  Sure.

        20                      SENATOR LIBOUS:  It was okay

        21       then, but it's not okay now; is that what you

        22       are saying?

        23                      ACTING PRESIDENT KUHL:  Senator











                                                             
1103

         1       yields.

         2                      SENATOR LEICHTER:  I am saying it

         3       wasn't okay then and it certainly is not okay

         4       now.

         5                      I'll yield to Senator Lack.

         6                      ACTING PRESIDENT KUHL:  Senator

         7       Lack.

         8                      SENATOR LACK:  Yes, Senator

         9       Leichter, I'd just like to know, considering

        10       what the job does, would you prefer that the

        11       person who holds that position get on-the-job

        12       training to be a fund raiser; and are you really

        13       against us because we take an accomplished fund

        14       raiser, somebody who already has those

        15       credentials, known credentials and puts that

        16       person in the job?  But it's all right when the

        17       person gets there, is that your position, that

        18       they learn fund raising on the job?

        19                      SENATOR LEICHTER:  No, no,

        20       Senator.  I made it very clear.  I don't want

        21       the head of the Urban Development Corporation

        22       who gives out contracts to lawyers and insurance

        23       companies and contractors and all sorts of











                                                             
1104

         1       people to do any fund raising even if he's never

         2       raised a dollar before or whether he has raised

         3       $100 million before.  I don't think he should do

         4       it.

         5                      And I asked this nominee would he

         6       say that he would not engage in fund raising;

         7       and while he, you know, made certain statements,

         8       he refused to make that statement, and I think

         9       that's important.  I think it's important for

        10       all of us to impose that on somebody who is the

        11       economic development czar of the State of New

        12       York.

        13                      SENATOR LACK:  Mr. President.

        14       Can I ask Senator to yield to another question,

        15       please?

        16                      ACTING PRESIDENT KUHL:  Senator

        17       Leichter, do you continue to yield?

        18                      SENATOR LEICHTER:  Yes.

        19                      ACTING PRESIDENT KUHL:  Senator

        20       yields.

        21                      SENATOR LACK:  Mr. President.

        22       Senator Leichter, could you please inform the

        23       body how many times after you might have become











                                                             
1105

         1       aware -- he might have become aware, Mr.

         2       President, that the former occupant of this

         3       position, Mr. Tese, was engaged in fund raising

         4       did Senator Leichter draft and release press

         5       releases calling on Mr. Tese to resign his

         6       position; and particularly during the last

         7       gubernatorial campaign, how many press releases

         8       or public statements did Senator Leichter make

         9       that Mr. Tese should resign his positions?

        10                      SENATOR LEICHTER:  Senator Lack,

        11       I didn't do it.  I was not aware, first of all,

        12       that he was engaged in massive fund raising.

        13                      SENATOR LACK:  I didn't know it

        14       and I wouldn't know it if he did it.  All

        15       right.  I hear your position.  Thank you very

        16       much, Senator.

        17                      SENATOR LEICHTER:  Fine.  But,

        18       Senator, I think you know me and you know I

        19       speak my mind, and I have had enough

        20       disagreements with Governor Cuomo and also Vince

        21       Tese, but I tell you that it's something that if

        22       it had been called to my attention, I would have

        23       done.  I should have done it if it was so, and I











                                                             
1106

         1       assure you that I'm not trying to apply a double

         2       standard, and I would hope and I think it's the

         3       case that if Governor Cuomo had been reelected

         4       and we had now to pass on the confirmation of

         5       Vince Tese that I would do the very same thing.

         6                      I think really that's the issue;

         7       and, Senator Lack, I say the same thing I said

         8       to Senator Libous and I say the same thing to

         9       everybody here because I think we all have a

        10       high ethical standard.  I don't think that we

        11       should argue because it was done in another

        12       administration -- because it was done in the

        13       days of Boss Tweed and so on, are you going to

        14       argue, well, we have a right to row up the

        15       Hudson River with a satchel bag full of dollars

        16       and pay off the legislators.  It was done then.

        17       It was wrong then, and it was wrong -- if Vince

        18       Tese did it, it was wrong; and it's wrong in

        19       that position to be an active fund raiser.  It's

        20       as simple as that.

        21                      SENATOR LACK:  Thank you,

        22       Senator.  I'll save my remarks for when I speak.

        23                      ACTING PRESIDENT KUHL:  Senator











                                                             
1107

         1       Velella, why do you rise?

         2                      SENATOR VELELLA:  Will you yield

         3       for a question?

         4                      SENATOR LEICHTER:  Sure.

         5                      ACTING PRESIDENT KUHL:  Senator

         6       yields.

         7                      SENATOR VELELLA:  I understand

         8       your argument that it was wrong if Vince Tese

         9       did it and it was wrong if his successor would

        10       do it.  I just want to ask you, did you ever

        11       take a look at Mario Cuomo's filings and compare

        12       what he received for his campaign committees

        13       against the economic development grants that

        14       were made in New York State?  Did you ever have

        15       that much concern about the integrity of the

        16       process when Cuomo was in office and why this

        17       new found concern about the integrity?  Does the

        18       fact that it's a Republican governor make it

        19       that much more pressing in your mind; and might

        20       that be politically motivated more so than not

        21       even caring to look and see if Vince Tese had

        22       been soliciting people from the economic

        23       development grants?











                                                             
1108

         1                      SENATOR LEICHTER:  Let me assure

         2       you, Senator Velella, that it is not the fact

         3       that this is a nominee of the Republican

         4       governor and this is somebody that raised a lot

         5       of money from the Republicans.  That is

         6       absolutely not a factor in me.  If you want to

         7       say, Leichter, you should have done that, I will

         8       concede it.  I should have.  You are absolutely

         9       right.  I should have done that.

        10                      Let me just conclude.  You know

        11       we have heard some very fine things about this

        12       nominee, and I think for various jobs, for

        13       various functions, there is no question this

        14       seems to be a very fine person.  I don't know

        15       him myself, but certainly when you hear what he

        16       did to help Italy in the earthquake; he seems to

        17       have been extremely active in his community and

        18       philanthropic matters; but it seems to me that

        19       all of that is really almost irrelevant.  The

        20       fact that he was confirmed by the U.S. Senate in

        21       1981-82 for position as Ambassador as if

        22       everything he did since then, as if any

        23       affidavit filed afterwards in court whether











                                                             
1109

         1       accurate or false is irrelevant.  Obviously,

         2       that's totally meaningless, and the fact that he

         3       was honored as he has been by the government of

         4       Italy, that speaks very well for him.  But none

         5       of that, none of that, can excuse or explain the

         6       failure to present us with a complete record and

         7       particularly of his financial dealings, of his

         8       lawsuits, of his stock ownerships; and I think

         9       none of that has any bearing on a nominee who is

        10       stepping into this position, going to be the

        11       head of this cash cow, and who says I'm going to

        12       continue to be an active fund raiser.  That it

        13       seems to me is something that to my mind make

        14       him not qualified for this position.

        15                      I'm going to vote against this

        16       nomination.

        17                      ACTING PRESIDENT KUHL:  Senator

        18       Waldon on the confirmation.

        19                      SENATOR WALDON:  Thank you very

        20       much, Mr. President.  What we're experiencing

        21       here today in my opinion is not about Ambassador

        22       Gargano at all.  It's about a process.  It's

        23       about a process that has given us a very good











                                                             
1110

         1       view under a microscope of our conversation and

         2       dialogue today about disrespect, disservice and

         3       deception.  We are witnessing a raw exercise of

         4       power.

         5                      Last Friday, I am told that the

         6       Minority Conference became aware that Ambassador

         7       Gargano would be proposed this week.  That did

         8       not give sufficient time to the Minority to have

         9       all of the information related to this

        10       gentleman.  I am sure that Mr. Gargano is

        11       honorable, respectable.  He certainly has had an

        12       extraordinarily successful life, one of which he

        13       and his family should be quite proud; however,

        14       the disservice has been, the deception has been

        15       that the Republican Majority did not allow the

        16       Democrat Minority to have time to become

        17       sufficiently aware of this person, this

        18       candidate, this nominee so that we could make a

        19       valid judgment about his capability to serve.

        20       There was deception to the candidate.  He was

        21       not told that he would be thrown into this, if

        22       you will, hot bed of controversy not of his own

        23       making, necessarily, but because people are











                                                             
1111

         1       upset and disturbed that they should be so

         2       disrespected as to be excluded from the

         3       process.  That is a collegial body.  We are

         4       accustomed to scratching each other's backs.  We

         5       are accustomed to making deals.  That's how we

         6       got here.

         7                      Yet about something that is as

         8       important as who will lead the most important -

         9       being redundant -- economic arm, perhaps, of

        10       state government department, we're not made

        11       aware of what the real deal is.  I'm not in a

        12       position to admonish my Republican colleagues,

        13       nor is it my style, but I would suggest to you

        14       that one day down the road on something perhaps

        15       as important as this or less important than this

        16       nomination, you will need some of us on this

        17       side of the aisle who can think rationally and

        18       sometimes with our hearts and who want to do the

        19       right thing about something that you suggest,

        20       and it might make sense for you to take a

        21       posture which says, well, let's at least

        22       communicate to Marty Connor, our Leader, what is

        23       going on, because when there is no communication











                                                             
1112

         1       there is no ability to have a valid judgment on

         2       this side of the aisle.

         3                      So I believe that you, meaning

         4       the Minority Conference, did this candidate a

         5       tremendous disservice and in doing him a

         6       disservice with the deception you did a

         7       disservice not only to this body and to your

         8       colleagues who happen to be Democratic but to

         9       yourselves as well.  But, most importantly, the

        10       deception and the disrespect ended up in

        11       disservice to the people of the State of New

        12       York who need to have a good Commissioner in

        13       this position.

        14                      So I would just suggest, please,

        15       in the future recognize that we, too, need

        16       information in order to make valid judgments.

        17       It's not going to undermine you or undermine

        18       your process, but give us some lead time so that

        19       we can think and get our act together.  Maybe

        20       we're not as quick as some of you.  Maybe we're

        21       not as fast studies as some of you, but we're

        22       here to serve and to serve well, as are you.

        23                      Thank you very much, Mr.











                                                             
1113

         1       President.

         2                      ACTING PRESIDENT KUHL:  Chair

         3       recognizes Senator DeFrancisco on the

         4       confirmation.

         5                      SENATOR DeFRANCISCO:  Thank you,

         6       Mr. President.  Just briefly on the process, I

         7       have been here a short three years; and, quite

         8       frankly, I don't see a difference in the process

         9       today as there was the last couple of years

        10       whenever we had a confirmation, so I am very

        11       comfortable that the process has been applied

        12       whether it's a Democratic governor or a

        13       Republican governor in the same fashion.  My

        14       view of what we're supposed to do in this body

        15       when we receive a nominee is to determine

        16       whether the individual is capable and qualified

        17       to perform the function.

        18                      Unfortunately, when you have an

        19       individual who has a substantial business

        20       background with many holdings with much

        21       experience, with much success, I might add, that

        22       individual is subject to more and more scrutiny

        23       about his personal affairs, his personal











                                                             
1114

         1       business acumen, his contacts, and the like

         2       which I think is a bit unfortunate.

         3                      Let me draw an analogy to the

         4       Supreme Court nominees that have to appear

         5       before the Senate for confirmation.  Over the

         6       years, you are better off if you want to be a

         7       Supreme Court judge if you've never had an

         8       opinion on anything.  If you've never had a

         9       published opinion that could be criticized

        10       because maybe your philosophy is not the same as

        11       the individual who is doing the inquiry.

        12                      Similarly, if we're looking for

        13       someone that has no business background and that

        14       doesn't have a lot of dealings with different

        15       people under different circumstances, it seems

        16       almost you are more qualified because there is

        17       nothing really to criticize.  To me, what's

        18       important about this particular nominee is the

        19       fact that he has a broad range of business

        20       experience.  He has an ability to bring this

        21       state in the different direction, the direction

        22       that we've been trying to bring this state in

        23       and all of us want to bring the state in; and











                                                             
1115

         1       with his qualifications, with his experience,

         2       and with his success, I think he will bring

         3       success to the State of New York, and I will be

         4       more than happy to support this confirmation.

         5                      ACTING PRESIDENT KUHL:  Senator

         6       Gonzalez.

         7                      SENATOR GONZALEZ:  Thank you, Mr.

         8       President.  I rise to second the nomination of

         9       Charles Gargano.  The Ambassador -- I happen to

        10       know the Ambassador for approximately five or

        11       six years.  I think that the question is whether

        12       he is immensely qualified.  I think he is.  I

        13       support his confirmation.  I think that when

        14       they mention about the United States Senate I

        15       think it was somewhere around 1988 where he was

        16       confirmed and possibly prior to that in 1981 for

        17       the federal position that he undertook then, and

        18       I support his nomination and confirmation and

        19       wish him all well.

        20                      Thank you, Mr. President.

        21                      ACTING PRESIDENT KUHL:  Chair

        22       recognizes Senator Lack.

        23                      SENATOR LACK:  Thank you, Mr.











                                                             
1116

         1       President.

         2                      After seventeen years in this

         3       body, I finally learned something new about

         4       democracy today in the land of the free and the

         5       home of the brave, and that is when Senator

         6       Mendez stood up to praise a nominee from a

         7       Republican governor, she was immediately

         8       attacked.  There was an attempt to eat her up

         9       from her own side.

        10                      So my congratulations to the

        11       members of the Democratic party in this house

        12       you certainly know how to keep an even standard

        13       of things and make sure -- make sure that you

        14       carry out what we Republicans have been saying

        15       for all these years, that when it comes to

        16       running a monolithic political party, you people

        17       certainly know how to do it better than we do.

        18                      Now, I'm probably the only person

        19       from Long Island who hasn't known Charlie

        20       Gargano for 25 years, but as I've heard the

        21       Democrats today list his assets, I wish I had

        22       known him for the last 25 years.

        23                      The only conclusion I can draw











                                                             
1117

         1       today is that if you want somebody to head UDC

         2       and head economic development in this state, God

         3       forbid that he ever had anything to do with it,

         4       because we certainly don't want anybody who is

         5       successful.  We certainly don't want anybody who

         6       has been in business.  We certainly don't want

         7       anybody who's ever built things.  We certainly

         8       don't want anybody who has been known, and we

         9       certainly don't want anybody who wants to sit

        10       here and listen for two hours to this awful, god

        11       awful, political exercise that we have been put

        12       through.

        13                      You know I used to enjoy the fact

        14       that we, the members of the New York State

        15       Legislature, have immunity for being sued for

        16       anything we say on the floor of this

        17       Legislature.  I might just put in a bill to

        18       repeal that.  Maybe it will change some of the

        19       tenor of some of the remarks I have heard today

        20       about this mystery person that we are obviously

        21       trying to confirm, a mystery person that at

        22       least seven Senators have stood up and said they

        23       have known for 25 years; yet one person stood up











                                                             
1118

         1       and said he is obviously not registered to

         2       vote.

         3                      Well, Mr. Ambassador, I want to

         4       congratulate you.  You are probably the only

         5       person in history, at least who's been publicly

         6       credited, with raising $14 million dollars to

         7       get a governor elected in this state, is known

         8       to be the chief fund raiser for what my

         9       Democratic colleagues like to refer to as the

        10       junior Senator from State of New York; and, if

        11       that's the case, after what he did last night,

        12       I'd hate to see what happens if he ever became

        13       the senior Senator from New York; but, besides

        14       that, I want to congratulate you that no one has

        15       ever heard of you, but you raised 14 million.

        16       You are the chief fund raiser for the person who

        17       is now the head of the United States Senate

        18       Campaign Committee, but we don't know who you

        19       are.

        20                      If there is some inconsistencies,

        21       my colleagues on the other side of the aisle,

        22       let me you explain.  I know Senator Gold is

        23       looking at me saying Long Island is going to get











                                                             
1119

         1       its share.  Well, if we can get our share by

         2       getting appointees of the caliber of Charlie

         3       Gargano to take over those positions in state

         4       government which have run amuck for these past

         5       years, I would like nothing better.

         6                      Of course, as Senator Leichter -

         7       and I admire Senator Leichter, because I

         8       truthfully believe that Senator Leichter

         9       believed everything he said.  If everybody on

        10       the other side of the aisle was like Senator

        11       Leichter, this would have been a much shorter

        12       debate.  However, Senator Leichter, some of your

        13       colleagues, quite frankly, don't fit into that

        14       mold.  If there is anybody other than Senator

        15       Leichter in this room who thinks that Vincent

        16       Tese never raised a dollar for a political

        17       party, please stand up now.  Anybody, Republican

        18       or Democrat, who doesn't think he ever raised a

        19       dollar, stand up right now.

        20                      (There was no response.)

        21                      Now, if there is anybody who ever

        22       thinks that Vincent Tese who held these

        23       positions before Ambassador Gargano never came











                                                             
1120

         1       onto Long Island or any place else and tried to

         2       raise political havoc, please stand up now.

         3                      (There was no response.)

         4                      He never showed up any place.

         5       Never tried to bring UDC out, never tried to

         6       come into the Town of Huntington to try to

         7       change things around.  No-no, no-no, we had a

         8       nonpolitical operation, and there was certainly

         9       not under Governor Cuomo any awarding of grants,

        10       items, hiring of counsels or anything that were

        11       in the least bit political in this state.  Aw,

        12       come on, for shame.

        13                      I mean I have listened -- I will

        14       yield when I finish, Senator.  Thank you.  Just

        15       like you.

        16                      I have listened here very nicely

        17       all afternoon, and I -- I know you people don't

        18       want to hear it because this isn't a political

        19       conversation, but it occurs to me that the only

        20       two nominees my colleagues on the other side of

        21       the aisle have bothered to stand up and make a

        22       "federal" case about has been John Sweeney and

        23       Charlie Gargano.  Now, I know that has











                                                             
1121

         1       absolutely nothing whatsoever to do with

         2       politics, and I want to congratulate all of you

         3       over there.

         4                      Now, Senator Dollinger, you are

         5       really the best.  I mean you really are.  I mean

         6       lord knows you are a great litigating attorney.

         7       Now, that was a wonderful affidavit you stood up

         8       and read.  It really was.  Mr. Gargano said in

         9       the affidavit, for purposes of where I'm going

        10       to be served, I'm retired and I don't work; and

        11       Senator Leichter or whoever stood up and said,

        12       "Yeah, he earned $75,000."  As what?  As a

        13       consultant for the corporation.

        14                      Well, I know none of you over

        15       there has ever done any consulting work.  Of

        16       course, if you ever leave the Senate and you

        17       want a political contract for consulting work,

        18       maybe Ambassador Gargano will help you out.

        19       But, besides that, in any event, you might not

        20       have an address where you can get sued at for

        21       purposes of where you are doing your

        22       consultancy.  But let's stand up and read that

        23       affidavit because that really means something











                                                             
1122

         1       that he wasn't working as an officer or an

         2       employee from 9:00 to 5:00 at that place of work

         3       in Bay Shore, Long Island.

         4                      That's right, Senator Dollinger,

         5       he wasn't.  He was a consultant to a company for

         6       which he earned money, but he wasn't at that

         7       address day-to-day receiving and filing a time

         8       sheet for his hours.  By the way, no one here

         9       files a time sheet, either, as a member of this

        10       Legislature, but that's okay.  We wouldn't want

        11       to expect that for our appointee.

        12                      All I can say is after listening

        13       to this, listening to this, is there any wonder,

        14       is there any wonder, why the Governor of this

        15       state is trying to downsize this state's

        16       government.

        17                      Ambassador Gargano, I wish you

        18       all the luck.  Quite frankly, I don't know why

        19       after you have listened to all this that you

        20       want to take this on publicly, but the fact that

        21       you do and the fact that you have sat here all

        22       afternoon as whatever has transpired here -

        23       certainly nothing of any great value -- my











                                                             
1123

         1       congratulations to you.  I wish you good stead

         2       and good luck in everything that you undertake.

         3                      And, yes, Senator Gold, I will

         4       yield to you feel.

         5                      SENATOR GOLD:  Thank you.  Mr.

         6       President, if -- the Senator said he'll yield.

         7                      ACTING PRESIDENT KUHL:  Senator

         8       Lack yields.

         9                      SENATOR GOLD:  You indicate all

        10       of these things that you said that Vincent Tese

        11       did.  I have one question along those lines.

        12       Are you also saying that Vincent Tese misled the

        13       Senate committees with his answers on his

        14       resumes, et cetera?

        15                      SENATOR LACK:  No, I don't think

        16       Vincent Tese misled with his answers on the

        17       resume, and do you want to know something,

        18       Senator Gold?

        19                      SENATOR GOLD:  Sure.

        20                      SENATOR LACK:  I don't think

        21       Charles Gargano did either.  I'm sure you can

        22       stand up -- I mean I've got a Red Book here.  We

        23       are going run out of time in 15 minutes and the











                                                             
1124

         1       president would not like it, but I could stand

         2       here and start reading all the self-made

         3       descriptions of every member of the Senate as

         4       put in by every member of the Senate as to all

         5       the great things they've -- ever did in their

         6       life, and I'm sure since we've all submitted

         7       these ourselves, there is absolutely no

         8       inaccuracy whatsoever on any page in this book

         9       on anything that's ever been submitted by a

        10       member of the Senate about his or her

        11       background; and if anybody would like me to

        12       stand up and read their biography as they

        13       submitted it and all the great things they have

        14       always done, then I've got no problem and I'll

        15       be glad to read out everything they've done.

        16                      SENATOR GOLD:  Senator, will you

        17       yield to another question?

        18                      SENATOR LACK:  Yes, sir.

        19                      SENATOR GOLD:  Are you saying

        20       I'm really now upset, because I'm taking you

        21       very seriously.  Everything you say makes sense,

        22       so I'm taking you very seriously, but are you

        23       saying that there are members of the Senate who











                                                             
1125

         1       have given their resume and that they're not 100

         2       percent accurate.

         3                      SENATOR LACK:  I wouldn't know

         4       that, Senator.  I just said that I would offer

         5       to read everything that anybody submitted here.

         6                      SENATOR GOLD:  Senator Lack.

         7                      SENATOR LACK:  Yes.

         8                      SENATOR GOLD:  You know, the

         9       thing that bothers me let's get it out on the

        10       stable.

        11                      ACTING PRESIDENT KUHL:  Senator

        12       Gold, are you asking the Senator to yield.

        13                      SENATOR GOLD:  Yes.

        14                      ACTING PRESIDENT KUHL:  I'd

        15       appreciate it if you keep the conversation

        16       through the chair.  Senator Lack, do you yield?

        17                      SENATOR GOLD:  You are absolutely

        18       right, Mr. President.  It's refreshing.

        19                      ACTING PRESIDENT KUHL:  Senator

        20       yields.

        21                      SENATOR GOLD:  Senator Lack, what

        22       bothers me and I would like your comment, the

        23       individual involved has worked in a lot of areas











                                                             
1126

         1       and, on the face of it, has experience, but are

         2       you saying that if you have a certain amount of

         3       experience that at that point in time you become

         4       immune to people saying to you what about this

         5       and that, and you don't have to answer the

         6       questions accurately.  You can fudge them, you

         7       can mislead them; and as long as the person has

         8       a resume that sets forth a good deal of

         9       itemization on other things you say those are

        10       irrelevancies.  I can't believe that is your

        11       position, Senator.

        12                      SENATOR LACK:  I didn't say that

        13       at all, Senator.

        14                      SENATOR GOLD:  Well, then,

        15       Senator, if you will yield to another question.

        16                      ACTING PRESIDENT KUHL:  Senator,

        17       continue to yield?

        18                      SENATOR LACK:  Yes.

        19                      ACTING PRESIDENT KUHL:  Senator

        20       continues to yield.

        21                      SENATOR GOLD:  I'm not arguing

        22       that this man has certain experience.  What

        23       troubles me and other people is a lack of candor











                                                             
1127

         1       about things which are significant and which

         2       were to be answered, and I have to believe,

         3       Senator -- I mean you can make all of the

         4       remarks about this being political and we care

         5       because this guy is a fund raiser.  That is

         6       utter, utter nonsense.  It's utter nonsense,

         7       because I'll tell you something.  If George

         8       Pataki had people who were qualified and who did

         9       him political favors during the campaign and

        10       they are qualified, I don't have a problem with

        11       his making those appointments.  He has a right

        12       to do that.  It happens all over.

        13                      The questions here are legitimate

        14       questions and if you don't see them as

        15       legitimate, Senator Lack, then I got to wonder

        16       about you, and I don't wonder about you because

        17       you are a darn good lawyer.  Now, you are

        18       carrying the coals here today and you got to do

        19       it and I respect that.  But let's put it on the

        20       table.  If Mario Cuomo were the governor, and

        21       this came before the Senate and you had a

        22       nominee with a great background on paper who

        23       didn't answer questions accurately and there











                                                             
1128

         1       were questions about lawsuits he forgot about

         2       and there were boards of directors that he said

         3       he was on that he wasn't, you guys would never

         4       confirm him if it was a Mario Cuomo appointment.

         5                      ACTING PRESIDENT KUHL:  Senator

         6       Gold, that's the longest question I've heard in

         7       my life and I feel I haven't heard it yet.  Are

         8       you asking a question, Senator Gold?

         9                      SENATOR LACK:  Yes, I was looking

        10       for the question mark, Mr. President.

        11                      SENATOR GOLD:  Yes.  Isn't that

        12       right?

        13                      ACTING PRESIDENT KUHL:  Senator

        14       Gold -- Senator Lack, you have the floor.

        15                      SENATOR LACK:  If I may answer

        16       Senator Gold's question.  No.

        17                      ACTING PRESIDENT KUHL:  Senator

        18       Larkin on the confirmation.  Senator Larkin

        19       passes.

        20                      Senator Stafford on the

        21       confirmation.

        22                      SENATOR STAFFORD:  Very briefly

        23       Mr. President.  What we've always tried to do











                                                             
1129

         1       and we did today in the Finance Committee,

         2       everyone talked who wanted to talk, everyone

         3       asked questions who wanted to ask questions.

         4       Let's make that very, very clear.

         5                      Now, I would also point out I

         6       have to mention fund raising.  Some of us have

         7       not been too much involved in fund raising

         8       because thirty years ago I had a couple fund

         9       raisers and I lost money, and I decided that,

        10       you know, it doesn't help that much.  But now

        11       today we have to have it, and I understand

        12       that.

        13                      Now, I -- you know, things are

        14       mentioned during these debates.  Now, casino

        15       gambling, I only point this out because, again,

        16       it depends on where you are coming from.  Now,

        17       the thing is I could say that the native

        18       Americans are able to have these casinos because

        19       in the middle of the night they passed a bill

        20       and that was included and it was for industrial

        21       development, economic development.  Now, the

        22       problem is in my area it's getting so, most of

        23       my colleagues know, you can leave Plattsburgh











                                                             
1130

         1       and within 45 minutes going north you are in a

         2       very fine casino; and in about a month or less

         3       if you go west you are going to be at a very

         4       fine casino right on the border of the reserve.

         5                      So, again, we can suggest that

         6       that's all bad to be involved in, but it's the

         7       real world.

         8                      I would only emphasize this point

         9       if we're going to have people in government who

        10       have had experience who have worked, I assure

        11       you, and I say this in complete good faith,

        12       anybody who has ever filled out an SEC

        13       application, if you are on a board where you

        14       have to fill out a form for the SEC, you have to

        15       fill it out every year, and believe you me, you

        16       have no idea.  To get that perfect, you have no

        17       idea the time you have to spend on it, and you

        18       can say that's part of the problem, by the way,

        19       to leave it to your accountants and I won't say

        20       lawyers but, yes, lawyers, and sometimes it

        21       isn't as perfect as it should be.

        22                      I make this point.  I looked at

        23       this.  As far as the bank board is concerned, I











                                                             
1131

         1       believe the Ambassador was forming a bank; and

         2       then when he got started into federal service,

         3       he withdrew.  But I think we could just go on

         4       and on and on.  The Tax Court, I notice that it

         5       was the party suing the Internal Revenue and the

         6       United States of America.  Well, that's the

         7       right side!  And then it was withdrawn.  It was

         8       withdrawn, and it was mentioned here.  All of us

         9       could go to our lawyer.  We could talk about it

        10       and say, "We're going to do this," and we're all

        11       the same.  When you sign a form or sign an

        12       affidavit or if you sign the complaint in a

        13       matter and you have a lot of work with your

        14       lawyer, I can see that happening.  I can see the

        15       matter proceeding, then it's withdrawn.  I will

        16       only say that we could go on and on and on.

        17       But, Mr. President -

        18                      Well, I have to also commend

        19       Senator Lack because I thought this was going to

        20       be the key point that I could make tonight to

        21       show that I practice a little law.  But, again,

        22       the CPLR, that's what it's all about.  You have

        23       to be working there.  You have to be an employee











                                                             
1132

         1       and you can be served.  If you are a consultant,

         2       it does not make it possible for you to be

         3       served or if you draw dividends, so you also can

         4       be paid.

         5                      But I have to say here, Mr.

         6       President, we have a nominee who has done a

         7       great job, family, business, government,

         8       political party.  I believe this is correct.  He

         9       received from the State Department a top secret

        10       clearance in 1988; and for any of you who have

        11       been through that, I assure you that is not

        12       obtained easily.

        13                      Mr. President, yes, it's our good

        14       fortune that Ambassador Gargano, Charlie

        15       Gargano, worked hard for our candidate, our

        16       successful candidate, Governor Pataki.  He

        17       understands business.  He understands the

        18       political system.  I think that he is just the

        19       person to be serving as the economic czar, as

        20       chairman of the UDC, and as Commissioner of the

        21       Department of Economic Development.  I say here

        22       today that we are better and will be better here

        23       in New York State because of Governor Pataki's











                                                             
1133

         1       nomination of Ambassador Charles Gargano and

         2       that we in the state will be better when he

         3       serves and carries out the responsibilities of

         4       these offices.

         5                      ACTING PRESIDENT KUHL:  Chair

         6       will recognize Senator LaValle, then Senator

         7       Connor to close for the Minority and Senator

         8       Bruno to close for the Majority.

         9                      Senator LaValle.

        10                      SENATOR LAVALLE:  Thank you, Mr.

        11       President.

        12                      Certainly, those of us who live

        13       and have been involved in public life know of

        14       the record of Ambassador Gargano; and,

        15       certainly, many speakers have indicated many of

        16       the things that he has been involved in; but I

        17       would just like to pick up where Senator Lack

        18       left off with a rhetorical question of why

        19       Ambassador Gargano, given such a distinctive

        20       career, would put it all on the line to receive

        21       an appointment and go through what he did

        22       today?

        23                      There is no doubt that a person











                                                             
1134

         1       is fair game in questions that deal with -- you

         2       have stock; what are you going to do with it,

         3       how are you going to handle certain matters, and

         4       so forth, and there was certainly a significant

         5       amount of that questioning in the Finance

         6       Committee.  I think the Ambassador answered

         7       those questions straightforward.  Where he did

         8       not have an answer, he simply said, "I don't

         9       know.  Some of those matters were handled by an

        10       accountant or an attorney," and so forth, and I

        11       think he was very, very straightforward.

        12                      But what is important for this

        13       body and our process is the fact that we do not

        14       dissuade competent and the best and brightest of

        15       our citizens from public service, and that's

        16       what this is all about, Ambassador Gargano.

        17       Certainly it's not the salary.  It is something

        18       that he feels he can contribute in moving this

        19       state with our Governor and this Legislature out

        20       of economic doldrums to return it to a position

        21       of the Empire State, to create jobs, to give

        22       people a sense of security, and we haven't

        23       dwelled enough about his credentials, his











                                                             
1135

         1       education, degrees in engineering and in

         2       business.  A successful business person who

         3       knows how to make thing happen, what kind of

         4       better person do you want in a leadership

         5       position to lead this state forward to interact

         6       with business leaders across this state; and he

         7       has already had many dealings with people from

         8       one end of the state from Montauk Point to

         9       Niagara Falls, and so we are very, very

        10       fortunate to have a person who knows how to make

        11       things happen, who knows how to sit down with

        12       business leaders in this state to make and

        13       create jobs; and I think we all know being

        14       public officials that one day in one bit of

        15       scrutiny does not end there.  Each of us as we

        16       conduct ourselves are constantly under scrutiny,

        17       and so I believe that both in the committees,

        18       the standing committees that examined this

        19       nominee and today in the Finance Committee, in

        20       this debate, I'm not sure there are many people

        21       that have come before this august body who have

        22       received greater scrutiny.

        23                      So, it's indeed -- as a Long











                                                             
1136

         1       Islander to rise today to talk about this

         2       nominee as many have done, and I believe that

         3       his credentials, his energy and his success in

         4       the business community will be a great help to

         5       creating jobs and returning economic vitality to

         6       this state.

         7                      ACTING PRESIDENT KUHL:  Chair

         8       recognizes Senator Connor to close debate for

         9       the Minority.

        10                      SENATOR CONNOR:  Thank you, Mr.

        11       President.  You know, I have heard a lot in the

        12       time I was out here about how the Senate ought

        13       to approach confirmations, and I think back many

        14       years ago to when Senator Levy, in fact, was

        15       chairman of a committee and raised questions

        16       about a nominee, witnesses were subpoenaed and

        17       testimony under oath was taken for -- went on

        18       for months until the nomination was killed and

        19       that clearly was the political directive of the

        20       Majority Leader at the time.  But it was a

        21       process that certainly had all appearances of

        22       being a diligent inquiry and many steps were

        23       made.











                                                             
1137

         1                      Other nominations over the years

         2       when it was a Republican Senate examining a

         3       Democratic governor's nominees delved quite

         4       extensively into the nominees and their

         5       backgrounds required great exposure.

         6                      I remember -- you mentioned

         7       Vincent Tese.  When he was first nominated

         8       twelve years ago, it was as Superintendent of

         9       Banks, and he had divested himself into a blind

        10       trust of all stock and investments; and when he

        11       appeared before the relevant committee, and I

        12       don't recall which one of my esteemed Republican

        13       colleagues it was, but someone raised the fuss

        14       about the fact that he still owned gold bars,

        15       "...and might that not be a conflict for a New

        16       York State Banking Superintendent to own eight

        17       or nine million dollars worth of gold bars" as

        18       if the New York State Banking Department could

        19       effect the world market in gold in Hong Kong,

        20       Tokyo, and whatever.  Mr. Tese said, "You know

        21       what?  I don't want any controversy," and he

        22       sold his gold bars between the meeting of the

        23       Banking Committee and the Finance Committee,











                                                             
1138

         1       which was an one or two week lapse of time, and

         2       he sold his gold bars.  The last laugh was on

         3       the Senator who raised that, since it so

         4       happened he hit a point when the gold was

         5       900-and-some dollars an ounce, made five or six

         6       million dollars by selling it at that point

         7       rather than later.  But the scrutiny, the

         8       diligent concern for the potential of conflict

         9       in him owning gold -- I thought they were going

        10       to make the man sell the ring off his finger to

        11       be the Banking Department Superintendent -- was

        12       rather rigorous, rather overly -- I thought a

        13       little overly zealous; but, nonetheless, this

        14       was the way the Senate operated in screening

        15       Governor's candidates.

        16                      And let me say that not for a

        17       moment do I hold it against Ambassador Gargano

        18       that he raised so much money for his candidate.

        19       I don't resent that at all.  I'm frankly envious

        20       of it, but I think certainly we are all in

        21       politics here.  We respect people.  As Senator

        22       Leichter pointed out, there has been no

        23       suggestion, not one suggestion whatsoever, that











                                                             
1139

         1       he did anything improper in raising that money

         2       other than work very, very hard at it, and we

         3       all accept that and can appreciate that as a

         4       good job well done in politics; and so for that,

         5       again, I don't hold that against him.  My hat's

         6       off to him for that.  In fact, in comparing

         7       Vincent Tese, I have no personal knowledge of

         8       whether he raised funds or not.  He may have, he

         9       may not, but I assure you I don't think he

        10       raised $14 million.

        11                      SENATOR LIBOUS:  Not even a close

        12       second.

        13                      SENATOR CONNOR:  "Not even a

        14       close second," okay.  So that's not an issue

        15       here.

        16                      The issue of how much involvement

        17       Mr. Gargano may or may not do as the UDC chair

        18       of fund raising I think is one that Senator

        19       Leichter explored.  I think it's a valid concern

        20       to have, and I think we know who is in the

        21       majority in this house, and I think that

        22       Ambassador Gargano will -- should he be as

        23       zealous at fund raising in the future will











                                                             
1140

         1       probably have to answer to public opinion about

         2       that.  I'm hoping he is much too busy bringing

         3       jobs into New York State and doing his job, much

         4       too busy doing that rather than raising money

         5       for Republican candidates.

         6                      The real concern I have here and

         7       it's one of process because I'm concerned about

         8       the Senate as an institution, and I think the

         9       sometimes overzealous scrutiny that the Majority

        10       in this house gave to Democratic governor's

        11       candidates did two things.  It set a standard

        12       you ought to still abide by and, secondly, it

        13       delivered some degree of comfort to people on

        14       this side of the aisle that while it was our

        15       governor's nominee coming up, we knew they were

        16       being run through the ringer, so to speak, and

        17       they were being forced to disclose interests

        18       which may be real or apparent conflicts.  I

        19       think there is some concern on this side of the

        20       aisle, and we understand certainly the desire of

        21       the Governor, and the Majority to assist him, in

        22       getting his administration up and going.  That's

        23       legitimate.  I don't think we want to see any











                                                             
1141

         1       shortcuts either on time and we don't want to

         2       see any shortcuts on the substance of

         3       disclosure.

         4                      Now, certain issues were raised.

         5       Senator Stafford said, "What's wrong with

         6       casinos?  They are there."  I don't see anything

         7       wrong with casinos.  I have not made a judgment

         8       and I think most of my colleagues have not made

         9       a judgment about whether or not casino gambling

        10       is a desirable thing for New York State to

        11       undertake or authorize as a matter of economic

        12       development, but I think we all know it is a

        13       present issue.  It is an issue this year, next

        14       year; it's been an issue.  It was almost an

        15       issue the last day of session last year, and I

        16       think people can see that -- I would hope that

        17       whoever is in charge of economic development for

        18       New York State would opine about that to us,

        19       would investigate it, would have a role in that,

        20       and I can see where the public at large,

        21       whatever we decide about, for example, casino

        22       gambling, the public certainly has to be

        23       reassured that when we make that judgment that











                                                             
1142

         1       that's the best judgment we have for the welfare

         2       of the people of the New York and the economy of

         3       New York.  I don't think there ought to be any

         4       cloud or anybody questioning, "Gee, did somebody

         5       have an interest that influenced them one way or

         6       the other," influenced them to be for casinos

         7       because "Oh, boy!  I own some casino stock" or

         8       "Gee, I'm against casinos because I own some

         9       casino stock and have a couple going on native

        10       American reservations."  So I was greatly

        11       concern about that holding.

        12                      I appreciate Ambassador Gargano

        13       brought that up to me and said, "I will resign

        14       as a director."  I think the number of shares

        15       involved is probably significant, and something

        16       ought to be done about that, perhaps a blind

        17       trust or disposing of them even as Mr. Tese

        18       disposed of his gold bars once upon a time.

        19                      I think that other questions have

        20       been raised since then, and I ascribe absolutely

        21       no conscious attempt to mislead to this.  I

        22       don't think for one moment Mr. Gargano thought

        23       he would deliberately mislead the Senate or hide











                                                             
1143

         1       anything.  I don't look at any bad motives here,

         2       but I think someone who is about to be confirmed

         3       to such a high position who has been such a

         4       remarkably successful business person, obviously

         5       someone who is successful in other endeavors,

         6       just about everything he tried, business, fund

         7       raising, whatever, ought to have been more

         8       careful and respectful toward the Senate and the

         9       public in making sure that, look, if he didn't

        10       have it at his fingertips, somebody, accountant,

        11       lawyer, business manager, whatever, sat down and

        12       prepared these disclosures so that they were

        13       full and candid disclosures; because,

        14       regrettably, when I pick up a newspaper and hear

        15       about two corporations I never heard of before

        16       and some other interest I never heard of,

        17       naturally your first conclusion is, "What else

        18       is there?"

        19                      I don't mean that as a matter of

        20       innuendo.  It's just a natural reaction, and why

        21       wasn't this down on the paper we Senators were

        22       given, and I think that reflects back, and I

        23       would urge the Majority -- and I know it's a new











                                                             
1144

         1       experience for the Majority to be -- at least

         2       new for the last 20 years to be screening

         3       nominees of their own party's governor, and I

         4       urge you in the future, you know, to insist on

         5       that disclosure because it's not just upholding

         6       the Senate as an institution and its

         7       institutional role.  It's not just protecting

         8       the public.  I think it's a good service for

         9       your governor.  It's a good service for your

        10       party, and it's a good service for your party's

        11       nominees.  If your staff rather than say, "Can

        12       we get Ambassador Gargano through quickly?  He

        13       is a good guy.  He has been such a good

        14       Republican," if instead of that you encourage

        15       your staffs to, say, sit down with that nominee

        16       and put him through the mill a little bit like

        17       you did Cuomo's to make sure we get it all out

        18       there so nobody gets embarrassed in the end and

        19       there are no appearances -- no appearances -- of

        20       conflicts and no spectre of conflicts.

        21                      I'm very, very disappointed about

        22       the way the process was here when some of these

        23       items that were unexplained or undisclosed were











                                                             
1145

         1       called to my attention at the end of last week,

         2       I asked my counsel to write a letter to the

         3       second floor, specify we would like this

         4       following information about Ambassador Gargano.

         5       These questions have come up.  What's this

         6       corporation?  What's that one we haven't heard

         7       of before?  The reply we got was perfunctory,

         8       was not the kind of detail that I would expect,

         9       that I think you ought to expect under such

        10       circumstances.

        11                      And all of that leads me to

        12       really a very regrettable conclusion and that

        13       is, today, standing here now forced to vote, I

        14       have to vote no on this nomination not because I

        15       think the Ambassador has done anything

        16       consciously wrong -- I don't think he has at all

        17        -- and not because he doesn't have an

        18       impressive resume -- he does -- but because the

        19       process and the lack of candor, the lack of -

        20       and, by the way, I do blame, not in a conscious

        21       way, I think the Majority could have prevented a

        22       lot of this by insisting, even though it's a

        23       nominee they clearly like, insisting that all











                                                             
1146

         1       the blanks be filled in before the process went

         2       forward.

         3                      So, Mr. President, it's with a

         4       great deal of regret that I will vote no today,

         5       and I think some of my colleagues who will vote

         6       no share that regret.  I don't think it's meant

         7       to cast any aspersions particularly on Mr.

         8       Gargano but on the process and on the way -- and

         9       I think -- by the way, I think this Senate has a

        10       duty to the nominees to take them through the

        11       process and encourage them to make full

        12       disclosure, but on the record before us today

        13       there is no choice but to vote the way I've

        14       indicated.

        15                      Thank you, Mr. President.

        16                      ACTING PRESIDENT KUHL:  The chair

        17       recognizes Senator Bruno to close debate on the

        18       confirmation.

        19                      SENATOR BRUNO:  Thank you, Mr.

        20       President.  We've had a long afternoon, and I'm

        21       on my feet really to thank Ambassador Gargano

        22       for all of the good things that he has done on

        23       behalf of the people of this state to this day











                                                             
1147

         1       and having been extremely helpful to our new

         2       governor, George Pataki, in helping him become

         3       governor.  Did a great job, and I thank you for

         4       that, and I am as certain that you will go

         5       forward in helping all of the people in this

         6       state in the good work that you are going to do

         7       in your new jobs.

         8                      I keep hearing about the process

         9       that we go through in this chamber, and I am

        10       just so pleased to hear my colleagues on this

        11       side of the aisle talk about the process, the

        12       process (indicating the Democratic side).  I'm

        13       very happy to hear that you are concerned with

        14       the process.

        15                      I think it was last year, former

        16       governor, sent up 116 nominees that went through

        17       this house in two days, in the middle of the

        18       night, 2:00 in the morning, 3:00 in the morning,

        19       4:00 in the morning.  I am just wondering, Mr.

        20       President, where these born again reformers

        21       were.

        22                      SENATOR CONNOR:  I was sleeping.

        23                      SENATOR BRUNO:  Sleeping











                                                             
1148

         1       undoubtedly.  Where was the process then, Mr.

         2       President?  Where was good government then?

         3                      We did it.  We didn't like it,

         4       but there was a governor governing.  He did

         5       things his way.  We didn't like it.  We didn't

         6       agree, but we respected the office, and so we

         7       were here in the middle of the night passing

         8       during this process that you were all silent in,

         9       silent as you sat here nodding -- and not in

        10       agreement, but to keep awake.

        11                      You really got to examine

        12       yourselves because there are going to be other

        13       circumstances where we are going to be on this

        14       floor having a similar debate because there are

        15       other people who are going to come through this

        16       chamber and we're going to confirm highly

        17       qualified people and we'll ask you to

        18       participate in the process, and I'll thank you

        19       in advance for your generosity in all the time

        20       that you spend talking about how politically

        21       operative these people have been.

        22                      Do you know what really pleases

        23       me, Mr. President?











                                                             
1149

         1                      Finally, we have a man who is

         2       qualified to do the job of moving this state

         3       forward in economic development.  It is no

         4       accident in my mind that under the former

         5       governor with the former commissioner, New York

         6       ranks at the bottom in almost every category of

         7       economic development, job loss, lack of jobs in

         8       this state, debt, last in this country.  Thank

         9       you to Vincent Tese and thank you to our former

        10       governor; and when we talk about leading the

        11       country in job loss, is that a job that we can

        12       be proud of?

        13                      I am confident, Mr. President,

        14       that our new Commissioner, Ambassador Gargano

        15       will help the people of this state as he has

        16       helped in the past, as you heard on this floor

        17       in so many ways.

        18                      You know, all of us ought to be

        19       proud that a successful business person is

        20       willing to take on the challenges to help the

        21       millions of people in this state that need

        22       help.  A highly successful individual, that's

        23       what we want, a successful person.











                                                             
1150

         1                      It is not a sin.  I have a

         2       bullet, a large bullet:  It is not a sin to be

         3       successful in business in this state.  It is not

         4       a sin to earn a profit on investments.  We

         5       should reward people for doing that.  We

         6       shouldn't punish them for doing that.  That's

         7       yesterday's news.  That's the last 12 years in

         8       this state.  We're going forward and we're

         9       looking forward.

        10                      Again, I was chuckling because we

        11       talked about this successful businessman with

        12       his interests and how that's very disturbing and

        13       we should study for weeks and months all of

        14       these things that this man has done in his life

        15       because he is successful in business.  I chuckle

        16       because I keep thinking of all of my good

        17       friends in this chamber who are lawyers, who are

        18       lawyers, and the more money they make and the

        19       more clients they have, the more successful they

        20       are the better it is for everybody.

        21                      Oh-oh.  Oh-oh.  I'm about to get

        22       questioned.  I'm getting too sensitive.  But if

        23       you are, and I -- forgive me, but rarely do we











                                                             
1151

         1       question attorneys to any great extent as they

         2       come forward before us because it's okay, and I

         3       get the feeling as a business person myself -

         4       and you will just forgive me, please, that, you

         5       know, our laws are of, by, and for lawyers, and

         6       that has been the case for too long in this

         7       state.

         8                      But happily now we have a mix,

         9       and we have a mix that helps move this state

        10       forward.  We have attorneys and we have business

        11       people and we have real estate people and we

        12       have retired people and we have teachers and

        13       professors, and that's what governing is all

        14       about.

        15                      But we are here today confirming,

        16       yes, a successful person for a job that needs to

        17       be done, and I want to support and I happily

        18       support a successful business person to lead

        19       this state forward.

        20                      So I thank you for participating

        21       in the process.  Thank you for enlightening us

        22       on the process.

        23                      And we are listening intently











                                                             
1152

         1       and, Mr. President, again, I thank the

         2       Ambassador for sharing part of his life with us

         3       and for all of the good things that he is going

         4       to do on behalf of all of the people of this

         5       state.  We need you, and we welcome you in the

         6       state.

         7                      And, Mr. President, I move this

         8       nomination.

         9                      SENATOR GOLD:  Slow roll call.

        10                      ACTING PRESIDENT KUHL:  The

        11       question is on the confirmation of the nominee,

        12       Charles A. Gargano to the positions of

        13       Commissioner of the Department of Economic

        14       Development and Director and President of the

        15       New York State Urban Development Corporation.

        16                      All those in favor -

        17                      (Response of "Slow roll call.")

        18                      Slow roll call has been

        19       requested.  Are there five members who request

        20       that?

        21                      There are.

        22                      Secretary will read the roll call

        23       slowly.











                                                             
1153

         1                      THE SECRETARY:  Senator Abate.

         2                      SENATOR ABATE:  No.

         3                      THE SECRETARY:  Senator Babbush.

         4                      (There was no response.)

         5                      Senator Bruno.

         6                      SENATOR BRUNO:  Yes.

         7                      THE SECRETARY:  Senator Connor.

         8                      SENATOR CONNOR:  No.

         9                      THE SECRETARY:  Senator Cook.

        10                      SENATOR COOK:  Yes.

        11                      THE SECRETARY:  Senator

        12       DeFrancisco.

        13                      SENATOR DeFRANCISCO:  Yes.

        14                      THE SECRETARY:  Senator DiCarlo.

        15                      SENATOR DiCARLO:  Yes.

        16                      THE SECRETARY:  Senator

        17       Dollinger.

        18                      SENATOR DOLLINGER:  No.

        19                      THE SECRETARY:  Senator Espada,

        20       excused.  Senator Farley.

        21                      SENATOR FARLEY:  Yes.

        22                      THE SECRETARY:  Senator Galiber

        23       voting in the negative earlier today.











                                                             
1154

         1                      Senator Gold.

         2                      SENATOR GOLD:  Mr. President, to

         3       explain my vote.

         4                      ACTING PRESIDENT KUHL:  Senator

         5       Gold to explain his vote.

         6                      SENATOR GOLD:  I'm not going to

         7       go into any of the arguments; but in my remarks,

         8       I made reference to an answer given by a staff

         9       member during the Senate committee meeting, and

        10       having been a staff member myself I'm sensitive

        11       to that.  I want the record to indicate that

        12       while I felt that in the general sense we got

        13       the wrong impression, I wouldn't want the record

        14       to indicate that I thought that the gentleman

        15       who works for Senator Stafford did anything

        16       other than his job or tried to in any way

        17       affirmatively mislead anybody in the Senate.

        18                      I vote no.

        19                      ACTING PRESIDENT KUHL:  Senator

        20       Gold in the negative.

        21                      Secretary will continue to call

        22       the roll.

        23                      THE SECRETARY:  Senator











                                                             
1155

         1       Gonzalez.

         2                      SENATOR GONZALEZ:  Yes.

         3                      THE SECRETARY:  Senator Goodman.

         4                      SENATOR GOODMAN:  Yes.

         5                      THE SECRETARY:  Senator Hannon.

         6                      (There was no response.)

         7                      Senator Hoblock.

         8                      SENATOR HOBLOCK:  Yes.

         9                      THE SECRETARY:  Senator

        10       Hoffmann.

        11                      SENATOR HOFFMANN:  Yes.

        12                      THE SECRETARY:  Senator Holland.

        13                      SENATOR HOLLAND:  Yes.

        14                      THE SECRETARY:  Senator Johnson.

        15                      SENATOR JOHNSON:  Yes.

        16                      THE SECRETARY:  Senator Jones.

        17                      SENATOR JONES:  No.

        18                      THE SECRETARY:  Senator Kruger.

        19                      SENATOR KRUGER:  No.

        20                      THE SECRETARY:  Senator Kuhl.

        21                      SENATOR KUHL:  Yes.

        22                      THE SECRETARY:  Senator Lack.

        23                      SENATOR LACK:  Aye.











                                                             
1156

         1                      THE SECRETARY:  Senator Larkin.

         2                      ACTING PRESIDENT KUHL:  Senator

         3       Larkin to explain his vote.

         4                      SENATOR LARKIN:  Mr. President.

         5       We sat here for almost four hours listening to

         6       confirmations, and I have to say to Ambassador

         7       Gargano that we appreciate you taking the time

         8       to listen, and I hope you listened very clearly

         9       to some of those who tried to trash you as the

        10       Majority Leader clearly outlined what you mean

        11       and what you have done, and I hope that everyone

        12       takes heed that we have an individual who could

        13       have gone away after he did great things in

        14       helping us elect a new governor.

        15                      But what did he do?  He said, "I

        16       helped you get there; I want to be a partner

        17       with this state in moving you forward," and,

        18       yes, we had people nitpicking.  Well, as the

        19       Majority Leader said, I could nitpick, too.

        20       Some of you over on the other side of the aisle

        21       started saying oh nothing.  Between July 1 and

        22       July 2, we confirmed 41 people in less than 24

        23       hours.  How come you never complained about it?











                                                             
1157

         1                      (Comment of "They were

         2       qualified.")

         3                      They were qualified to whose

         4       extent?  We did a courtesy to the Governor.

         5                      Ambassador, I thank you for

         6       putting up with it, and I thank you for being

         7       the person that you are.  You're quality and

         8       we're proud of you.

         9                      I vote yes.

        10                      ACTING PRESIDENT KUHL:  Senator

        11       Larkin in the affirmative.

        12                      Continue the roll.

        13                      THE SECRETARY:  Senator LaValle.

        14                      SENATOR LAVALLE:  Yes.

        15                      THE SECRETARY:  Senator Leibell.

        16                      SENATOR LEIBELL:  Yes.

        17                      THE SECRETARY:  Senator

        18       Leichter.

        19                      SENATOR LEICHTER:  Mr. President,

        20       briefly to explain my vote.

        21                      ACTING PRESIDENT KUHL:  Senator

        22       Leichter to explain his vote.

        23                      SENATOR LEICHTER:  I just want to











                                                             
1158

         1       tell my good friend Bill Larkin here that there

         2       were some of us who weren't happy with all those

         3       nominations being pushed through at that time

         4       and some of us who voted, for instance, against

         5       the nomination of Mr. Dyson and some of the

         6       other nominations.  I don't think it was

         7       anything for any of us to be proud of.  The fact

         8       that we did it at that time if the Governor put

         9       the nominations before us with inadequate time,

        10       that certainly doesn't reflect well on him.

        11                      But I am troubled by the Majority

        12       continually saying, "Well, it happened in the

        13       past, you did it, and so on."  Let's be better.

        14       That's really the message that we have, and

        15       that's the purpose and the aim that we have.

        16                      And, Mr. President, for the

        17       reasons I stated before, I can not support this

        18       nomination.  I vote in the negative.

        19                      ACTING PRESIDENT KUHL:  Senator

        20       Leichter in the negative.

        21                      Secretary continue the roll.

        22                      THE SECRETARY:  Senator Levy.

        23                      SENATOR LEVY:  Aye.











                                                             
1159

         1                      THE SECRETARY:  Senator Libous.

         2                      SENATOR LIBOUS:  Aye.

         3                      THE SECRETARY:  Senator Maltese.

         4                      SENATOR MALTESE:  Aye.

         5                      THE SECRETARY:  Senator Marchi.

         6                      SENATOR MARCHI:  Aye.

         7                      THE SECRETARY:  Senator

         8       Markowitz.

         9                      (There was no response.)

        10                      Senator Mendez.

        11                      SENATOR MENDEZ:  Yes.

        12                      THE SECRETARY:  Senator

        13       Montgomery.

        14                      ACTING PRESIDENT KUHL:  Senator

        15       Montgomery to explain her vote.

        16                      SENATOR MONTGOMERY:  Yes, Mr.

        17       President, to explain my vote.

        18                      I would like to also join with

        19       Senator Larkin in complimenting and thanking the

        20       nominee for this time and apologizing for the

        21       process; however, I do want to just remind him

        22       as well as my colleagues that this is a process

        23       unlike what goes on in other chambers in our











                                                             
1160

         1       country, namely, at the federal level.  You know

         2       this is the same process that is taking place

         3       right now with the Surgeon General nominee of

         4       the President.  It's the same process that went

         5       on with Lonnie Gruniere.  She was not as

         6       successful in going through it.  It is a process

         7       that is taking place as it relates to Ron Brown

         8       in Washington, the head of the Economic

         9       Development Agency national.  It went on with

        10       several of the nominees put forth by the

        11       President for the Supreme Court, and several of

        12       them were not successful.

        13                      And so though it places a lot of

        14       stress on many of us and certainly is not an

        15       enjoyable process, it is the process.  So I want

        16       to apologize to the nominee; but, hopefully, you

        17       will understand that we are not out of order in

        18       raising questions and issues that we feel are

        19       extremely important to this position and to the

        20       process.

        21                      So I join my colleagues and also

        22       standing up with those questions; and since they

        23       are not answered, I, too, am voting not against











                                                             
1161

         1       the nominee but I am voting no on this process.

         2                      Thank you, Mr. President.

         3                      ACTING PRESIDENT KUHL:  Senator

         4       Montgomery in the negative.

         5                      Secretary will continue the roll.

         6                      THE SECRETARY:  Senator Nanula.

         7                      SENATOR NANULA:  No.

         8                      THE SECRETARY:  Senator

         9       Nozzolio.

        10                      SENATOR NOZZOLIO:  Aye.

        11                      THE SECRETARY:  Senator Onorato.

        12                      SENATOR ONORATO:  No.

        13                      THE SECRETARY:  Senator

        14       Oppenheimer.

        15                      SENATOR OPPENHEIMER:  No.

        16                      THE SECRETARY:  Senator Padavan.

        17                      SENATOR PADAVAN:  Yes.

        18                      THE SECRETARY:  Senator Paterson.

        19                      ACTING PRESIDENT KUHL:  Senator

        20       Paterson to explain his vote.

        21                      SENATOR PATERSON:  Mr.

        22       President.  I think that there are a number of

        23       appointments that the Governor makes that do not











                                                             
1162

         1       come through the Senate, and the ones that do

         2       come through the Senate are those specifically

         3       in which the constitution admonishes us to

         4       advise and consent, and so I think we have to

         5       come to an overall decision and put politics

         6       behind us, once and for all, and determine what

         7       we are going to investigate and what we're not

         8       going to investigate.

         9                      To some degree the new governor

        10       is trying to say that the financial disclosure

        11       forms have, in a sense, been overly scrupulous

        12       in the past and, to some degree, perhaps he's

        13       right that he is going to maintain control so

        14       that people's personal and business finances

        15       don't become the object of scrutiny by tabloid

        16       magazines.

        17                      But at the same time, we have to

        18       understand that where there are questions asked

        19       that we would like to have answers, and perhaps

        20       the answers were made with what the individuals

        21       answering the questions in this case thought to

        22       be honest answers.  But in one case, it led

        23       members of the Minority to feel that this person











                                                             
1163

         1       that was a consultant was, in fact, retired; and

         2       that's what caused the problem in that case.

         3                      What we need to do is perhaps get

         4       together and revisit this whole situation.  We

         5       had this problem with Mr. Sweeney on January the

         6       16th.  I voted for that nomination.

         7                      I'm going to vote against this

         8       nomination because I don't think a significant

         9       effort has been made to improve that process,

        10       and I think that Senator Connor and Senator

        11       Gold, Senator Leichter, Senator Dollinger and

        12       Senator Waldon, really underlined the points

        13       that really command us to decide whether or not

        14       we're going to have a process or whether we're

        15       not going to have one.

        16                      But as for Mr. Gargano, I don't

        17       know him personally but I will work with him.

        18       In fact, I would say if he is confirmed -- and I

        19       think he will be -- in his first day he has

        20       already provided the state a great service,

        21       because I have been looking all over the state

        22       for a Republican who will prevent the passage of

        23       the death penalty, and he did that today.











                                                             
1164

         1                      Thank you very much.

         2                      ACTING PRESIDENT KUHL:  Senator

         3       Paterson in the negative.

         4                      Secretary will continue the roll.

         5                      THE SECRETARY:  Senator Present.

         6                      SENATOR PRESENT:  Aye.

         7                      THE SECRETARY:  Senator Rath.

         8                      SENATOR RATH:  Aye.

         9                      THE SECRETARY:  Senator Saland.

        10                      SENATOR SALAND:  Aye.

        11                      THE SECRETARY:  Senator

        12       Santiago.

        13                      (There was no response.)

        14                      Senator Sears.

        15                      SENATOR SEARS:  Aye.

        16                      THE SECRETARY:  Senator Seward.

        17                      SENATOR SEWARD:  Mr. President.

        18                      ACTING PRESIDENT KUHL:  Senator

        19       Seward to explain his vote.

        20                      SENATOR SEWARD:  Yes, very

        21       briefly, Mr. President.

        22                      I spent all afternoon and part of

        23       the evening involved with the confirmation











                                                             
1165

         1       process today with the Finance Committee and now

         2       here on the floor, and I have been listening

         3       very intently to the points that have been

         4       raised by some members on the other side of the

         5       aisle in both of the forums, and I must say I

         6       have heard a lot of innuendos.  I have heard a

         7       lot of nitpicking.  I have heard a lot of what I

         8       would consider politically motivated statements

         9       and questions.

        10                      I think the real question -- and,

        11       by the way, in the Finance Committee meeting, I

        12       found Ambassador Gargano's responses to the

        13       questions to be very forthright and complete.

        14                      But let's get to the real

        15       question.  The real question, Mr. President, is

        16       that in the last few years New York State has

        17       lost hundreds of thousands of jobs.  The real

        18       question is what are we going to do to fix our

        19       economy in this state?  And I think part of that

        20       answer to that question, a big part of it, is

        21       who are we going to have heading up our Economic

        22       Development Department and the Urban Development

        23       Corporation, and I have come to the conclusion











                                                             
1166

         1       that the right person for that important job is

         2       Ambassador Charles Gargano.

         3                      He brings to these positions the

         4       qualities we need, leadership skills, business

         5       experience and acumen.  He's got the trust and

         6       confidence of the governor of this state.

         7                      On behalf of the people in my

         8       district and across this state who need jobs,

         9       I'm very pleased to support the confirmation of

        10       Ambassador Gargano.  I vote yes.

        11                      ACTING PRESIDENT KUHL:  Senator

        12       Seward, aye.

        13                      Secretary continue the roll.

        14                      THE SECRETARY:  Senator Skelos.

        15                      SENATOR SKELOS:  Aye.

        16                      THE SECRETARY:  Senator Smith.

        17                      SENATOR SMITH:  No.

        18                      THE SECRETARY:  Senator Solomon.

        19                      SENATOR SOLOMON:  No.

        20                      THE SECRETARY:  Senator Spano.

        21                      SENATOR SPANO:  Aye.

        22                      THE SECRETARY:  Senator

        23       Stachowski.











                                                             
1167

         1                      SENATOR STACHOWSKI:  No.

         2                      THE SECRETARY:  Senator

         3       Stafford.

         4                      SENATOR STAFFORD:  Aye.

         5                      THE SECRETARY:  Senator

         6       Stavisky.

         7                      SENATOR STAVISKY:  No.

         8                      THE SECRETARY:  Senator Trunzo.

         9                      SENATOR TRUNZO:  Yes.

        10                      THE SECRETARY:  Senator Tully.

        11                      SENATOR TULLY:  Aye.

        12                      THE SECRETARY:  Senator Velella.

        13                      SENATOR VELELLA:  Mr. President

        14       briefly to explain my vote.

        15                      ACTING PRESIDENT KUHL:  Senator

        16       Velella to explain his vote.

        17                      SENATOR VELELLA:  I generally

        18       don't explain my vote, and I regret at this late

        19       hour when we have other things to do that I have

        20       to, but I think we owe to Ambassador Gargano a

        21       very clear statement from the Senate tonight

        22       that despite the fact that for hours he was

        23       grilled by committees, in spite of the fact that











                                                             
1168

         1       for hours he was talked about on the floor of

         2       the Senate not one member who opposed his vote

         3       has cited a reason to vote against him

         4       reflecting on his integrity, his honesty, his

         5       qualifications for the office.

         6                      I asked Senator Gold during our

         7       debate, "Give me the reason," and again all we

         8       heard was innuendos, questions raised and

         9       political tones that were used to certainly

        10       reflect that he raised a lot of money for his

        11       party.

        12                      Well, certainly I believe that

        13       the record should be clear at this late hour

        14       when most of the press is gone and will write a

        15       story that his nomination had difficulty in the

        16       Senate, I hope that someone will remember that

        17       in the course of the debate not one word was

        18       said reflecting on this man's integrity or

        19       ability to serve in this office.

        20                      So I proudly vote to confirm the

        21       nominee.

        22                      ACTING PRESIDENT KUHL:  Senator

        23       Velella in the affirmative.











                                                             
1169

         1                      Secretary will continue the roll.

         2                      THE SECRETARY:  Senator Volker.

         3                      SENATOR VOLKER:  Yes.

         4                      THE SECRETARY:  Senator Waldon.

         5                      SENATOR WALDON:  To explain my

         6       vote.

         7                      ACTING PRESIDENT KUHL:  Senator

         8       Waldon to explain his vote.

         9                      SENATOR WALDON:  Thank you very

        10       much, Mr. President.

        11                      To Ambassador Gargano and his

        12       family, I want the record to be very clear that

        13       anything that I said in regard to this process

        14       was not personal.  I want you to know very

        15       clearly that it is just part of the process.

        16       This is a political process, and it is my desire

        17       as a participant of 61 that I be accorded the

        18       same respect as my Republican colleagues, I be

        19       accorded the same information as my Republican

        20       colleagues wherever possible.

        21                      This is not directed toward you,

        22       my actions, nor your family nor your history as

        23       a very successful person.  I want you to also











                                                             
1170

         1       know that as part of this process, once you are

         2       confirmed, that no one will work more diligently

         3       with you than myself and my staff because it is

         4       necessary in the service of the 300,000 people

         5       from the southeastern corner of Queens that I do

         6       that.  It is the mandate when they send me to

         7       this office.

         8                      Equally important is the mandate

         9       that I raise concerns which I feel are moral

        10       imperatives; and to be outside of the loop of

        11       information which would allow me to make a very

        12       valid decision in regard to your candidacy, I

        13       was not included within that loop; therefore,

        14       this process today.

        15                      Thank you very much, Mr.

        16       President, for your indulgence.

        17                      ACTING PRESIDENT KUHL:  Senator

        18       Waldon how do you vote?

        19                      SENATOR WALDON:  (Indicating no.)

        20                      ACTING PRESIDENT KUHL:  Senator

        21       Waldon in the negative.

        22                      Secretary will continue the roll.

        23                      THE SECRETARY:  Senator Wright.











                                                             
1171

         1                      SENATOR WRIGHT:  Aye.

         2                      ACTING PRESIDENT KUHL:  Secretary

         3       will call the absentees.

         4                      THE SECRETARY:  Senator Babbush.

         5                      (There was no response.)

         6                      Senator Hannon.

         7                      (There was no response.)

         8                      Senator Markowitz.

         9                      (There was no response.)

        10                      Senator Santiago.

        11                      (There was no response.)

        12                      ACTING PRESIDENT KUHL:  Announce

        13       the results when tabulated.

        14                      THE SECRETARY:  Ayes 36.  Nays

        15       18.

        16                      ACTING PRESIDENT KUHL:  The

        17       nomination of Charles A. Gargano to positions of

        18       Economic Development and also Director and

        19       President of New York State Urban Development

        20       Corporation are confirmed.

        21                      Congratulations.

        22                      (Standing ovation.)

        23                      Senator Bruno, earlier today











                                                             
1172

         1       there was a Third Reading Calendar reported as

         2       Calendar Number 100, Senate Print 2241.  The

         3       bill was temporarily laid aside.

         4                      What is your desire with regard

         5       to that?

         6                      SENATOR BRUNO:  Mr. President.

         7       Would you lay that bill aside.

         8                      ACTING PRESIDENT KUHL:  The bill

         9       is laid aside.

        10                      SENATOR BRUNO:  For the day.

        11                      ACTING PRESIDENT KUHL:  For the

        12       day.

        13                      Senator Bruno.

        14                      SENATOR BRUNO:  And there being

        15       no further business to come before the Senate, I

        16       would -- we have announcements to be made when

        17       we finish this one by Senator Larkin.

        18                      ACTING PRESIDENT KUHL:  Chair

        19       recognizes Senator Larkin for an announcement.

        20                      SENATOR LARKIN:  Mr. President.

        21       There will be a meeting off the floor tomorrow

        22       of the Local Government Committee on one bill.

        23       It will be called as soon as we arrive at











                                                             
1173

         1       session.

         2                      ACTING PRESIDENT KUHL:  There

         3       will be a Local Government Committee meeting off

         4       the floor tomorrow.

         5                      SENATOR BRUNO:  There are budget

         6       hearings tonight until 9:00 o'clock I'm informed

         7       by Senator Stafford; and since the weather

         8       forecasts are for inclement weather later

         9       tomorrow, Mr. President, it might be appropriate

        10       to start our session at 10:00 sharp tomorrow

        11       because we have a busy schedule.  Ten o'clock

        12       sharp, a.m., tomorrow.

        13                      Thank you, Mr. President.  I move

        14       we adjourn.

        15                      ACTING PRESIDENT KUHL:  Without

        16       objection, Senate stands adjourned until

        17       tomorrow, Wednesday, at 10:00 a.m.

        18                      (Whereupon, at 7:02 p.m., Senate

        19       adjourned.)

        20

        21

        22

        23