Regular Session - June 2, 1995

                                                                 
7313

         1

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         8                       ALBANY, NEW YORK

         9                         June 2, 1995

        10                           10:05 a.m.

        11

        12

        13                       REGULAR SESSION

        14

        15

        16

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

        18       STEPHEN F. SLOAN, Secretary

        19

        20

        21

        22

        23











                                                             
7314

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

         2                      ACTING PRESIDENT KUHL:  The

         3       Senate will come to order.  Ask the members to

         4       find their places, the staff to find their

         5       places.  Ask everybody in the chamber to rise

         6       and join with me in saying the Pledge of

         7       Allegiance to the Flag.

         8                      (The assemblage repeated the

         9       Pledge of Allegiance to the Flag.)

        10                      In the absence of clergy, may we

        11       bow our heads in a moment of silence.

        12                      (A moment of silence was

        13       observed.)

        14                      Senator Bruno, it's my

        15       understanding you'd like to have a quorum call.

        16                      SENATOR BRUNO:  Mr. President,

        17       can we at this time have a roll call?  I would

        18       like to know who is in the chamber and who is

        19       not.

        20                      ACTING PRESIDENT KUHL:  At the

        21       request of the Majority Leader, the Secretary

        22       will call the roll, announce whether the members

        23       are present or absent.











                                                             
7315

         1                      THE SECRETARY:  Senator Abate.

         2                      SENATOR ABATE:  Here.

         3                      THE SECRETARY:  Senator Babbush.

         4                      (There was no response.)

         5                      Senator Bruno.

         6                      SENATOR BRUNO:  Here.

         7                      THE SECRETARY:  Senator Connor.

         8                      (Affirmative indication.)

         9                      THE SECRETARY:  Senator Cook.

        10                      (There was no response.)

        11                      Senator DeFrancisco.

        12                      SENATOR DeFRANCISCO:  Here.

        13                      THE SECRETARY:  Senator DiCarlo.

        14                      SENATOR DiCARLO:  Here.

        15                      THE SECRETARY:  Senator

        16       Dollinger.

        17                      (There was no response.)

        18                      Senator Espada.

        19                      (There was no response.)

        20                      Senator Farley.

        21                      (Affirmative indication.)

        22                      THE SECRETARY:  Senator Galiber.

        23                      (There was no response.)











                                                             
7316

         1                      Senator Gold.

         2                      (There was no response.)

         3                      Senator Gonzalez.

         4                      (There was no response.)

         5                      Senator Goodman.

         6                      (There was no response.)

         7                      Senator Hannon.

         8                      (There was no response.)

         9                      Senator Hoblock.

        10                      (There was no response.)

        11                      Senator Hoffmann.

        12                      (There was no response.)

        13                      Senator Holland.

        14                      SENATOR HOLLAND:  Here.

        15                      THE SECRETARY:  Senator Johnson.

        16                      (There was no response.)

        17                      Senator Jones.

        18                      SENATOR JONES:  Here.

        19                      THE SECRETARY:  Senator Kruger.

        20                      (There was no response.)

        21                      Senator Kuhl.

        22                      SENATOR KUHL:  Present.

        23                      THE SECRETARY:  Senator Lack.











                                                             
7317

         1                      (There was no response.)

         2                      Senator Larkin.

         3                      SENATOR LARKIN:  Here.

         4                      THE SECRETARY:  Senator LaValle.

         5                      (There was no response.)

         6                      Senator Leibell.

         7                      SENATOR LEIBELL:  Here.

         8                      THE SECRETARY:  Senator Leichter.

         9                      (There was no response.)

        10                      Senator Levy.

        11                      (There was no response.)

        12                      Senator Libous.

        13                      SENATOR LIBOUS:  Here.

        14                      THE SECRETARY:  Senator Maltese.

        15                      (There was no response.)

        16                      Senator Marcellino.

        17                      SENATOR MARCELLINO:  Here.

        18                      THE SECRETARY:  Senator Marchi.

        19                      SENATOR MARCHI:  Present.

        20                      THE SECRETARY:  Senator

        21       Markowitz.

        22                      (There was no response.)

        23                      Senator Maziarz.











                                                             
7318

         1                      SENATOR MAZIARZ:  Present.

         2                      THE SECRETARY:  Senator Mendez.

         3                      (There was no response.)

         4                      Senator Montgomery.

         5                      (There was no response.)

         6                      Senator Nanula.

         7                      (There was no response.)

         8                      Senator Nozzolio.

         9                      SENATOR NOZZOLIO:  Present.

        10                      THE SECRETARY:  Senator Onorato.

        11                      SENATOR ONORATO:  To explain my

        12       presence, Mr. President.

        13                      (Laughter.)

        14                      THE SECRETARY:  Senator

        15       Oppenheimer.

        16                      (There was no response.)

        17                      Senator Padavan.

        18                      SENATOR PADAVAN:  Here.

        19                      THE SECRETARY:  Senator Paterson.

        20                      SENATOR PATERSON:  Here.

        21                      THE SECRETARY:  Senator Present.

        22                      SENATOR PRESENT:  Here.

        23                      THE SECRETARY:  Senator Rath.











                                                             
7319

         1                      SENATOR RATH:  Here.

         2                      THE SECRETARY:  Senator Saland.

         3                      (There was no response.)

         4                      Senator Santiago.

         5                      (There was no response.)

         6                      Senator Sears.

         7                      SENATOR SEARS:  Present.

         8                      THE SECRETARY:  Senator Seward.

         9                      (There was no response.)

        10                      Senator Skelos.

        11                      (There was no response.)

        12                      Senator Smith.

        13                      (There was no response.)

        14                      Senator Solomon.

        15                      (There was no response.)

        16                      Senator Spano.

        17                      (There was no response.)

        18                      Senator Stachowski.

        19                      (There was no response.)

        20                      Senator Stafford.

        21                      SENATOR STAFFORD:  Here.

        22                      THE SECRETARY:  Senator Stavisky.

        23                      (There was no response.)











                                                             
7320

         1                      Senator Trunzo.

         2                      SENATOR TRUNZO:  Here.

         3                      THE SECRETARY:  Senator Tully.

         4                      SENATOR TULLY:  Here.

         5                      THE SECRETARY:  Senator Velella.

         6                      (There was no response.)

         7                      Senator Volker.

         8                      SENATOR VOLKER:  Here.

         9                      THE SECRETARY:  Senator Waldon.

        10                      (There was no response.)

        11                      Senator Wright.

        12                      SENATOR WRIGHT:  Present.

        13                      SENATOR LAVALLE:  Mr. President.

        14                      ACTING PRESIDENT KUHL:  Senator

        15       LaValle, why do you rise?

        16                      SENATOR LAVALLE:  May I ask my

        17       name be called, please?

        18                      ACTING PRESIDENT KUHL:  The

        19       Secretary will call -

        20                      THE SECRETARY:  Senator LaValle.

        21                      SENATOR LAVALLE:  Here.

        22                      ACTING PRESIDENT KUHL:  The

        23       Secretary will call the absentees.











                                                             
7321

         1                      THE SECRETARY:  Senator Babbush.

         2                      (There was no response.)

         3                      Senator Cook.

         4                      (There was no response.)

         5                      Senator Dollinger.

         6                      (There was no response.)

         7                      Senator Espada.

         8                      (There was no response.)

         9                      Senator Galiber.

        10                      (There was no response.)

        11                      Senator Gold.

        12                      (There was no response.)

        13                      Senator Gonzalez.

        14                      (There was no response.)

        15                      Senator Goodman.

        16                      (There was no response.)

        17                      Senator Hannon.

        18                      (There was no response.)

        19                      Senator Hoblock.

        20                      SENATOR HOBLOCK:  Here.

        21                      THE SECRETARY:  Senator Hoffmann.

        22                      (There was no response.)

        23                      Senator Johnson.











                                                             
7322

         1                      (There was no response.)

         2                      Senator Kruger.

         3                      (There was no response.)

         4                      Senator Lack.

         5                      (There was no response.)

         6                      Senator Leichter.

         7                      (There was no response.)

         8                      Senator Levy.

         9                      (There was no response.)

        10                      Senator Maltese.

        11                      (There was no response.)

        12                      Senator Markowitz.

        13                      (There was no response.)

        14                      Senator Mendez.

        15                      (There was no response.)

        16                      Senator Montgomery.

        17                      (There was no response.)

        18                      Senator Nanula.

        19                      (There was no response.)

        20                      Senator Oppenheimer.

        21                      (There was no response.)

        22                      Senator Saland.

        23                      (There was no response.)











                                                             
7323

         1                      Senator Santiago.

         2                      (There was no response.)

         3                      Senator Seward.

         4                      (There was no response.)

         5                      Senator Skelos.

         6                      (There was no response.)

         7                      Senator Smith.

         8                      (Affirmative indication.)

         9                      THE SECRETARY:  Senator Solomon.

        10                      (There was no response.)

        11                      Senator Spano.

        12                      SENATOR SPANO:  Present.

        13                      THE SECRETARY:  Senator

        14       Stachowski.

        15                      (Affirmative indication.)

        16                      Senator Stavisky.

        17                      (There was no response.)

        18                      Senator Velella.

        19                      SENATOR VELELLA:  Here.

        20                      THE SECRETARY:  Senator Waldon.

        21                      (There was no response.)

        22                      ACTING PRESIDENT KUHL:  Senator

        23       Bruno, there is a quorum present.











                                                             
7324

         1                      Reading of the Journal.

         2                      SENATOR BRUNO:  Mr. President,

         3       yes.  Can we proceed with the business in the

         4       regular order; and I just want to say thank you

         5       to the members that are here in the chamber at

         6       10:00 o'clock this morning.  Many of the people

         7       have been involved and working all night to do

         8       the people's work, and I just want to commend

         9       those members that are here, and I want to

        10       remind everyone else that isn't here that their

        11       responsibility is to be in the chamber at the

        12       appointed hours.

        13                      Thank you, Mr. President.

        14                      ACTING PRESIDENT KUHL:  The

        15       reading of the Journal.

        16                      THE SECRETARY:  In Senate,

        17       Thursday, June 1st.  The Senate met pursuant to

        18       adjournment, Senator Kuhl in the Chair upon

        19       designation of the Temporary President.  The

        20       Journal of Wednesday, May 31st, was read and

        21       approved.  On motion, the Senate adjourned.

        22                      ACTING PRESIDENT KUHL:  Hearing

        23       no objection, the Journal stands approved as











                                                             
7325

         1       read.

         2                      Presentation of petitions.

         3                      Messages from the Assembly.

         4                      Messages from the Governor.

         5                      Reports of standing committees.

         6                      Reports of select committees.

         7                      Communications and reports from

         8       state officers.

         9                      Motions and resolutions.

        10                      The Chair recognizes Senator

        11       Farley.

        12                      SENATOR FARLEY:  On behalf of

        13       Senator Stafford, would you please remove the

        14       sponsor's star from Calendar 660.

        15                      ACTING PRESIDENT KUHL:  At the

        16       request of the sponsor, the star will be removed

        17       on Calendar 660.

        18                      SENATOR FARLEY:  On behalf of

        19       Senator Velella, on page 42, I offer the

        20       following amendments to Calendar 221, Senate

        21       Print 2442 and I ask that this bill retain its

        22       place on the Third Reading Calendar.

        23                      ACTING PRESIDENT KUHL:  The











                                                             
7326

         1       amendments to Calendar Number 221 are received

         2       and adopted.  The bill will retain its place on

         3       the Third Reading Calendar.

         4                      The Chair recognizes Senator

         5       Bruno.

         6                      SENATOR BRUNO:  Mr. President,

         7       can we at this time take up the non

         8       controversial calendar.

         9                      ACTING PRESIDENT KUHL:  The

        10       Secretary will read the non-controversial

        11       calendar.

        12                      THE SECRETARY:  On page 11,

        13       Calendar Number 402, by Senator Kuhl, Senate

        14       Print 2314, an act to amend the General

        15       Obligations Law, in relation to the liability

        16       for negligence of owners or operators of pools.

        17                      ACTING PRESIDENT KUHL:  The

        18       Secretary -

        19                      SENATOR PATERSON:  Lay it aside,

        20       please.

        21                      ACTING PRESIDENT KUHL:  Lay the

        22       bill aside.

        23                      THE SECRETARY:  Calendar Number











                                                             
7327

         1       573, by Senator Levy, Senate Print 392-A, an act

         2       to amend the Transportation Law, in relation to

         3       requiring common rail carriers to adopt

         4       hazardous materials emergency preparedness

         5       plans.

         6                      ACTING PRESIDENT KUHL:  The

         7       Secretary will read the last section.

         8                      THE SECRETARY:  Section 3.  This

         9       act shall take effect on the 30th day.

        10                      ACTING PRESIDENT KUHL:  Call the

        11       roll.

        12                      (The Secretary called the roll.)

        13                      THE SECRETARY:  Ayes 37.

        14                      ACTING PRESIDENT KUHL:  The bill

        15       is passed.

        16                      THE SECRETARY:  Calendar Number

        17       594, by Senator Saland, Senate Print 2595, an

        18       act to amend the Social Services Law, in

        19       relation to criminal screening of child day care

        20       providers.

        21                      ACTING PRESIDENT KUHL:  The

        22       Secretary will read the last section.

        23                      THE SECRETARY:  Section 6.  This











                                                             
7328

         1       act shall take effect on the 120th day.

         2                      ACTING PRESIDENT KUHL:  Call the

         3       roll.

         4                      (The Secretary called the roll.)

         5                      ACTING PRESIDENT KUHL:  Announce

         6       the results when tabulated.

         7                      THE SECRETARY:  Ayes 36, nays 1,

         8       Senator Kuhl recorded in the negative.

         9                      ACTING PRESIDENT KUHL:  The bill

        10       is passed.

        11                      THE SECRETARY:  Calendar Number

        12       734, by Senator Hoblock, Senate Print 4211, an

        13       act to amend the Alcoholic Beverage Control Law

        14       and others, in relation to compensatory service.

        15                      ACTING PRESIDENT KUHL:  The

        16       Secretary will read the last section.

        17                      THE SECRETARY:  Section 8.  This

        18       act shall take effect on the first day of

        19       January.

        20                      ACTING PRESIDENT KUHL:  Call the

        21       roll.

        22                      (The Secretary called the roll.)

        23                      THE SECRETARY:  Ayes 37.











                                                             
7329

         1                      ACTING PRESIDENT KUHL:  The bill

         2       is passed.

         3                      THE SECRETARY:  Calendar Number

         4       804, by Senator DiCarlo, Senate Print 4687, an

         5       act to amend the Executive Law, in relation to

         6       increasing the income eligibility level by

         7       persons employed by Green Thumb Environmental

         8       Beautification, Incorporated.

         9                      ACTING PRESIDENT KUHL:  The

        10       Secretary will read the last section.

        11                      THE SECRETARY:  Section 2.  This

        12       act shall take effect immediately.

        13                      ACTING PRESIDENT KUHL:  Call the

        14       roll.

        15                      (The Secretary called the roll.)

        16                      THE SECRETARY:  Ayes 37.

        17                      ACTING PRESIDENT KUHL:  The bill

        18       is passed.

        19                      THE SECRETARY:  Calendar Number

        20       870, by Senator Levy, Senate Print 4857, an act

        21       to amend the Vehicle and Traffic Law, in

        22       relation to increasing fines associated with

        23       passing school buses that are stopped to receive











                                                             
7330

         1       or discharge passengers.

         2                      ACTING PRESIDENT KUHL:  The

         3       Secretary will read the last section.

         4                      THE SECRETARY:  Section 3.  This

         5       act shall take effect on the first day of

         6       November.

         7                      ACTING PRESIDENT KUHL:  Call the

         8       roll.

         9                      (The Secretary called the roll.)

        10                      THE SECRETARY:  Ayes 38.

        11                      ACTING PRESIDENT KUHL:  The bill

        12       is passed.

        13                      THE SECRETARY:  Calendar Number

        14       950, by Senator Saland, Senate Print 3475 -

        15                      SENATOR PATERSON:  Lay it aside.

        16                      ACTING PRESIDENT KUHL:  Lay the

        17       bill aside at the request of the Acting Minority

        18       Leader, Senator Paterson.

        19                      THE SECRETARY:  Calendar Number

        20       951, by Senator Skelos, Senate Print 3612, an

        21       act to amend the Domestic Relations Law, the

        22       Criminal Procedure Law and the Family Court Act,

        23       in relation to imposing a mandatory surcharge











                                                             
7331

         1       upon issuance of certain orders of protection.

         2                      ACTING PRESIDENT KUHL:  The

         3       Secretary will read the last section.

         4                      THE SECRETARY:  Section 11.  This

         5       act shall take effect on the first day of

         6       November.

         7                      ACTING PRESIDENT KUHL:  Call the

         8       roll.

         9                      (The Secretary called the roll.)

        10                      THE SECRETARY:  Ayes 41.

        11                      ACTING PRESIDENT KUHL:  The bill

        12       is passed.

        13                      THE SECRETARY:  Calendar Number

        14       952, by Senator Saland, Senate Print 3953-A, an

        15       act to amend the Family Court Act and the Civil

        16       Practice Law and Rules, in relation to

        17       jurisdiction over non-residents in cases in

        18       which orders of protection are sought.

        19                      ACTING PRESIDENT KUHL:  The

        20       Secretary will read the last section.

        21                      THE SECRETARY:  Section 3.  This

        22       act shall take effect in 90 days.

        23                      ACTING PRESIDENT KUHL:  Call the











                                                             
7332

         1       roll.

         2                      (The Secretary called the roll.)

         3                      THE SECRETARY:  Ayes 41.

         4                      ACTING PRESIDENT KUHL:  The bill

         5       is passed.

         6                      THE SECRETARY:  Calendar Number

         7       953, by Senator Saland, Senate Print 4013, an

         8       act to amend the Family Court Act, in relation

         9       to law guardian representation.

        10                      ACTING PRESIDENT KUHL:  The

        11       Secretary will read the last section.

        12                      THE SECRETARY:  Section 2.  This

        13       act shall take effect immediately.

        14                      ACTING PRESIDENT KUHL:  Call the

        15       roll.

        16                      (The Secretary called the roll.)

        17                      THE SECRETARY:  Ayes 42.

        18                      ACTING PRESIDENT KUHL:  The bill

        19       is passed.

        20                      Senator Bruno, that completes the

        21       non-controversial calendar.  What's your

        22       pleasure?

        23                      SENATOR BRUNO:  Mr. President,











                                                             
7333

         1       can we at this time take up the controversial

         2       calendar.

         3                      ACTING PRESIDENT KUHL:  The

         4       Secretary will -- the Secretary will call the

         5       controversial calendar.

         6                      THE SECRETARY:  On page 11,

         7       Calendar Number 402, by Senator Kuhl, Senate

         8       Print 2314, an act to amend the General

         9       Obligations Law, in relation to the liability

        10       for negligence of owners or operators of pools.

        11                      SENATOR PATERSON:  Explanation.

        12                      ACTING PRESIDENT DeFRANCISCO:

        13       Read the last section.

        14                      SENATOR PATERSON:  Explanation.

        15                      ACTING PRESIDENT DeFRANCISCO:

        16       I'm sorry.  Explanation, Senator Kuhl.

        17                      SENATOR KUHL:  Thank you, Mr.

        18       President.

        19                      This is a bill that we passed in

        20       substance last year.  The Assembly passed the

        21       bill last year and the Governor vetoed the bill

        22       last year, and so things have changed a little

        23       bit and we're bringing it back again for another











                                                             
7334

         1       look.

         2                      This is a bill that essentially

         3       clarifies a situation that exists in New York as

         4       a result of a court decision as it relates to

         5       liability waivers that are signed by

         6       participants in racetrack operations.

         7                      In my district, we have a fairly

         8       well-known racetrack by the name of Watkins Glen

         9       International which holds a series of races

        10       throughout the summer.  Probably the most famous

        11       one that's held currently is the NASCAR race

        12       which is held in August, and what we have found

        13       is that, as a result of a court decision,

        14       there's some question as to whether or not the

        15       racetrack remains liable for some -- some types

        16       of negligence irregardless of the responsibility

        17       of the racetrack and irregardless of the -- or I

        18       should say, regardless of whether or not there

        19       was a waiver signed by participants.

        20                      This bill would straighten that

        21       whole concept out and it would make the signing

        22       of a waiver releasing the racetrack from

        23       liability true and irrevocable.











                                                             
7335

         1                      ACTING PRESIDENT DeFRANCISCO:

         2       Senator Paterson.

         3                      SENATOR PATERSON:  Would the

         4       Senator yield for a question?

         5                      ACTING PRESIDENT DeFRANCISCO:

         6       Would Senator Kuhl yield?

         7                      SENATOR KUHL:  Yes.

         8                      ACTING PRESIDENT DeFRANCISCO:  He

         9       will.

        10                      SENATOR PATERSON:  Senator, those

        11       mechanics or employees who, in a sense, waive

        12       their right, are you saying that they are now

        13       taking the assumption of the risk; in other

        14       words, that they know what the risk is and they

        15       are volunteering to take it, therefore, making

        16       the owner not liable?

        17                      SENATOR KUHL:  In the general

        18       sense, Senator Paterson, that's true.  This bill

        19       does not exempt the racetrack owner from

        20       liability as a result of will... wanton,

        21       willful, gross negligence on behalf of the

        22       owner.  So there still is the same basic premise

        23       of liability that exists currently in New York











                                                             
7336

         1       for most participants.

         2                      What this simply says is that

         3       where there is not gross, willful, wanton

         4       negligence on behalf of the racetrack owner,

         5       there would be no liability.

         6                      ACTING PRESIDENT DeFRANCISCO:

         7       Senator Paterson.

         8                      SENATOR PATERSON:  Thank you, Mr.

         9       President.

        10                      If Senator Kuhl would yield for

        11       another question?

        12                      SENATOR KUHL:  Yes.

        13                      SENATOR PATERSON:  So, in other

        14       words, even if you have a waiver, if you can

        15       prove that there was wanton or gross negligence

        16       on the part of the owner, then there would still

        17       be damages that could be sought because of the

        18       extent of the negligence?

        19                      SENATOR KUHL:  That's my

        20       understanding, Senator, yes.

        21                      SENATOR PATERSON:  Now, as I

        22       understand it, Senator, that is a higher

        23       standard of negligence.  In other words, that is











                                                             
7337

         1       almost to the point of being a reckless -- not a

         2       deliberate, but certainly where the reasonable

         3       person should have known that this could create

         4       the kind of harm that it will, which legally, as

         5       you know, is a -- is a harder case to actually

         6       prove.

         7                      What was it that -- about the

         8       simple negligence that often exists in other

         9       tort liability cases that in this case was

        10       creating a problem for the owner?  Was it that

        11       there were a number of frivolous lawsuits or a

        12       number of cases where it could be assumed that

        13       actually the victim or the alleged victim was

        14       contributory or should have known that this was

        15       a possible result?

        16                      ACTING PRESIDENT DeFRANCISCO:

        17       Senator Kuhl.

        18                      SENATOR KUHL:  Well, Senator

        19       Paterson, I don't know as there was any one

        20       issue that triggered this particular approach to

        21       resolving a potential problem and -- a problem,

        22       but I could tell you that, as you probably are

        23       familiar, if you surf the TV on the weekend like











                                                             
7338

         1       I do looking for the most exciting sports event,

         2       you know that practically every weekend there is

         3       a NASCAR race or some sort of an automobile race

         4       in some place across the country.

         5                      Watkins Glen International

         6       participates in this NASCAR series.  They have

         7       one weekend event of several events.  As you

         8       know, there is a championship NASCAR series and

         9       you have to win -- I don't know whether it's 20

        10       or 25 or accumulate the most points over the

        11       year to secure that championship.

        12                      What happens is that these people

        13       who participate, they're trained professionals.

        14       They are drivers.  They are the pit crew.  These

        15       are people who do this for a living day in and

        16       day out.  They assume the risk.  They know what

        17       the risk is.

        18                      A couple of years ago, we had a

        19       racetrack driver who was killed at Watkins

        20       Glen.  He lost control in a corner, went

        21       through, hit the wall and died.  The racetrack

        22       doesn't feel that there was any liability on

        23       their part, but yet they are being sued by the











                                                             
7339

         1       estate.  They have done nothing.  The owner -

         2       the driver certainly knew what existed, and so

         3       there was a lawsuit that was brought about as a

         4       result of that.  That creates a potential

         5       liability, number one, but also it creates a

         6       situation where there are many, many, many

         7       dollars spent by the racetrack personnel, and

         8       actually they subject that track to potential

         9       closure.

        10                      So what this bill essentially

        11       does is say, "Look, if you're going to

        12       participate in the sport, you understand what

        13       the risk is, then fine, but let's leave it at

        14       that.  Let's not open the whole situation up to

        15       potential liability and to financial

        16       bankruptcy."

        17                      So that's what this bill attempts

        18       to do.  It says, Okay.  Look, if you're going to

        19       participate in this sport, understand the

        20       sport.  There are certain risks in driving race

        21       cars at 150, 200, 250 miles an hour, you know

        22       there's a potential for disastrous results, but

        23       if you don't want to risk that, then don't











                                                             
7340

         1       participate, but if you are going to participate

         2       and you sign a waiver saying,"Okay.  We, in

         3       fact, forgive the track from anything other than

         4       willful, wanton or gross negligence, then don't

         5       hold us liable for that later on."  That's what

         6       this bill is all about.

         7                      ACTING PRESIDENT DeFRANCISCO:

         8       Senator Paterson.

         9                      SENATOR PATERSON:  Thank you very

        10       much, Senator.

        11                      Mr. President, on the bill.  I

        12       think actually the example that Senator Kuhl

        13       gave is a very good example of why a bill such

        14       as this would actually be written.  What he's

        15       actually saying is that in these types of cases,

        16       this is a standard of professionalism,

        17       unfortunately, and it may sound a little tragic

        18       or a little morbid, there's an expectation that

        19       there are a certain number of accidents in

        20       certain sports such as auto racing, boxing and a

        21       few other sports, and that in the cases where,

        22       unfortunately, the tragedy occurs on these

        23       premises, it is generally understood that it is











                                                             
7341

         1       really the -- the high degree of risk from the

         2       actual sport, not any negligence of the facility

         3       that causes the unfortunate situation.

         4                      What we're saying is that, in a

         5       sense, the legislation may be somewhat over

         6       broad to the extent that in these sort of

         7       situations, we would prefer that they be handled

         8       on a case by case basis, rather than sort of an

         9       umbrella over-reaching determination that there

        10       is no negligence or no liability.

        11                      Further, I would just want to add

        12       that what may be helpful is if the facilities

        13       are, in a sense, mandated by the legislation to

        14       keep records of the accidents that occur, that

        15       at a later date might enable us to make a more

        16       proper determination as to whether or not

        17       Senator Kuhl's idea is actually one that should

        18       be put into law.

        19                      It's a good idea, but whether or

        20       not having a law that is as over-reaching would

        21       actually sustain the idea is a question that we

        22       would probably be able to answer better with a

        23       little more statistical data.











                                                             
7342

         1                      ACTING PRESIDENT DeFRANCISCO:

         2       Read -- Senator Leichter.

         3                      SENATOR LEICHTER:  Mr. President,

         4       if Senator Kuhl would yield?.

         5                      ACTING PRESIDENT DeFRANCISCO:

         6       Senator Kuhl, will you yield?

         7                      SENATOR KUHL:  I would be happy

         8       to.

         9                      SENATOR LEICHTER:  Senator, I

        10       fully agree with you on the assumption of risk,

        11       and I am offended, as you are -- maybe

        12       "offended" is a strong word -- people who go

        13       skiing, which we know is risky, then turn around

        14       after an accident and sue the slope operator; or

        15       yesterday, actually, I voted for Senator

        16       Holland's bill and I'm maybe being a little

        17       inconsistent in getting up and questioning you

        18       because I think that was pretty much the same

        19       thing about people who go horse riding.  Of

        20       course, we just read about the terrible accident

        21       that occurred to the actor Reeve.  So there has

        22       to be an appreciation, I think, of people who

        23       engage in somewhat dangerous activities or











                                                             
7343

         1       activities that have more than usual risk of an

         2       accident, that they've got to assume the risk.

         3                      What I'm a little concerned

         4       about, was bothering me as I listened to the

         5       accident that you gave, suppose in car racing,

         6       one of the ways that you manage the track is if

         7       there's an oil spill, you clean it up -- mind

         8       you, this is hypothetical.  I don't know much

         9       about car racing, but assume that to be the

        10       case.  Now assume that the track did not follow

        11       procedures that really every track ought to do

        12       after there's an oil spill; you clean it up.

        13       They left that oil there.  Along comes one of

        14       these race car drivers, 250 miles an hour, hits

        15       the slick, hits the wall, and the driver is

        16       killed.  So that there was clearly negligence,

        17       and while the driver ought to assume risks,

        18       should he assume the risk of the track leaving

        19       the oil and failing to clean it up?

        20                      Now, your answer may be, "Well,

        21       that's gross negligence", but I'm concerned that

        22       gross negligence really requires such a willful

        23       disregard of a person's safety that that example











                                                             
7344

         1       that I gave you may not be considered gross

         2       negligence.

         3                      I just wish you could sort of

         4       address your thoughts on that.

         5                      SENATOR KUHL:  Let -- let me -- I

         6       probably would say that, Senator, would be

         7       included in gross negligence and it would be

         8       recoverable on a lawsuit, but let me -- I don't

         9       think we even need to get to that answer

        10       because, if you understand how the whole track

        11       operation happens, you'll understand that that

        12       situation that you just posed would never happen

        13       because -- it does.  Okay.

        14                      The racetrack owner doesn't

        15       operate the race, that's number one.  If you

        16       have ever attended one of these races -- and I

        17       have had the good fortune to attend several of

        18       them because they are in my district -- you will

        19       understand that the organization that these

        20       racetrack drivers belong to, NASCAR, is totally

        21       in control of the whole operation.

        22                      Let me give you a for instance,

        23       okay?  Three years ago I was the grand marshall











                                                             
7345

         1       at Watkins Glen International, and as part of

         2       that operation we got into a little rain delay.

         3       I went up into the control center.  There was a

         4       fellow by the name of Bill LaFrance, who is a -

         5       very well known within that circle, who was

         6       there and was absolutely controlling the

         7       situation.  He was in communication with the

         8       lead driver talking about -- and they had

         9       control checks all the way around the track,

        10       about 24 of them, and talking with the race car

        11       driver as he we want around the track, saying,

        12       "What's the situation here?"  And the racetrack

        13       driver, of course, in the lead, he wants to run

        14       because he's burning gas, okay, and he wants to

        15       get this thing going.  He says, "Okay.  Now,

        16       what's the condition of the track?"   He said,

        17       "It's a little wet here, a little slippery

        18       here."  "Fine.  We can't go.  We can't go.  We

        19       can't go."

        20                      So the situation you're talking

        21       about would never really occur because the

        22       racetrack drivers themselves and the organi

        23       zation that runs that, the NASCAR organization,











                                                             
7346

         1       controls the whole operation.  The racetrack

         2       owner, Watkins Glen International, has

         3       absolutely no control in the operation of that

         4       race.

         5                      Now, keep in mind that these

         6       racetrack driver -- these race car drivers,

         7       okay, pay a fee to enter each one of these

         8       organizations -- each one of these events,

         9       okay?  So they are actually paying to enter, in

        10       return hopefully winning the big prize, getting

        11       the money back.  So they're participating, but

        12       they're also part of the whole operation of

        13       running the event.

        14                      So the liability of the racetrack

        15       owner really is secondary, and these drivers and

        16       the operation, they check everything out, so

        17       it's really only upon their authority that the

        18       situation goes on.  They call the caution

        19       flags.  They call and say, "Okay.  Now we're

        20       going to green.  We're going back on line," and

        21       it's only after thorough checking.

        22                      So the answer to your question

        23       really is kind of moot.  It's secondary because











                                                             
7347

         1       it really doesn't happen that way.

         2                      SENATOR LEICHTER:  Mr. President,

         3       if Senator Kuhl continues to yield.

         4                      SENATOR KUHL:  I would be happy

         5       to.

         6                      SENATOR LEICHTER:  I thank you

         7       for that explanation.

         8                      It just may be that I didn't give

         9       a good example, but -- and as you explain it,

        10       that maybe the race car driver where an accident

        11       like that occurs or assuming whoever is running

        12       the race -- and it may be an association that he

        13       belongs to, but disregarding that example that I

        14       gave you and maybe just focusing on the -- on -

        15       on -- on the question absent an example, where

        16       there occurs an act which is not in accordance

        17       with the customary and the proper operation of a

        18       track or of a race, are we saying that every

        19       driver has to assume that risk?  I think he

        20       ought to assume the risk.  "Hey, I'm engaged in

        21       something very dangerous and something may

        22       happen."  Does he also have to assume the risk

        23       that somebody fails to carry out a proper -











                                                             
7348

         1       proper care and fails to -- fails to carry out

         2       the duty that whoever it is that's running the

         3       race has to -- all the drivers and all the

         4       people that are involved in it, of due care?

         5       That's the part that concerns me.

         6                      I think what you're really

         7       getting at is that as long as you allow the

         8       usual standard of negligence to apply, there's

         9       going to be so many lawsuits brought that it

        10       really eliminates the whole assumption of risk,

        11       and maybe you're right and maybe for that reason

        12       we have to go with -- with a bill such as yours,

        13       but it does concern me somehow to say to

        14       somebody, "You've got to assume the risk," and

        15       whether that should also include that somebody

        16       fails to use a proper standard or meet a proper

        17       standard of care.

        18                      SENATOR KUHL:  Senator, this is

        19       not novel legislation, first of all.

        20                      SENATOR LEICHTER:  I know.

        21                      SENATOR KUHL:  There are 12 other

        22       states who have adopted this already who are in

        23       the race car business, but -- see, I think of











                                                             
7349

         1       this as, okay, here's a ballgame -- and I don't

         2       mean that in the literal sense, but I mean

         3       here's an event that is kind of picking itself

         4       up and going from one spot to another, to

         5       another, to another throughout the course of a

         6       year.  They control it.  They control the

         7       distribution of the prizes.  They control who

         8       races.  They control everything; and what

         9       they're doing is they're coming in now and

        10       saying, "Fine.  We would like to use your spot

        11       because we know that's going to bring people in;

        12       it's going to create tourism; it's going to

        13       create jobs, and the list goes on and on and on;

        14       and then they say, "Well, if something goes

        15       wrong, we're going to sue you," and what we're

        16       simply saying is, "We would love to have you and

        17       we'd love to have you sign the waivers freeing

        18       us from this negligence because you're running

        19       the whole operation and we can't control it and

        20       you won't let us control it."

        21                      And so what this bill simply does

        22       is now when you sign that waiver saying, "Okay.

        23       We'll come and play on your ball field.  We











                                                             
7350

         1       understand what it is.  We're going to tell you

         2       whether the blacktop is right, whether it's

         3       smooth, whether it needs to be coated, whether

         4       it needs this done", and they set all the

         5       rules.  They set all the rules.  If they're not

         6       in accordance with their requirements, they

         7       don't come, okay?

         8                      So now what we're saying is,

         9       "Okay, fine.  If you're going to come and

        10       you're going to set the rules, then just simply

        11       sign this little waiver and release us from the

        12       liability because of what you're doing and what

        13       you're not doing."

        14                      Now, if we do something willful,

        15       wanton, gross that you can't control, then fine,

        16       hold us liable; but if it's not that, then don't

        17       hold us liable.

        18                      So it's kind of like -- the

        19       situation that's occurring is that they've got

        20       the best of both worlds, and that, we think, is

        21       unfair; and so all we want is just some fairness

        22       and some protection knowing that, in fact, this

        23       event, a lawsuit is not going to occur because











                                                             
7351

         1       of something they did or something they didn't

         2       do, and if these people want to participate

         3       willingly and they sign this waiver, then the

         4       waiver ought to hold up, and that's what we're

         5       doing, just simply saying this waiver ought to

         6       hold up.

         7                      SENATOR LEICHTER:  You convinced

         8       me.

         9                      Thank you.

        10                      ACTING PRESIDENT DeFRANCISCO:

        11       Senator Paterson.

        12                      SENATOR PATERSON:  Would the

        13       grand marshall yield for a couple more

        14       questions?

        15                      ACTING PRESIDENT DeFRANCISCO:

        16       Senator Kuhl?

        17                      SENATOR KUHL:  Only if he's not

        18       going to drive the car.

        19                      (Laughter.)

        20                      SENATOR PATERSON:  Senator, we

        21       are ever presently being swayed by your

        22       arguments, and so I just have a couple of

        23       questions, because I think we're going to have











                                                             
7352

         1       something unique in the process.  I think you're

         2       actually changing people's minds here.

         3                      Does NASCAR have a standard -

         4       first of all, I would assume that the standard

         5       of care is -- is better achieved by the

         6       organizations that are holding the events than

         7       by the owner because since they do it so

         8       frequently, they would actually know in the

         9       hypothetical we were given, for instance, what

        10       the better track conditions would be, and

        11       pursuant to that, what I want to ask you is does

        12       NAS...

        13                      ACTING PRESIDENT DeFRANCISCO:

        14       Excuse me, Senator Paterson.  Can we have a

        15       little quiet in the chambers?

        16                      Thank you.

        17                      SENATOR PATERSON:  Does the -

        18       Senator Kuhl, does the NASCAR, for instance,

        19       have a standard of insurance that must be met by

        20       the employees or the individuals who travel and

        21       work at the -- at the races that they must reach

        22       to actually be involved in the process?

        23                      SENATOR KUHL:  I honestly don't











                                                             
7353

         1       know, Senator Paterson.  I have always assumed,

         2       yes, that the NASCAR provided an insurance

         3       policy for all their participants, but I can't

         4       give that verification to you from my personal

         5       knowledge.  I don't know.

         6                      SENATOR PATERSON:  They just

         7       called and said that they do, Senator, so I like

         8       the bill.

         9                      ACTING PRESIDENT DeFRANCISCO:

        10       Read the last section.

        11                      THE SECRETARY:  Section 2.  This

        12       act shall take effect immediately.

        13                      ACTING PRESIDENT DeFRANCISCO:

        14       Please call the roll.

        15                      (The Secretary called the roll.)

        16                      ACTING PRESIDENT DeFRANCISCO:

        17       Results.

        18                      THE SECRETARY:  Ayes 48.

        19                      ACTING PRESIDENT DeFRANCISCO:

        20       The bill is passed.

        21                      The Secretary will read.

        22                      THE SECRETARY:  Calendar Number

        23       950, by Senator Saland, Senate Print -











                                                             
7354

         1                      ACTING PRESIDENT DeFRANCISCO:

         2       Excuse me.  Excuse me.

         3                      Senator Velella.

         4                      SENATOR VELELLA:  At this time we

         5       would like to call an immediate meeting of the

         6       Rules Committee in Room 332.

         7                      ACTING PRESIDENT DeFRANCISCO:

         8       There will be an immediate meeting of the Rules

         9       Committee in Room 332.

        10                      SENATOR VELELLA:  Can we return

        11       to the regular order now?

        12                      ACTING PRESIDENT DeFRANCISCO:

        13       The Secretary will please read.

        14                      THE SECRETARY:  Calendar Number

        15       950, by Senator Saland, Senate Print 3475, an

        16       act to amend the Family Court Act and the

        17       Domestic Relations Law, in relation to service

        18       of temporary orders of protection.

        19                      SENATOR PATERSON:  Explanation.

        20                      ACTING PRESIDENT DeFRANCISCO:

        21       Explanation, Senator Saland.

        22                      SENATOR SALAND:  Thank you, Mr.

        23       President.











                                                             
7355

         1                      Mr. President, this bill modifies

         2       legislation that we enacted either last session

         3       or the prior session which required temporary

         4       orders of protection to be served by police or

         5       peace officers.  It appears that while we

         6       certainly intended to ensure service and

         7       efficient and effective service, what has

         8       occurred is statistically, according to the

         9       Office of Court Administration, the numbers of

        10       effective services have decreased.  The

        11       percentage of service of orders -- of temporary

        12       orders of protection has gone down.

        13                      What this bill attempts to do is

        14       to -- is to create, in effect, a hybrid system,

        15       one which still recognizes that there certainly

        16       are very appropriate circumstances under which

        17       service should only be made by law enforcement

        18       personnel and still enables, at the same time,

        19       an individual petitioner in this type of

        20       situation to also effectuate service.

        21                      It's hoped that this, again,

        22       hybrid system will bring back the numbers of

        23       effective services accomplished under the law.











                                                             
7356

         1                      ACTING PRESIDENT DeFRANCISCO:

         2       Senator Paterson.

         3                      SENATOR PATERSON:  Mr. President,

         4       would Senator Saland be willing to yield for a

         5       question?

         6                      ACTING PRESIDENT DeFRANCISCO:

         7       Senator Saland.

         8                      SENATOR SALAND:  Yes, Mr.

         9       President.

        10                      SENATOR PATERSON:  Senator

        11       Saland, does the victim have a choice of which

        12       of the three services that they might be

        13       seeking?

        14                      SENATOR SALAND:  I believe the

        15       language of the bill indicates that the victim

        16       would have the ability to choose which type of

        17       service.

        18                      SENATOR PATERSON:  Then, just in

        19       terms of -

        20                      SENATOR SALAND:  Let me call your

        21       attention on the first page of the bill to -- I

        22       believe it's lines 5 and 6.  It says -- 6 and 7

        23        -- "Unless the party requesting the order











                                                             
7357

         1       states on the record she will arrange for other

         2       means of service."  So it really would be at the

         3       request of the -- of the petitioner or

         4       applicant.

         5                      SENATOR PATERSON:  Okay.

         6                      ACTING PRESIDENT DeFRANCISCO:

         7       Senator Paterson.

         8                      SENATOR PATERSON:  If the Senator

         9       would yield for just one more question.

        10                      SENATOR SALAND:  Yes, Mr.

        11       President.

        12                      SENATOR PATERSON:  In terms of

        13       the timeliness of it, does the decision have to

        14       be made prior to the issuance of the order of

        15       protection?

        16                      SENATOR SALAND:  I'm not quite

        17       sure I follow your question.

        18                      SENATOR PATERSON:  In other

        19       words, do they have to pick which service

        20       they're going to allow to provide prior to the

        21       issue -- issuance of an order of protection?

        22                      SENATOR SALAND:  I would assume

        23       it would be done prior to the issuance of the











                                                             
7358

         1       order upon the application.  The section starts

         2       off by saying, "If a temporary order of

         3       protection has been issued or an order of

         4       protec... or an order of protection has been

         5       ordered upon default, unless the party

         6       requesting the order...."

         7                      So I would assume the request has

         8       to be made prior to the issuance in order for

         9       the court to make it part of its ruling.

        10                      SENATOR PATERSON:  The only

        11       reason that I asked the question, Senator, is it

        12       absolutely necessary, do you feel, to have the

        13       victim make that choice where the order of

        14       protection is really something that is a -- is a

        15       criminal justice remedy?  In other words, is it

        16       absolutely necessary that that decision be made

        17       prior to the issuance?

        18                      ACTING PRESIDENT DeFRANCISCO:

        19       Senator Saland.

        20                      SENATOR SALAND:  Well, what we're

        21       doing here is we're not amending the CPL

        22       section; we're amending the Family Court

        23       section, and what we're providing is a means by











                                                             
7359

         1       which the -- the applicant or petitioner will

         2       still have the ability to determine whether -

         3       in most cases, we're talking "she" -- whether

         4       she wants to effectuate service through law

         5       enforcement or whether she wants to adopt one of

         6       the alternative means.

         7                      The driving force behind this

         8       legislation, as I mentioned in my opening

         9       remarks, according to the Office of Court

        10       Administration, is the fact that since we've

        11       gone over to a system that relies virtually and

        12       entirely on service by law enforcement

        13       personnel, the number of orders -- the service

        14       of numbers of orders of protections -- orders of

        15       protection has dropped.

        16                      This is apparently a means by

        17       which the OCA believes that -- that we can

        18       accomplish greater numbers of effective services

        19       in these types of situations.

        20                      I don't see anything in this bill

        21       that's going to preclude the exercise of that

        22       discretion by the victim of -- who's seeking the

        23       order of protection.











                                                             
7360

         1                      ACTING PRESIDENT DeFRANCISCO:

         2       Senator Paterson.

         3                      SENATOR PATERSON:  I'm just

         4       wondering, Senator -- and I'm really wondering

         5       in a way not to be contentious, but I would just

         6       like to have your feeling on it -- if the fact

         7       that the number of orders has dropped is really

         8       such a good thing?

         9                      SENATOR SALAND:  In my own

        10       opinion, I would think that the fact that the

        11       number of services -- of orders has diminished

        12       is not a good thing, because I do not believe

        13       that it reflects a diminution in the number of

        14       these types of incidents that have occurred.  So

        15       I don't think it's a question of the base having

        16       dropped; I think it's a question of the numbers

        17       of orders that could have been served, not being

        18       served.  I couldn't -- in all fairness, Senator,

        19       I couldn't confirm that with hard data.

        20                      ACTING PRESIDENT DeFRANCISCO:

        21       Senator Paterson.

        22                      SENATOR PATERSON:  Thank you very

        23       much, Senator.











                                                             
7361

         1                      I just wanted to see how you felt

         2       about that.

         3                      ACTING PRESIDENT DeFRANCISCO:

         4       Please read the last section.

         5                      THE SECRETARY:  Section 3.  This

         6       act shall take effect on the 60th day.

         7                      ACTING PRESIDENT DeFRANCISCO:

         8       Call the roll.

         9                      (The Secretary called the roll.)

        10                      THE SECRETARY:  Ayes 49.

        11                      ACTING PRESIDENT DeFRANCISCO:

        12       The bill is passed.

        13                      That completes the controversial

        14       calendar.

        15                      SENATOR VELELLA:  Do we have any

        16       housekeeping?

        17                      ACTING PRESIDENT DeFRANCISCO:

        18       There's no housekeeping at the desk.

        19                      SENATOR VELELLA:  Would the

        20       Senate stand at ease awaiting the Rules report.

        21                      ACTING PRESIDENT DeFRANCISCO:

        22       The Senate will stand at ease awaiting the

        23       report of the Rules Committee.











                                                             
7362

         1                      (Whereupon, the Senate stood at

         2       ease from 10:49 a.m. until 11:11 a.m.)

         3                      ACTING PRESIDENT KUHL:  The

         4       Senate will come to order.

         5                      The Chair recognizes Senator

         6       Velella.

         7                      SENATOR VELELLA:  Mr. President,

         8       can we return to the reports of standing

         9       committees and have the Supplemental Calendar

        10       read from the Rules report.

        11                      ACTING PRESIDENT KUHL:  There is

        12       a Rules report at the desk, Senator Velella.

        13       We'll return to reports of standing committees.

        14       I'll ask the Secretary to read the Rules report.

        15                      THE SECRETARY:  Senator Bruno,

        16       from the Committee on Rules, reports the

        17       following bills:

        18                      Senate Print 12-B, by Senator

        19       Wright, an act to amend the State Administrative

        20       Procedure Act, in relation to enhancing state

        21       agency consideration.

        22                      614, by Senator Stafford, an act

        23       to amend the Environmental Conservation Law, in











                                                             
7363

         1       relation to non-hazardous municipal landfill

         2       closure.

         3                      629, by Senator Stafford, an act

         4       to amend the Environmental Conservation Law, in

         5       relation to non-hazardous municipal landfill

         6       closure.

         7                      1250-A, by Senator Holland, an

         8       act to amend the General Obligations Law, in

         9       relation to the liability of persons involved in

        10       equine activities.

        11                      1525, by Senator Maltese, an act

        12       to amend the Correction Law and the Penal Law,

        13       in relation to consent for provisions of

        14       medical, dental and medical health services.

        15                      2207, by Senator Seward, an act

        16       to amend Chapter 668 of the Laws of 1977,

        17       amending the Volunteer Firemen's Benefit Law.

        18                      2811-A, by Senator DeFrancisco,

        19       an act to amend the Public Authorities Law, in

        20       relation to contracts awarded by the Onondaga

        21       County Water Authority.

        22                      2881-B, by Senator Lack, an act

        23       to amend the Judiciary Law, in relation to jury











                                                             
7364

         1       service and to repeal certain provisions of such

         2       law relating thereto.

         3                      3219-A, by Senator Bruno, an act

         4       to amend Chapter 714 of the Laws of 1986

         5       relating to authorizing the city of Saratoga

         6       Springs to sell certain lands.

         7                      3818, by Senator Volker, an act

         8       to amend the Criminal Procedure Law, the Public

         9       Health Law and the Family Court Act, in relation

        10       to the authorized destruction of dangerous

        11       drugs, drug paraphernalia or precursors of

        12       controlled substances.

        13                      4003, by Senator Libous, an act

        14       to amend the Correction Law, in relation to

        15       extending civil immunity to officers or

        16       employees of the Office of Mental Health.

        17                      4216, by Senator Padavan, an act

        18       to amend the Penal Law, in relation to auto

        19       stripping.

        20                      4300, by Senator Present, an act

        21       to amend the Criminal Procedure Law, in relation

        22       to designation of uniformed court officers of

        23       the city of Jamestown as peace officers.











                                                             
7365

         1                      4549-A, by Senator Trunzo, an act

         2       to amend Chapter 901 of the Laws of 1990,

         3       amending the Environmental Conservation Law.

         4                      5134, by Senator Marcellino, an

         5       act in relation to granting a retroactive senior

         6       citizen tax exemption to Gladys Raso.

         7                      5154, by Senator Present, an act

         8       to amend the Highway Law, in relation to

         9       construction and maintenance of streets and

        10       highways.

        11                      5211, by Senator Marcellino, an

        12       act to amend the Criminal Procedure Law, in

        13       relation to anonymous juries and to repeal

        14       subdivision 1-A of Section 270.15.

        15                      5230, by Senator Lack, an act to

        16       amend the Tax Law, in relation to authorizing

        17       the county of Suffolk to impose an additional

        18       one-quarter of one percent of sales and

        19       compensating use tax.

        20                      5235, by the Committee on Rules,

        21       an act to amend the Social Services Law, in

        22       relation to medical assistance exclusion.

        23                      2302, by Senator Stavisky, an act











                                                             
7366

         1       to amend the Penal Law, in relation to penalties

         2       for criminal solicitation of persons under 16

         3       years of age.

         4                      All bills ordered directly for

         5       Third Reading.

         6                      ACTING PRESIDENT KUHL:  The Chair

         7       recognizes Senator Velella.

         8                      SENATOR VELELLA:  Mr. President,

         9       I move that we adopt the Rules report.

        10                      ACTING PRESIDENT KUHL:  The

        11       motion is to adopt the Rules report.  All those

        12       in favor signify by saying aye.

        13                      (Response of "Aye".)

        14                      Opposed, nay.

        15                      (There was no response.)

        16                      The Rules report is adopted.

        17                      All bill are directed to third

        18       reading.

        19                      Senator Velella.

        20                      SENATOR VELELLA:  Mr. President,

        21       I believe we have some housekeeping at the

        22       desk.  Can we take that up now?

        23                      ACTING PRESIDENT KUHL:  We do.











                                                             
7367

         1       The Chair recognizes Senator Farley.

         2                      SENATOR FARLEY:  Thank you, Mr.

         3       President.

         4                      On behalf of Senator Levy, on

         5       page 5, I offer the following amendments to

         6       Calendar 128, Senate Print 2591-C, and I ask

         7       that the said bill retain its place on the Third

         8       Reading Calendar.

         9                      ACTING PRESIDENT KUHL:  The

        10       amendments to Calendar Number 125 are received

        11       and adopted.  The bill will retain its place on

        12       Third Reading Calendar.

        13                      Senator Farley.

        14                      SENATOR FARLEY:  On behalf of

        15       Senator Stafford, on page 1 of the Supplemental

        16       Number 1 Calendar, Calendar Number 1072, Senate

        17       Print 629, I offer the following amendments to

        18       that bill, and I ask that it retain its place.

        19                      ACTING PRESIDENT KUHL:  The

        20       amendments to Calendar Number 1072 are received

        21       and adopted.  The bill will retain its place on

        22       the Third Reading Calendar.

        23                      Senator Farley.











                                                             
7368

         1                      SENATOR FARLEY:  On behalf of

         2       Senator Marchi, please place a sponsor's star on

         3       Calendar Number 741.

         4                      ACTING PRESIDENT KUHL:  Calendar

         5       Number 741 is starred at the request of the

         6       sponsor.

         7                      Senator Montgomery, did you have

         8       something?

         9                      SENATOR MONTGOMERY:  Yes, Mr.

        10       President.  I would like unanimous consent to be

        11       recorded in the negative on Calendar Number 951.

        12                      ACTING PRESIDENT KUHL:  Without

        13       objection, and hearing no objection, Senator

        14       Montgomery will be recorded in the negative on

        15       Calendar Number 951.

        16                      Senator Velella.

        17                      SENATOR VELELLA:  Mr. President,

        18       can we now go to the non-controversial reading

        19       of Supplemental Calendar Number 1.

        20                      ACTING PRESIDENT KUHL:  The

        21       Secretary will read the non-controversial

        22       calendar, Supplemental Calendar Number 1.

        23                      THE SECRETARY:  Calendar Number











                                                             
7369

         1       1070, by Senator Wright, Senate Print 12-B, an

         2       act to amend the State Administrative Procedure

         3       Act, in relation to enhancing state agency

         4       consideration.

         5                      SENATOR LEICHTER:  Lay it aside.

         6                      ACTING PRESIDENT KUHL:  Lay the

         7       bill aside.

         8                      THE SECRETARY:  Calendar Number

         9       1071, by Senator Stafford, Senate Print 614, an

        10       act to amend the Environmental Conservation Law,

        11       in relation to non-hazardous municipal landfill

        12       closure projects.

        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 51.

        21                      ACTING PRESIDENT KUHL:  The bill

        22       is passed.

        23                      THE SECRETARY:  Calendar Number











                                                             
7370

         1       1073, by Senator Holland, Senate Print 1250-A,

         2       an act to amend the General Obligations Law, in

         3       relation to the liability of persons involved in

         4       equine activities.

         5                      ACTING PRESIDENT KUHL:  The

         6       Secretary will read the last section.

         7                      THE SECRETARY:  Section 3.  This

         8       act shall take effect on the 90th day.

         9                      ACTING PRESIDENT KUHL:  Call the

        10       roll.

        11                      (The Secretary called the roll.)

        12                      THE SECRETARY:  Ayes 51.

        13                      ACTING PRESIDENT KUHL:  The bill

        14       is passed.

        15                      THE SECRETARY:  Senator Maltese

        16       moves to discharge from the Committee on Crime

        17       Victims, Crime and Correction, Assembly Bill

        18       Number 2344, and substitute it for the identical

        19       Calendar Number 1074.

        20                      ACTING PRESIDENT KUHL:  The

        21       substitution is ordered.

        22                      The Secretary -- the Secretary

        23       will read the last section.











                                                             
7371

         1                      THE SECRETARY:  Calendar Number

         2       1074, by Member of the Assembly Connelly,

         3       Assembly Print 2344, an act to amend the

         4       Correction Law and the Penal Law, in relation to

         5       consent for provision of medical, dental and

         6       mental health services to inmates under 18 years

         7       of age.

         8                      ACTING PRESIDENT KUHL:  The

         9       Secretary will read the last section.

        10                      THE SECRETARY:  Section 2.  This

        11       act shall take effect immediately.

        12                      ACTING PRESIDENT KUHL:  Call the

        13       roll.

        14                      (The Secretary called the roll.)

        15                      THE SECRETARY:  Ayes 51.

        16                      ACTING PRESIDENT KUHL:  The bill

        17       is passed.

        18                      THE SECRETARY:  Senator Seward,

        19       from the Committee on Local Government, moves to

        20       discharge Assembly Bill Number 3350 and

        21       substitute it for the identical Calendar Number

        22       1075.

        23                      ACTING PRESIDENT KUHL:  The











                                                             
7372

         1       substitution -- the substitution is ordered.

         2       The Secretary will read the title.

         3                      THE SECRETARY:  Calendar Number

         4       1075, by Member of the Assembly McGee, Assembly

         5       Print 3350, an act to amend Chapter 688 of the

         6       Laws of 1977, amending the Volunteer Firemen's

         7       Benefit Law.

         8                      ACTING PRESIDENT KUHL:  The

         9       Secretary will read the last section.

        10                      THE SECRETARY:  Section 2.  This

        11       act shall take effect immediately.

        12                      ACTING PRESIDENT KUHL:  Call the

        13       roll.

        14                      (The Secretary called the roll.)

        15                      ACTING PRESIDENT KUHL:  Announce

        16       the results when tabulated.

        17                      THE SECRETARY:  Ayes 50, nays 1,

        18       Senator Leichter recorded in the negative.

        19                      ACTING PRESIDENT KUHL:  The bill

        20       is passed.

        21                      THE SECRETARY:  Calendar Number

        22       1076, by Senator DeFrancisco, Senate Print

        23       2811-A, an act to amend the Public Authorities











                                                             
7373

         1       Law, in relation to contracts awarded by the

         2       Onondaga County Water Authority.

         3                      ACTING PRESIDENT KUHL:  The

         4       Secretary will read the last section.

         5                      THE SECRETARY:  Section 2.  This

         6       act shall take effect immediately.

         7                      ACTING PRESIDENT KUHL:  Call the

         8       roll.

         9                      (The Secretary called the roll.)

        10                      THE SECRETARY:  Ayes 51.

        11                      ACTING PRESIDENT KUHL:  The bill

        12       is passed.

        13                      THE SECRETARY:  Calendar Number

        14       1077, by Senator Lack, Senate Print 2881-B, an

        15       act to amend the Judiciary Law, in relation to

        16       jury service and to repeal certain provisions of

        17       such law relating thereto.

        18                      ACTING PRESIDENT KUHL:  The

        19       Secretary will read the last section.

        20                      THE SECRETARY:  Section 12.  This

        21       act shall take effect on the first day of

        22       January.

        23                      SENATOR LEICHTER:  Mr. President,











                                                             
7374

         1       can I have -

         2                      ACTING PRESIDENT KUHL:  Senator

         3       Leichter to explain his vote?

         4                      SENATOR LEICHTER:  -- my name

         5       called?

         6                      Yeah, Mr. President.  This is

         7       really a most significant bill.  I wish Senator

         8       Lack were here to, if nothing else, receive

         9       kudos for moving this bill, because it really

        10       makes the most substantial, significant changes

        11       in jury duty by removing exemptions that have

        12       been built up over the years and really no

        13       longer should exist.

        14                      I think a lot of credit should

        15       also go to Chief Judge Kaye, the commission that

        16       she set up to take a look at how we can make

        17       jury duty easier, less burdensome, more

        18       effective.

        19                      This is really one of the major

        20       bills we passed this session.  I vote in the

        21       affirmative.

        22                      ACTING PRESIDENT KUHL:  Call the

        23       roll.











                                                             
7375

         1                      (The Secretary called the roll.)

         2                      ACTING PRESIDENT KUHL:  Senator

         3       Dollinger to explain his vote.

         4                      SENATOR DOLLINGER:  To explain my

         5       vote.

         6                      I join with the ranking Democrat

         7       on the Judiciary Committee in commending its

         8       chairman, Jim Lack, for the work on this bill.

         9                      I went to a public hearing in

        10       Rochester on the exemptions.  I think both

        11       Senator Lack and I were somewhat surprised that

        12       all those people who were protected from jury

        13       service for the last 20 or 30 years didn't come

        14       out and tell us that there were all kinds of

        15       problems if they were put back in the jury pool;

        16       but this is a very significant piece of

        17       legislation.  I think it will expand the pools

        18       and it will make the notion of a trial by your

        19       peers a reality in New York.

        20                      I congratulate, although he isn't

        21       here, in absentia, the chairman of the Judiciary

        22       Committee.

        23                      ACTING PRESIDENT KUHL:  Senator











                                                             
7376

         1       Dollinger will be recorded in the affirmative.

         2                      Announce the results.

         3                      THE SECRETARY:  Ayes 51.

         4                      ACTING PRESIDENT KUHL:  The bill

         5       is passed.

         6                      THE SECRETARY:  Calendar Number

         7       1078, by Senator Bruno, Senate Print 3219-A, an

         8       act to amend Chapter 714 of the Laws of 1986,

         9       relating to authorizing the city of Saratoga

        10       Springs to sell certain lands.

        11                      ACTING PRESIDENT KUHL:  There's a

        12       home rule message at the desk.  The Secretary

        13       will read the last section.

        14                      THE SECRETARY:  Section 2.  This

        15       act shall take effect immediately.

        16                      ACTING PRESIDENT KUHL:  Call the

        17       roll.

        18                      (The Secretary called the roll.)

        19                      THE SECRETARY:  Ayes 51.

        20                      ACTING PRESIDENT KUHL:  The bill

        21       is passed.

        22                      THE SECRETARY:  Calendar Number

        23       1079, by Senator Volker, Senate Print 3818, an











                                                             
7377

         1       act to amend the Criminal Procedure Law, the

         2       Public Health Law and the Family Court Act.

         3                      ACTING PRESIDENT KUHL:  The

         4       Secretary -- the Secretary will read the last

         5       section.

         6                      SENATOR LEICHTER:  Lay it aside.

         7                      ACTING PRESIDENT KUHL:  Lay the

         8       bill aside.

         9                      THE SECRETARY:  Calendar Number

        10       1080, by Senator Libous, Senate Print 4003, an

        11       act to amend the Correction Law, in relation to

        12       extending civil immunity to officers or

        13       employees of the Office of Mental Health.

        14                      ACTING PRESIDENT KUHL:  The

        15       Secretary will read the last section.

        16                      THE SECRETARY:  Section 2.  This

        17       act shall take effect immediately.

        18                      ACTING PRESIDENT KUHL:  Call the

        19       roll.

        20                      (The Secretary called the roll.)

        21                      THE SECRETARY:  Ayes 51.

        22                      ACTING PRESIDENT KUHL:  The bill

        23       is passed.











                                                             
7378

         1                      THE SECRETARY:  Calendar Number

         2       1081, by Senator Padavan, Senate Print 4216, an

         3       act to amend the Penal Law, in relation to auto

         4       stripping.

         5                      ACTING PRESIDENT KUHL:  The

         6       Secretary will read the last section.

         7                      THE SECRETARY:  Section 9.  This

         8       act shall take effect on the first day of

         9       November.

        10                      ACTING PRESIDENT KUHL:  Call the

        11       roll.

        12                      (The Secretary called the roll.)

        13                      THE SECRETARY:  Ayes 51.

        14                      ACTING PRESIDENT KUHL:  The bill

        15       is passed.

        16                      THE SECRETARY:  Calendar Number

        17       1082, by Senator Present, Senate Print 4300, an

        18       act to amend the Criminal Procedure Law, in

        19       relation to designation of uniformed court

        20       officers of the city of Jamestown as peace

        21       officers.

        22                      ACTING PRESIDENT KUHL:  The

        23       Secretary will read the last section.











                                                             
7379

         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                      ACTING PRESIDENT KUHL:  Announce

         7       the results when tabulated.

         8                      THE SECRETARY:  Ayes 50, nays 1,

         9       Senator Leichter recorded in the negative.

        10                      ACTING PRESIDENT KUHL:  The bill

        11       is passed.

        12                      THE SECRETARY:  Calendar Number

        13       1083, by Senator Trunzo, Senate Print 4549-A, an

        14       act to amend Chapter 901 of the Laws of 1990,

        15       amending the Environmental Conservation Law,

        16       relating to providing for enforcement authority

        17       in Suffolk and Nassau Counties.

        18                      ACTING PRESIDENT KUHL:  The

        19       Secretary will read the last section.

        20                      THE SECRETARY:  Section 2.  This

        21       act shall take effect in 30 days.

        22                      ACTING PRESIDENT KUHL:  Call the

        23       roll.











                                                             
7380

         1                      (The Secretary called the roll.)

         2                      THE SECRETARY:  Ayes 51.

         3                      ACTING PRESIDENT KUHL:  The bill

         4       is passed.

         5                      THE SECRETARY:  Calendar Number

         6       1084, by Senator Marcellino, Senate Print

         7       5134 -

         8                      SENATOR LEICHTER:  Lay it aside.

         9                      ACTING PRESIDENT KUHL:  Lay the

        10       bill aside.

        11                      THE SECRETARY:  Calendar Number

        12       1085, by Senator Present, Senate Print 5154, an

        13       act to amend the Highway Law, in relation to

        14       construction and maintenance of streets and

        15       highways within the city of Salamanca and on the

        16       Allegheny Indian Reservation.

        17                      ACTING PRESIDENT KUHL:  The

        18       Secretary will read the last section.

        19                      THE SECRETARY:  Section 2.  This

        20       act shall take effect immediately.

        21                      ACTING PRESIDENT KUHL:  Call the

        22       roll.

        23                      (The Secretary called the roll.)











                                                             
7381

         1                      THE SECRETARY:  Ayes 51.

         2                      ACTING PRESIDENT KUHL:  The bill

         3       is passed.

         4                      THE SECRETARY:  Calendar Number

         5       1086, by Senator Marcellino, Senate Print 5211,

         6       an act to amend the Criminal Procedure Law, in

         7       relation to anonymous juries.

         8                      ACTING PRESIDENT KUHL:  The

         9       Secretary will read the last section.

        10                      THE SECRETARY:  Section 4.  This

        11       act shall take effect on the 30th day.

        12                      ACTING PRESIDENT KUHL:  Call the

        13       roll.

        14                      (The Secretary called the roll.)

        15                      THE SECRETARY:  Ayes 51.

        16                      ACTING PRESIDENT KUHL:  The bill

        17       is passed.

        18                      THE SECRETARY:  Calendar Number

        19       1087, by Senator Lack, Senate Print 5230, an act

        20       to amend the Tax Law, in relation to authorizing

        21       the county of Suffolk to impose an additional

        22       one-quarter of one percent sales and

        23       compensating use tax.











                                                             
7382

         1                      ACTING PRESIDENT KUHL:  The

         2       Secretary will read the last section.

         3                      THE SECRETARY:  Section 4.  This

         4       act shall take effect immediately.

         5                      ACTING PRESIDENT KUHL:  Call the

         6       roll.

         7                      (The Secretary called the roll.)

         8                      THE SECRETARY:  Ayes 51.

         9                      ACTING PRESIDENT KUHL:  The bill

        10       is passed.

        11                      THE SECRETARY:  Calendar Number

        12       1088, by Sen... by the Committee on Rules,

        13       Senate Print 52...

        14                      SENATOR VELELLA:  Lay it aside

        15       temporarily.

        16                      ACTING PRESIDENT KUHL:  Lay the

        17       bill aside temporarily.

        18                      THE SECRETARY:  Calendar Number

        19       1089, by Senator Stavisky, Senate Print 2302 -

        20                      SENATOR VELELLA:  Lay it aside

        21       for the day.

        22                      ACTING PRESIDENT KUHL:  Lay the

        23       bill aside for the day.











                                                             
7383

         1                      Senator Velella, that completes

         2       the non-controversial calendar.

         3                      SENATOR VELELLA:  Can we now

         4       proceed to the controversial calendar.

         5                      ACTING PRESIDENT KUHL:  The

         6       Secretary will call the controversial calendar

         7       on Senate Supplemental Calendar Number 1.

         8                      THE SECRETARY:  Calendar Number

         9                 1070, by Senator Wright, Senate Print
12-B, an

        10       act to amend the State Administrative Procedure

        11       Act, in relation to enhancing state agency

        12       consideration.

        13                      SENATOR LEICHTER:  Is Senator

        14       Wright here to yield to a question?

        15                      ACTING PRESIDENT KUHL:  Senator

        16       Wright, an explanation of Calendar Number 1070

        17       has been asked for by Senator Leichter.

        18                      SENATOR WRIGHT:  This is

        19       legislation that we have been -- excuse me -- we

        20       have enacted previously in this house

        21       identifying the impact on jobs and employment

        22       and requiring the agencies to reflect specific

        23       job impact statements in terms of a proposed











                                                             
7384

         1       rule or regulation.

         2                      SENATOR LEICHTER:  Yeah -

         3                      ACTING PRESIDENT KUHL:  Senator

         4       Leichter.

         5                      SENATOR LEICHTER:  Mr. President,

         6       if Senator Wright would yield, please.

         7                      ACTING PRESIDENT KUHL:  Senator

         8       Wright, do you yield to a question by Senator

         9       Leichter?

        10                      SENATOR WRIGHT:  Certainly, Mr.

        11       President.

        12                      ACTING PRESIDENT KUHL:  The

        13       Senator yields.

        14                      SENATOR LEICHTER:  Senator,

        15       there's certainly some grounds for having an

        16       agency that's promulgating rules take a look at

        17       the consequences of that rule on economic

        18       activity, jobs, and so on.  I'm not so sure that

        19       that's not presently being done, although not in

        20       the form that you provide for in this bill.

        21                      I just have this strong suspicion

        22       that the real aim of this bill is to limit the

        23       rulemaking authority of agencies and in that











                                                             
7385

         1       connection I want to ask you, when an agency now

         2       makes a rule that it considers appropriate and

         3       necessary for the public welfare, does it, for

         4       instance, make findings as to the number of

         5       people whose lives would be saved if that rule

         6       were enacted, the number of people who would

         7       avoid hospitalization, illness, sickness?  Do

         8       you know the answer to that question?

         9                      SENATOR WRIGHT:  That may or may

        10       not be reflected, depending upon what the agency

        11       has promulgated.  In fact, what you're seeking

        12       would be risk assessment that Senator Rath has

        13       introduced legislation on before.

        14                      What the current legislation

        15       requires is an economic impact analysis, and the

        16       reason for this bill is that, in fact, many

        17       times the agencies do not reflect the employment

        18       impact.  They speak in very general,

        19       non-specific economic impact terms.  What we're

        20       looking for is a very specific identification of

        21       the employment impact.

        22                      What I find interesting is, in

        23       fact, last year when we had this bill -- and it











                                                             
7386

         1       passed this house as well as passed the Assembly

         2        -- in fact, we literally had a state agency put

         3       out a memo in opposition indicating their

         4       opposition to this bill because they knew that

         5       the rules had an adverse effect -- effect on

         6       jobs and employment but it would slow down the

         7       rulemaking process, and this, in fact, is the

         8       heart of why we have this legislation on the

         9       floor today.  The agencies were far more

        10       preoccupied with their rulemaking processes than

        11       they were the impact that it was going to have

        12       on this state and the job losses that have

        13       resulted consistently as a result of rules in

        14       this state.

        15                      ACTING PRESIDENT KUHL:  Senator

        16       Leichter.

        17                      SENATOR LEICHTER:  Senator

        18       Wright, if you would be so good as to continue

        19       to yield.

        20                      ACTING PRESIDENT KUHL:  Senator

        21       Wright, do you continue to yield?

        22                      SENATOR WRIGHT:  Yes, I will, Mr.

        23       President.











                                                             
7387

         1                      ACTING PRESIDENT KUHL:  The

         2       Senator continues to yield, Senator Leichter.

         3                      SENATOR LEICHTER:  Senator, I

         4       guess the point that I'm trying to make and I'm

         5       trying to understand this bill -- and see if it

         6       makes sense or whether it just reflects a bias

         7       that you have against any rulemaking, and that's

         8       why I asked the question of whether the health

         9       considerations or the health consequences or the

        10       effect of a rule are treated in a manner similar

        11       to which you require information or

        12       consideration of job loss.

        13                      Now, you said, "Well, it depends

        14       on the rule."  Maybe in some rules -- I guess if

        15       we have a rule that -- as we did some time on

        16       the percentage of a certain substance in DEET or

        17       how much DEET can be in anti-insect repellent,

        18       which very unfortunately, the current

        19       administration in an arbitrary manner tried to

        20       eliminate and was struck down by its -- its

        21       action was struck down by the court, there

        22       clearly since the rule deals specifically with

        23       health, the rule at the time that it was











                                                             
7388

         1       promulgated had information as to saving of

         2       lives, saving people from illness.

         3                      I can also understand that if you

         4       have a rule that deals only with a certain

         5       industrial policy, that you might very well at

         6       that point deal with job loss or job growth as a

         7       consequence of the rule; but your bill requires

         8       every rule where there's a likelihood of

         9       possibility that more than 100 jobs may be lost

        10       to deal with the job loss, and I'm just trying

        11       to see how balanced your bill is and, therefore,

        12       ask you whether presently we have a practice,

        13       whether required by law or otherwise, that any

        14       rule which deals or could affect the health of

        15       more than 100 people, whether there is a health

        16       assessment similar to what you require as a job

        17       assessment?

        18                      SENATOR WRIGHT:  I don't -- I'm

        19       not aware of a specific requirement that

        20       identifies in excess of 100 incidents that there

        21       would be a specific health impact.

        22                      Typically, when you are doing the

        23       regulatory impact statement, if it is a health











                                                             
7389

         1       rule or regulation, that certainly would be part

         2       of the -- part of the assessment and reflected.

         3                      We're specifically targeting a

         4       threshold of 100 jobs because we consider that

         5       to be a significant impact and, in fact, it's

         6       very unlikely that you would have a circumstance

         7       where you would have a negative impact being

         8       promulgated by a rule as it relates to health.

         9       In fact, it's just the opposite.  There's

        10       generally a very conscious, positive impact that

        11       is to be promulgated when you're developing a

        12       regulation relative to health.

        13                      In fact, what we've seen with the

        14       job loss is that there are numerous rules and

        15       regulations that have a considerable adverse

        16       impact, and this is what this bill recalls, that

        17       if you are going to result in an adverse impact

        18       or a loss reduction of -- in excess of 100 jobs,

        19       you're very specifically speaking to that

        20       adverse impact.

        21                      SENATOR LEICHTER:  Senator

        22       Wright, if you could continue to yield.

        23                      ACTING PRESIDENT KUHL:  Senator











                                                             
7390

         1       Wright, do you continue to yield?

         2                      SENATOR WRIGHT:  Yes.

         3                      ACTING PRESIDENT KUHL:  The

         4       Senator continues to yield.

         5                      SENATOR LEICHTER:  I'm not sure

         6       you're correct when you say that it's very

         7       unlikely that a rule could ever have an adverse

         8       health impact because there's rules that deal,

         9       for instance, with the transmission of

        10       electricity, of other materials throughout the

        11       state, rules that DOT may make as to hazardous

        12       material where certainly there may be an adverse

        13       health consequence or there may be actions that

        14       could kill people, and so on.

        15                      So what I'm really trying to see,

        16       Senator -- and I'll ask you very directly -- are

        17       you as concerned about health as you are about

        18       jobs?  Is that a concern of yours?

        19                      SENATOR WRIGHT:  Certainly it is,

        20       Senator, but that's not the issue we have before

        21       us today.  We're talking about the economic

        22       health of this state, and as you and I have

        23       debated that issue on numerous occasions, I











                                                             
7391

         1       happen to believe that the economic health of

         2       this state has been adversely affected by the

         3       rulemaking process.

         4                      A number of my colleagues in this

         5       house and the other house share that view and

         6       believe that the adverse impact -- and very

         7       seldom have we -- in the analogy I was using in

         8       terms of health, so we don't have rules

         9       promulgated to adversely impact health.  Some

        10       action that we are regulating may adversely

        11       impact health, and that's the reason that we're

        12       regulating it, but in the case of rules that are

        13       being promulgated to have another result, one of

        14       the side effects, unfortunately, is job loss.

        15                      What we're requiring is if that

        16       side effect is going to occur, then it should be

        17       specifically identified and alternatives to that

        18       should be specifically considered.

        19                      SENATOR LEICHTER:  Senator

        20       Wright, if you would just yield to one more

        21       question.  I -- I -

        22                      SENATOR WRIGHT:  Yes, Mr.

        23       President.











                                                             
7392

         1                      ACTING PRESIDENT KUHL:  Senator

         2       Wright continues to yield.

         3                      SENATOR LEICHTER:  I appreciate

         4       your saying this bill doesn't deal with health.

         5       I'm concerned at this moment about job loss, but

         6       that's precisely my point, Senator.  Why not

         7       come up with a balanced bill?  Why not be as

         8       equally concerned with people's health as you

         9       are concerned with the loss of jobs?

        10                      Loss of jobs is a thing that we

        11       all need to be concerned about, but I see, very

        12       frankly, a somewhat one-sided, very narrow,

        13       unbalanced approach, and that's what I'm

        14       concerned about.  So I ask you, why not put in a

        15       bill that also says that if the consequence of

        16       the rule is that 100 or more people might be

        17       injured or might be killed or might die or might

        18       be maimed or may end up in a hospital, that

        19       there ought to be a similar assessment; and I

        20       don't believe that's the law now, and I don't

        21       see you addressing that.

        22                      ACTING PRESIDENT KUHL:  Senator

        23       Rath, why do you rise?











                                                             
7393

         1                      SENATOR RATH:  Mr. President, I'm

         2       wondering if Senator Wright might allow me an

         3       observation at this point in the debate.

         4                      ACTING PRESIDENT KUHL:  Senator

         5       Leichter has the floor.  He's asked Senator -

         6                      SENATOR LEICHTER:  I would be

         7       happy to, you know, have Senator Rath join us.

         8                      ACTING PRESIDENT KUHL:  Senator

         9       Leichter says he would like to have a little

        10       enlightenment also, Senator Rath, so the floor

        11       is yours.

        12                      SENATOR RATH:  Thank you, Senator

        13       Leichter, Senator Wright, Mr. President.

        14                      I will be directing your

        15       attention to a handout that I will bring

        16       around.  It may have come to your office and you

        17       might not have seen it, but I think you're

        18       coming, Senator Leichter -- and I think it's

        19       very appropriate that we do come to the

        20       discussion of risk assessment and cost benefit.

        21                      As we did earlier this year in an

        22       omnibus bill that went through this house and in

        23       a piece of legislation that I've sponsored and











                                                             
7394

         1       Senator Wright has co-sponsored, his piece today

         2       deals with one of the specific concerns we have

         3       in relation to job loss, and I urge the support

         4       of this bill; but I urge also your attendance

         5       and all of you -- and all of us will be very

         6       busy on June 14th, inasmuch as that's the day

         7       before we're anticipating summer recess, but I

         8       would hope that, if you cannot be there, that

         9       one of your staff persons can come to a seminar

        10       that we are presenting -- and I would tell you

        11       it's the ARRC, the Administrative Regulation

        12       Review Commission, and we're bringing in John

        13       Graham; and John Graham is the director for the

        14       Center for Risk Analysis at Harvard University.

        15       His publications include In Search of Safety:

        16       Chemicals and Cancer Risks, and this is exactly

        17       where we're going, Senator Leichter, exactly to

        18       where you're going, because the question is not,

        19       as Senator Wright has brought up very

        20       appropriately, the situation of the job loss and

        21       what we need to do in order to protect that when

        22       rules are made; but we also need to go to the

        23       risk, and we are working towards getting -- I











                                                             
7395

         1       don't think it's going to happen this year, but

         2       it certainly can happen next year that we get

         3       the bookends, as I call them, of regulatory

         4       reform, of cost benefit and risk assessment

         5       here, and we get our arms around this problem

         6       and, in the meantime -- and believe me, there

         7       are some very open-ended questions, and this

         8       week wonderfully the Albany Law School brought

         9       the Warren Anderson breakfast series here and

        10       Professor Hutter spoke for an hour on cost

        11       benefit and risk assessment.  It is what we've

        12       got to do to get our arms around this, but until

        13       we do, Senator Wright is absolutely appropriate

        14       and correct to attempt to move something along

        15       immediately to take a look at what we're doing

        16       by way of job loss.

        17                      Thank you.  And I will be having

        18       these handed out in a few minutes when the

        19       debate is concluded.

        20                      SENATOR LEICHTER:  Senator Rath,

        21       let me thank you for your comment and also thank

        22       you for having that seminar and I hope we'll all

        23       be free to attend.  If not, I'll certainly send











                                                             
7396

         1       some staff persons because I fully agree with

         2       you.  I think risk assessment is a very

         3       necessary and very important tool.  I think we

         4       have regulations that require sort of absolute

         5       safety that probably do not make sense, and I -

         6       and I think it's important for people to

         7       understand what the risk is and also the

         8       trade-off in terms of health and jobs, and so

         9       on, and that's why I addressed the question as I

        10       did to Senator Wright, and that's why I'm

        11       troubled about this bill, although I can't say

        12       that in itself there are any real objectionable

        13       provisions in there other than what I see, and

        14       that is this great skepticism or really

        15       hostility towards government regulations,

        16       towards government actions which we know exist

        17       on the part of the far right in the Republican

        18       Party, and it's sort of a failure, if you will,

        19       to -- to appreciate and understand what the

        20       modern technological, highly competitive,

        21       economic world is all about.  I mean, it's sort

        22       of a denial that we're living on the threshold

        23       of the 21st Century.











                                                             
7397

         1                      So I don't know, Senator Wright,

         2       if the aim -- I won't say the aim -- but if the

         3       effect of this bill really isn't going to be to

         4       make rulemaking more cumbersome, more difficult,

         5       more harder to achieve, and to that extent and

         6       in that respect, as laudable as your purpose may

         7       be, if it is solely limited to the issue of job

         8       loss and not an attempt to hinder and try to

         9       paralyze government -- I'm still concerned,

        10       presented as it is, in isolation not dealing

        11       with risk assessment that its impact will not be

        12       positive.

        13                      ACTING PRESIDENT KUHL:  Senator

        14       Wright to respond.

        15                      SENATOR WRIGHT:  Senator, I can

        16       assure you that's certainly not our intent to

        17       hinder the process.  It's, in fact, our intent

        18       to improve upon the process, and that is to

        19       require that in instances where there is going

        20       to be an adverse impact on employment, that the

        21       agency be very conscious of that, that the

        22       agency make a very specific review of that,

        23       review of the alternatives and come up with











                                                             
7398

         1       recommendations that reflect our concern about

         2       job losses.

         3                      In fact, you will know if you

         4       look at this bill compared to the prior version,

         5       we've established a threshold at 100 jobs.

         6       Prior versions of this bill did not, because

         7       it's not our intent to hinder.  It's not our

         8       intent to totally eliminate regulation.  We

         9       recognize the importance of that, but at the

        10       same time, we also recognize that there has to

        11       be a balance.  There has to be a recognition

        12       within government that you have a responsibility

        13       to understand the consequences of simply

        14       promulgating rules and regulations and simply

        15       pursuing a process for having the end result of

        16       a process.

        17                      What we're looking  to do is to

        18       identify the consequences of that and ensure

        19       that when they have an adverse economic impact

        20       in this state that they're recognized.  I think

        21       that's a reasonable and appropriate action for

        22       to us to take in terms of curtailing a

        23       bureaucracy that's been out of control.











                                                             
7399

         1                      SENATOR LEICHTER:  Senator

         2       Wright, I thank you.

         3                      I will accept your statement

         4       because I really don't think as such there's

         5       anything objectionable in your bill.  Certainly

         6       job loss is something that ought to be

         7       considered.  I'm still concerned that we have

         8       this bill here without having a broader, overall

         9       view, and I hope that what drives this bill -

        10       and I accept your statement that that is not

        11       your concern but, nevertheless, we've seen in

        12       Washington here a lot of efforts really to

        13       hamper and hinder government in trying to

        14       protect people, and I hope that's not going to

        15       be the effect of this bill.

        16                      Maybe I'm getting mellow.  I was

        17       convinced by Senator Kuhl earlier today, now I'm

        18       convinced by you, but I think that we -- and

        19       with the good help of Senator Rath, I think

        20       we've raised issues here that certainly all of

        21       us ought to have in mind as we deal with these

        22       regulatory matters.

        23                      I thank you.











                                                             
7400

         1                      ACTING PRESIDENT KUHL:  Senator

         2       Wright to respond.

         3                      SENATOR WRIGHT:  I thank you,

         4       Senator.  You're obviously spending more time at

         5       your summer residence in the North Country.

         6                      ACTING PRESIDENT KUHL:  The

         7       Secretary will read the last section.

         8                      THE SECRETARY:  Section 5.  This

         9       act shall take effect October 1st.

        10                      ACTING PRESIDENT KUHL:  Call the

        11       roll.

        12                      (The Secretary called the roll.)

        13                      THE SECRETARY:  Ayes 51.

        14                      ACTING PRESIDENT KUHL:  The bill

        15       is passed.

        16                      The Secretary will continue to

        17       call the controversial Supplemental 1 Calendar.

        18                      THE SECRETARY:  Calendar Number

        19       1079, by Senator Volker, Senate Print 3818, an

        20       act to amend the Criminal Procedure Law, the

        21       Public Health Law and the Family Court Act, in

        22       relation to the authorized destruction of

        23       dangerous drugs, drug paraphernalia or











                                                             
7401

         1       precursors of controlled substances.

         2                      SENATOR PATERSON:  Explanation.

         3                      ACTING PRESIDENT KUHL:  An

         4       explanation has been asked for.

         5                      SENATOR VOLKER:  Mr. President,

         6       this -

         7                      ACTING PRESIDENT KUHL:  Senator

         8       Volker.

         9                      SENATOR VOLKER:  This is a city

        10       of New York bill, and some have termed it a bill

        11       that, in a sense, relates to some of the

        12       evidence problems that have been occurring in

        13       some of the more celebrated cases, such as the

        14       O.J. Simpson case.

        15                      One of the problems that I think

        16       has been identified as a serious problem in

        17       these cases is that many of the major police

        18       departments in the country -- and I guess the

        19       New York City Police Department other than the

        20       Los Angeles County Police Department could

        21       probably be considered the department with the

        22       greatest problems in taking care of evidence,

        23       and I could go into chapter and verse on











                                                             
7402

         1       problems in Dallas and various cities in the

         2       country.

         3                      One of the biggest problem is the

         4       sheer volume of evidence.  The New York City

         5       Police Department says that they have something

         6       in the area of 500,000 evidence vouchers on

         7       file.  200,000 of them are narcotics.  Just the

         8       sheer volume of the narcotics creates a huge

         9       problem of identifying and of quantifying, and

        10       so forth, but then the problem of storage, and I

        11       think there have been several, as I think

        12       everyone knows, several problems, not only in

        13       New York City, but throughout the country with

        14       disappearing drugs and things of that nature.

        15                      What this bill attempts to do and

        16       I think it does so in a very -- I think a very

        17       informed way is to set up a process for the

        18       destruction of drugs, to create a procedure

        19       whereby the agencies charged with safeguarding

        20       can destroy the narcotics, making sure, however,

        21       that there's enough that's kept -- kept in

        22       reserve so that any cases could be taken care

        23       of.  If you -- if the narcotics are destroyed











                                                             
7403

         1       over and above the level needed, then the stuff

         2       would be photographed and kept in the evidence

         3       lockers, whatever, so that a process could be

         4       done here that it -- that you don't have to keep

         5       huge amounts of narcotics for an inordinate

         6       period of time.

         7                      SENATOR LEICHTER:  Mr. President.

         8                      ACTING PRESIDENT KUHL:  Senator

         9       Leichter.

        10                      SENATOR LEICHTER:  If Senator

        11       Volker would certainly yield.

        12                      SENATOR VOLKER:  Certainly.

        13                      ACTING PRESIDENT KUHL:  Senator

        14       Volker, do you yield?  The Senator yields.

        15                      SENATOR LEICHTER:  Senator, your

        16       explanation certainly seems to make a lot of

        17       sense.  I'm just concerned whether this bill has

        18       been circulated among the district attorneys,

        19       the Division of Criminal Justice, defense

        20       organizations to see that it doesn't create a

        21       problem.

        22                      SENATOR VOLKER:  I don't -- as

        23       far as I know, this bill -- by the way, we've











                                                             
7404

         1       had a similar bill around for quite a while.  In

         2       fact, I believe we passed a similar bill here a

         3       few years ago.

         4                      I have not heard that anyone is

         5       in opposition to this bill.  As far as I know,

         6       the district attorneys have indicated no

         7       opposition to it and, as you know, there is

         8       notice provisions in here as far as the district

         9       attorneys and also as far as defense attorneys

        10       are concerned.  It's -- we have not heard from

        11       any group that opposes this bill or says that

        12       this has created a problem, and I would think

        13       certainly we have probably one of the most -

        14       maybe one of the most liberal defense

        15       associations here and one of them in the

        16       country, in this state and I'm sure if they

        17       really had a problem, they'd have been one of

        18       the first ones -

        19                      SENATOR LEICHTER:  Did you say

        20       liberal or best?  I thought you said best.

        21                      SENATOR VOLKER:  I think

        22       extremely liberal would be better to term it,

        23       but at any rate, as far as I know, there is -- I











                                                             
7405

         1       have not heard of any opposition to this.

         2                      SENATOR LEICHTER:  Thanks.

         3                      ACTING PRESIDENT KUHL:  The Chair

         4       recognizes Senator Abate.

         5                      SENATOR ABATE:  Yes.  Would -

         6       Mr. President, would Senator Volker yield to a

         7       question?

         8                      ACTING PRESIDENT KUHL:  Senator

         9       Volker yields to Senator Abate.

        10                      SENATOR ABATE:  Just a point of

        11       clarification for Senator Leichter.  It's my

        12       understanding that the defense counsel, before

        13       any of this evidence is destroyed, can make a

        14       motion to inspect, photograph, et cetera, and

        15       until they're given that full opportunity,

        16       nothing is tampered with, is that correct?

        17                      SENATOR VOLKER:  That's correct,

        18       and, in fact, we also -- a certain amount of the

        19       drugs has to be kept.  In fact, it's supposed to

        20       be the minimum amount of -- twice -- I think

        21       it's twice the amount that's considered to be

        22       needed and then the rest that's destroyed has to

        23       be photographed and calculated because -- just











                                                             
7406

         1       in case that there would be any question of

         2       additional amounts or anything of that nature,

         3       but we definitely -- the defense attorney -- if

         4       the defense attorney objects for some reason,

         5       wants further tests or whatever, why, they

         6       certainly have the ability to do that.

         7                      SENATOR ABATE:  Thank you.

         8                      ACTING PRESIDENT KUHL:  The

         9       Secretary will read the last section.

        10                      THE SECRETARY:  Section 5.  This

        11       act shall take effect on the first day of

        12       November.

        13                      ACTING PRESIDENT KUHL:  Call the

        14       roll.

        15                      (The Secretary called the roll.)

        16                      THE SECRETARY:  Ayes 51.

        17                      ACTING PRESIDENT KUHL:  The bill

        18       is passed.

        19                      The Secretary will continue to

        20       call the controversial Supplemental Calendar

        21       Number 1.

        22                      THE SECRETARY:  Calendar Number

        23       1084, by Senator Marcellino, Senate Print 5134,











                                                             
7407

         1       an act in relation to granting a retroactive

         2       senior citizen tax exemption to Gladys Raso.

         3                      SENATOR PATERSON:  Explanation.

         4                      ACTING PRESIDENT KUHL:  Senator

         5       Marcellino, an explanation has been asked for of

         6       Calendar Number 1084 by the Acting Minority

         7       Leader, Senator Paterson.

         8                      SENATOR MARCELLINO:  Mr.

         9       President, this legislation will retroactively

        10       apply a senior citizen tax exemption to Ms.

        11       Gladys Raso who is a resident of the town of

        12       Huntington in the county of Suffolk.

        13                      ACTING PRESIDENT KUHL:  Senator

        14       Leichter.

        15                      Senator Paterson.

        16                      SENATOR PATERSON:  Mr. President,

        17       if Senator Marcellino would please yield for a

        18       question.

        19                      ACTING PRESIDENT KUHL:  Senator

        20       Marcellino, do you yield?

        21                      SENATOR MARCELLINO:  Certainly.

        22                      ACTING PRESIDENT KUHL:  The

        23       Senator yields.











                                                             
7408

         1                      SENATOR PATERSON:  Senator, at

         2       first blush, there really is no problem with

         3       this bill, but I have to ask you, what is the

         4       position of the town in this particular case?  I

         5       would feel less willing to be a part of this if

         6       we have the state acting in contravention with

         7       what the town has established as their policy,

         8       and so I would like to know, where is the town

         9       with respect to this particular individual?

        10                      SENATOR MARCELLINO:  Mr.

        11       President, through you.  Senator Paterson, we

        12       have a resolution from the town of Huntington

        13       requesting this action by the state Legislature,

        14       which I have already forwarded -- my office, I

        15       believe, has forwarded to your counsel.

        16                      SENATOR PATERSON:  Then I guess

        17       the question just to follow up with is whether

        18       or not we actually need this legislation being

        19       that we have the resolution from the town,

        20       Senator.

        21                      SENATOR MARCELLINO:  It's

        22       apparently -- in 1991 when this was first -

        23       when this thing was first remedied or attempted











                                                             
7409

         1       to be remedied by the state Legislature, they

         2       omitted some years in this lady's tax exemption

         3       status.  We're just trying to correct that

         4       error.  The town pointed it out.  Mrs. Raso has

         5       properly applied for each of these years.  The

         6       town has requested that we go back and correct

         7       the mistake that was made in 1991.

         8                      SENATOR PATERSON:  Thank you for

         9       bringing that up, Senator.

        10                      SENATOR LEICHTER:  Mr. President.

        11                      ACTING PRESIDENT KUHL:  Senator

        12       Leichter.

        13                      SENATOR LEICHTER:  If I could

        14       just ask Senator Marcellino -

        15                      ACTING PRESIDENT KUHL:  Senator

        16       Marcellino, do you yield to Senator Leichter?

        17                      SENATOR MARCELLINO:  It's my

        18       pleasure.

        19                      ACTING PRESIDENT KUHL:  The

        20       Senator yields.

        21                      SENATOR LEICHTER:  Senator, I

        22       guess all the years here, I can't remember

        23       having seen a similar bill.  We have had a lot











                                                             
7410

         1       of bills trying to deal with problems of

         2       individual pensions, but I don't know whether

         3       we've ever had one -- or at least I don't

         4       remember one that ever dealt before where

         5       somebody claimed that they were entitled to the

         6       senior citizen tax exemption that didn't get

         7       it.

         8                      Now, if the town says "We made a

         9       mistake" or whatever it is, "This woman is

        10       entitled.  Please give us the authority to do

        11       it" -- I'm just not aware that towns didn't have

        12       the authority now to say, "Hey, we made a

        13       mistake, Gladys; you were entitled to this.

        14       Here's the exemption."

        15                      You're telling us that the town

        16       does not have the authority to do this?

        17                      SENATOR MARCELLINO:  Apparently

        18       the town doesn't feel it has.

        19                      SENATOR LEICHTER:  Excuse me?

        20                      SENATOR MARCELLINO:  Apparently

        21       the town doesn't feel that it has the

        22       authority.  Apparently in 1991 it didn't have

        23       the authority to do it on its own.  The state











                                                             
7411

         1       Legislature passed -- the state Senate passed a

         2       bill which corrected the lady's problems for

         3       certain years.  It omitted inadvertently two

         4       years in the sequence and this bill is an

         5       attempt to correct that omission.  The town has

         6       requested it.  We're simply trying to comply and

         7       help this lady out.

         8                      SENATOR LEICHTER:  Senator, then

         9       you're telling me we had bills like this

        10       before.  In fact, Gladys' problems have been

        11       before us before.

        12                      If I may just make a suggestion

        13       to you.  If, indeed, this requires state

        14       legislation before we become inundated with

        15       these sort of bills, why don't we just give the

        16       town the authority to correct any mistake that

        17       the town believes it made in regard to senior

        18       citizen tax exemption before all of us are

        19       importuned by our constituents to correct

        20       mistakes and -- because every one of these

        21       bills, I dare say the cost of this bill and

        22       passing this legislation is probably more than

        23       the value of the senior citizen tax exemption,











                                                             
7412

         1       so let's give the towns that authority.  If they

         2       don't have it, they certainly should.  It's

         3       their money and go on and do maybe some more

         4       important things, maybe even pass a budget.

         5                      Thank you.

         6                      ACTING PRESIDENT KUHL:  The

         7       Secretary -- Senator Paterson.

         8                      SENATOR PATERSON:  Just one last

         9       question, Senator Marcellino.  You have been

        10       quite cooperative.

        11                      ACTING PRESIDENT KUHL:  Senator

        12       Marcellino, do you continue to yield?

        13                      SENATOR MARCELLINO:  Sure.

        14                      ACTING PRESIDENT KUHL:  The

        15       Senator yields.

        16                      SENATOR PATERSON:  Will there be

        17       any local town action that will take place after

        18       we pass this legislation?  In other words, will

        19       the local town have to initiate any legislation

        20       of its own?

        21                      SENATOR MARCELLINO:  Senator, I

        22       can't answer that question accurately.  I would

        23       guess that they've already taken that action by











                                                             
7413

         1       the resolution requesting us to take this

         2       action, and they will probably remit her past

         3       taxes as due.

         4                      SENATOR PATERSON:  Okay.  I was

         5       just wondering as to whether or not the

         6       completion of the legislation would be the

         7       catalyst for any further action by the local

         8       town.

         9                      ACTING PRESIDENT KUHL:  The

        10       Secretary will read the last section.

        11                      THE SECRETARY:  Section 2.  This

        12       act shall take effect immediately.

        13                      ACTING PRESIDENT KUHL:  Call the

        14       roll.

        15                      (The Secretary called the roll.)

        16                      THE SECRETARY:  Ayes 52.

        17                      ACTING PRESIDENT KUHL:  The bill

        18       is passed.

        19                      Senator Solomon, why do you

        20       rise?

        21                      SENATOR SOLOMON:  Yes, Mr.

        22       President.  I would like unanimous consent to be

        23       recorded in the negative on Calendar Number 952











                                                             
7414

         1       and Calendar Number 1073.

         2                      ACTING PRESIDENT KUHL:  Without

         3       objection.  Hearing no objection, Senator

         4       Solomon will be recorded in the negative on

         5       Calendar Number 952 and 1073.

         6                      Senator DiCarlo.

         7                      SENATOR DiCARLO:  Mr. President,

         8       if we can just stand at ease for a few moments.

         9                      ACTING PRESIDENT KUHL:  We do

        10       have a couple housekeeping matters we could take

        11       care of, Senator DiCarlo, if you don't mind.

        12                      SENATOR DiCARLO:  Let's do the

        13       housekeeping.

        14                      ACTING PRESIDENT KUHL:  All

        15       right.  I have a substitution at the desk.  I

        16       will ask the Secretary to read.

        17                      THE SECRETARY:  On page 6,

        18       Senator DiCarlo moves to discharge from the

        19       Committee on Rules, Assembly Bill Number 4130-A

        20       and substitute it for the identical Calendar

        21       Number 195.

        22                      ACTING PRESIDENT KUHL:  Without

        23       objection, the substitution is ordered.











                                                             
7415

         1                      The Chair recognizes Senator

         2       Farley.

         3                      SENATOR FARLEY:  Thank you, Mr.

         4       President.

         5                      On page 12, on behalf of Senator

         6       Cook, I offer the following amendments to

         7       Calendar Number 421, Senate Print 3491-A, and I

         8       ask that that bill retain its place on the Third

         9       Reading Calendar.

        10                      ACTING PRESIDENT KUHL:  The

        11       amendments to Calendar Number 421 are received

        12       and adopted.  The bill will retain its place on

        13       the Third Reading Calendar.

        14                      Senator Dollinger, why do you

        15       rise?

        16                      SENATOR DOLLINGER:  Mr.

        17       President, just a point of order.  Was 1073

        18       voted on in the house?

        19                      ACTING PRESIDENT KUHL:  Yes.

        20       Calendar Number 1073 passed on the

        21       non-controversial calendar first time through.

        22                      SENATOR DOLLINGER:  Mr.

        23       President, may I have unanimous consent to be











                                                             
7416

         1       recorded in the negative on Number 1073?

         2                      ACTING PRESIDENT KUHL:  Without

         3       objection.

         4                      SENATOR DiCARLO:  No.

         5                      ACTING PRESIDENT KUHL:  Hearing

         6       no objection -

         7                      SENATOR DOLLINGER:  Thank you.

         8                      ACTING PRESIDENT KUHL:  -

         9       Senator Dollinger will be recorded in the

        10       negative on Calendar Number 1073.

        11                      Senator Abate.

        12                      SENATOR ABATE:  Yes, Mr.

        13       President.  Could I have unanimous consent to be

        14       recorded in the negative on 1072?

        15                      ACTING PRESIDENT KUHL:  Without

        16       objection.  Hearing no objection, Senator Abate

        17       will be recorded in the negative on Calendar

        18       Number 1073.

        19                      Senator DiCarlo.

        20                      SENATOR DiCARLO:  Mr. President,

        21       I ask that we stand at ease until 1:30 p.m. and

        22       there will be an immediate meeting of the

        23       Majority Conference in Room 332.











                                                             
7417

         1                      ACTING PRESIDENT KUHL:  There

         2       will be an immediate meeting of the Majority

         3       Conference -- immediate meeting of the Majority

         4       Conference in the Majority Conference Room, Room

         5       332.  The Senate will stand at ease until 1:30.

         6                      (Whereupon, at 12:05 p.m., the

         7       Senate stood at ease.)

         8                      (The Senate reconvened at 3:30

         9       p.m.)

        10                      ACTING PRESIDENT KUHL:  The

        11       Senate will come to order.  Members please take

        12       their chairs, staff please find their places.  A

        13       little order in the chamber.  Senator Bruno has

        14       a statement that he'd like to make.

        15                      Senator Bruno.

        16                      SENATOR BRUNO:  Thank you, Mr.

        17       President.

        18                      We're going to take up, Mr.

        19       President, at this time, the state operations

        20       budget, and this will be the first of the budget

        21       bills that pertain to the budget for this year,

        22        '95-96, for the people of New York State.

        23                      Mr. President, my colleagues,











                                                             
7418

         1       this has been a long process, and I am not going

         2       to make it longer by being on my feet talking

         3       about it, but I want to make this statement.

         4       The result, after these days of delay, is a very

         5       positive result for the people of this state and

         6       that's what's important, not the date but what

         7       is in this budget.

         8                      We have in this budget for the

         9       first time in 51 years, that there will be less

        10       all state spending than there was in a previous

        11       year, first time in 51 years, up to several

        12       hundred million less.

        13                      All of us can be proud of having

        14       worked together to accomplish that.  We have

        15       welfare -- welfare reform and Medicaid reform

        16       that is in this budget that will help all of the

        17       people in this state and we have a tax cut

        18       package that benefits primarily the middle class

        19       in New York State.

        20                      It is a job creation/economic

        21       development package, and all of us know the

        22       statistics in New York having lagged the country

        23       in the recovery over these last couple of years











                                                             
7419

         1       while 750 -- 7,500,000 jobs, approximately,

         2       created in this country, New York in the first

         3       quarter lost jobs.

         4                      This will change the direction of

         5       New York State.  This will help us with economic

         6       development primarily and job creation.  So, Mr.

         7       President, while it's late, I'm proud of what we

         8       together have accomplished as we start the

         9       process of adopting this budget this year.

        10                      Thank you.

        11                      ACTING PRESIDENT KUHL:  Chair

        12       recognizes Senator Connor, or do you want to

        13       move the first bill before the house?

        14                      SENATOR CONNOR:  Let it go.

        15                      ACTING PRESIDENT KUHL:  Senator

        16       Bruno.

        17                      SENATOR BRUNO:  Mr. President,

        18       can we return to the order of messages from the

        19       Assembly.

        20                      ACTING PRESIDENT KUHL:  We'll

        21       return to messages from the Assembly.  There is

        22       a message at the desk.  I'll ask the Secretary

        23       to read.











                                                             
7420

         1                      THE SECRETARY:  The Assembly

         2       returned Senate Bill Number 1550A, Assembly

         3       Reprint 30,000, entitled "An act making

         4       appropriations for the support of government"

         5       with the message that it has concurred in the

         6       passage of the same with amendments.

         7                      ACTING PRESIDENT KUHL:  Senator

         8       Bruno.

         9                      SENATOR BRUNO:  Mr. President, I

        10       move that the Senate not concur in the

        11       amendments, and I move to reconsider the vote by

        12       which the bill passed.

        13                      ACTING PRESIDENT KUHL:  Secretary

        14       will call the roll on reconsideration.

        15                      (The Secretary called the roll on

        16       reconsideration. )

        17                      THE SECRETARY:  Ayes 55.

        18                      ACTING PRESIDENT KUHL:  The bill

        19       is before the house, restored to the Third

        20       Reading Calendar.

        21                      Senator Bruno.

        22                      SENATOR BRUNO:  I offer the

        23       following amendments, Mr. President, to Senate











                                                             
7421

         1       1550B, move it have its third reading.

         2                      ACTING PRESIDENT KUHL:

         3       Amendments are received and adopted.  Bill is

         4       before the house.  Would you read the title.

         5                      THE SECRETARY:  Calendar -

         6                      ACTING PRESIDENT KUHL:  Secretary

         7       will read the title.

         8                      THE SECRETARY:  Calendar Number

         9       342, Budget Bill, Senate Print 1550B, an act

        10       making appropriations for the support of

        11       government, State Operations budget.

        12                      SENATOR BRUNO:  Is there a

        13       message, Mr. President?

        14                      ACTING PRESIDENT KUHL:  I'm

        15       informed by the desk that there is a message at

        16       the desk.

        17                      SENATOR BRUNO:  I move we adopt

        18       the message at this time.

        19                      ACTING PRESIDENT KUHL:  The

        20       motion is to adopt the message of necessity at

        21       the desk.  All those in favor signify by saying

        22       aye.

        23                      (Response of "Aye.")











                                                             
7422

         1                      Opposed nay.

         2                      (There was no response. )

         3                      The message is adopted.

         4                      SENATOR BRUNO:  Mr. President,

         5       can we at this time take up Senate 1550B.

         6                      ACTING PRESIDENT KUHL:  Read the

         7       last section.

         8                      THE SECRETARY:  Section 2.  This

         9       act shall take effect immediately.

        10                      ACTING PRESIDENT KUHL:  The Chair

        11       recognizes Senator Connor on the State

        12       Operations Budget Bill.

        13                      SENATOR CONNOR:  Thank you, Mr.

        14       President.

        15                      Senator Bruno introduced the

        16       budget in general.  I just wanted to point out

        17       to the members this is not the tax cut bill.

        18       This is not -- this is just one part of the

        19       budget.  It's State Operations and, while it

        20       does represent some cuts, I think for many of us

        21       there are reasons to support this in the spirit

        22       of compromise because some significant

        23       restorations were made in this; for example, the











                                                             
7423

         1       programs like SEEK to CUNY and SUNY.  Not

         2       everything some people would like, but certainly

         3       things like HEOP, and so on, have had a level of

         4       funding restored in this budget bill and while

         5       it's been a long and difficult budget process,

         6       it is now coming to a conclusion, and we do have

         7       it to represent from all philosophical

         8       viewpoints the balancing of what each -- each

         9       viewpoint would regard as a good or a bad

        10       feature of this budget, and for the most of us

        11       on this side of the aisle since there are

        12       restorations in here to programs that we feel

        13       are very, very important to the people, that I,

        14       at least for myself, am going to vote for this

        15       bill.

        16                      Thank you, Mr. President.

        17                      SENATOR BRUNO:  Last section.

        18                      ACTING PRESIDENT KUHL:  Last

        19       section.

        20                      THE SECRETARY:  Section 2.  This

        21       act shall take effect immediately.

        22                      ACTING PRESIDENT KUHL:  Call the

        23       roll.











                                                             
7424

         1                      (The Secretary called the roll. )

         2                      ACTING PRESIDENT KUHL:  Announce

         3       the results when tabulated.

         4                      THE SECRETARY:  Those recorded in

         5       the negative on Calendar 342 are Senators Abate,

         6       Dollinger, Nanula, Smith, Stachowski and

         7       Waldon.  Ayes 49, nays 6.

         8                      ACTING PRESIDENT KUHL:  The bill

         9       is passed.

        10                      Senator Bruno.

        11                      SENATOR BRUNO:  Mr. President,

        12       can we ask for an immediate meeting of the

        13       Finance Committee in Room 332.

        14                      ACTING PRESIDENT KUHL:  There

        15       will be an immediate meeting of the Senate

        16       Finance Committee, immediate meeting of Senate

        17       Finance, meeting in the Majority Conference

        18       Room, Room 332.  Room 332.

        19                      While I have your attention, for

        20       those members who are going to the Senate

        21       Finance Committee, there are only a limited

        22       number of the tax bill available.  It's on your

        23       desk.  You should have it.  It's Senate Print











                                                             
7425

         1       5279.  It's 107 pages long.  It's still warm,

         2       and so if you'll take that with you to the

         3       Senate Finance Committee, that will be most

         4       helpful.

         5                      SENATOR LEICHTER:  Mr.

         6       President.

         7                      ACTING PRESIDENT KUHL:  Senator

         8       Leichter.  Senator Leichter, why do you rise?

         9                      SENATOR LEICHTER:  Mr. President,

        10       Calendar 342 was just passed, the State Op's

        11       Budget?

        12                      ACTING PRESIDENT KUHL:  Yes.

        13                      SENATOR LEICHTER:  Yes.  May I

        14       please have unanimous consent to be recorded in

        15       the negative.

        16                      ACTING PRESIDENT KUHL:  Without

        17       objection, no objection being heard, Senator

        18       Leichter will be recorded in the negative on

        19       Calendar Number 342.

        20                      Senator Stavisky.

        21                      SENATOR STAVISKY:  Mr. President,

        22       in coming to the chamber, I had intended to

        23       submit amendments to the State Operations











                                                             
7426

         1       Budget.  Apparently the discussion was brief and

         2       I did not quite make it in time.

         3                      The amendments I had intended to

         4       present would have limited the increase in

         5       tuition at SUNY and CUNY approved by trustees to

         6       $300 for state residents and $750 for out-of

         7       state residents.  I wish that to be recorded in

         8       the Journal of the proceedings -- excuse me -

         9       and I wish to be recorded otherwise in

        10       opposition to the main bill since I did not have

        11       the opportunity to present the amendments.

        12                      ACTING PRESIDENT KUHL:  Senator

        13       Stavisky, your comments are recorded and made

        14       part of the official record, no question about

        15       that, and without objection, and I hear of no

        16       objection, Senator Stavisky will be recorded in

        17       the negative on Calendar Number 342, the State

        18       Operations Budget bill.

        19                      We'll return to motions and

        20       resolutions for just a moment.  The Chair would

        21       recognize Senator DiCarlo.

        22                      SENATOR DiCARLO:  Thank you, Mr.

        23       President.











                                                             
7427

         1                      On behalf of Senator Levy, on

         2       page 29, I offer the following amendments to

         3       Calendar Number 869, Senate Print 4856A, and ask

         4       that said bill retain its place on Third Reading

         5       Calendar.

         6                      ACTING PRESIDENT KUHL:  The

         7       amendments to Calendar 869 are adopted and the

         8       bill will retain its place on the Third Reading

         9       Calendar.

        10                      Senator DiCarlo.

        11                      SENATOR DiCARLO:  Mr. President,

        12       on behalf of Senator Present, on page 33, I

        13       offer the following amendments to Calendar

        14       Number 921, Senate Print 2715, and ask that said

        15       bill retain its place on the Third Reading

        16       Calendar.

        17                      ACTING PRESIDENT KUHL:  The

        18       amendments to Calendar Number 921 are received

        19       and accepted and adopted, and the bill will

        20       retain its place on the Third Reading Calendar.

        21                      (The Senate stood at ease from

        22       3:40 p.m. until 3:54 p.m.)

        23                      ACTING PRESIDENT KUHL:  The











                                                             
7428

         1       Senate will come to order for a couple minutes.

         2                      The Chair recognizes Senator

         3       Wright.

         4                      SENATOR WRIGHT:  Mr. President,

         5       on behalf of Senator Volker, on page number 26,

         6       I offer the following amendments to Calendar

         7       Number 827, Senate Print Number 4381, and ask

         8       that said bill retain its place on Third

         9       Calendar Reading.

        10                      ACTING PRESIDENT KUHL:

        11       Amendments to Calendar 827 are received and

        12       adopted.  The bill will retain its place on the

        13       Third Reading Calendar.

        14                      Senator Wright.

        15                      SENATOR WRIGHT:  Mr. President,

        16       on behalf of Senator Present, on page number 32,

        17       I offer the following amendments to Calendar

        18       Number 910, Senate Print Number 1625A, and ask

        19       that said bill retain its place on the Third

        20       Reading Calendar.

        21                      ACTING PRESIDENT KUHL:

        22       Amendments to Number 910 are received and

        23       adopted.  Bill will retain its place on the











                                                             
7429

         1       Third Reading Calendar.

         2                      ...At 4:12 p.m....

         3                      ACTING PRESIDENT KUHL:  The

         4       Senate will come to order.

         5                      Senator Paterson for an

         6       announcement.

         7                      SENATOR PATERSON:  Mr. President,

         8       with the approval of Senator Mendez, the

         9       Conference Chair, there will be an immediate

        10       conference of the Minority in the Minority

        11       Conference Room, Room 315.

        12                      ACTING PRESIDENT KUHL:  There

        13       will be an immediate meeting of the Minority in

        14       the Minority Conference Room, Room 315.

        15       Immediate meeting of the Minority in the

        16       Minority Conference Room, Room 315.

        17                      ...At 4:55 p.m....

        18                      THE PRESIDENT:  The Senate will

        19       come to order.

        20                      Senator Skelos.

        21                      SENATOR SKELOS:  Madam President,

        22       at this time, if we could return to reports of

        23       standing committees for a report from the











                                                             
7430

         1       Finance Committee.

         2                      THE PRESIDENT:  Without

         3       objection, we will return to reports of the

         4       standing committees.

         5                      The Secretary will read.

         6                      THE SECRETARY:  Senator Stafford,

         7       from the Committee on Finance, reports the

         8       following bill directly to third reading:

         9                      Senate Print 5279, by the

        10       Committee on Rules, an act to amend the Tax Law,

        11       in relation to reduction of rates and

        12       enhancement of credits under the state personal

        13       income tax.

        14                      THE PRESIDENT:  Without

        15       objection, the bill will be reported directly to

        16       third reading.

        17                      SENATOR SKELOS:  Madam President,

        18       if we could call up 5279, Calendar 1090.

        19                      THE PRESIDENT:  The Secretary

        20       will read the title to the bill.

        21                      THE SECRETARY:  Calendar Number

        22       1090, by the Senate Committee on Rules, Senate

        23       Print 5279, an act to amend the Tax Law, in











                                                             
7431

         1       relation to reduction of rates and enhancement

         2       of credits under the state personal income tax.

         3                      SENATOR SKELOS:  Madam President,

         4       is there a message of necessity at the desk?

         5                      THE PRESIDENT:  There is a

         6       message from the Governor at the desk.

         7                      SENATOR SKELOS:  Move we accept.

         8                      THE PRESIDENT:  All those in

         9       favor of accepting the message signify by saying

        10       aye.

        11                      (Response of "Aye.")

        12                      Those opposed nay.

        13                      (There was no response. )

        14                      The message is accepted.

        15                      Senator Skelos.

        16                      SENATOR SKELOS:  Yes.  Could we

        17       have the last section read on 5279?

        18                      THE PRESIDENT:  Read the last

        19       section, please.

        20                      THE SECRETARY:  Section 2.  This

        21       act shall take effect immediately.

        22                      THE PRESIDENT:  Call the roll.

        23                      (The Secretary called the roll. )











                                                             
7432

         1                      SENATOR SKELOS:  An explanation

         2       has been requested by Senator Leichter.

         3                      THE PRESIDENT:  Senator Stafford,

         4       an explanation, please.

         5                      SENATOR DOLLINGER:  Madam

         6       President, which bill are we on?

         7                      THE PRESIDENT:  5279.

         8                      SENATOR DOLLINGER:  Thank you.

         9                      SENATOR STAFFORD:  Mr. President,

        10       a great deal of work has gone into this legisla

        11       tion -- proposed legislation -- a tremendous

        12       amount of work, by our dedicated staff members

        13       on both sides of the aisle, and members.

        14                      I can briefly explain what we are

        15       doing here.  For the last few years, in fact

        16       unfortunately almost a number of years, we have

        17       seen the tax -- the taxes in New York rise and

        18       this has been detrimental to business, and what

        19       we have said is that, if we don't do something

        20       about taxes being raised and increasing in New

        21       York, then we're not even going to have -- I

        22       know I'm interrupting.

        23                      THE PRESIDENT:  Some order,











                                                             
7433

         1       please.

         2                      SENATOR STAFFORD:  I want to

         3       apologize for anybody that I'm interrupting, but

         4       if you'd allow me to talk here for a couple of

         5       minutes, I think you'd all be interested.

         6                      We have said that we have an

         7       economic locomotive in this state and we have

         8       been reducing it, taking from it and, if we

         9       continue -- if we continue to do things that are

        10       detrimental to this locomotive, we're not going

        11       to -- we're not going to have the funds to

        12       provide any services in this state, whether it

        13       is education, criminal justice, social services,

        14       the infrastructure, any of the responsibilities

        15       that we have in state government and, Mr.

        16       President, this evening we are taking steps in

        17       the right direction by reducing the taxes which

        18       will be paid here in New York State.

        19                      Now, I could go down all of them

        20       and I'll be glad to explain them.  I know you've

        21       had the memoranda concerning this legislation,

        22       so I will just mention that we have reduced and

        23       there's been a tax reduction in the personal











                                                             
7434

         1       income tax, petroleum taxes, real estate gains

         2       tax, estate tax reform, the pari-mutuel tax, the

         3       container tax and the beer tax that has been

         4       included, taxes on beer.

         5                      Now, we have a long way to go and

         6       we're going to have to do much more, but I would

         7       suggest we are making a start.  I could also

         8       mention, and I should, the motor fuel refund

         9       tax, the real estate transfer tax spin-up.

        10       We've mentioned revisions in the lottery.  I've

        11       mentioned the pari-mutuel, the utilities and

        12       some other recommendations from the Governor.

        13                      We think that, for the first time

        14       in many, many years, we are moving here in this

        15       state in the right direction, and this obviously

        16       has been agreed upon by the Assembly, the

        17       Executive Branch and the Senate.

        18                      THE PRESIDENT:  Senator Padavan.

        19                      SENATOR PADAVAN:  Thank you,

        20       Madam President.

        21                      This bill that is before us as

        22       outlined by the chairman of Finance, Senator

        23       Stafford, has many, many positive aspects to it











                                                             
7435

         1       which is a tribute to the leadership and the

         2       Majority in this house as it seeks to redirect

         3       the state forward particularly in the areas of

         4       economic development -- jobs.  But there's one

         5       portion of this bill that troubles me greatly, a

         6       portion which I think points us in another

         7       direction, and it is that portion that adopts a

         8       new gambling entity in this state known as Quick

         9       Draw.

        10                      We're told that in this fiscal

        11       year that we're now in that that new game will

        12       produce $82 million in revenue and over 200

        13       million on an annualized basis.  That would

        14       require that at least a half a billion or more

        15       be wagered by citizens of this state, a

        16       contention that I think is disingenuous at

        17       best.

        18                      The notion that there is that

        19       much money out there not being wagered on the

        20       state lottery and OTB and at racetracks, I find

        21       difficult to accept, and so I think the revenues

        22       that have been estimated have a lot of suspect

        23       associated with them.











                                                             
7436

         1                      However, if that estimate is

         2       correct, then what we are taking out of the

         3       economy in terms of money spent in meaningful

         4       ways that produce jobs and other kinds of

         5       legitimate revenues from the state is an

         6       enormous amount of money, and I think that runs

         7       counter to the basic direction of this bill and

         8       the budget bills that are associated with it.

         9                      Quick Draw will combine in most

        10       instances the twin problems of gambling and

        11       alcoholism as people are permitted to bet $10

        12       every five minutes for 13 hours a day while they

        13       are in places that provide alcohol.  There's

        14       only so much money that people have to spend.

        15       Even a compulsive gambler has a limit to how

        16       much cash is in his pocket; and so there will be

        17       real social costs associated with this venture,

        18       real and substantial.

        19                      If you look at the balance of

        20       losses in revenue to the state, the losses in

        21       revenue in other forms of gambling, the social

        22       costs associated with this expanded gaming

        23       opportunity, I think on balance the people of











                                                             
7437

         1       this state lose out.

         2                      You should also be aware of the

         3       fact that the moment this becomes law, the

         4       Indian casinos in this state will be able to go

         5       to electronic slot machines unrestricted, some

         6       thing that is currently a matter of contention.

         7       So those of you who are in favor of casinos in

         8       New York State, which I'm not, might find that

         9       somewhat troubling.  These are electronic slot

        10       machines no matter how you define them.  Some

        11       are called a "video crack" and I think that's a

        12       very apt description.

        13                      Overall, I think this is bad

        14       public policy and we will at some future point

        15       in time recognize that, as we begin to pay the

        16       price.

        17                      Thank you, Mr. President.

        18                      THE PRESIDENT:  Senator

        19       Leichter.

        20                      SENATOR LEICHTER:  Yeah.  Madam

        21       President, my colleagues, I think this is just

        22       part of a shameful budget.  You know, I'm

        23       reminded of the saying that the French are fond











                                                             
7438

         1       of telling us, which is "Plus ca change, plus

         2       c'est la meme chose," which is "The more things

         3       change, the more they remain the same," and

         4       certainly that's true in the process this year

         5       which has brought us this budget very much in

         6       the same way that budgets have appeared before

         7       the Legislature in other years after protracted

         8       lengthy negotiations.  Three people sit down

         9       over some period of time, work out a bill and

        10       then we hear those magic words, "This is an

        11       agreed-upon bill" as if it came down from Mount

        12       Olympus.

        13                      The Legislature, except for the

        14       Majority Leader and the Speaker, are excluded.

        15       The public is excluded from the process.  There

        16       comes a time when suddenly bills appear like

        17       Jack out of the box and end up on our desk.

        18       There's a flurry of activity, hastily called

        19       conferences, efforts to try to find out what are

        20       in bills that are put on our desks.  Ink is

        21       still wet.  You try to get memos, try to find

        22       out what's happening.  You're rushed into the

        23       chamber to vote on these bills.  I will say the











                                                             
7439

         1       only change is that the sun is still up and

         2       usually it's in the dead of night, but except

         3       for that difference, the process is the same and

         4       what we've gotten and particularly this year, is

         5       a budget that I think does grievous harm to the

         6       people of the state of New York and maybe the

         7       centerpiece of what is wrong with this budget is

         8       seen precisely in this bill.

         9                      I know it's -- it's fun.  It's

        10       fun for me in some respects, for me too to have

        11       tax decreases.  There's nothing that legislators

        12       love more than to pig out on tax decreases.  The

        13       more the merrier, the better, and so on.  But

        14       what does it really mean for the state of New

        15       York?

        16                      Senator Stafford talks about

        17       we've been going in the wrong direction, and we

        18       have to bring back our economic health to this

        19       state and so on, as if these tax decreases in

        20       this bill are going to lead to a great economic

        21       flowering in this state as if all of the

        22       worldwide economic forces that pretty much

        23       determine how we do in this state are going to











                                                             
7440

         1       be significantly or at all affected by these tax

         2       decreases.

         3                      I mean the way you hear this bill

         4       touted, you would think the factories in Bangla

         5       Desh are going to close, and that all will

         6       reappear here in New York State.  This is

         7       obviously just nonsense.

         8                      But there is a theory behind

         9       this, and the theory really is a redistribution,

        10       if you will, of wealth which goes from the poor,

        11       from the middle class to the affluent, to the

        12       people who really don't need it.  Not only in

        13       this tax decrease, and I will pay credit and

        14       tribute to the Speaker for at least having made

        15       this somewhat more equitable, but the fact is

        16       that this tax decrease means that poor people

        17       are not going to need services that they require

        18       and are entitled to, that the sick will not get

        19       the help and the assistance that they need, that

        20       the elderly will be bereft of help and

        21       assistance, and we've seen this in government

        22       programs that have been severely slashed on

        23       some -- or in some instances totally











                                                             
7441

         1       eliminated.

         2                      Just a few minutes ago or half an

         3       hour, an hour ago, we passed the State Opera

         4       tions Budget which increased tuition to SUNY and

         5       CUNY by $750.  You're giving minimum, minute tax

         6       decreases to working people and middle class,

         7       but you're telling them that their children, if

         8       they want to go to college, are going to have to

         9       pay a higher tuition, a tuition of 750, an

        10       increase of maybe 60 percent.

        11                      It seems to me, Senator Stafford,

        12       if we wanted to invest in the economic health of

        13       this state, there is nothing we could do that's

        14       more important than to support our higher

        15       education system, than to open up higher

        16       education to the maximum number of qualified

        17       students in this state, to really achieve what I

        18       had when I was young, and I -- you also had,

        19       Senator Stafford, and the others here when

        20       government really provided assistance in helping

        21       people to move into the middle class and acquire

        22       skills that would be helpful to all of society.

        23       We had, of course, all of the veterans programs











                                                             
7442

         1       that many of us benefited from, but at that time

         2       we had free tuition in the city of New York and

         3       in most of this state, and what we've done since

         4       then is to further and further erode the

         5       educational opportunities and today, we've taken

         6       the biggest step that we've ever taken in

         7       curtailing those educational opportunities and

         8       that, to my mind, does more to hurt the economic

         9       competitiveness, the economic potential and the

        10       economic future of this state than these tax

        11       cuts.

        12                      What I've always found partic

        13       ularly disturbing is that we have tax cuts that

        14       extend over three years.  I don't know any other

        15       government that -- or governmental entity in

        16       this country, not the federal government, I

        17       don't believe any other state governments, that

        18       says we're going to have a phased-in tax cut

        19       that's going to extend over a number of years.

        20                      If you're committed as you are to

        21       the tax cut as the -- as the magic wand that's

        22       going to increase economic prosperity in this

        23       state, next year, if you have a surplus, next











                                                             
7443

         1       year if the  demands of the localities and the

         2       demands of education and the demands of -- of a

         3       health care system doesn't require all the

         4       revenue that's going to come in, enact another

         5       tax cut next year.  Do it in the third year, but

         6       to have a tax cut as we do it here which is

         7       back-loaded so when you get to the third year of

         8       this tax cut, as I look at the chart, we're

         9       going to have a $3.8 billion loss of revenue -

        10       $3.8 billion.

        11                      If we have had a hard time in

        12       enacting a budget this year, it's going to be

        13       ten times as hard three years from now with this

        14       enormous loss of revenue.

        15                      Now, we went through this once

        16       before.  We should have learned our lesson.  We

        17       did it in 1986 when we enacted the tax program

        18       that started with 1987.  We made it a four-year

        19       program -- four-year program, and we found

        20       ourselves in dire financial straits.  We should

        21       have learned from that experience why have a

        22       multiple-year tax cut.

        23                      Now, in New Jersey where Governor











                                                             
7444

         1       Whitman committed herself to reducing taxes

         2       over, I believe, a period of three or four

         3       years, but they did it year by year -- I don't

         4       agree with her tax program, but at least the

         5       process was somewhat rational and was somewhat

         6       responsible.  This is totally irresponsible to

         7       sort of -- to make the prediction that three

         8       years from now you're not going to need this

         9       revenue.

        10                      The result of this is that you're

        11       really squeezing the working people.  You're

        12       squeezing the middle class.  You're hurting

        13       economic development.  You're going to create

        14       budgetary and financial chaos in the state of

        15       New York, and you're not going to achieve tax

        16       cuts for the people of this state because you're

        17       going to shift to a large extent taxes to

        18       localities.

        19                      You're going to find your real

        20       estate tax is going to increase because there's

        21       no way that you're going to be able to support,

        22       among other things, the educational needs of

        23       people in this state and to support a primary











                                                             
7445

         1       and secondary education.  As it is this year,

         2       we're cutting aid to education.  My city,

         3       Senator Goodman's city, the city of many of us

         4       here, is going to have an increase next year of

         5       some of 20- to 25,000 students, but we're -

         6       what we're getting, in fact, the Governor's

         7       budget froze educational aid.  That's a decrease

         8       in education.

         9                      Now, I understand we're going to

        10       see in the Local Assistance Budget, when that

        11       pops up on our desk, that there will be some

        12       slight additional amount for New York City but

        13       not equal to the number of increased students

        14       that we're going to have.

        15                      How much worse is that going to

        16       be in 1996-97, '97-98 when this tax cut kicks in

        17       to the much greater amount? And this will be not

        18       only New York City, but this will be throughout

        19       the state, with the result that localities will

        20       not receive the educational aid they'll need.

        21       They'll have to raise real estate taxes and

        22       probably all that you're doing is shifting the

        23       taxes onto the localities.











                                                             
7446

         1                      Another way that we're actually

         2       increasing taxes, and Senator Padavan pointed

         3       that out and that's, of course, through this

         4       Quick Draw.  This is a tax on poor people,

         5       working people who are more inclined to gamble,

         6       to use this new means of -- whether it's a

         7       lottery or whatever you want to call it.  And

         8       who will be spending money?  It's a regressive

         9       tax, and so in this way too, all we're really

        10       doing is shifting tax.

        11                      There are ways that we could

        12       raise some revenue without even touching some of

        13       the broad-based taxes.  I appreciate, to suggest

        14       at this time a surcharge on income tax, try to

        15       deal with corporate taxes and so on, would be

        16       impossible, but I've identified together with

        17       some other people the $500 million of revenue

        18       just by closing loopholes that make absolutely

        19       no sense.  For instance, we're the only state

        20       that gives both an investment tax credit and an

        21       accelerated depreciation.  Perfectly absurd!

        22                      Fact is we shouldn't even have

        23       the ITC.  That costs us $150 million.  We allow











                                                             
7447

         1       localities to reduce state revenues by exempting

         2       IDA projects from the state sales tax.  There's

         3       a number of other ways that we could move to

         4       close loopholes.  I'm going to just offer, just

         5       to give people an example, just one amendment

         6       which would raise revenue, and I'm going to

         7       spend very little time on it, but at least it's

         8       an example of some of the things that we could

         9       do to bring in monies into the coffers of the

        10       state so that we could meet our social

        11       responsibilities.

        12                      THE PRESIDENT:  Senator Leichter,

        13       are you moving an amendment?

        14                      SENATOR LEICHTER:  Madam

        15       President, you have -- you're exactly right.  I

        16       was just going to say is there an amendment at

        17       the desk?

        18                      THE PRESIDENT:  Yes, there is an

        19       amendment at the desk.

        20                      SENATOR LEICHTER:  Thank you.

        21       Thank you for bringing that to my attention.  At

        22       this time then, Madam President, I am, I believe

        23       I -- let me just check.  Did we put -











                                                             
7448

         1                      THE PRESIDENT:  There are two

         2       amendments at the desk.

         3                      SENATOR LEICHTER:  I'm just going

         4       to move one so that we're sure that we have the

         5       same one.  This was -- I think we wrote

         6       Amendment 101 to Calendar 1090.

         7                      THE PRESIDENT:  Yes.

         8                      SENATOR LEICHTER:  O.K. Good.

         9       Then, if at this moment I could move that

        10       amendment, I'll waive its reading and ask an

        11       opportunity -

        12                      THE PRESIDENT:  The reading of

        13       the amendment is waived.

        14                      SENATOR LEICHTER:  Fine, ask an

        15       opportunity to explain it.

        16                      This is very simple.  What it

        17       does is this limits personal income tax

        18       deduction for interest on mortgages for out-of

        19       state homes.  I don't think that we here in New

        20       York State need to support or subsidize somebody

        21       who has a condo in Aspen or a vacation home in

        22       Florida.  If they have a mortgage on it and they

        23       pay interest on that mortgage, they can now











                                                             
7449

         1       deduct it from their New York State income tax.

         2       There's absolutely no benefit to the state of

         3       New York, no reason to do it.  This doesn't

         4       bring in a great deal of money.  It may bring in

         5       somewhere between 25- and $50 million, but it's

         6       just an example of the things that we could do

         7       to close loopholes, to make the tax system

         8       fairer, to bring money to the people of the

         9       state of New York and give us the opportunity to

        10       have a budget which is less harmful, less

        11       painful, less injurious to the people of this

        12       state than this budget is.

        13                      Madam President, I move the

        14       amendment.

        15                      THE PRESIDENT:  The question is

        16       on the amendment.  All those in favor please

        17       signify by saying aye.

        18                      (Response of "Aye.")

        19                      All those opposed please signify

        20       by saying nay.

        21                      (Response of "Nay.")

        22                      The amendment is defeated.

        23                      Senator Waldon.











                                                             
7450

         1                      SENATOR WALDON:  Thank you very

         2       much, Madam President.

         3                      Would the learned gentleman who

         4       is our chairman of Finance allow me to ask him a

         5       question or two?

         6                      SENATOR STAFFORD:  By all means.

         7                      THE PRESIDENT:  Yes.

         8                      SENATOR WALDON:  Thank you, Madam

         9       President.

        10                      Senator, in this bill is there

        11       any proviso that the monies raised -- and I'm

        12       only interested in that piece of it dealing with

        13       Keno, Quick Draw -- for education? Stafford.

        14                      THE PRESIDENT:  Senator

        15       Stafford.

        16                      SENATOR STAFFORD:  Yeah, it's -

        17       we all remember when we passed the amendment to

        18       the Constitution providing -

        19                      SENATOR WALDON:  Answer the

        20       question, please, sir.

        21                      SENATOR STAFFORD:  -- that

        22       lottery money here in New York State, the money

        23       is dedicated to education.











                                                             
7451

         1                      SENATOR WALDON:  Thank you very

         2       much, Senator Stafford.  May I continue, Madam

         3       President?

         4                      THE PRESIDENT:  Yes, Senator

         5       Waldon.

         6                      SENATOR WALDON:  Within that

         7       money dedicated to education, is there any set

         8       aside for those who become addicted to gambling

         9       as a result of this new game?

        10                      SENATOR STAFFORD:  I think that's

        11       an excellent question.  Not actually from this

        12       money, but there is from the general fund, as

        13       you probably know.

        14                      SENATOR WALDON:  If I may

        15       continue, Madam President, please.

        16                      THE PRESIDENT:  Senator Waldon.

        17                      SENATOR WALDON:  Thank you very

        18       much.

        19                      Senator, is there any information

        20       in your preparation for creation of this bill in

        21       regard to the communities from which this money

        22       comes?  By that, I mean is there any corollary

        23       between the amount of money generated and the











                                                             
7452

         1       neighborhoods from which they are generated, to

         2       your knowledge?

         3                      THE PRESIDENT:  Senator

         4       Stafford.

         5                      SENATOR STAFFORD:  It -- are you

         6        -- Madam President, is the good Senator asking

         7       about how the money is going to be divided for

         8       education?

         9                      THE PRESIDENT:  Senator Waldon.

        10                      SENATOR WALDON:  No, no, I

        11       apologize, Madam President.

        12                      SENATOR STAFFORD:  I think I -

        13                      SENATOR WALDON:  Let me rephrase

        14       the question.

        15                      SENATOR STAFFORD:  I think you

        16       were clear.  You're asking is it going to come

        17       from any specific area?

        18                      SENATOR WALDON:  Yes.

        19       Historically -

        20                      SENATOR STAFFORD:  Well, I think

        21       it probably will come from an area about two

        22       minutes from my house, because I drove by there

        23       the other day and there was a line of around a











                                                             
7453

         1       hundred people, I guess.  What do you call it

         2       when they're waiting to draw picks?  What are

         3       they waiting for? Lotto.  When it's up -- you

         4       can see I'm not maybe as literate here as I

         5       should be.  I wasn't on the line, but they were

         6       standing in line and they were betting -- no,

         7       they weren't betting, they were buying a lottery

         8       ticket because supposedly they had an

         9       opportunity to win a large sum of money.

        10                      I take it, it's from all over the

        11       state.

        12                      SENATOR WALDON:  If I may.

        13                      THE PRESIDENT:  Senator Waldon.

        14                      SENATOR WALDON:  Thank you, Madam

        15       President.

        16                      The point I was trying to elicit

        17       from you, Senator, and obviously I was not

        18       sufficiently clear -- I apologize for that -

        19       was there, in your data base information as to

        20       where this money comes from? Specifically, does

        21       the major portion of this money, and being very

        22       blunt, come from black and Latino and otherwise

        23       poor communities, be they black, white, Asian











                                                             
7454

         1       American, whomever, but primarily from the

         2       poorer areas of our state and specifically

         3       coming from areas that some of us in this

         4       chamber do represent, areas like Bed'-Stuy',

         5       South Bronx, Harlem where David Paterson is

         6       from, Brooklyn where I grew up, and areas of

         7       South Jamaica and Jamaica in the area that I now

         8       serve in conjunction with Senator Ada Smith?

         9                      THE PRESIDENT:  Senator

        10       Stafford.

        11                      SENATOR STAFFORD:  I would

        12       suggest that the question is well taken and

        13       again, as I mentioned, this probably will come

        14       from throughout the state, but I'm glad you

        15       asked the question because in this program this

        16       is aimed at, rather than the stores on the

        17       corner -- What do you call the stores on the

        18       corners?  The convenience stores, that's right,

        19       late in the day, convenience stores.  This will

        20       be more -- this will be more in restaurants and

        21       in that type of facility -

        22                      THE PRESIDENT:  Senator, please.

        23                      SENATOR STAFFORD:  -- that this











                                                             
7455

         1       has been suggested with the thought in mind

         2       which you have very well raised.

         3                      SENATOR WALDON:  Thank you,

         4       Senator.

         5                      I do have a couple of more

         6       questions, Madam President, if I may, please.

         7                      THE PRESIDENT:  Proceed, Senator

         8       Waldon.

         9                      SENATOR WALDON:  Thank you, Madam

        10       President.

        11                      Senator, is there any information

        12       despite the locations meaning in futuro, meaning

        13       these Keno type locations, these Quick Draw

        14       locations and all locations of lottery machines

        15       or lottery-like facilities in the state of New

        16       York, is there any information as to the

        17       disproportionate -- this is an assumption on my

        18       part; permit me to do this -- as to the

        19       disproportionate amount of money being generated

        20       from poor communities playing these games versus

        21       other communities?

        22                      SENATOR STAFFORD:  I think this

        23       is one area that we could ask the Lottery to do











                                                             
7456

         1       some work in.  I don't think that there are any

         2       accurate programs.  I would suggest that it may

         3       not be exactly what you and I would think here

         4       this evening.

         5                      I think that, if my area is any

         6       indication, and I have various areas in my

         7       district just like you do, all -- all of the

         8       people seem to be a cross-section, seem to be

         9       very involved.  I have one friend, very

        10       interesting, he's a very successful builder and

        11       he bought the lottery ticket and there was a

        12       very large payout that time.  Interestingly

        13       enough, he forgot he bought it so he bought

        14       another one, and he ended up winning -- I think

        15       there were ten winners, and he was two of the

        16       ten.

        17                      I think people have become quite

        18        -- quite interested in it, and I think the -

        19       of course, the -- what it's produced has

        20       indicated that.

        21                      SENATOR WALDON:  Thank you very

        22       much, Senator Stafford.

        23                      Madam President, if I may, on the











                                                             
7457

         1       bill.

         2                      My worry about this is that the

         3       people who disproportionately play these games

         4       will not receive benefit from the monies

         5       generated by these games.  For example, there's

         6       not a proviso, from what our learned chairman of

         7       Finance has indicated to me at least here this

         8       evening, that there will be an educational

         9       component to deal with not only just education

        10       in general per se, but an educational component

        11       to help people in this bill, to help people who

        12       become addicted to gambling.  As he mentioned,

        13       he said there is a proviso elsewhere, but

        14       there's no percentage of the money generated by

        15       Quick Draw to deal with that problem.

        16                      It is my understanding, my

        17       colleagues, that the communities who are least

        18       able to support this form of activity are the

        19       ones from which the largest amounts of money on

        20       a daily basis are generated, and I think that

        21       being that we have not necessarily seduced this

        22       population but at least induced this population

        23       to participate in these games and we have a











                                                             
7458

         1       moral responsibility to do something to help

         2       them to make sure that a certain percentage,

         3       percentage or percentages of those monies go

         4       back to those communities either for education,

         5       either for infrastructure refurbishment or

         6       either for anything which benefits those people

         7       and elevates their quality of life.

         8                      I don't see it here.  I don't see

         9       the vision to do that here, so I would suggest

        10       to our chairman, and I know it cannot be done

        11       tonight, and it won't be done this session, so I

        12       can't support this bill tonight or this session,

        13       but that somewhere down the road we begin to

        14       take responsibility for our actions in terms of

        15       this inducement and do something to help those

        16       people who will be most disparately impacted by

        17       the frenzy of buying the Lotto tickets and

        18       participating in the Keno and the Quick Draw and

        19       I'll close by saying this:

        20                      The Senator mentioned that he saw

        21       a place in his district where people were lined

        22       up.  I represent perhaps one of the more

        23       affluent areas of the City where blacks and











                                                             
7459

         1       Latinos live, but even in parts of my district,

         2       I have seen not one, not two, not ten, but on a

         3       given day when the pot raises to about $10

         4       million, hundreds of places where people have

         5       lined up and, Senator Stafford, I have on

         6       occasion -- and I'll admit to this to you, only

         7       to you -- I have on occasion been in the line

         8       and have purchased a ticket, but I was not as

         9       lucky as your friend and, if I were as lucky and

        10       if I become as lucky, you'll be the first person

        11       I offer to go to dinner from our colleagues.

        12                      SENATOR STAFFORD:  Mr. -- Madam

        13       President, I hasten to caution the good Senator

        14       from Queens.  I think you will find that it is

        15       not within the framework of the law for you to

        16       be in that line.

        17                      SENATOR WALDON:  Well, then I

        18       stand accused, and I appreciated the learned

        19       Senator's bringing that to my attention, and

        20       I'll speak to my counsel, Senator Espada, and

        21       I'm sure he will give me right direction in the

        22       future, be it Pick 5, Pick 10 or the lottery.

        23                      Thank you very much.











                                                             
7460

         1                      THE PRESIDENT:  Senator Goodman.

         2                      SENATOR GOODMAN:  Now, Madam

         3       President -- I'm sure there's no one in this

         4       chamber who remembers the Boston Tea Party which

         5       was dedicated to the proposition that taxation

         6       without representation was intolerable and that

         7       kicked off a major revolution which resulted in

         8       our system as we know it today.

         9                      Some years later, the great Will

        10       Rogers said, "Taxation with representation ain't

        11       so hot either" and the fact of the matter is

        12       that we have had such a full dose of it that we

        13       must plainly face up to the fact that this has

        14       been the principal generative factor in a

        15       hemorrhage of jobs out of the state of New

        16       York.

        17                      Now, this is a very difficult

        18       proposition to sell to an unsophisticated

        19       audience, but with a group as knowledgeable as

        20       the one within the sound of my voice at the

        21       moment, I'm sure it takes no special persuasion

        22       to have you understand clearly that tax policy

        23       does have a direct impact upon economics, and we











                                                             
7461

         1       all know the definition of an economist.  It's

         2       someone with a Phi Beta Kappa key on one end of

         3       his chain and nothing on the other end.

         4                      But, nonetheless, good common

         5       sense dictates that when taxes are too high in

         6       New York compared to New Jersey, to Connecticut,

         7       to Pennsylvania, to all of our neighboring

         8       states, that it results in a reverse flow of our

         9       middle class and in a departure of the jobs that

        10       we so desperately need and of the middle class

        11       who benefit from a solid job economy and of the

        12       executive class who simply are not willing to

        13       sustain a very heavy tax upon their income.

        14                      There's another even more subtle

        15       feature of this called the estate tax and for

        16       those of you who've had an opportunity to have a

        17       look at this, I'm sure you're well aware that

        18       the estate tax is not just driving people out of

        19       the state immediately before they die when they

        20       can go to Florida and pay no estate tax, but

        21       it's driving them out of the state many years

        22       before they're deceased, so that we lose from

        23       some of our highest paying income people,











                                                             
7462

         1       highest tax paying people an enormous amount of

         2       revenue.

         3                      At last, in this year's budget -

         4       in a few moments, Senator, if I may -- in this

         5       year's budget, we finally have a grand design

         6       which is hopefully going to come to grips with

         7       something which has bedeviled the state for many

         8       decades.  We have had a tax system which has

         9       pressed down a crown of thorns upon the state

        10       from which it could hardly ever hope to emerge

        11       unless there is some fairly radical surgery

        12       introduced.

        13                      My friends, if you will take a

        14       look at this tax program with some care, I know

        15       you will understand why I'm about to make to you

        16       a couple of declarations of basic principles.

        17       First of all, the tax cuts this year will save

        18       New Yorkers more than $3.6 billion when fully

        19       implemented.  The top income tax rate will fall

        20       from 7-point-almost-9 percent in '94 to 6.9

        21       percent in '97 and some 5.6 million of New York

        22       State's 8 million tax filers will receive

        23       reductions of 25 percent or more in their taxes











                                                             
7463

         1       by 1997.

         2                      Now, this is not a fly-by.  This

         3       is something significant.  This is something

         4       which changes the center of gravity of people's

         5       basic life style plans and, for that reason,

         6       even though you might argue and some have, that

         7       this does not give all of the benefit that we

         8       might hope to those in the lower tax brackets,

         9       although it does benefit them quite

        10       significantly, it nonetheless carries with it a

        11       message which, in the long run, will be of

        12       greater benefit to those of our less fortunate

        13       in our society than many other approaches might

        14       otherwise be which have a quicker fix, more

        15       immediate Band-Aid effect.

        16                      I'd also like to stress to you

        17       the fact that along with reducing the tax rates

        18       the Governor's plan accelerates the growth of

        19       the earned income tax credit for low income tax

        20       payers.  Previously the credit was to growth in

        21       ten percent of the federal credit this year, to

        22       15 percent in 1996 and to 20 percent in 1997.

        23       This budget adopts the Governor's proposal to











                                                             
7464

         1       increase the EITC to 20 percent in 1996, a full

         2       year earlier than originally scheduled.

         3                      Now, although this is admittedly

         4       technical, the fact is that it does have and

         5       will have leverage in the approach that people

         6       will take to deciding whether to be in New York

         7       or not.  The Pataki plan is the most ambitious

         8       multi-year tax cut enacted this year by any

         9       state and, when it comes to comparing New York

        10       with other states, let me point out that this

        11       tax cut is large enough to move New York State's

        12       personal income tax burden from the second

        13       highest in the nation, double the national

        14       average, to seventh in the nation, 59 percent

        15       above the national average.

        16                      While this is good progress, we

        17       still have a long way to go.  It will also move

        18       New York's income tax per $1,000 of income from

        19       the fourth highest in the nation, 69 percent

        20       above the national average, to the 11th highest,

        21       34 percent above the national average.  Again,

        22       while this is good progress, we have a long way

        23       to go.











                                                             
7465

         1                      The point that I'd like to make

         2       is that the agreement which was reached between

         3       the houses and between the parties on this

         4       matter is, by and large, rational and I want to

         5       be very candid with you in saying that the

         6       Governor's initial schedule of tax cuts for

         7       several years out struck me as being

         8       unrealizeable and would have exacted an enormous

         9       necessity, perhaps up to $8 billion of

        10       expenditure cuts which, in my considered

        11       opinion, the state could not afford, but as a

        12       result of the process of negotiation which,

        13       believe it or not in this bizarre process known

        14       as democracy, which Winston Churchill said was

        15       the worst form of government known to man except

        16       all the others, we have actually come up, I

        17       think, with something that is reasonable, not

        18       punitive, and essentially very productive of

        19       good results.

        20                      By coming up with a $3.7 billion

        21       cut in taxes over the next three years, we have

        22       an achieveable level which will make sense.

        23       Now, mind you, there's one trap which I think











                                                             
7466

         1       we've avoided in all of this, and that is the

         2       trap which occurs when legislators with too much

         3       ambition for tax cutting do so without

         4       commensurate expenditure cuts.

         5                      We saw what happened in the

         6       Reagan years when this occurred and the

         7       President brought forth a so-called balanced

         8       program.  The tax cuts were activated but then

         9       the expenditure cuts did not follow.  Even the

        10       secretaries in the Reagan cabinet were more or

        11       less seduced, if you will, by the constituencies

        12       within their areas of responsibility, and they

        13       ended up advocating more and more expenditure

        14       escalation.

        15                      We have not done this.  It's my

        16       belief that the balanced program which the

        17       Governor has given us and which we have

        18       ultimately sandpapered and chiseled -- not

        19       chiseled, strike that word; that has a bad

        20       connotation -- crafted, that we have crafted

        21       will bring into equilibrium the tax cuts that we

        22       have proposed and the necessity for shrinkage of

        23       government on a rational basis.











                                                             
7467

         1                      It is my confident belief that

         2       the safety net is intact.  It's my belief that

         3       this will not exact punitive penalties from

         4       those in our society who are the most

         5       defenseless.  It's my belief that this will, on

         6       the other hand, squeeze a great deal of waste

         7       and in the reform of both Medicaid and welfare

         8       we have put up sign posts which point in

         9       directions which our Lieutenant Governor, for

        10       example, adumbrated in her very significant

        11       report on the matter of Medicaid in which she

        12       stressed from the beginning that -

        13       "adumbrated", by the way, I think means

        14       outlined in advance, approximately correct or I

        15       hope that's correct -- but in any event it did

        16       create a situation which she foresaw and which

        17       we've now implemented which will squeeze waste

        18       without diminishing the importance of basic

        19       service delivery to our people.

        20                      There was at one time a notion

        21       that we should eliminate home care.  That, in my

        22       judgment, would have exacted a far higher price

        23       than the so-called economy connected with it.











                                                             
7468

         1       That is out of the budget.  There is a time in

         2       which we had thought that we could squeeze the

         3       hospitals to the point where several of them

         4       would have been pushed over the edge.

         5                      We've eliminated that.  So what

         6       has seemed to happen in all of this is the fact

         7       that the two houses and the two parties, in

         8       their ultimate wisdom in this, have come up with

         9       some rough justice which has worked out pretty

        10       well for the people of our state.

        11                      This is a rational program.  It

        12       is a productive program, and I'm confident in

        13       predicting that, over the long run, if we adopt

        14       this, as I trust we are about to do it will have

        15       significant benefit for the people of the state

        16       at an immensely difficult time when both the

        17       Governor of the state and the Mayor of the city

        18       of New York inherited enormous deficits

        19       aggregating almost $9 billion of other people's

        20       money.

        21                      This was a potential tragedy in

        22       the making, and I think we're averting it and I

        23       think we're doing it in a way which in the long











                                                             
7469

         1       run will be to the benefit of us all.

         2                      THE PRESIDENT:  Thank you,

         3       Senator Goodman.

         4                      Senator Leichter, why do you

         5       rise?

         6                      SENATOR LEICHTER: I wanted to ask

         7       Senator Goodman to yield.  He wanted to finish

         8       his remarks, and I wondered if he would be good

         9       enough to yield now.

        10                      SENATOR GOODMAN:  Indeed,

        11       Senator.

        12                      THE PRESIDENT:  Senator Goodman,

        13       will you yield?

        14                      SENATOR LEICHTER:  Senator, do

        15       you remember when the income tax in this state

        16       was almost 14 percent?

        17                      SENATOR GOODMAN:  You and I

        18       remember when there was no income tax at all,

        19       Senator.

        20                      SENATOR LEICHTER:  Senator, you

        21       told me you remembered the Boston Tea Party, so

        22       I'm sure you remember -

        23                      SENATOR GOODMAN:  Even the Battle











                                                             
7470

         1       of Hastings is a distinct memory.  1066 A.D., is

         2       that right, Franz?

         3                      SENATOR LEICHTER:  Do you

         4       remember, Senator, not that long ago when the

         5       tax was -- I believe the upper bracket was 13.75

         6       percent?

         7                      SENATOR GOODMAN: Quite vividly,

         8       and I remember our deep desire to make very

         9       significant cuts in that, which we've done.

        10                      SENATOR LEICHTER:  I'm going to

        11       be nasty at this moment, Senator.

        12                      SENATOR GOODMAN:  No, you're

        13       never nasty.

        14                      SENATOR LEICHTER:  I was sure you

        15       would remember because I believe you voted for

        16       those increases in the Rockefeller year as did

        17       some other members who were here.  But the point

        18       that I'm going to make, I think that was voted

        19       in 1970-71, '72, and in the 1970s was a pretty

        20       prosperous time for the state of New York, was

        21       it not?

        22                      SENATOR GOODMAN:  My recollection

        23       is that we were quite spendthrift in those days,











                                                             
7471

         1       Senator, if that's the point you're making.

         2                      SENATOR LEICHTER:  Right, and,

         3       Senator, is it not also a fact that under

         4       Governor Carey and under Governor Carey -- I

         5       mean under Governor Carey and Governor Cuomo

         6       that maximum tax rate was reduced to 7.75

         7       percent, almost cut in half?

         8                      SENATOR GOODMAN:  Under the

         9       initiative, if I may say so, which started in

        10       our Conference there were major tax cuts made

        11       which I think only started the pathway that we

        12       are now following and unfortunately are not

        13       following far enough yet, but they started in

        14       that direction and, of course, you all remember

        15       the Federal Tax Reform Act which was a

        16       significant factor in some of the cutting which

        17       we did in which cuts were made in adjustment to

        18       that Federal Tax Reform Act.

        19                      SENATOR LEICHTER:  Senator -

        20                      SENATOR GOODMAN:  Do you recall

        21       that?

        22                      SENATOR LEICHTER:  Senator, if

        23       you would be good enough to continue to yield.











                                                             
7472

         1       Senator, whoever takes the credit for it, and

         2       I'm willing certainly to acknowledge the role

         3       that you and your Conference played in this.  I

         4       think you'll also acknowledge the role that

         5       Governors Carey and Cuomo played, but I'm not

         6       trying to play this partisan game, you did it or

         7       we did it.  This one, I'm trying to make the

         8       point of how significant our tax cuts are or the

         9       correlation between tax cut and economic

        10       well-being in this state.

        11                      It is a fact, is it not, that the

        12       last three or four, almost five years have seen

        13       this state first in a recession and then barely

        14       limping out of recession, is that not also a

        15       fact?

        16                      SENATOR GOODMAN:  Well, if I may,

        17       Senator, I think we can save a little time in

        18       this by pointing out that, despite the fact that

        19       we sought to make tax cuts, the comparative

        20       rates in our neighboring states, were in most

        21       instances no less than half of our rate, and

        22       it's that comparative rate that I stressed in my

        23       earlier remarks as indicating the competitive











                                                             
7473

         1       disadvantage at which we placed ourselves by

         2       allowing those rates to remain at those high

         3       levels.

         4                      SENATOR LEICHTER:  Senator.

         5                      THE PRESIDENT:  Senator

         6       Leichter.

         7                      SENATOR LEICHTER:  One final

         8       question, if you would, Senator Goodman.

         9       Senator, I understand the point you're making

        10       about comparative rates, but I wonder whether

        11       you would address the incongruity for your

        12       argument that, when our tax rate was twice as

        13       high as it is now, that we were really quite

        14       prosperous and at that time the disparity

        15       between our tax rate and the rate in other parts

        16       of this region was probably greater than it is

        17       now, that at a time when our tax rate at least

        18       on the state level had declined significantly,

        19       although it did increase on the local level,

        20       that having decreased on the state level, we've

        21       never -- and the disparity between New York

        22       State and the neighboring states being much

        23       less, we nevertheless found ourselves in a very











                                                             
7474

         1       poor economic time, does not -- does that not

         2       show, Senator, that what we're really dealing

         3       with is national/international economic trends

         4       and our local tax policy, our monetary policy if

         5       you will, has really minor effect on the economy

         6       of this state?

         7                      SENATOR GOODMAN:  I could not

         8       disagree with you more completely, Senator.  I

         9       may say that not long ago, I heard a very lovely

        10       compliment directed at you which stated that

        11       Senator Leichter is a gentleman of the old

        12       school.  I think that's a wonderful personal

        13       compliment, and I congratulate you and agree

        14       that you richly merit that, but I must also be

        15       constrained to say, Senator, that not only are

        16       you a gentleman of the old school, you're an

        17       economic thinker of the old school, and it is

        18       the old school that we are deeply concerned with

        19       and seeking passionately to reverse in the

        20       action we take today, because the old school

        21       took the view that ever higher taxes to produce

        22       ever greater benefits for those who

        23       theoretically were in need of never ending











                                                             
7475

         1       spiraling schemes of social well-being, and vast

         2       construction projects which, in the fullness of

         3       time, crumbled because we couldn't afford to

         4       maintain them and vast service delivery networks

         5       which we could not possibly hope to continue,

         6       essentially began to strangle us and throw us

         7       into a reverse spiral, and I think it's amply

         8       demonstrated by the relatively recent history of

         9       the state that all of these things have come

        10       together and have hit New York with a vicious

        11       whiplash.

        12                      It is this that we're trying to

        13       reverse.  These deficits that we've suffered

        14       have come from the fact that fundamentally the

        15       job economy has been wrecked and it's that that

        16       I appeal to you to try to understand requires

        17       some very strong medicine and some major

        18       strategy to turn around this ocean liner which

        19       is headed over Niagara Falls, if you will allow

        20       me to mix an aquatic metaphor.

        21                      The fact of the matter is that we

        22       are reversing it at last, but we're not

        23       accomplishing our objective yet.  We're sending











                                                             
7476

         1       a strong signal, and I'll give you one example,

         2       the estate tax.  Quite candidly, I'm not happy

         3       with this estate tax modification because all

         4       this does is say we'll take your house, your

         5       basic residence, and we'll give you some basic

         6       tax relief when you die, on your residence.

         7                      We have to go much beyond that.

         8       We have to say that as long as Florida has no

         9       estate tax and as long as it's sucking out of

        10       our state like an Electrolux, people of wealth

        11       and means, if we give them this estate tax we'll

        12       keep them here and we'll get a rich return on

        13       our investment in prudent policy.

        14                      This is just an example of what

        15       at times some might call a give-away to the rich

        16       and extraordinary benefits to all levels of our

        17       population and especially those of our least

        18       fortunate because they don't get short-term

        19       welfare jobs.  They get long-term employment

        20       which keeps them in a position of supporting

        21       their families and of a bright future to which

        22       they can look forward, which is not possible

        23       under a punitive tax system.











                                                             
7477

         1                      THE PRESIDENT:  Thank you,

         2       Senator Goodman.

         3                      Senator Oppenheimer, why do you

         4       rise?  You look very sad.

         5                      SENATOR OPPENHEIMER: I am.

         6       Senator Goodman, would you yield to a question?

         7                      SENATOR GOODMAN:  Yes, Senator,

         8       with pleasure.

         9                      SENATOR OPPENHEIMER:  Would you

        10       tell me what, in your opinion, is the most

        11       burdensome tax in New York State? Would you say

        12       it is the personal income tax, or would you say

        13       it is the property tax?

        14                      SENATOR GOODMAN:  May I put the

        15       answer this way:  Once upon a time there was a

        16       family who had a lovely, robust horse and that

        17       horse maintained his good health on a diet of

        18       one hundred percent oats.  As times worsened,

        19       however, the farmer was constrained to cut the

        20       percentage of oats in the diet and to increase

        21       the percentage of sawdust, and one day, to his

        22       astonishment when he got to about the 60 percent

        23       sawdust, the horse dropped dead.











                                                             
7478

         1                      When you ask me what is the worst

         2       tax, there is no one worst tax.  They're all

         3       sawdust, and the more we allow them to increase

         4       in the mixture of oats, the more we threaten our

         5       economy and imperil our very existence.  I hope

         6       that's a helpful graphic explanation of my

         7       point.  The taxes as a whole are a tremendous

         8       burden, and we must try to lighten that burden.

         9                      SENATOR OPPENHEIMER:  If I may

        10       though, Madam President, in the area that I come

        11       through -- come from, there is no question that

        12       by far our most burdensome of tax is our

        13       property tax.  We have average taxes in many of

        14       our communities on property of $15,000.  It is

        15       just not a bearable tax, and we are very much

        16       afraid that a cut in the income tax is going to

        17       cause our property taxes to go higher.

        18                      So while I appreciate that

        19       taxations are a pain in the neck for all of us,

        20       the fact is we have a government to run and we

        21       have to provide services and our Constitution

        22       tells us what we must be doing, so none of us

        23       like paying them, but I think it's a necessary











                                                             
7479

         1       evil.

         2                      Thank you, Madam President.

         3                      THE PRESIDENT:  Senator

         4       Stavisky.

         5                      SENATOR STAVISKY:  Thank you,

         6       Madam President.

         7                      I don't know which economist on

         8       staff or in the Legislature will be able to

         9       predict the outcome of this fiscal package, but

        10       I have a prediction to make regarding the

        11       outcome of this loss of billions of dollars in

        12       state revenue.

        13                      I gather that many of us want to

        14       meet frequently, and I predicted that with the

        15       passage of this tax cut bill, we will be meeting

        16       again to deal with the fiscal crisis, to deal

        17       with a loss of revenue, to deal with the failure

        18       of the state of New York to meet its obligations

        19       to its citizens.

        20                      So I'm very happy for all of our

        21       members that it will give us an opportunity to

        22       see each other again and to undo the damage, if

        23       we can, of the loss of revenue.  When taxes are











                                                             
7480

         1       cut and you give away revenue, you have to have

         2       replacement money, and I know of no replacement

         3       money comparable to what is being sacrificed in

         4       this legislation.

         5                      That aspect of the bill defies

         6       explanation.  I know 1996 will be an election

         7       year, but I believe with an honest approach,

         8       with candor in your conversations with your

         9       constituents, that you will not have to force

        10       feed them to vote for anyone in this room by

        11       giving away money that the state of New York and

        12       all of its services can ill afford to lose.

        13                      I think it's irresponsible.  I

        14       think it takes money from those who can afford

        15       to pay and squanders it on those who will lose

        16       so very much.  Senator Leichter indicated the

        17       contrast.  There is no legislator representing

        18       any of the districts of this state, the most

        19       affluent areas of the state whose constituents

        20       in the most affluent ranks will not be forced to

        21       make the sacrifice that our working poor or

        22       moderate income family will have to expend in

        23       sending two kids to college at a state











                                                             
7481

         1       institution, SUNY or CUNY.  That's a $1,500 tax

         2       increase for families that can ill afford this

         3       tax rise, and yet we're doing it to help the

         4       most affluent people who do not need this.

         5                      Are we going back to the glory

         6       days of Herbert Hoover and the "trickle down"

         7       theory? I don't know if that "trickle down"

         8       theory worked very well in rescuing the United

         9       States in the greatest depression in its history

        10       and I fear that with all the lovely analogies

        11       that have been drawn by some of the advocates

        12       for this, Senator Goodman, I don't think that

        13       horse suffered from the fact that it was getting

        14       too much oats.  If there was a conflict, it's in

        15       that horse's innards.  A medicine that you are

        16       very familiar with probably would have done very

        17       great good.  That horse needed Ex-Lax rather

        18       than the speech on the floor of this Legislature

        19       and I really think that the analogies that have

        20       been drawn are far-fetched.

        21                      We have a right to be truthful

        22       with ourselves and our constituents and not

        23       promise tax cuts for every individual in the











                                                             
7482

         1       state who doesn't need one and tax increases for

         2       others who can benefit from the services that

         3       are rendered but don't have the money to pay for

         4       those services.

         5                      So if we want to come together

         6       soon, if we want to come together to see each

         7       other, don't schedule a social event.  Schedule

         8       a legislative budget debate to restore the money

         9       that we are giving away now without reason.  I'd

        10       be happy to come back to Albany at any time even

        11       though we don't get paid when we arrive here,

        12       but we will come back.  We will do the people's

        13       business, whether or not the legislators or the

        14       Governor are paid, and I know we'll do the right

        15       thing.  We'll act responsibly when we have to.

        16       We'll act in a way to provide the funds and to

        17       undo the damage that we may be doing today with

        18       this legislation.

        19                      And yes, Senator Padavan, as well

        20       as Senator Leichter, are both on target.  We may

        21       be creating a new wave of Quick Draw McGraws who

        22       are going to be trapped with this instant appeal

        23       for more money.











                                                             
7483

         1                      Senator Stafford, you are

         2       absolutely right, don't get on that line and buy

         3       these tickets.  Don't get on the line and be

         4       seduced by these promises of rapid return, but

         5       let us not use this Quick Draw McGraw method of

         6       raising enough revenue as an excuse to pass a

         7       very broad tax bill.

         8                      I hope that you will see the

         9       wisdom of not sacrificing your constituents all

        10       over the state whose kids still need the college

        11       education that we have been benefited in our

        12       professional and business careers.  This new

        13       generation not always have the same ethnic

        14       background as those in this room but, yes, but

        15       yet increasingly, kids from minority and

        16       disadvantaged communities are in need of public

        17       higher education and we're taking away from them

        18       to give to the wealthiest taxpayers in the

        19       state.

        20                      I think that's shameful, and I

        21       hope you reflect on that as it affects your

        22       community.

        23                      THE PRESIDENT:  Senator











                                                             
7484

         1       Dollinger.

         2                      SENATOR DOLLINGER:  Madam

         3       President, I rise just to speak on this bill and

         4       give my brief thoughts.

         5                      The notion that somehow we're

         6       going to substantially increase the number of

         7       jobs in this state is, to me, a somewhat dubious

         8       premise.  The -- I think other speakers have

         9       addressed the fact that in New Jersey where

        10       Governor Whitman has already granted large

        11       reductions in the personal incomes tax, there

        12       has been an in-consequence increase in property

        13       taxes, which has had the same dampening effect

        14       on the poor horse that's eating, can't

        15       differentiate between the sawdust and the oats.

        16                      I think any tax increase, when we

        17       promise something that we don't have the

        18       capability of paying for today, makes that

        19       premise even more dubious.  However, I'm going

        20       to vote in favor of this bill because I believe,

        21       based on the negotiations that I've seen, we can

        22       afford a $550 million tax cut this year.  This

        23       budget enables that to be done.











                                                             
7485

         1                      I think it comes at some cost.  I

         2       am concerned when we get to the Medicaid cuts

         3       and other portions of this budget about the

         4       impact and the consequences to many in our state

         5       by this tax cut.  I don't believe that we'll see

         6       an explosion of jobs.  I don't believe we'll see

         7       a resurgence.

         8                      I'd only relate the story that I

         9       was told by a wealthy businessman who urged me

        10       to vote in favor of tax cuts.  He said, Gee, I

        11       took $10,000 out of my business just before the

        12       close of the fiscal year last year and you know

        13       I where I invested it, where I could get the

        14       best possible return? It's all going into a

        15       Pacific Rim growth fund just like in the 1980

        16       tax cut when tax cuts were given to people in

        17       wealthy industrial states like New York and they

        18       took their tax cut and invested it in the

        19       Southwest and in the Southeast, states that had

        20       very low wages, labor, states that had very,

        21       very low cost, states that were not like New

        22       York, because the money moves so quickly it goes

        23       other places.  My prediction is that this tax











                                                             
7486

         1       cut for wealthy people will similarly not come

         2       to rest in the state of New York.

         3                      I also express one other concern

         4       with respect to the tax cuts.  In casting a vote

         5       in favor of this year's tax cut, while this bill

         6       as a compromise includes all three years, this

         7       legislator is not afraid to look next year at

         8       the issue, which is can we afford next year's

         9       tax cut.  If we can't, I'm not going to be bound

        10       to deliver it.

        11                      I understand that, by virtue of

        12       the compromise in this bill, the position of the

        13       second floor, the position of others in this

        14       chamber, that they're willing to make that

        15       commitment.  I am not.

        16                      I'll close with one other thought

        17       and that's on the Quick Draw provision.  I share

        18       Senator Padavan's concerns.  I believe, as

        19       Senator Waldon expressed, that this is a poor

        20       people's tax.  It's a poor people's tax that

        21       we're creating because we're reducing our

        22       revenues by reducing personal income taxes.

        23                      I think it will have the











                                                             
7487

         1       consequent result of increasing gambling.  It

         2       will change the nature of our families, change

         3       the nature of our state, and I also make one

         4       other promise, if there are other things that

         5       are necessary to further implement Keno and

         6       Quick Draw, I intend to take every step that I

         7       can to try to prevent it.  I think it's a shame

         8       that we're giving away -

         9                      SENATOR LIBOUS:  I'd ask if

        10       Senator Dollinger would yield to a question.

        11                      SENATOR DOLLINGER:  I'd be glad

        12       to, Mr. President, at the conclusion of my

        13       remarks.

        14                      ACTING PRESIDENT DiCARLO:

        15       Senator Dollinger will not yelled.

        16                      SENATOR DOLLINGER:  -- that the

        17       give-aways, and the concern for people's

        18       gambling and poor people's gambling that could

        19       have the consequence of creating additional

        20       social strain and putting additional demands on

        21       our social service system.  So when all is said

        22       and done, I recognize this is a compromise.  I

        23       recognize it's got many dimensions.  I'm not











                                                             
7488

         1       happy with all of them, but at least at this

         2       point, Mr. President, I'm prepared to vote in

         3       favor of this, although I recognize that, in the

         4       future, we may need to make some changes.

         5                      ACTING PRESIDENT DiCARLO:

         6       Senator DeFrancisco.

         7                      SENATOR DeFRANCISCO:  Yes,

         8       Senator Dollinger, you have expressed quite

         9       quickly that you don't agree with the tax cut,

        10       you don't agree with the Quick Draw.  I wonder

        11       if you could explain why you're voting for this.

        12                      SENATOR DOLLINGER:  I believe

        13       I've already, Mr. President, explained.  I

        14       believe we can afford a $550 million tax cut

        15       this year.  I've looked at our costs and our

        16       expenses, and I believe this year that we can

        17       afford a $550 million tax cut.  If we were given

        18       the alternative, if this bill were changed, so

        19       that it was in two parts to vote for a $550

        20       million tax cut this year and then vote for a

        21       $2.8 million tax cut next year and then a $2.8

        22       million tax cut the next year, then I would

        23       alter my vote.  I would vote for this year and











                                                             
7489

         1       not vote for the years out.  Because it's

         2       packaged all in one little package, I'm going to

         3       vote in favor.

         4                      SENATOR DeFRANCISCO:  Would you

         5       yield for another question?

         6                      ACTING PRESIDENT DiCARLO:  Would

         7       you yield?

         8                      SENATOR DOLLINGER:  I'll be glad

         9       to.

        10                      ACTING PRESIDENT DiCARLO:  He

        11       will yield, sir.

        12                      SENATOR DeFRANCISCO:  Since you

        13       support the tax cut this year, would you also

        14       agree that it will not have the effect of

        15       raising property taxes back home?

        16                      SENATOR DOLLINGER:  I don't -

        17       Mr. President, I don't know that.  One of the

        18       interesting things about doing the budget this

        19       way is that I haven't seen the local assistance

        20       bill.  I don't know what's in it.  I don't know

        21       what effect it's going to have.  I'm concerned

        22       about the increase in property taxes in Monroe

        23       County and the communities that I represent, but











                                                             
7490

         1       again, not sitting on the Majority side of the

         2       house, not designing these bills as they come,

         3       recognizing perhaps based on my own experience

         4       over the last two and a half years that

         5       amendments tend to have a certain futile side to

         6       them at this stage in the proceedings, it seems

         7       to me that I can't make a judgment as to whether

         8       there will be a property tax reduction or

         9       increase as a consequence.

        10                      I'd simply add, Mr. President, if

        11       Senator DeFrancisco, who is in the Majority, had

        12       seen it and has additional information, I'd love

        13       to hear it.

        14                      SENATOR DeFRANCISCO:  Will the

        15       Senator yield to another question?

        16                      ACTING PRESIDENT DiCARLO:

        17       Senator Dollinger, will you yield to another

        18       question?

        19                      SENATOR DOLLINGER:  I'll be glad

        20       to.

        21                      ACTING PRESIDENT DiCARLO:

        22       Senator, he will.

        23                      SENATOR DeFRANCISCO:  If you











                                                             
7491

         1       don't have the required information, would you

         2       tell me how you can feel that the state of New

         3       York can afford the $500,000 -- $500 million of

         4       tax cut this year?

         5                      SENATOR DOLLINGER:  Through you,

         6       Mr. President, I've seen the State Operations

         7       portion of the budget.  I've seen the capital

         8       budget and the consequences of that, and I

         9       believe that, based on what I see in the State

        10       Operations side of the budget, there's a

        11       sufficient saving, a reduction in costs, I

        12       believe this Governor has suggested the

        13       reduction in cost, reduction in spending, on the

        14       state spending side, and State Operations is a

        15       significant portion of the 550 million.

        16                      Under those circumstances, I'm

        17       willing to take, I guess, that chance, that

        18       suggestion that the Speaker and the Majority

        19       Leader have negotiated a budget which is

        20       constitutionally acceptable, that is it is

        21       balanced, and therefore, there's enough to do

        22       the $550 million this year.

        23                      SENATOR DeFRANCISCO:  One last











                                                             
7492

         1       question, if you'd yield.

         2                      SENATOR DOLLINGER:  I'd be glad

         3       to.

         4                      ACTING PRESIDENT DiCARLO:  One

         5       last question, certainly, Senator DeFrancisco.

         6                      SENATOR DeFRANCISCO:  At this

         7       point, of course, you recognize that the local

         8       assistance portion is two-thirds of the portion

         9       of -- of the budget.  You realize that?

        10                      SENATOR DOLLINGER:  I do, Mr.

        11       President.

        12                      SENATOR DeFRANCISCO:  I have no

        13       other questions.

        14                      SENATOR DOLLINGER:  I can't wait

        15       to see it, I'd just mention.

        16                      ACTING PRESIDENT DiCARLO:

        17       Senator Markowitz, do you wish to speak?

        18                      SENATOR MARKOWITZ:  Let me just

        19       say there's no doubt in my mind that when

        20       Governor Pataki won the election that the

        21       direction of the state would move in a different

        22       direction.  There is no question that we are

        23       about to see that and its first steps over the











                                                             
7493

         1       next few hours, perhaps few days.

         2                      I wonder if people in the state

         3       of New York have changed.  We'll see because

         4       this budget will do less for less.  It will do

         5        -- it will provide less services for people.

         6       There's no doubt about it.  Those that are

         7       moderate and middle income will to some degree

         8       share in less attention and less services.  It

         9       will be interesting to see if the free lunch -

        10       and that's what this buys into, the ability of

        11       the Majority to convince the residents of the

        12       state that they are paying too much taxes and

        13       that they are not receiving services -- it will

        14       be interesting to see when it rolls around and

        15       finally when they need a service that have

        16       supported the philosophy of less taxes, it will

        17       be interesting to see when they have to access

        18       those services and there are less services for

        19       them at the time they need it, whether or not

        20       they will then say it's all right, it's fine.

        21       I'm happy that there's less services even though

        22       I need it.  I accept the fact that the state is

        23       doing less for me, and that will really be what











                                                             
7494

         1       the future brings to us.  It will be interesting

         2       to see how the residents of New York State react

         3       to less government, quote, and less services,

         4       less programs, less assistance, and that's what

         5       this budgeted will mean, at least it means to me

         6       and to the great majority of the people that I

         7       serve, and I believe to the great majority of

         8       the people of the state of New York.

         9                      That's what this past election,

        10       in my opinion, was all about and we'll see on a

        11       federal level and on a state level and perhaps

        12       on a local level what the future brings.  We'll

        13       see.  I'm convinced and hope that New York State

        14       residents, particularly those that are fortunate

        15       to be well off, somewhat more affluent, have had

        16       better luck in their lives, it will be

        17       interesting to see whether or not they will once

        18       again realize that they have a collective

        19       responsibility through their taxes and other

        20       generosities to help those that are attempting

        21       to also make something of their lives and to

        22       have a chance to share in the American dream.

        23       We'll see.











                                                             
7495

         1                      I'm convinced that the pendulum

         2       will come around and that we'll see it turn once

         3       again in the very near future when it becomes a

         4       reality to residents of the state there is no

         5       free lunch, there's no free ride.  You have to

         6       pay for the services, not only for the services

         7       that you need today, Senator Marchi, but none of

         8       us know what the future brings tomorrow, and I

         9       know for one that while I may not need many

        10       services of New York State today, surely I may

        11       or a member of my family or friends may need

        12       those services tomorrow.  We have to think about

        13       that as much as we think about today.

        14                      Having said that, on the issue of

        15       jobs, since all of us -

        16                      ACTING PRESIDENT DiCARLO:  Excuse

        17       me, Senator Markowitz.  The stenographer is just

        18       getting set up.  Can you just hold up a second.

        19       We want to make sure that we get every word.

        20       This is history being made here this evening.

        21       Senator -- well, Senator Markowitz, you have the

        22       floor, sir.

        23                      SENATOR MARKOWITZ:  On the











                                                             
7496

         1       question of jobs, this really goes to the heart

         2       of what perhaps is the greatest problem in New

         3       York State, finding jobs that provide for those

         4       that aspire to be part of our dream of reality.

         5       I have to tell you, as I may have mentioned

         6       previously, that recently a major supermarket

         7       chain opened a new store in my area at jobs

         8       paying $5.50 an hour.  I'm sure none of us would

         9       say that's a high paying job.  There were three

        10       blocks long of residents in the area unemployed

        11       looking for those $5.50 an hour jobs.

        12                      It's not that they're lazy.  It's

        13       that they want to work but we have allowed,

        14       through our tax policies, American manufacturers

        15       to leave New York and to leave America as they

        16       seek to continue to build overseas, to the

        17       markets that they can manufacture their products

        18       the dead cheapest.

        19                      Now, how we address that, how we

        20       encourage manufacturers to make it necessary for

        21       them to manufacture here and employ our own

        22       people, so that our standard of living can at

        23       least have a chance to be everything it ought to











                                                             
7497

         1       be, is a challenge that I think faces all of us

         2       that goes well beyond -- well beyond policies

         3       set right here in the state of New York.

         4                      Let's hope that that will be a

         5       direction.  I don't believe that this will

         6       result, this budget, in creation of jobs because

         7       we're not getting to the real issues as to why

         8       manufacturers have left New York and continue to

         9       leave urban areas of New York State.

        10                      On the issue of Keno, I don't

        11       know, I see Senator Stafford -- Senator

        12       Stafford, I want to ask you a question.  May I?

        13                      ACTING PRESIDENT DiCARLO:

        14       There's a lot of conversations going on in the

        15       chamber.  If you would please take your

        16       conversations outside the chamber.  Thank you,

        17       Senator Markowitz.

        18                      SENATOR MARKOWITZ:  Just a

        19       question of Senator Stafford.

        20                      ACTING PRESIDENT DiCARLO:

        21       Senator Stafford, would you yield to Senator

        22       Markowitz?

        23                      SENATOR STAFFORD:  By all means,











                                                             
7498

         1       Senator.

         2                      SENATOR MARKOWITZ:  Thank you,

         3       Senator.  The good Senator yields.

         4                      In regards to Keno, do you sense

         5       that the numbers, local numbers operations,

         6       enterprises that exist in many areas of our

         7       communities and state might -- that this might

         8       be a dent on their activities if we implement

         9       and enact this new gambling opportunity?

        10                      SENATOR STAFFORD:  Well, Mr.

        11       President.

        12                      ACTING PRESIDENT DiCARLO:

        13       Senator Stafford.

        14                      SENATOR STAFFORD:  I don't

        15       understand.  By numbers? Could you explain.

        16                      SENATOR MARKOWITZ: Well, Senator,

        17       obviously -

        18                      ACTING PRESIDENT DiCARLO:

        19       Senator, could you be a little clearer?

        20                      SENATOR STAFFORD:  Mr. President,

        21       I'll explain.

        22                      I -- I think that upstate too, I

        23       have thoughts about that myself.  I sometimes











                                                             
7499

         1       think we should be -- at all times think we

         2       should be careful.  You know, we say it's there

         3       so we'll legalize it.  I -- I'm concerned about

         4       that, but I have been advised by friends of mine

         5       who understand exactly what you're asking about

         6       and who I think -- well, I'll leave it at that,

         7       that this is a move and making something legal

         8       and it's actually being policed and being run

         9       properly, and there is less -- there is less of

        10       a possibility of fraud and people being taken

        11       advantage of.

        12                      I appreciate the question, and I

        13       think I was thinking about that as I was

        14       speaking, but I didn't mention it.

        15                      ACTING PRESIDENT DiCARLO:  Thank

        16       you, Senator Stafford.

        17                      Senator Markowitz, did you wish

        18       to continue?

        19                      SENATOR MARKOWITZ:  Let me just

        20       conclude on that.

        21                      Senator, I hope and pray that

        22       your observation is correct, but my concern is

        23       that the law of instant gratification on the











                                                             
7500

         1       gambling issue might develop an even greater

         2       attraction as has been said previously of those

         3       that have been not necessarily involved in -- in

         4       gambling, and I worry greatly, I really do,

         5       about that potential impact especially for many

         6       of our communities that many of us serve, and I

         7       hope that as a Legislature, that we will monitor

         8       this very closely because certainly there has to

         9       be other ways, certainly other ways that this

        10       state can find on a fair basis to come up with

        11       the revenues that we do need to maintain the

        12       services that are really necessary in our

        13       society.

        14                      Thank you very much.

        15                      ACTING PRESIDENT KUHL:  Senator

        16       Stachowski.

        17                      SENATOR STACHOWSKI:  If Senator

        18       Stafford would yield for a few questions.

        19                      ACTING PRESIDENT DiCARLO:

        20       Senator Stafford, would you yield to a few

        21       questions for Senator Stachowski?

        22                      SENATOR STACHOWSKI:  I know

        23       there's a portion of this bill that nobody has











                                                             
7501

         1       discussed yet, and although we talked about it

         2       in committee I would like to run through some of

         3       the horse racing features of this rather complex

         4       bill that we have in front of us, and I think we

         5       should get some of those items on the record

         6       since we've discussed at length a lot of the

         7       other parts of it.

         8                      SENATOR STAFFORD:  You're exactly

         9       right.

        10                      SENATOR STACHOWSKI:  Senator,

        11       would you mind briefly giving us an explanation?

        12                      SENATOR STAFFORD:  I think I

        13       could.

        14                      SENATOR STACHOWSKI:  Do you want

        15       to just briefly try to cover it and then I'll

        16       ask you specifics if you don't?

        17                      SENATOR STAFFORD:  I think I can

        18       tell you that.  As far as the racing industries

        19       in this state, again, I hate to be -- I probably

        20       shouldn't be using the word "direction" all the

        21       time.  In other words, it hasn't been going

        22       well.  I don't think anyone will argue, and at

        23       one time, at one time we were THE racing state.











                                                             
7502

         1       Saratoga, I believe, had the oldest race in the

         2       nation with the Travers.

         3                      I have been there, as some of my

         4       friends have, always had a good time, but never

         5       was anyone excited about my winnings.  It was

         6       very pleasant and, of course, we have Belmont,

         7       Aqueduct and, of course, I believe now -

         8       correct me if I'm wrong -- but I remember when

         9       we had Jamaica and when I was in school, I went

        10       to the races at Jamaica, that close to that

        11       time.

        12                      Now, we've been going down, down,

        13       down, and once again when we get -- and I talked

        14       about -- I talked about the economic locomotive

        15       here in the state, although I disagree with my

        16       Senator, I'm afraid, on other items, I always

        17       say my summer Senator -- I'm his summer Senator.

        18       I can see now that we just tax, tax, tax and the

        19       purses were down, down, down.  People didn't

        20       want to race here.  We weren't supporting the

        21       horsemen.

        22                      We -- I have a couple friends,

        23       I'm sure you do, one friend especially, he built











                                                             
7503

         1       a racing stable here in New York, and he's out

         2       of here.  He's now moved to Florida, and he

         3       tells me because this isn't the place where he

         4       can have an operation that is profitable.  The

         5       vitality of racing is not what he felt it should

         6       be, is not what it should be and had been at one

         7       time.

         8                      So there's no question about it,

         9       and we'll get right to the question of money

        10       because that's key.  NYRA gets 25 less taxes for

        11       NYRA, they'll get 25 less in the state and the

        12       horsemen will have a $15 million advantage in

        13       this program.  I think it's a step in the right

        14       direction.  A great deal of work has gone into

        15       this.  The industry has had input, and I know

        16       you know this, this is one area where you get

        17       input, I mean one industry where you get input

        18       and you don't ever say, Well, you don't get

        19       ahold of it.  They get ahold of you.

        20                      But I think for the most part we

        21       have a good package.  Now, we want to mention

        22       simulcasting because that will be very important

        23       for -- and we're increasing simulcasting for all











                                                             
7504

         1       the facilities in the state.  We don't think

         2       there will be any damage at all of the

         3       facilities.

         4                      I am of the opinion that we have

         5       needed to do this.  We just haven't reacted in

         6       the way I think we should have, and I am

         7       supporting this.  I think it's -- here I go

         8       again, but it's right, it's a step in the right

         9       direction, and I think it will increase the

        10       attendance.  I think it will be good for the

        11       industry, and I also want to say, you know, so

        12       often, so often we complain and we criticize,

        13       you know, what is being done in various

        14       industries and racing is no exception, but I

        15       want to say on a beautiful summer day in August

        16       there isn't a more beautiful place than Saratoga

        17       with families there now and picnics, which was

        18       never the case when you and I were young when

        19       you came over from Worcester and I came down

        20       from Plattsburgh, that you had people all over

        21       the area, and I think the NYRA is doing a good

        22       job as far as the facility and this is another

        23       point, you and I discussed this.  This is a two











                                                             
7505

         1       year commitment to attend -

         2                      SENATOR STACHOWSKI:  Senator, if

         3       I could.

         4                      ACTING PRESIDENT DiCARLO:

         5       Senator Stachowski, do you have another question

         6       for Senator Stafford?  Senator, do you yield for

         7       another question?

         8                      SENATOR STACHOWSKI:  And he did

         9       such a good job with this complex subject, and

        10       I'd like to get a couple parts of this.

        11                      The OTB, through simulcasting,

        12       will benefit and even more, but obviously the

        13       OTB will benefit?

        14                      SENATOR STAFFORD:  This is very,

        15       very important so -- OTBs are an important

        16       entity, very important.  They will have six

        17       months more of a race track.  I didn't say

        18       that.  Well, yeah, they'll have six months

        19       they'll have another race track which, of

        20       course, increases their overall program.

        21                      SENATOR STACHOWSKI:  If the

        22       Senator would continue to yield.

        23                      ACTING PRESIDENT DiCARLO:











                                                             
7506

         1       Senator Stafford, will you continue to yield?

         2       Sir? Yes, I believe he will.

         3                      SENATOR STAFFORD:  Yes.

         4                      SENATOR STACHOWSKI:  The harness

         5       tracks will benefit too almost through increased

         6       simulcasting also?

         7                      SENATOR STAFFORD:  Exactly,

         8       increased simulcasting but also they will have a

         9       takeout adjustment which is very important.

        10                      SENATOR STACHOWSKI:  If the

        11       Senator would continue to yield.

        12                      SENATOR STAFFORD:  Yes.

        13                      ACTING PRESIDENT DiCARLO:

        14       Senator Stafford will continue to yield.

        15                      SENATOR STACHOWSKI:  The -- and I

        16       forgot to ask this in committee, the bettors,

        17       will they benefit from these adjustments and the

        18       takeout particularly in the win, place and show

        19       bets?

        20                      SENATOR STAFFORD:  I hasten to

        21       answer this one, because I remember when this

        22       decision was made -

        23                      ACTING PRESIDENT DiCARLO:











                                                             
7507

         1       Senator Stafford, I'm sorry but it's difficult

         2       for the stenographer to pick you up with your

         3       back to the microphone, sir.  Thank you.

         4                      SENATOR STAFFORD:  This will be

         5       the lowest in the nation that will be better for

         6       the -

         7                      SENATOR STACHOWSKI:  Senator -

         8                      SENATOR STAFFORD:  The

         9       handicapper will be paying the lowest rate in

        10       the nation, and that is very important because

        11       that has also been a complaint, but I would also

        12       say this, and I think these are excellent

        13       questions, and I think you're laying the entire

        14       program out and a lot of work went into it.  If

        15       we started improving the program then that's

        16       what is going to have the person making the

        17       wager or the handicapper there.

        18                      SENATOR STACHOWSKI:  If the -- if

        19       the Senator would continue to yield.

        20                      ACTING PRESIDENT DiCARLO:

        21       Senator, would you continue to yield to Senator

        22       Stachowski?

        23                      SENATOR STAFFORD:  Yes, I will.











                                                             
7508

         1                      ACTING PRESIDENT DiCARLO:  Yes,

         2       he will, Senator Stachowski.

         3                      SENATOR STACHOWSKI:  The Finger

         4       Lakes, which I know over time is left out of

         5       bills and I know is in this bill, and could you

         6       explain to us how Finger Lakes benefits in this

         7       piece of legislation?

         8                      SENATOR STAFFORD:  I don't mean

         9       to just say this.  I continue to say it, but

        10       again, what you just said is exactly right about

        11       Finger Lakes, and I think at times they have

        12       been treated less than fairly.  They will now

        13       have their product in every single OTB program

        14       in the nation -- state.  What did I say, nation?

        15       State, sorry.

        16                      SENATOR STACHOWSKI:  Is it -- if

        17       the Senator will continue to yield.

        18                      ACTING PRESIDENT DiCARLO:

        19       Senator Stafford, will you continue to yield?

        20                      SENATOR STACHOWSKI:  Is it also a

        21       benefit between that there, the Finger Lakes

        22       itself and two of the OTBs and also in some

        23       exotic betting that they can now feature at











                                                             
7509

         1       Finger Lakes that I don't think they have had

         2       the opportunity to do or something to do with

         3       the exotic betting if you can explain those two

         4       sections, please?

         5                      SENATOR STAFFORD:  They'll have

         6       the new exotic betting at Finger Lakes and it

         7       will apply only to simulcasting, but let me -

         8       my counsel just for -- what that means, I will

         9        -- these -- this terminology "exotic betting"

        10       just so everyone knows, you know, you pick six

        11       straight, and I just happened to be at Saratoga

        12       one day when somebody picked eight straight and

        13       you know, and the place went wild, and I don't

        14       want to tell you the amount that was won, but it

        15       was a -- quite impressive.

        16                      SENATOR STACHOWSKI:  The

        17       relationship between the OTBs, Western and

        18       Capital I think, Finger Lakes -

        19                      SENATOR STAFFORD:  On all these

        20       out-of-state wagering, Finger Lakes will receive

        21       increased payment from the Capital District and

        22       from the Western Region, you're exactly right.

        23                      SENATOR STACHOWSKI:  If the











                                                             
7510

         1       Senator would continue to yield.

         2                      ACTING PRESIDENT DiCARLO:

         3       Senator Stafford, would you continue to yield to

         4       Senator Stachowski?  He will.

         5                      SENATOR STACHOWSKI:  I hate to

         6       bring up the one questionable part, but I will.

         7       Yonkers has a concern that they are going to

         8       lose the guarantee that they formerly had and

         9       can you tell us how that loss of that guarantee

        10       would be covered by loss of parts of this bill

        11       which I was told would satisfy their concern in

        12       the long run by the financial write-off, it

        13       would break even at least if not gain money?

        14                      SENATOR STAFFORD:  After

        15       September 1st, Yonkers will have full card

        16       simulcasting every day of the week and you are

        17       exactly right, there's been a little bit of a

        18       glitch here or a ripple, but I assure you and my

        19       other colleagues, that this will be -- this will

        20       be arranged in a way that there will be as much

        21       of an advantage, if not more than an advantage

        22       for Yonkers.

        23                      SENATOR STACHOWSKI:  Thank you,











                                                             
7511

         1       Senator.

         2                      Just a couple of comments only on

         3       the racing part of this bill.  It seems that a

         4       lot has been dealt with.  There's an amazingly

         5       good package for NYRA.  The -- at the same time

         6       the simulcast features of the bill have the OTBs

         7       very content.  The simulcast features and the -

         8       with the other features seem to handle the

         9       harness tracks.  The Finger Lakes which has

        10       oftentimes, because they're not a harness track

        11       and not OTB or not part of NYRA, they often

        12       times get treated differently, but in this bill,

        13       particular bill, they seem to be well taken care

        14       of, and it seems from a racing perspective and

        15       an industry that has been struggling gets as

        16       good a boost as possible.

        17                      I would just point out that,

        18       although we're doing all these things for NYRA,

        19       it is, in effect, a major Band-Aid to an

        20       industry that's been struggling, and I would

        21       hope with the fact that NYRA's, was it, you call

        22       it charter or whatever, it's going to go out,

        23       the franchise is going to go out of existence in











                                                             
7512

         1       three years, I believe in the year 2000 it's

         2       basically the end of four more years or five

         3       years.  It's something that we should be looking

         4       to and that to deal with that whole industry and

         5       maybe in putting this in a position where this

         6       will help that we'd like to look at it, maybe

         7       investigate it through a subcommittee we now

         8       have in coordination with the Assembly people,

         9       so that when that franchise is being dealt with,

        10       we will have a program or a package that will

        11       not only deal with the franchising if the

        12       franchise has to be changed or stay the same or

        13       whatever it's going to do, to make sure that

        14       that industry will not only be helped, it will

        15       be put in a position where it can flourish, and

        16       I thank Senator Stafford for his patience with

        17       my questions and his answers.

        18                      ACTING PRESIDENT LACK:  Senator

        19       Abate.

        20                      SENATOR ABATE:  Yes.  I would

        21       like to briefly explain why I'm opposed to this

        22       budget bill, and unlike my colleagues who also

        23       cannot support this budget bill, it's not that











                                                             
7513

         1       we are against tax cuts.  Clearly, in an ideal

         2       world and out of a context of an existing $4

         3       billion deficit, everyone -- I think everyone in

         4       this room would agree that we would support tax

         5       cuts, but the relevant questions are not whether

         6        -- and again, it's a question sometimes of

         7       courage.  I think it takes some courage for some

         8       of us to say -- to vote against this bill

         9       because tax cuts are so popular in New York

        10       State, but the relevant issues are how, when,

        11       how much and can we afford it?  And I guess I

        12       for one am not a gambler.

        13                      We're talking about a three-year

        14       tax cut, not a two-year tax cut or a one-year

        15       tax cut, something that equals $3.8 billion, and

        16       if you ask an economist today -- and not all

        17       economists will agree -- they will say, "Yes,

        18       tax cuts can spur the economy.  They can

        19       revitalize the economy.  They may produce jobs,"

        20       but you have to look at it in the context of an

        21       entire economy; and we're now in economic flux

        22       in New York State.  We're facing a $4 billion

        23       deficit, obviously will be closed during this











                                                             
7514

         1       budget here, and as someone who's not a gambler,

         2       I expect New York State not to be a gambler and

         3       I think, given the flux, this large of a tax cut

         4       this year, a three-year span, is a high-risk,

         5       very speculative venture, and if you go back to

         6       the economists who say "Yes, on the one hand,

         7       this produces good results but, on the other

         8       hand, during a time that we're facing, this may

         9       produce results that will be devastating to our

        10       communities."

        11                      There was a recent survey where

        12       business corporations were asked, "What do you

        13       need in order to stay in New York or other urban

        14       centers?"  And they listed a number of factors,

        15       and the factor that was not as important as

        16       other factors were tax cuts.  What they listed

        17       as high priority on whether they would stay in

        18       New York City or another urban area was quality

        19       of life issues -- crime, head of the list.  They

        20       talked about schools, quality of the school

        21       system, quality of health care.  They talked

        22       about mass transit, and then they talked about

        23       tax cut reductions.











                                                             
7515

         1                      I submit we are already in this

         2       budget affecting health care, quality education,

         3       mass transit.  Those cuts are taking place now.

         4       They're going to affect the quality of life of

         5       our communities.

         6                      We are now saying we're going to

         7       gamble another $3.8 billion that we're saying is

         8       not going to affect these quality of life

         9       issues.  I suggest that this tax cut ultimately

        10        -- I hope I'm wrong.  I'm voting against this

        11       budget bill because I think I'm right.  This tax

        12       cut will end up being anti-business as well as

        13       anti-community.

        14                      And who will pay the price?  The

        15       price will be paid by the middle income, be paid

        16       by our communities through higher property

        17       taxes, through critical services in our

        18       communities being cut, and I also will add,

        19       because I'm not a gambler, I do not support

        20       Quick Draw.  Of course, we have to raise

        21       revenue, but do we have to raise revenue at the

        22       expense of enormous social and quality of life

        23       costs?  It certainly does not -- I don't think











                                                             
7516

         1       we can pay the price of this increased revenue.

         2       It's not always about bottom line.  I just

         3       suggest we have to raise revenue in this way so

         4       we can gamble at breakfast, so we can gamble at

         5       lunch, we can gamble at dinner, so we can gamble

         6       24 hours a day -- although I'm told after eight

         7       hours, you can take a five-minute reprieve.

         8                      I say we have to be in the

         9       business -- in the business, do things that are

        10       smart, that are pro business and pro community,

        11       pro quality of life.  At this point in time, I

        12       believe we cannot afford a $3.8 billion tax cut

        13       over the next three years.

        14                      THE PRESIDENT:  Read the last

        15       section of Bill 5279, please.

        16                      THE SECRETARY:  Section 152.

        17       This act shall take effect immediately.

        18                      THE PRESIDENT:  Call the roll.

        19                      (The Secretary called the roll.)

        20                      THE PRESIDENT:  Announce the

        21       results, please.

        22                      Oh, Senator Waldon -- Senator

        23       Tully.











                                                             
7517

         1                      SENATOR TULLY:  Thank you, Madam

         2       President.

         3                      I rise to explain my vote.

         4       Laryngitis notwithstanding, this is our

         5       well-known revenue package.  Contained within

         6       it, of course, are the revenue cuts.  There are

         7       some items in this budget that I'm not so

         8       pleased with, particularly that portion of the

         9       budget which increases the assessment on nursing

        10       homes, at the same time that the nursing homes

        11       are undergoing extreme cuts.

        12                      To me, that is not something that

        13       should be done.  I understand the need for

        14       revenue.  I understand the fact that this is a

        15       revenue package.  Also contained within this

        16       budget is an electronic lottery proposal called

        17       Quick Draw.  It's a gambling fix for the state's

        18       dollars needs, in my opinion.  By itself, it

        19       will extend the state's gambling dependency, but

        20       mixed with alcohol, I'm concerned that the

        21       social cost would tilt the balance of the

        22       projected revenue.

        23                      I have never voted for gambling











                                                             
7518

         1       as a revenue producer in this house since I came

         2       here in 1982, and I would not vote for it

         3       tonight, but I must vote for this particular

         4       bill with one hand tied behind my back, because

         5       how could I not vote for a bill that reduces the

         6       personal income tax $3.6 billion and brings our

         7       PIT burden on a per capita basis from second in

         8       the nation behind Massachusetts to sixth behind

         9       Massachusetts, Hawaii, Oregon, Delaware and

        10       Minnesota.

        11                      This tax cut, Madam President, my

        12       colleagues, is long overdue and most deserved by

        13       our constituents, and I cannot let my strong

        14       personal belief against gambling as a revenue

        15       producer stand in the way of this much needed

        16       relief.

        17                      I vote aye.

        18                      THE PRESIDENT:  Thank you,

        19       Senator Tully.

        20                      Could the negative voters please

        21       raise their hands once more for the results?

        22                      And Senator Waldon to explain

        23       your vote.











                                                             
7519

         1                      SENATOR WALDON:  Thank you very

         2       much, Madam President.

         3                      I don't know if it's necessary

         4       for me to say some of the things I'm going to

         5       say, and I won't belabor the point.  We've gone

         6       through a very difficult process in arriving at

         7       tonight.  There has been some contentiousness.

         8       There has been some anger expressed.  There has

         9       been some discontent amongst us who are part of

        10       a very important collegial body, representing

        11       eighteen and a half million people.

        12                      This bill, I must vote no on, but

        13       I want you to understand that it's a very

        14       reasoned vote, in my opinion.  There are parts

        15       of this bill that I applaud.

        16                      For example, I recognize the need

        17       to help the racing industry, and I think what

        18       was done, Mr. Chairman, Senator Stafford, in

        19       that regard, was tremendous.  I think we need to

        20       keep people in New York State and increasing the

        21       amount of money that our state can receive

        22       certainly will help in that regard, and there

        23       are other phases of this proposal which are











                                                             
7520

         1       excellent, in my opinion.

         2                      However, because of the reasons I

         3       expressed earlier, especially in regard to Keno

         4       and the disparate impact on the community -- I

         5       serve in similar communities, I must vote this

         6       time in the negative.

         7                      However, I want us to understand

         8       that, even though sometimes it may appear that

         9       there's just contentiousness coming from this

        10       side of the aisle from this seat, it is not true

        11       that it is universally the case, because

        12       sometimes you state the case.  You make the

        13       case, and even though philosophically we are

        14       apart, we are not universes apart.

        15                      Thank you, Madam President.

        16                      THE PRESIDENT:  Senator

        17       DeFrancisco.

        18                      SENATOR DeFRANCISCO:  To explain

        19       my vote.

        20                      First I, like Senator Padavan and

        21       Senator Tully, have grave reservations about the

        22       Quick Draw, first the amount of revenues that

        23       would be forthcoming and also the negative











                                                             
7521

         1       social impact of it.

         2                      However, I think that this bill

         3       is so important on the other end, the tax

         4       reductions, that it definitely merits a yes

         5       vote.

         6                      Now, we've heard different

         7       comments about the tax cut and the effect that

         8       it's going to have, but there's one thing that

         9       everybody that spoke seems to agree on, no

        10       matter where they happen to sit in this chamber,

        11       and that is that we need to create jobs in this

        12       state.  I don't think anyone can disagree with

        13       the fact that we've done a miserable job of it

        14       in the last several years.

        15                      So I guess what this bill is

        16       saying, we may be right or we may be wrong, but

        17       don't you think it's worth a chance?  Don't you

        18       think it's worth an opportunity to vote for this

        19       bill and give us an opportunity to create jobs

        20       that everyone wants to do in this -- in this

        21       chamber?

        22                      The property tax issue, everyone

        23       is concerned whether or not local property taxes











                                                             
7522

         1       are being raised.  Members of this august body,

         2       we have been pouring money to the localities

         3       year after year after year, and if any of you

         4       have had a property tax reduction in your

         5       community while we have had these high taxes,

         6       let me know, because I want to know how you do

         7       it.

         8                      Money being thrown at the

         9       municipalities is not the answer for a property

        10       tax reduction.  It's spending cuts, and that's

        11       the answer.  We're worried about services; all

        12       of us are, but there's one thing that you've got

        13       to recognize is that we spend more than we have

        14       to.  When we spend in Medicaid fund -- Medicaid

        15       expenses more than the second two highest

        16       states, something is basically wrong.

        17                      So I think on balance, this is

        18       the best way to go.  We're going to change the

        19       direction of this state.  At least we're going

        20       to give this state an opportunity to change the

        21       direction that we've had over the past several

        22       years, a direction that hasn't created jobs.

        23       This will give us that opportunity.











                                                             
7523

         1                      THE PRESIDENT:  Thank you.

         2                      Senator Marcellino.

         3                      SENATOR MARCELLINO:  Madam

         4       President, I rise to explain my vote.

         5                      This bill and this budget that

         6       we're voting on tonight or the beginnings of it

         7       is not perfect.  It's the product of compromise

         8       and compromise, by nature, probably pleases no

         9       one.

        10                      This state, however, is in deep

        11       trouble, and while I have concerns as have been

        12       expressed by my colleagues with respect to the

        13       Quick Draw aspect, I also have concerns with

        14       respect to job loss which has been going on in

        15       this state.

        16                      While the rest of the nation has

        17       been coming out of a recession, we have been

        18       getting deeper and deeper into it.  This state

        19       has to do some major surgery on the way it does

        20       business.  All levels of government have to

        21       restructure and revise their thinking on how we

        22        -- they deliver the services our people need

        23       and want, and I think we have to look at it in











                                                             
7524

         1       just that order, need and want, and need comes

         2       first.

         3                      Those who are in need should be

         4       protected and helped and assisted to the fullest

         5       extent that we can be capable of, and those that

         6       can afford to pull the wagon should pull the

         7       wagon as much as they can afford to pull it.

         8                      The tax cuts in this bill go to

         9       the lower end of the spectrum.  They do not go

        10       to the wealthiest end of the spectrum.  By no

        11       means by anybody's stretch of the imagination

        12       can anyone making $55,000 a year this time in

        13       this day and age be considered wealthy.  In my

        14       district, that usually means two, probably even

        15       more working people in the family to get to that

        16       level of income, and that's probably the way the

        17       norm is these days.

        18                      We are helping the middle class

        19       with this tax cut.  Hopefully we will bring some

        20       jobs to our area and if all levels of government

        21       do what the state is doing with the leadership

        22       of Governor Pataki and the members of this body

        23       and the members of the other house who are











                                                             
7525

         1       voting for this bill, perhaps we can begin a new

         2       age in the state of New York.  Take that first

         3       step, as Confucius said, "Every journey begins

         4       with the first step."  This is the first step

         5       for a new generation for this state.  I will

         6       look forward to that and I will look forward to

         7       its working for the benefit of all of our

         8       citizens.

         9                      I will vote yes on this bill.

        10                      THE PRESIDENT:  Senator Maziarz.

        11                      SENATOR MAZIARZ:  Thank you,

        12       Madam President.  I rise to explain my vote.

        13                      In any large undertaking such as

        14       this budget, there's always going to be some

        15       parts of it that an individual Senator may have

        16       some grave reservations about, as I do with the

        17       Quick Draw, and I want to go on record today

        18       saying that I do not think Quick Draw is the

        19       avenue that this state should take for raising

        20       money.  It's not -- I think that the revenue

        21       projections are greatly overstated, but the tax

        22       cut portions of this bill far -- far outweigh

        23       the negative aspects of Quick Draw, and I will











                                                             
7526

         1       be voting yes on this bill.

         2                      Thank you.

         3                      THE PRESIDENT:  Senator Jones.

         4                      SENATOR JONES:  Yes.  I rise to

         5       explain my vote.

         6                      I listened to what Senator Tully

         7       said and Senator Maziarz, and I think they said

         8       it much more eloquently than I could.

         9                      I certainly have learned that

        10       life is a compromise and clearly today we stand

        11       here realizing government is as well.  It's like

        12       when you get a box and there's three things in

        13       it you love as a gift and one you hate, but I

        14       guess you have to take the box.

        15                      I came here certainly wanting to

        16       cut spending in this state government.  I was

        17       very committed to relieving businesses of their

        18       tax burdens and trying to get New York back on

        19       the track.  I'm hoping that many of the things

        20       that are going to come out of this budget are

        21       certainly at least going to get us on the road

        22       to doing that.

        23                      I also have to agree, though,











                                                             
7527

         1       with a couple of my colleagues.  I feel very

         2       uncomfortable that any portion of this tax

         3       increase we're giving is coming from gambling to

         4       make up the deficit.  I don't support that.  I

         5       feel uncomfortable about that, and I came from

         6       the field of education, and I can tell you

         7       they're still out there waiting for the lottery

         8       money that they thought was going to be in

         9       excess years ago when we first put it in.

        10                      I hope you're right that this

        11       will bring you the income.  I really wish we had

        12       looked for other ways to find it, and maybe in

        13       time we can because I don't think that sends a

        14       very good message that this is how we need to

        15       support our state; but again, the rest of the

        16       things in the box are things that I want to see

        17       happen and -- so hopefully we take the good with

        18       the bad and it will get New York back on the

        19       track that we want it on.

        20                      I vote yes.

        21                      THE PRESIDENT:  Thank you,

        22       Senator Jones.

        23                      Senator Libous.











                                                             
7528

         1                      SENATOR LIBOUS:  Thank you, Madam

         2       President.  I would like to rise to explain my

         3       vote.

         4                      I am going to support this piece

         5       of legislation for the same reasons that a lot

         6       of my colleagues support it, and I know that

         7       with 60 different colleagues in this room, we

         8       have a very diverse state and various opinions,

         9       and I certainly respect the opinions of my

        10       colleagues, but I see this as a job generation.

        11                      Yesterday afternoon I spent two

        12       hours in a meeting on the second floor with

        13       officials from Hughes Aircraft who are talking

        14       about pulling 1400 jobs out of my district and

        15       out of New York State, and repeatedly time and

        16       time again in those discussions, they continued

        17       to say that the tax structure in this state is

        18       not conducive to business and it is not

        19       conducive to the employees that we employ in our

        20       facility; it's too high.  It doesn't compare

        21       with Texas.  It doesn't compare with Virginia.

        22       It doesn't compare with California.

        23                      Hughes is just one big example of











                                                             
7529

         1       an opportunity where we may lose 1400 jobs in

         2       this state, but I have had discussions with head

         3       hunters and other officials over the course of

         4       the last couple of months, and what they

         5       continue to tell me repeatedly is that if the

         6       state changes direction, if some of the

         7       proposals that the Governor had put forth back

         8       in February become reality, that they will begin

         9       to look at New York State again as a place to do

        10       business, a place to have a home for corporate

        11        -- for companies and their major corporations.

        12                      Up until now, they're not looking

        13       at us.  They're running away from us.  They're

        14       pulling out in bus loads.  Company after company

        15       continue -- they continue to tell me that if you

        16       change the tax structure in this state, you make

        17       some real effort for a new direction, reduce

        18       spending, we will begin to look at your state to

        19       generate jobs.

        20                      We have a lot of social problems

        21       in this state.  We have a lot of things that

        22       people in this chamber have been committed to.

        23       My number 1 commitment to the people who elect











                                                             
7530

         1       me and send me here is to create jobs.

         2                      I vote aye on this bill.

         3                      THE PRESIDENT:  Thank you.

         4                      Senator Rath.

         5                      SENATOR RATH:  Yes, Madam

         6       President.

         7                      I rise to also support the

         8       measure in front of us today, and I think I may

         9       take a tack that's a little different, taking a

        10       look at what we will probably find when we get

        11       home this weekend, if we're there this weekend,

        12       certainly after the session is over and we start

        13       to move around our communities.

        14                      I know in my community in western

        15       New York, what I'm probably going to hear some

        16       of is, "Well, now we're going to have local

        17       property taxes and we're going to have local

        18       school taxes go up because the state has not

        19       fulfilled the requirements or the requests that

        20       were made."

        21                      But let me point out a couple of

        22       facts to you.  State funding to local schools

        23       went up $4.2 billion, a total of 91 percent











                                                             
7531

         1       between '93 -- '83 and '93.  In spite of these

         2       increases, local school taxes went up 6.5

         3       billion, a total of 93 percent.  Student

         4       enrollment fell by 167,650.  Numbers of teachers

         5       rose by 20,000 or 11 percent.  Number of school

         6       administrators rose also.  Staff increases alone

         7       raised local costs more than $1 billion.  And so

         8       what we're voting on today is a balanced package

         9       between what we vote today and what we vote -

        10       we finish on Tuesday; the balanced package that

        11       is so necessary to provide services from the

        12       state, provide services from the localities and

        13       the schools, but not anyone takes the undue

        14       responsibility of not cutting back.

        15                      We've cut back everywhere in this

        16       state this year with this budget, but I don't

        17       want to go home and hear that we didn't do our

        18       jobs by not giving more money and more money and

        19       more money when, indeed, the localities and the

        20       schools have responsibilities also to tighten

        21       their belt.

        22                      We're going to try to help

        23       businesses stay in New York State, try to











                                                             
7532

         1       encourage them to come to New York State and as

         2       we do that, yes, more revenue will be produced

         3       and, yes, we will then be able to fund possibly

         4       additional revenue sharing, additional school

         5       costs, et cetera but, in the meantime, let's

         6       work towards a balanced approach and not be

         7       allow it to be said that we were mean-spirited

         8       and that we weren't concerned about the tenuous

         9       balance that exists between the local tax burden

        10       and the state tax burden.

        11                      Thank you.

        12                      My vote will be yes.

        13                      THE PRESIDENT:  Senator

        14       Oppenheimer -

        15                      SENATOR OPPENHEIMER:  Yes.

        16                      THE PRESIDENT:  -- did you ask to

        17       explain your vote?

        18                      SENATOR OPPENHEIMER:  Yes, yes.

        19       I didn't think you saw me.  Thank you, Madam

        20       President.

        21                      Well, I'm going to be voting no

        22       and it isn't because I don't love a tax cut, I

        23       do, but I don't think that this tax cut is going











                                                             
7533

         1       to turn New York State's economy around.

         2                      I guess in this case, which is

         3       somewhat unusual, I do want to echo some of the

         4       things that Senator Leichter said.

         5                      I think that national trends,

         6       economic trends are really what determine the

         7       fate of our state, even though, of course, we

         8       would like to keep our tax rates somewhat in

         9       line with those of our neighbors, but I do not

        10       see our personal income tax as being the major

        11       problem in New York State.

        12                      As I have mentioned earlier and

        13       on many occasions it is really the property tax

        14       in New York State that is so out of whack with

        15       the rest of the United States.  We are far and

        16       away the first in property taxation in the

        17       United States.  I believe we are first and

        18       double what the second state is, and I think

        19       that is the area that we have to turn our

        20       attention to.  We are not number one in personal

        21       income tax by any stretch of the imagination.

        22                      I think that this tax, if

        23       continued to grow for three -- this tax











                                                             
7534

         1       reduction, if continued to grow out for three

         2       years, is really going to prove us very fiscally

         3       irresponsible.

         4                      I think that tax cut that we all

         5       took in 1986 -- and I was a member, and I was

         6       happy to vote for it -- I think that has created

         7       in our state a structural deficit in our budget,

         8       and I think since that time, we have been faced

         9       with a true imbalance between our revenues that

        10       we take in and our expenditures, and I -- I

        11       think that that was an error and it certainly

        12       did not produce the kind of jobs that we hoped

        13       that big tax reduction would produce.  We

        14       wouldn't be here now talking about all of these

        15       half a billion jobs that have been lost were

        16       that to have worked.  So I don't truly believe

        17       that "trickle down" has an impact on the

        18       creation of jobs and creating a healthy economy.

        19                      I am very concerned about what

        20       the third year of this tax cut will be.  The

        21       second year scares me enough with two and a half

        22       billion, but $4 billion will be the reduction in

        23       year three, and I don't know what we're going to











                                                             
7535

         1       do to cure that imbalance that we have made.

         2                      THE PRESIDENT:  Thank you.

         3                      SENATOR OPPENHEIMER:  No, I'm not

         4        -- one more small thing.

         5                      I personally feel, and I think it

         6       can be proven in many studies that our economic

         7       future in this state depends on the training and

         8       the education, the job skills that we give our

         9       young people, and I think that from what I have

        10       seen in this budget -- at least what I believe

        11       will be in the budget because we haven't seen

        12       the full budget, but in the local assistance

        13       budget, I don't believe that there's a lot of

        14       money that's been put aside to develop our

        15       youth, to provide them with education, to give

        16       them the job skills training and to prepare them

        17       for a viable economy, nor is there a plenitude

        18       of jobs out there for them to go into once they

        19       receive the training.

        20                      The reduction in our top rate

        21       over three years is going to go from seven and

        22       seven-eights to six and seven-eights percent,

        23       and I think this is much too small an amount of











                                                             
7536

         1       money to warrant the pain that will be inflicted

         2       on our sick, our elderly, our students and, as I

         3       have mentioned before, it is only going to

         4       exacerbate our major problem which, to me, is

         5       the property tax.

         6                      So I will be voting no.

         7                      THE PRESIDENT:  Thank you.

         8                      Senator Nozzolio.

         9                      SENATOR NOZZOLIO:  Thank you,

        10       Madam President.  To explain my vote.

        11                      Madam President, my colleagues,

        12       the Governor of this state promised to reduce

        13       the size of government, to spend less this year

        14       than last year, to cut New York's income taxes

        15       and to replace a failed welfare system with

        16       Workfare.  Madam President, my colleagues,

        17       that's exactly what this budget does.

        18                      For the first time since World

        19       War II, we will be approving a spending package

        20       that spends less than the previous year.  That's

        21       exactly the kind of change that New Yorkers

        22       voted for last November and I'm proud to have

        23       worked for a budget that does more with less.











                                                             
7537

         1                      We will be debating in further

         2       bills -- and we have just passed in the State

         3       Operations Budget some major reforms in the

         4       state's criminal justice system.  I particularly

         5       am very proud to have been part of the debate

         6       and established a proposal that we have worked

         7       on for many years and is finally coming into

         8       fruition, and it's especially meaningful when

         9       the final outcome of our hard work will have a

        10       positive impact on the community that I

        11       represent.

        12                      Madam President, we have, in

        13       establishing criminal justice reforms, taken a

        14       giant step in ensuring that those who have

        15       committed crimes because of substance abuse will

        16       be placed in a facility of incarceration that

        17       will do much to serve and to help them

        18       rehabilitate themselves.

        19                      The new facility at the Willard

        20       State Campus will, in fact, establish a new era

        21       of drug and alcohol rehabilitation for those who

        22       are committing crimes because of substance abuse

        23       and, at the same time, ensure that those who are











                                                             
7538

         1       committing violent crimes will be kept behind

         2       bars.

         3                      This is part of the agenda that

         4       has been forged in what I hope will be a new

         5       dawn for this state, and that we are sending a

         6       clear signal to our citizens that New York is

         7       back on track to being the Empire State once

         8       again.

         9                      THE PRESIDENT:  Thank you.

        10                      Announce the results, please.

        11                      SENATOR STAFFORD:  Madam

        12       President.

        13                      THE PRESIDENT:  Senator Stafford.

        14                      SENATOR STAFFORD:  Please, if I

        15       could very briefly.  Thank you.

        16                      I would just like to point out

        17       that this is a very complex bill.  It affects

        18       many, many things.  I respect everyone's

        19       opinion.  I respect everyone's thoughts, and I

        20       just don't want it to end this evening without

        21       trying to put it in perspective here.

        22                      Now, interestingly enough,

        23       whether it was right or whether it was wrong,











                                                             
7539

         1       the lottery came into being in New York State.

         2       It was an amendment and it passed.

         3                      Now, many of you may be a bit

         4       surprised but probably not.  I voted against it,

         5       but we have it.  It is something that is now

         6       part of the structure, and I don't want anyone

         7       to think that any of us -- probably many of us

         8       who are supporting this -- are overly wild about

         9       gambling, but we could debate it and we could

        10       talk about it and we could say that if they're

        11       going to gamble, then they're going to gamble,

        12       and if they're going to take part in this,

        13       they're going to take part in it; and I think in

        14       all fairness it came up in the executive

        15       budget.  I'm sure many -- the Governor, possibly

        16       and many of his people aren't overly wild about

        17       the lottery, about gambling, but it is here, and

        18       that was decided a long, long time ago, a long

        19       time ago in the '60s, and I would just submit

        20       that this is not something new, something that's

        21       unheard of.

        22                      There are limits.  The structure

        23       is such that there are built-in limits, so to











                                                             
7540

         1       speak, a safety valve, so to speak, and believe

         2       you -- believe me, the odds are so large as far

         3       as really ending up with anything in this that

         4       people -- it isn't going to be something that

         5       people are going to be playing 24 hours a day.

         6       Those who are interested in wagering will be

         7       doing so.

         8                      So I only say that so we don't

         9       end this evening thinking that this is something

        10       that really we -- is new.  It's a step in the

        11       wrong direction.  It was decided almost 30 years

        12       ago when the lottery amendment passed, and this

        13       is just another -- it's a variable for the

        14       lottery, frankly.

        15                      Thank you.

        16                      THE PRESIDENT:  Thank you.

        17                      Announce the results, please.

        18                      THE SECRETARY:  Those recorded in

        19       the negative on Calendar 1090 are Senators

        20       Abate, Babbush, Espada, Kruger, Leichter,

        21       Maltese, Markowitz, Montgomery, Oppenheimer,

        22       Padavan, Smith, Stavisky and Waldon.

        23                      Ayes 44, nays 13.











                                                             
7541

         1                      THE PRESIDENT:  This tax relief

         2       bill is passed.

         3                      SENATOR SKELOS:  Madam President.

         4                      THE PRESIDENT:  Senator Skelos.

         5                      SENATOR SKELOS:  There will be an

         6       immediate meeting of the Finance Committee in

         7       Room 332 of the Capitol.

         8                      THE PRESIDENT:  There will be an

         9       immediate meeting of the Finance Committee

        10       meeting -- Finance Committee in Room 322 -- 332,

        11       I'm sorry.

        12                      SENATOR SKELOS:  Madam President,

        13       at this time if we could call up 827, Senate

        14       4381-A.

        15                      THE PRESIDENT:  The Secretary

        16       will -

        17                      THE SECRETARY:  Calendar Number

        18       827, by Senator Volker, Senate Print 4381-A, an

        19       act to amend the Penal Law, in relation to

        20       criminal possession or sale of a controlled

        21       substance or marijuana.

        22                      SENATOR VOLKER:  Mr. President -

        23                      SENATOR SKELOS:  Madam President,











                                                             
7542

         1       is there a message of necessity at the desk?

         2                      THE PRESIDENT:  There is a

         3       message at the desk.

         4                      SENATOR SKELOS:  I move we adopt

         5       the message.

         6                      THE PRESIDENT:  All those in

         7       favor of accepting the message signify by saying

         8       aye.

         9                      (Response of "Aye".)

        10                      Those opposed?

        11                      (There was no response.)

        12                      The message is accepted.

        13                      SENATOR SKELOS:  Madam President,

        14       would you please recognize Senator Volker.

        15                      THE PRESIDENT:  Senator Volker.

        16                      SENATOR VOLKER:  Madam President.

        17       Madam President, this probably, I happen to

        18       believe, is the most significant criminal

        19       justice bill to pass this house and since it is

        20       agreed on will pass the other house, in many,

        21       many years.

        22                      It represents a bill that would,

        23       in effect, repeal a decision that some people











                                                             
7543

         1       have characterized -- and I'm one of those

         2       people -- as the worst decision made by the

         3       Court of Appeals in modern times.

         4                      I heard one prosecutor say that

         5       the Ryan decision represented the worst decision

         6       made by the Court of Appeals in this state in

         7       this century.  Certainly, it was the worst

         8       decision made in this decade.

         9                      You will get estimates of what

        10       the Ryan decision cost prosecutors in this state

        11       as far as drug convictions of anywhere from 2

        12       to 4,000.  Some have estimated even higher.

        13                      Let me just say that the

        14       difference in this bill and the bill that passed

        15       here last year essentially is in the -- at the

        16       end of the bill where the effective date of the

        17       bill -- the reason for this, and I think those

        18       of you who have dealt with Criminal Law will

        19       understand, we would maybe prefer not to do

        20       this, but under the circumstances, it is the

        21       best way to ensure the constitutionality and the

        22       legality of the bill, and what the effective

        23       date says, "This act shall take effect











                                                             
7544

         1       immediately and shall apply only to offenses

         2       committed on or after such date and if the

         3       offense is committed prior to date shall be

         4       governed by the provisions of the law in effect

         5       at the time the offense was committed."

         6                      The reason for that, of course,

         7       is there's a lot of litigation involving these

         8        -- this decision, and what this -- what this

         9       legislation basically says is that from now on

        10       we will go back to where we were prior to the

        11       Ryan case.

        12                      Now, what did the Ryan case say?

        13       It basically said the Court of Appeals decided

        14       that what the Legislature plainly and clearly

        15       meant was not what we said, and the Court of

        16       Appeals said that not only did you have to prove

        17       that someone intentionally committed the

        18       offense, the drug offense involved, in that they

        19       had to knowingly possess or sell the drugs, but

        20       that they had to know the amount of the drugs

        21       which was something that the Legislature never

        22       envisioned and everyone knew that they didn't

        23       envision that, but it represented -- and Senator











                                                             
7545

         1       Marchi has pointed this out on the floor when he

         2       has pointed to judicial legislation -- that this

         3       is one of the clearest indications of judicial

         4       legislation that we have seen in the last two or

         5       three decades.

         6                      So what this bill does is -- and

         7       it is supported by most of the known world,

         8       prosecutors, bar associations, city of New York

         9        -- I got a memo here from the city of New York,

        10       all except for some people, frankly -- a number

        11       of people in the Assembly who opposed this for

        12       some years and there are some individuals who

        13       opposed it and, of course, the defenders'

        14       association basically opposes anything that

        15       involves prosecution over the last number of

        16       years and has opposed criminal justice packages,

        17       and so forth; but this bill is strongly

        18       supported by prosecutors and, in fact, I would

        19       venture to say that from my information that,

        20       although we are going to pass a tough criminal

        21       justice package, an equitable one later on this

        22       evening, this bill represents, I think, to the

        23       prosecutors something that they really feel is











                                                             
7546

         1       the most important thing that we can do in this

         2       year or in the next years to come.

         3                      Senator Paterson.

         4                      ACTING PRESIDENT KUHL:  Senator

         5       Paterson.

         6                      SENATOR PATERSON:  Mr. President,

         7       if the sponsor would yield for a couple of

         8       questions.

         9                      ACTING PRESIDENT KUHL:  Senator

        10       Volker, do you yield to Senator Paterson?

        11                      SENATOR PATERSON:  Thank you,

        12       Senator Volker.

        13                      ACTING PRESIDENT KUHL:  The

        14       Senator yields.

        15                      SENATOR PATERSON:  Senator, one

        16       of the concerns of Senator Galiber who has been

        17       opposed to this bill and, as you know, is ill

        18       and unable to be in the chamber today, just

        19       relates to the type of individuals who are going

        20       to be prosecuted under this legislation and

        21       whether or not it really addresses the

        22       underlying problem with drug dealing, the kind

        23       of low-level drug messenger who is commonly











                                                             
7547

         1       referred to as a "mule" is the individual who

         2       is, in a sense, going to be the victim of the

         3       strict liability enforcement of the overturning

         4       of the Ryan decision and, for instance, the

         5       individual who really is sponsoring the drug

         6       trading, who knows not to touch the actual drugs

         7       is not really going to be affected at all.  So

         8       are we really getting at the right people by

         9       overturning Ryan?

        10                      SENATOR VOLKER:  First of all,

        11       Senator, let me just say what I said to Senator

        12       Galiber previously and we, of course, as you

        13       know, debated this before.

        14                      Ryan was not necessarily -- not

        15       necessarily involved in being a small dealer.

        16       Many of the people who were involved in the drug

        17       cases that the Ryan -- and then also the Hill

        18       case which was another case that followed up on

        19       this -- are rather substantial drug dealers and

        20       drug sellers and, of course, I think if you know

        21       anything about prosecutions -- and I know that

        22       you do, and I think there are a number of other

        23       people in this chamber -- the fact that you are











                                                             
7548

         1       arrested and sometimes convicted of comparative

         2       ly small amounts does not necessarily mean that

         3       you are a small possessor or a small dealer.

         4                      The truth is that some of the

         5       major dealers in New York City have ended up

         6       being convicted of possession of comparatively

         7        -- comparatively small amounts of drugs and of

         8       selling comparatively small amounts of drugs,

         9       because that's all we were able to convict them

        10       of.

        11                      The truth is this will involve

        12       all sorts of people that are involved in the

        13       sale and possession of drugs, but I think more

        14       importantly the issue, Senator, is -- and I

        15       debated this with Senator Galiber -- is the

        16       issue of not using a statute and changing the

        17       clear meaning of the statute because you don't

        18       like what the law says or how the law is

        19       applied.

        20                      The way to change that is to do

        21       it by legislation, not by the court coming in

        22       and changing the clear meaning of the statute,

        23       and that has been what has created the havoc, I











                                                             
7549

         1       think, out there in the field, and I really

         2       believe that it has done a great deal more harm

         3       than any small good that it might -- it might

         4       effect by, as some would say, that it might have

         5       a favorable impact on some small dealers.

         6                      Well, yes, that's fine, but the

         7       truth is drugs is a scourge and it also allows

         8       major dealers to "skate", as the saying goes,

         9       and the so-called drug factories to continue to

        10       operate at a level which I think all of us would

        11       consider to be unacceptable.

        12                      ACTING PRESIDENT KUHL:  Senator

        13       Paterson.

        14                      SENATOR PATERSON:  Thank you, Mr.

        15       President.

        16                      If Senator Volker would be

        17       willing to yield again.

        18                      SENATOR VOLKER:  Sure.

        19                      ACTING PRESIDENT KUHL:  The

        20       Senator continues to yield.

        21                      SENATOR PATERSON:  I want to try

        22       to figure something out, Senator, with your

        23       assistance.  When you debated the bill last











                                                             
7550

         1       year, you talked about the estimate that the Law

         2       Enforcement Council made that 4,000 cases will

         3       be dismissed as a result of the passage of this

         4       legislation, and this year the Department of

         5       Criminal Justice Services says that there were

         6       2,000 -- I guess 2,000 less indictments as a

         7       result of Ryan going into effect; is that

         8       accurate?

         9                      SENATOR VOLKER:  Yeah.  I think

        10       the difficulty is that -- and we kind of looked

        11       into that sort of thing, Senator, and the

        12       difficulty is, we may have a better impact idea

        13       now that we changed it.  I mean, you know the

        14       difficulty here is that there are hundreds and

        15       thousands of these cases that are in the

        16       pipeline, and the real difficulty in determining

        17       how many are directly impacted is that the D.A.s

        18       tell us that a number of their assistants are

        19       not even trying to prosecute the cases on the

        20       level that they should prosecute them, because

        21       they realized that they would come right up

        22       against the Ryan case and, therefore, what they

        23       do is they do what we call an immediate plea,











                                                             
7551

         1       which is they actually either indict him at a

         2       lower level and take the plea right away or in

         3       some cases just take the plea and never get to

         4       the -- to the level that they should really

         5       indict for or charge for.

         6                      So I think the answer is that's

         7       the difficulty in dealing with this.  The D.A.s

         8       that we've talked to all contend that there is

         9       no obstacle that they have faced in the last ten

        10       years greater than the Ryan case as far as

        11       prosecuting drug cases.

        12                      So the estimates of 2- to 4,000

        13       are greater, Senator, I think are hard to

        14       quantify, in many cases, but virtually all of

        15       the prosecutors that we have talked to indicate

        16       that they believe those estimates may even be

        17       conservative.

        18                      ACTING PRESIDENT KUHL:  Senator

        19       Paterson.

        20                      SENATOR PATERSON:  Thank you, Mr.

        21       President and thank you, Senator Volker.

        22                      I think that -- I couldn't agree

        23       with Senator Volker more when he said that drugs











                                                             
7552

         1       are a scourge and I think that this legislation

         2       does set up a public policy that, if you're

         3       involved in drugs at all, you're going to pay a

         4       very strict penalty.

         5                      I don't know if I concur in the

         6       opinion that the Court of Appeals rendered such

         7       a difficult or such an incorrect decision in the

         8       Ryan case.  At the time it seemed to be somewhat

         9       recognized by Judge Kaye when she wrote that the

        10       legislation was inartfully drafted.  I think

        11       that the interpretation may have really been the

        12       result of some ambiguity in the law for which

        13       we, as a Legislature, are responsible.  I guess

        14       if we looked in the mirror, maybe we will try to

        15       be a lot clearer.  This legislation certainly is

        16       clear.

        17                      I want to vote no on it to

        18       represent the point of view of Senator Galiber.

        19       I don't know if anyone else is voting against

        20       it, but there is an argument that the strict

        21       liability enforcement is really going to, in

        22       many ways, punish really nominally involved

        23       individuals while the ones who are really











                                                             
7553

         1       responsible for the violent, vicious malady that

         2       we know as drug abuse and drug dealing on our

         3       streets go free.

         4                      ACTING PRESIDENT KUHL:  The Chair

         5       recognizes Senator Abate.

         6                      Senator Montgomery, why do you

         7       rise?  Would you like to be added to the list?

         8                      SENATOR MONTGOMERY:  Yes, please.

         9                      ACTING PRESIDENT KUHL:  Okay.

        10                      Senator Abate.

        11                      SENATOR ABATE:  On the bill, and

        12       I would like to address some of the issues that

        13       Senator Paterson has raised.

        14                      I am very pleased to be able to

        15       be on this bill.  If you were to survey all the

        16       district attorneys around this state, they would

        17       probably say there is no issue more important to

        18       them than the overturning of this Court of

        19       Appeals case, and the reason they will say that

        20       is this is about drug dealers who often carry

        21       larger amounts of drugs, and what this Court of

        22       Appeals case has done is severely handicap that

        23       district attorney in prosecuting these cases.











                                                             
7554

         1                      The defendant still has to put

         2       the district attorney to the burden that the

         3       district attorney must prove beyond a reasonable

         4       doubt that he or she possesses drugs knowingly

         5       and voluntarily, but what it does is now that

         6       district attorney is able to prosecute an

         7       individual who may have four ounces of drugs.

         8       It's a "C" felony or above, and now the district

         9       attorney, after this Court of Appeals case, is

        10       told, "You have to prove that the defendant knew

        11       that he or she had four ounces" as opposed to

        12       two ounces, as opposed to one ounce or a half an

        13       ounce.

        14                      So the consequence of this is

        15       that serious offenders who are carrying large

        16       quantities of drugs are now being charged not

        17       with the higher crimes of felonies, but some

        18       times they're being pled down to misdemeanors

        19       because the D.A. does not have the tools and

        20       capability to prove these cases beyond a

        21       reasonable doubt.

        22                      I could not support this.  I

        23       could not go on this bill if I felt that the











                                                             
7555

         1       district attorney still did not have to prove

         2       beyond a reasonable doubt that, one, a defendant

         3       possessed the drugs and they knowingly knew it.

         4       This is putting that burden beyond what I

         5       believe is reasonable and rational.

         6                      I want to address the issues that

         7       Senator Paterson has raised.  I have been a

         8       long-time advocate of criminal justice reform

         9       sentencing.  This bill -- in fact, I'm

        10       co-sponsoring a small step in the Rockefeller

        11       drug reform dealing with drug "mules".  This

        12       issue is not about sentencing.  This is about

        13       prosecution.  While I believe that some drug

        14       offenders do not necessarily have to do life

        15       sentences in jail and that -- many of the drug

        16       "mules", many of them are women who should not

        17       be doing life sentences and we need to look at

        18       those reforms.

        19                      We have to repeatedly ask

        20       ourselves, why are two-thirds of the people in

        21       prison non-violent?  Almost one half are there

        22       for drug possession and sales.  So clearly there

        23       is a need for criminal justice reform in terms











                                                             
7556

         1       of sentencing.  This bill is not about that.

         2       This is -- the bill is about giving the district

         3       attorney the ability and all the tools to

         4       prosecute these serious cases.

         5                      Again, I'm very proud that

         6       Senator Volker has shown the leadership on this

         7       bill.  It is a good bill.  There is unanimous

         8       consent and support from district attorneys

         9       around this state, and I urge my colleagues to

        10       support this bill.

        11                      Thank you.

        12                      ACTING PRESIDENT KUHL:  The Chair

        13       recognizes Senator Dollinger.

        14                      SENATOR DOLLINGER:  Mr.

        15       President, about eight months ago in the city of

        16       Rochester, a sweep of the city in a drug

        17       infested neighborhood produced the arrest of 129

        18       people in one night buying "crack" cocaine and

        19       marijuana from drug dealers.  129 people who

        20       were arrested went into Rochester City Court

        21       and, acting on the basis of People against Ryan,

        22       the City Court judge dismissed the criminal

        23       complaints that were filed against the 129











                                                             
7557

         1       recipients of those drugs.

         2                      The people who were victimized by

         3       that decision were the people who lived in that

         4       neighborhood, the people who depended upon the

         5       police to get the drug dealers out, but the drug

         6       dealers won't get out so long as the customers

         7       keep coming back, and if the customers know that

         8       they can get off because they can claim they

         9       didn't know how much they bought or they didn't

        10       know how much they had in their hands, they'll

        11       never leave.  If we're going to end the retail

        12       sale of drugs in our neighborhoods and the crime

        13       and the violence that goes with them, we have to

        14       pass this bill.

        15                      This bill will tell everyone that

        16       comes into the city of Rochester from the

        17       suburbs or comes from another part of the city,

        18       that when you go into a drug-infested

        19       neighborhood to buy your drugs, you can't stand

        20       up in front of a judge and say, "You can't

        21       charge me.  I didn't know how much I bought.  I

        22       didn't know how much I had.  It's not my fault.

        23       I didn't know."











                                                             
7558

         1                      When those -- Mr. President,

         2       could we -- when those arrests are effectuated,

         3       when they go to jail, when they pay the price

         4       for those crimes, the message will go out very

         5       clear to people that come into our city and into

         6       our neighborhoods -

         7                      ACTING PRESIDENT KUHL:  Senator

         8       Dollinger, let me interrupt a minute, if you

         9       would.  I'm having a tough time hearing you.

        10       Can I ask the members to please take their

        11       chairs, conversations out of the chamber if

        12       you're going to talk?  It's very rude not to let

        13       a member speak and be heard.

        14                      Thank you, Senator Dollinger, for

        15       indulging me for the interruption.

        16                      Senator Dollinger on the bill.

        17                      SENATOR DOLLINGER:  Thank you,

        18       Mr. President.

        19                      I just want to extend my thanks

        20       to Senator Volker for his leadership on the

        21       issue.  I'm proud to be part of it.  I thank him

        22       for that.  I also thank him on behalf of the

        23       people that live in our neighborhoods in the











                                                             
7559

         1       community that I represent, because this bill

         2       will give police the tool to take those people

         3       who buy the drugs off the street.

         4                      I'd like to add just one

         5       concluding comment that Senator Abate made.

         6       This bill isn't about what we do once we arrest

         7       them.  This bill isn't about what we do once we

         8       convict them.  This isn't about whether we send

         9       them to jail or allow them to take treatment as

        10       an alternative to going to jail.  We can do

        11       those things at the end of the product but, if

        12       we don't have the ability to arrest them and

        13       make the convictions stick, we're not going to

        14       be able to send a message to our drug-infested

        15       neighborhoods, that those who come in and buy

        16       are at risk.  Whatever you buy, no matter how

        17       much it is, you're going to be stuck with that

        18       crime and you're not going to be able to get

        19       away by simply saying, "Gee, judge, I didn't

        20       know."

        21                      I applaud Senator Volker.  This

        22       is a good bill.  It will restore the weapon of

        23       police enforcement to our neighborhoods that











                                                             
7560

         1       need protection from drug activity.

         2                      ACTING PRESIDENT KUHL:  The Chair

         3       recognizes Senator Montgomery.

         4                      SENATOR MONTGOMERY:  Yes.  Thank

         5       you, Mr. President.

         6                      Briefly on the bill.  Of course,

         7       drugs are really the number one crime problem

         8       for my district, along with the guns that

         9       accompany them, which is why I always oppose any

        10       attempt to expand the number of guns on the

        11       streets, but I do want to point out to my

        12       colleagues that this bill, as well intentioned

        13       as it is, does contain a couple of items that

        14       are of concern to me.

        15                      One of them is marijuana which

        16       has, I think, after years of experience with the

        17       Rockefeller Laws and having people who are

        18       experts in the fields -- in the field of drug

        19       abuse and drug treatment recognize that there is

        20       a question as to whether or not we should

        21       continue to include marijuana as a major

        22       criminal offense based on the fact that it has

        23       not been proven to be as big of a menace and we











                                                             
7561

         1       certainly, I think, need to consider that.

         2                      And the other one that is

         3       included is Methadone, and there are a number of

         4       Methadone clinics in my district.  That is a

         5       legal substitute drug and, though I am

         6       definitely not in favor of the use of Methadone

         7       as a way of getting off of hard drugs, I do want

         8       to point out to the sponsors of this legislation

         9       that it is included here and that, in fact, is a

        10       drug that is legal and that is used as a means

        11       of curtailing drug use in -- in the

        12       neighborhoods and communities across the state.

        13                      So with that, I will support the

        14       legislation, though I think those two -- those

        15       two things are not necessarily substances that

        16       ought to be included in this kind of

        17       legislation.

        18                      Thank you, Mr. President.

        19                      ACTING PRESIDENT KUHL:  The

        20       Secretary will read the last section.

        21                      Senator Volker to explain his

        22       vote.

        23                      SENATOR VOLKER:  Yeah, just one











                                                             
7562

         1       thing I might say just so you understand.  There

         2       is nothing new in this legislation as far as any

         3       additional drugs.  We just changed the -- the

         4       changes in this bill all relate to either re...

         5       making the law clearer or, obviously, on the

         6       issue of taking care of the issue of the Ryan

         7       decision, but there are -- in other words, we

         8       are not either raising penalties in this or

         9       adding -- we are not adding any new drugs or any

        10       new -- new types of drugs to this bill, just so

        11       that you're aware.

        12                      We're restating the same

        13       quantities and the same drugs that were in the

        14       previous legislation, just so that you realize

        15       that.

        16                      ACTING PRESIDENT KUHL:  The

        17       Secretary will read the last section.

        18                      THE SECRETARY:  Section 20.  This

        19       act shall take effect immediately.

        20                      ACTING PRESIDENT KUHL:  Call the

        21       roll.

        22                      (The Secretary called the roll.)

        23                      ACTING PRESIDENT KUHL:  Announce











                                                             
7563

         1       the results when tabulated.

         2                      Senator Montgomery to explain her

         3       vote?  Announce the results.

         4                      THE SECRETARY:  Those recorded in

         5       the negative on Calendar 827 are Senators

         6       Paterson and Waldon.  Ayes 55, nays 2.

         7                      ACTING PRESIDENT KUHL:  The bill

         8       is passed.

         9                      The Chair would recognize Senator

        10       DeFrancisco.

        11                      SENATOR DeFRANCISCO:  Could you

        12       please return to the order of messages from the

        13       Assembly.

        14                      ACTING PRESIDENT KUHL:  Return to

        15       the messages from the Assembly.  I'll ask the

        16       Secretary to read.

        17                      THE SECRETARY:  The Assembly

        18       returns Senate Bill Number 1554-A, Assembly

        19       Reprint Number 30,001 entitled, "An act making

        20       appropriations for the support of government and

        21       to amend Chapter 52 of the Laws of 1995,

        22       enacting the State Debt Service Budget for the

        23       support of government."











                                                             
7564

         1                      ACTING PRESIDENT KUHL:  The

         2       Secretary -- Senator DeFrancisco.

         3                      SENATOR DeFRANCISCO:  Mr.

         4       President, I move that the Senate not concur in

         5       said amendments and move to reconsider the vote

         6       by which this bill was passed.

         7                      ACTING PRESIDENT KUHL:  The

         8       Secretary will call the roll on

         9       reconsideration.

        10                      (The Secretary called the roll on

        11       reconsideration.)

        12                      THE SECRETARY:  Ayes 57.

        13                      ACTING PRESIDENT KUHL:  The bill

        14       is before the house.  Restored to the Third

        15       Reading Calendar.

        16                      Senator DeFrancisco.

        17                      SENATOR DeFRANCISCO:  Mr.

        18       President, I now offer the following amendments.

        19                      ACTING PRESIDENT KUHL:  The

        20       amendments are received and adopted.

        21                      SENATOR DeFRANCISCO:  Please lay

        22       the bill aside.

        23                      ACTING PRESIDENT KUHL:  Lay the











                                                             
7565

         1       bill aside.

         2                      SENATOR DeFRANCISCO:  Would you

         3       please return to the reports of standing

         4       committees for a report from the Finance

         5       Committee.

         6                      ACTING PRESIDENT KUHL:  Senator

         7       DeFrancisco, I'm informed by the desk that we do

         8       have a couple housekeeping matters here, if we

         9       could do that before we take up the bill.

        10                      SENATOR DeFRANCISCO:  Please do

        11       so.

        12                      ACTING PRESIDENT KUHL:  The Chair

        13       would recognize Senator Present.

        14                      SENATOR PRESENT:  Mr. President,

        15       on page 44, on behalf of Senator Hannon, I offer

        16       the following amendments to Calendar Number 503,

        17       Senate Print 3467, and ask that it retain its

        18       place on the Third Reading Calendar, and also

        19       remove the star.

        20                      ACTING PRESIDENT KUHL:  The

        21       amendments to Calendar Number 503 are received

        22       and adopted.  The bill will retain its place on

        23       the Third Reading Calendar, and at the request











                                                             
7566

         1       of the sponsor, the star is removed.

         2                      Senator Present.

         3                      SENATOR PRESENT:  Mr. President,

         4       on behalf of Senator Volker, on page 13, I offer

         5       the following amendments to Calendar 490, Senate

         6       Print 2960 and ask that it retain its place.

         7                      ACTING PRESIDENT KUHL:  The

         8       amendments to Calendar Number 490 are received

         9       and adopted.  The bill will retain its place on

        10       the Third Reading Calendar.

        11                      Senator DeFrancisco, we'll return

        12       to reports of standing committees.  I'll ask the

        13       Secretary to read the report of the Finance

        14       Committee.

        15                      The Secretary will read.

        16                      THE SECRETARY:  Senator Stafford,

        17       from the Committee on Finance, reports the

        18       following bill directly to third reading:

        19                      Senate Print 5278, Budget Bill,

        20       an act to provide for payments to cities with a

        21       population of one million or more under the

        22       municipal assistance program.

        23                      ACTING PRESIDENT KUHL:  Without











                                                             
7567

         1       objection, the bill is ordered directly to third

         2       reading.

         3                      Senator DeFrancisco.

         4                      SENATOR DeFRANCISCO:  Would you

         5       please call up Senate Bill 5278, Calendar Number

         6       1091.

         7                      ACTING PRESIDENT KUHL:  There is

         8       a substitution at the desk.  I'll ask the

         9       Secretary to read.

        10                      THE SECRETARY:  Senator Stafford

        11       moves to discharge from the Committee on

        12       Finance, Assembly Bill 7973 and substitute it

        13       for the identical Calendar Number 1091.

        14                      ACTING PRESIDENT KUHL:  Without

        15       objection, the substitution is ordered.  Ask the

        16       Secretary to read the title to Calendar Number

        17       1091.

        18                      THE SECRETARY:  1091, by the

        19       Assembly budget -- Assembly 7973, an act to

        20       provide for payments to cities with a population

        21       of one million or more under the Municpal

        22       Assistance Program.

        23                      ACTING PRESIDENT KUHL:  Senator











                                                             
7568

         1       DeFrancisco.

         2                      SENATOR DeFRANCISCO:  Is there a

         3       message of necessity at the desk?

         4                      ACTING PRESIDENT KUHL:  The

         5       Secretary tells me there is, Senator

         6       DeFrancisco.

         7                      SENATOR DeFRANCISCO:  I move that

         8       we adopt the message.

         9                      ACTING PRESIDENT KUHL:  The

        10       motion is to adopt the message of necessity.

        11       All those in favor signify by saying aye.

        12                      (Response of "Aye".)

        13                      Opposed, nay.

        14                      (There was no response.)

        15                      The message is accepted.

        16                      The Secretary will read the last

        17       section.

        18                      THE SECRETARY:  Section 2.  This

        19       act shall take effect immediately.

        20                      ACTING PRESIDENT KUHL:  Call the

        21       roll.

        22                      (The Secretary called the roll.)

        23                      THE SECRETARY:  Ayes 57.











                                                             
7569

         1                      ACTING PRESIDENT KUHL:  The bill

         2       is passed.

         3                      The Chair recognizes Senator

         4       DeFrancisco.

         5                      SENATOR DeFRANCISCO:  I request

         6       that we stand at ease at this point since we are

         7       awaiting a criminal justice bill which should be

         8       here momentarily, followed by a Finance

         9       Committee meeting and we expect to take up the

        10       bill after the Finance Committee meeting.

        11                      ACTING PRESIDENT KUHL:  The

        12       Senate will stand at ease.

        13                      (Whereupon, at 7:40 p.m., the

        14       Senate stood at ease.)

        15                      ACTING PRESIDENT DiCARLO:

        16       Senator DeFrancisco.

        17                      SENATOR DeFRANCISCO:  I would

        18       like to call an immediate meeting of the Finance

        19       Committee in Room 332 of the Capitol.

        20                      ACTING PRESIDENT DiCARLO:  There

        21       will be an immediate meeting of the Finance

        22       Committee in Room 332 of the Capitol.

        23                      (Whereupon, at 7:50 p.m., the











                                                             
7570

         1       Senate stood at ease.)

         2                      ACTING PRESIDENT KUHL:  The

         3       Senate will come to order for a moment for an

         4       announcement.

         5                      The Chair would recognize Senator

         6       Olga Mendez.

         7                      SENATOR MENDEZ:  Thank you, Mr.

         8       President.

         9                      I want to announce that there

        10       will be a Minority Conference after the Finance

        11       Committee meeting.

        12                      ACTING PRESIDENT KUHL:  There

        13       will be an immediate Minority Conference in the

        14       Minority Conference Room right after the Senate

        15       Finance Committee concludes, which would be

        16       shortly.

        17                      (Whereupon, at 7:55 p.m., the

        18       Senate stood at ease.)

        19                      ACTING PRESIDENT KUHL:  The

        20       Senate will come to order just briefly for an

        21       announcement.

        22                      Again, Senator Mendez.

        23                      SENATOR MENDEZ:  Mr. President, I











                                                             
7571

         1       am pleased to announce that there will be an

         2       immediate conference of the Minority in the

         3       Minority Conference Room, Room 314.

         4                      ACTING PRESIDENT KUHL:  There

         5       will be an immediate meeting of the Minority in

         6       the Minority Conference Room, Room 314.

         7       Immediate meeting of the Minority in the

         8       Minority Conference Room.

         9                      (Whereupon, at 7:57 p.m., the

        10       Senate stood at ease.)

        11                      ACTING PRESIDENT KUHL:  The

        12       Senate will come to order for an announcement.

        13                      The Chair recognizes Senator

        14       Skelos.

        15                      SENATOR SKELOS:  Mr. President,

        16       there will be an immediate conference of the

        17       Majority in Room 332 at the request of Senator

        18       DiCarlo.

        19                      ACTING PRESIDENT KUHL:  There

        20       will be an immediate meeting of the Majority in

        21       the Majority Conference Room, Room 332.

        22       Immediate meeting of the Majority Conference in

        23       the Majority Conference Room, Room 332.











                                                             
7572

         1                      (Whereupon, the Senate stood at

         2       ease from 8:00 p.m. until 9:25 p.m.)

         3                      ACTING PRESIDENT KUHL:  The

         4       Senate will come to order.  Members please find

         5       their chairs.

         6                      The Chair recognizes Senator

         7       Skelos.

         8                      SENATOR SKELOS:  Mr. President,

         9       there will be an immediate meeting of the Rules

        10       Committee in Room 332 of the Capitol.

        11                      ACTING PRESIDENT KUHL:  Immediate

        12       meeting of the Rules Committee -- it's now 9:25

        13        -- Majority Conference Room, Room 332.  Immed

        14       iate meeting of the Rules Committee, Majority

        15       Conference Room, Room 332.  The Senate will

        16       continue to stand at ease.

        17                      (Whereupon, the Senate stood at

        18       ease from 9:26 p.m. until 9:35 p.m.)

        19                      ACTING PRESIDENT KUHL:  The

        20       Senate will come to order.  Members please find

        21       their places, the staff their places.  Sergeant

        22       at-arms, close the doors.

        23                      The Chair recognizes Senator











                                                             
7573

         1       Skelos.

         2                      SENATOR SKELOS:  Mr. President,

         3       if we could return to reports of standing

         4       committees, I believe there's a report of the

         5       Rules Committee at the desk.

         6                      ACTING PRESIDENT KUHL:  You're

         7       correct, Senator Skelos, there is a report of

         8       the Rules Committee at the desk.  We'll return

         9       to reports of standing committees.  I'll ask the

        10       Secretary to read the Rules report.

        11                      THE SECRETARY:  Senator Bruno,

        12       from the Committee on Rules, reports the

        13       following bill directly to third reading:

        14                      Senate Print 5281, by the

        15       Committee on Rules, an act enacting the

        16       Sentencing Reform Act of 1995 to amend the Penal

        17       Law, the Correction Law, the Criminal Procedure

        18       Law and the Executive Law, in relation to

        19       providing for the sentencing of certain felony

        20       offenders.

        21                      ACTING PRESIDENT KUHL:  Senator

        22       Skelos.

        23                      SENATOR SKELOS:  Mr. President,











                                                             
7574

         1       at this time could you call up Calendar Number

         2       1092.

         3                      ACTING PRESIDENT KUHL:  On the

         4       motion to accept the Rules report, all those in

         5       favor signify by saying aye.

         6                      (Response of "Aye".)

         7                      Opposed, nay.

         8                      (There was no response.)

         9                      The report is adopted.

        10                      The Secretary will read the title

        11       to Calendar Number 1092.

        12                      THE SECRETARY:  Calendar Number

        13       1092, by the Senate Committee on Rules, Senate

        14       5281, an act enacting the Sentencing Reform Act

        15       of 1995 to amend the Penal Law, the Correction

        16       Law, the Criminal Procedure Law and the

        17       Executive Law, in relation to providing for the

        18       sentencing of certain felony offenders.

        19                      ACTING PRESIDENT KUHL:  Senator

        20       Skelos.

        21                      SENATOR SKELOS:  Mr. President,

        22       is there a message of necessity at the desk?

        23                      ACTING PRESIDENT KUHL:  I'm











                                                             
7575

         1       informed by the Secretary that there is a

         2       message of necessity at the desk.

         3                      SENATOR SKELOS:  I move we

         4       accept.

         5                      ACTING PRESIDENT KUHL:  The

         6       motion is to accept the message of necessity.

         7       All those in favor signify by saying aye.

         8                      (Response of "Aye".)

         9                      Opposed, nay.

        10                      (There was no response.)

        11                      The message is accepted.

        12                      SENATOR SKELOS:  Read the last

        13       section, please.

        14                      ACTING PRESIDENT KUHL:  The

        15       Secretary will read the last section.

        16                      SENATOR PATERSON:  Explanation.

        17                      ACTING PRESIDENT KUHL:  Senator

        18       Volker, an explanation of Calendar Number 1092

        19       has been asked for by Senator Paterson.

        20                      SENATOR VOLKER:  Just very

        21       quickly, this is known as the Sentencing Reform

        22       Act of 1995 and does include sentencing changes

        23       for first, second and multiple felony offenders











                                                             
7576

         1       on the VFO side, in other words, on the violent

         2       felony offender side, which basically increases

         3       the minimum sentences, indeterminate sentences.

         4       In other words, it  does not increase the

         5       maximums but increases the minimums.  Those are

         6       for violent felony offenders.

         7                      On the other hand, as far as the

         8       so-called lesser felonies, "C", "D" and "E"

         9       felonies and drug felonies, we set up a

        10       diversion program, a diversion sentencing

        11       program using Willard which is opened up in this

        12       proposal and would allow for drug and alcohol

        13       treatment at Willard for 30 to 90 days.  We

        14       commence with 750 people -- or up to 750 people

        15       and this bill also, by the way, provides for -

        16       yeah, yeah.

        17                      We set up, by the way, as I said

        18       previously, for determinate sentences for

        19       violent felony offenders and second violent

        20       felony offenders.  We also set up a sentencing

        21       commission in this bill which is established at

        22       nine members of -- part of that commission, five

        23       from the Legislature -- or five by the Governor,











                                                             
7577

         1       two from the Legislature and two by the chief

         2       judge of the Court of Appeals, and we establish

         3       the so-called "truth in sentencing" which

         4       enables us to comply with the federal rules that

         5       state that we need to have -- in certain violent

         6       felony offenders that we have to have 85 percent

         7       of the sentence served under the determinate

         8       sentencing rules, and we comply with the federal

         9       rules, so we will be eligible for $20 million of

        10       federal money for our prison system.

        11                      SENATOR HOFFMANN:  Would Senator

        12       Volker yield for a question?

        13                      SENATOR VOLKER:  Certainly.

        14                      ACTING PRESIDENT KUHL:  Senator

        15       Volker yields to Senator Hoffmann.

        16                      SENATOR HOFFMANN:  Thank you, Mr.

        17       President.

        18                      Senator Volker, you indicated

        19       that Willard will house 750 people.  I was

        20       pleased to hear you use the term "people".  Does

        21       that mean women inmates as well as male drug

        22       offenders will be treated at Willard?

        23                      SENATOR VOLKER:  The answer is











                                                             
7578

         1       yes.  By the way, this is an authorization of up

         2       to 750 people at that facility, and the answer

         3       is both men and women.

         4                      SENATOR HOFFMANN:  Is there a

         5       breakdown on gender balance anticipated or is

         6       that -

         7                      SENATOR VOLKER:  I don't think

         8       so.  No, no, because it will just obviously

         9       depend on who was eligible as to how many people

        10       would go into this facility.

        11                      SENATOR HOFFMANN:  Thank you,

        12       Senator.

        13                      ACTING PRESIDENT KUHL:  Senator

        14       Hoffmann.

        15                      SENATOR HOFFMANN:  On the bill,

        16       Mr. President.

        17                      ACTING PRESIDENT KUHL:  Senator

        18       Hoffmann on the bill.

        19                      SENATOR HOFFMANN:  First of all,

        20       I want to compliment Senator Volker for his

        21       ongoing interest on this issue and my many

        22       colleagues across the aisle who apparently have

        23       been working on this; and I say "apparently"











                                                             
7579

         1       because I have been very much in the dark about

         2       it despite the fact that I am an 11-year member

         3       of the Corrections Committee in this house and

         4       it's an issue of tremendous concern for me, not

         5       only because I represent several large DOCS

         6       facilities in the 48th Senate District, but also

         7       because the constituents who have sent me here

         8       to work for them are very worried about the need

         9       for reform of our entire sentencing system; and

        10       I know that they are disappointed that we are

        11       handling this very significant measure in this

        12       inappropriate fashion on a Friday evening with

        13       so little preliminary discussion.

        14                      If, in fact, this is the sweeping

        15       reform that it is purported to be and certainly

        16       on first blush it appears to do many, many

        17       things; it will change sentencing in New York

        18       State, it deserves a public hearing.  It

        19       deserves to be aired across the state.  It

        20       deserves to be heard in open committee meetings

        21       in these halls.  It deserves an opportunity to

        22       be digested by people who have experience in

        23       this field.  Particularly in the area of the











                                                             
7580

         1       drug treatment aspect, I am gravely concerned

         2       about how my district will be affected.

         3                      I represent, as everyone knows, a

         4       large rural area.  I also represent suburbs and

         5       I represent a large urban core in the city of

         6       Syracuse, a smaller urban core in Rome and the

         7       city of Oneida.  All of these communities fear

         8       the scourge of drugs.  All of these communities

         9       worry about what will happen when people are

        10       arrested on a drug charge and are sentenced to

        11       jail, and they deserve to know that we are

        12       making changes that will have a long-term,

        13       beneficial effect upon sentencing guidelines and

        14       not simply be a panacea and not, God forbid,

        15       make the situation even worse further down the

        16       road.

        17                      It's my understanding -- and I

        18       say it's my understanding because I have only

        19       seen the bill an hour ago when it was presented

        20       to us in the Democratic Conference -- that the

        21       Willard facility will provide drug treatment,

        22       either at the front end or at the tail end of

        23       sentencing, depending upon the status of the











                                                             
7581

         1       inmate and treatment will be for either a 30- or

         2       a 90-day time period, and every expert that I

         3       have talked with and worked with over many years

         4       in this area has convinced me that we need to

         5       think in a much longer term for inpatient drug

         6       treatment, and we need to be sure that upon

         7       completion of the treatment at Willard, that

         8       those inmates are then going to have adequate -

         9       and I do mean adequate -- aftercare, and that

        10       has to include, in most cases, a halfway house.

        11       We simply don't have the halfway houses around

        12       this state.  It's very difficult to site halfway

        13       houses, and yet there appears to be no funding

        14       in this bill that will provide halfway house

        15       location, will stimulate the development of

        16       halfway houses and adequate aftercare around the

        17       state and, to be very candid, DOCS does not have

        18       a sterling history in developing treatment

        19       programs.

        20                      Some of the treatment that has

        21       gone in past years in the Department of

        22       Corrections has been -

        23                      SENATOR NOZZOLIO:  Mr. President.











                                                             
7582

         1                      ACTING PRESIDENT KUHL:  Senator

         2       Hoffmann, excuse me.

         3                      Senator Nozzolio, why do you

         4       rise?

         5                      SENATOR NOZZOLIO:  Will Senator

         6       Hoffmann yield?

         7                      ACTING PRESIDENT KUHL:  Senator

         8       Hoffmann, do you yield to Senator Nozzolio?

         9                      SENATOR HOFFMANN:  Yes, I'll

        10       yield briefly, yes.  Yes, Mr. President.

        11                      ACTING PRESIDENT KUHL:  The

        12       Senator yields.

        13                      SENATOR NOZZOLIO:  Thank you, Mr.

        14       President.  Thank you, Senator Hoffmann.

        15                      Senator, one of the unique

        16       facil... one of the unique aspects of this

        17       facility will be unlike any other DOCS-related

        18       facility that does have a component of

        19       drug/alcohol treatment.  This facility blends

        20       for the first time in our state, and I believe

        21       in the nation -- OASAS will be doing drug and

        22       alcohol treatment and be responsible for that

        23       drug and alcohol treatment on the Willard











                                                             
7583

         1       campus.

         2                      I rise because your comment

         3       suggested your concerns relative to DOCS

         4       managing the drug and alcohol treatment, and

         5       your point is well taken.

         6                      I rise not to interrupt you but

         7       to add to your knowledge since you evidenced

         8       lack of knowledge of the bill -

         9                      SENATOR HOFFMANN:  Is there a

        10       question, Mr. President?  I have not yet heard

        11       the question.  Is there a question from Senator

        12       Nozzolio, Mr. President?

        13                      ACTING PRESIDENT KUHL:  Well, I'm

        14       waiting for it.  I'm waiting for it.

        15                      SENATOR HOFFMANN:  Thank you.

        16                      I appreciate the desire to

        17       provide more knowledge, Mr. President, and that

        18       opportunity will be forthcoming the minute I

        19       relinquish the floor.

        20                      ACTING PRESIDENT KUHL:  Let's -

        21       let's see if he can find a question here,

        22       Senator Hoffmann.

        23                      SENATOR NOZZOLIO:  It won't be











                                                             
7584

         1       difficult, Senator.

         2                      The question is this:  Are you

         3       aware that in the bill, in this proposal, that

         4       OASAS will be running the drug treatment?

         5                      SENATOR HOFFMANN:  Yes, I am

         6       aware.  Mr. President, please inform Senator

         7       Nozzolio I am aware of OASAS' connection within

         8       the Willard program.

         9                      Thank you.

        10                      SENATOR NOZZOLIO:  Will the

        11       Senator continue to yield?

        12                      ACTING PRESIDENT KUHL:  Senator

        13       Hoffmann, do you continue to yield to Senator

        14       Nozzolio?

        15                      SENATOR HOFFMANN:  I think I

        16       would yield for one -- one brief question and

        17       then I'll be happy to relinquish the floor

        18       shortly.

        19                      I'm sure Senator Nozzolio has a

        20       great deal to offer on this issue, Mr.

        21       President, and I will look forward to hearing

        22       his comments in greater detail when I have

        23       completed mine.











                                                             
7585

         1                      ACTING PRESIDENT KUHL:  The

         2       Senator yields.

         3                      SENATOR NOZZOLIO:  Does Senator

         4       Hoffmann believe that OASAS is an appropriate

         5       drug treatment body, drug treatment group?

         6                      SENATOR HOFFMANN:  The issue here

         7       is not whether OASAS is the appropriate drug

         8       treatment group.  The issue is that the entire

         9       drug treatment protocol has not yet been spelled

        10       out in any kind of detail that would allow a

        11       thoughtful analysis by those of us who will now

        12       be voting to change the sentencing guidelines

        13       that the state implemented.

        14                      SENATOR NOZZOLIO:  Is that a yes,

        15       Mr. President?

        16                      SENATOR HOFFMANN:  Thank you, Mr.

        17       President.

        18                      ACTING PRESIDENT KUHL:  Senator

        19       Hoffmann, you have the floor.

        20                      SENATOR HOFFMANN:  Thank you.

        21                      As I said before, I am looking

        22       forward to hearing a greater explanation of this

        23       bill.  I just wish that we were not doing it on











                                                             
7586

         1       such short notice, at a quarter to 10:00 on a

         2       Friday evening when we're seeing this bill for

         3       the first time.

         4                      A brief history of sentencing

         5       guidelines will show even the most casual

         6       observer that New York State has made many

         7       grievous errors in sentencing guidelines.  The

         8       Rockefeller Drug Laws continue to be an example

         9       of over-reaction at a time of hysteria in this

        10       state.  This bill, which does not address the

        11       Rockefeller Drug Laws, is a reaction.  I don't

        12       know if it's a hysterical reaction or not

        13       because it has not been given the kind of

        14       thoughtful analysis.  It is the work of a

        15       negotiated, political process that is all too

        16       prevalent in this Capitol, and the people of

        17       this state deserve better.

        18                      I truly believe that this

        19       Governor, in his campaign and his early days in

        20       office, sincerely wants to change the way we

        21       handle violent offenders in this state, and

        22       every taxpayer in this state wants to change the

        23       way we handle violent offenders.  We want to











                                                             
7587

         1       keep them locked up.  We want to keep the

         2       prisons clear so that there are beds available

         3       for violent offenders who should serve the

         4       maximum amount of time allowable.  If that, in

         5       fact, is going to happen under this bill, that's

         6        -- that's going to be a tremendous assist in

         7       addressing the problems of violence in New York

         8       State; but if there is another price being paid

         9       to free up beds for violent felons and that

        10       price is that drug offenders are going to go

        11       through a revolving door under the guise of

        12       treatment, not, in fact, be treated and then

        13       violate parole and wind up being resentenced,

        14       all we will do is compound the burden upon the

        15       Department of Corrections by increasing inmates

        16       and increasing them with inmates who have third

        17       felony convictions and longer sentences.

        18                      Somebody needs to sit down and

        19       analyze these numbers and we should have the

        20       benefit of that analysis before we undertake

        21       this vote.  We should be reviewing this at a

        22       series of hearings.  We should be reviewing this

        23       over a period of time and not rushing headlong











                                                             
7588

         1       into this vote tonight so we can simply announce

         2       that we have another portion of the budget

         3       reached.  It is much too serious an issue for

         4       that.

         5                      It is my intention to vote for

         6       this bill and to hope -- to fervently hope that

         7       it will do all of the things that we want.  I

         8       understand that there is a sunset provision and

         9       ten years hence some members of this house and

        10       the other house who are still around will be

        11       addressing it again.

        12                      We should not be putting

        13       something in place that has the potential for

        14       being a time bomb.  We should be looking at it

        15       so that we can say, in all comfort, we have come

        16       up with a thoughtful, a well-reasoned solution,

        17       not one that represents the worst kind of

        18       political wrangling between two houses and a

        19       couple of leaders and the Governor meeting in

        20       closed doors with only a handful of other

        21       legislators having input.

        22                      So for all of those reasons, Mr.

        23       President, I would ask Senator Volker and











                                                             
7589

         1       Majority Leader Bruno if they would consider

         2       laying this bill aside so that it might be given

         3       a more timely review and we could have a vote on

         4       it perhaps as early as next week, but certainly

         5       not in the middle of our desire to wrap up other

         6       budget negotiations tonight.

         7                      ACTING PRESIDENT KUHL:  The Chair

         8       recognizes Senator Smith, who defers to Senator

         9       Abate.

        10                      SENATOR ABATE:  Yes, Mr.

        11       President.  Would Senator Volker yield to a

        12       number of questions?

        13                      SENATOR VOLKER:  Certainly.

        14                      ACTING PRESIDENT KUHL:  The

        15       Senator yields.

        16                      SENATOR ABATE:  I have more

        17       questions concerning this bill because I have

        18       just had an opportunity over the last 45 minutes

        19       to review it and by looking at the legislation,

        20       I cannot get the answers I need.

        21                      The first is it's my

        22       understanding that if we're going to receive

        23       federal money, we have to develop a sentencing











                                                             
7590

         1       guidelines system that mandates that anyone who

         2       is a violent offender and is incarcerated must

         3       do 85 percent of their sentence, is that right?

         4                      SENATOR VOLKER:  That's right.

         5                      SENATOR ABATE:  And when would

         6       that -- compliance with that federal regulation

         7       kick in?  When would we be at risk of losing

         8       federal dollars?

         9                      SENATOR VOLKER:  When would it

        10       kick in?

        11                      SENATOR ABATE:  Yes.

        12                      SENATOR VOLKER:  Well, as I

        13       understand the federal compliance rules, we have

        14       to do that in order to -- as soon as possible in

        15       order to be eligible for the $20 million that we

        16       intend to use, by the way, for Willard, and

        17       that's where the money that we intend to spend

        18       on the -- on the Willard facility is, and so

        19       that what we have done in this bill is to raise

        20       the minimum -- the minimum sentences in -- in

        21       the VFOs, in the second and third violent felony

        22       offenders to comply with that 85 percent

        23       requirement.  So the answer is that when this











                                                             
7591

         1       bill passes and is signed into law, we will

         2       then, we believe, comply with those

         3       requirements.

         4                      SENATOR ABATE:  It's my

         5       understanding -- the date of when we must be in

         6       compliance is a very important date because

         7       we're driving this legislation very quickly

         8       without public debate, without a lot of

         9       discussion, and I believe not a lot of

        10       planning.  It's my understanding -- and maybe if

        11       there's someone else available to confirm this

        12        -- that the federal government hasn't even

        13       developed regulations around what is a violent

        14       offense yet, so we can't even be in compliance

        15       with their regulations until they develop their

        16       own guidelines.  So it's my understanding we

        17       have at least another year to be in compliance

        18       with other -- with whatever the federal

        19       government devises, is that correct?

        20                      SENATOR VOLKER:  Senator, I don't

        21       think that is correct, Senator.  As far as I

        22       know, we have been -- the federal mandate -

        23       whether they develop -- whatever they develop,











                                                             
7592

         1       we are complying with the 85 percent require

         2       ment.  There may be some other requirements, but

         3       this is the central requirement to access the

         4       money.

         5                      Senator, let me point out to you

         6       that the discussion on this bill has been going

         7       on for a long, long time and it's been out in

         8       the public for a great deal -- in fact, this

         9       bill was actually agreed on over a week ago but,

        10       frankly, the -- it was basically agreed on

        11       entirely and then there was back and forth over

        12       the last week just on -- mainly on language.

        13                      I think some of the best people

        14       that deal in the criminal justice area, more

        15       involved in it is Paul Shechtman who is the head

        16       of DCJS now for the Governor, somebody who is an

        17       extremely bright fellow, Ken Connolly who is

        18       from my office and Ken Riddett, a group of

        19       people from the Assembly have been working on

        20       this for a very, very long time in consultation,

        21       by the way, with district attorneys, with

        22       various law enforcement people.  District

        23       attorneys have given their approval for this and











                                                             
7593

         1       law enforcement people have also.

         2                      I don't think this has been a

         3       rush to come up with this -- with this

         4       legislation.  We have been dealing with this for

         5       a long period of time.  I guess it's always easy

         6       to say we should have hearings on legislation

         7       but not so simple in a time like this to do

         8       that, and I think we also are in a situation

         9       where we have an ongoing prison problem and the

        10       feeling is, I think, that it is time to deal

        11       with it, especially in the case of Willard where

        12       the faster that we get the prison open and get

        13       people access to drug and alcohol treatment, I

        14       think the better off they'll be and the better

        15       off we'll be also.

        16                      SENATOR ABATE:  Would Senator

        17       Volker yield to another question?

        18                      ACTING PRESIDENT KUHL:  Senator

        19       Volker, do you continue to yield?

        20                      SENATOR VOLKER:  Sure.

        21                      ACTING PRESIDENT KUHL:  The

        22       Senator yields.

        23                      SENATOR ABATE:  You said that











                                                             
7594

         1       this bill has been subject to enormous debate,

         2       and I don't disagree with you.  There are a lot

         3       of very capable people involved in these

         4       negotiations, but clearly, none of us -- or most

         5       of us in this chamber -- and correct me if I'm

         6       wrong -- never received the legislation in

         7       advance to comment.  Most of us weren't in that

         8       room, behind those closed doors.  To my

         9       knowledge, has any committee within this chamber

        10       held hearings on the changes in these guidelines

        11       or any part of this legislation?

        12                      SENATOR VOLKER:  Well, the answer

        13       as far as holding hearings on guidelines, we've

        14       held hearings on guidelines over the years many

        15       times.  In fact, my committee has held

        16       guidelines hearings, I think two or three years

        17       ago, if I'm not mistaken.  The issue of

        18       determinate and indeterminate sentencing and

        19       sentencing has been one that's been kicked

        20       around for a long, long time.  No one has

        21       obviously held hearings on this bill, and I

        22       guess one of the problems with the budget

        23       process -- this is part of the budget process -











                                                             
7595

         1       is you can't very well sit back and just decide

         2       to hold hearings, particularly, I think, in a

         3       situation like this where you have two houses

         4       with, in many ways, divergent philosophies and

         5       this was obviously a difficult bill to resolve

         6       and some people say it was a major factor in

         7       holding up the budget process, and I think,

         8       Senator, that the answer is it's something that

         9       we felt, I think the people in -- many people in

        10       this chamber felt was important to get done, and

        11       I think it's an important bill for the people of

        12       this state and I regret that we don't have the

        13       ability and the time to hold hearings, but I

        14       think it is something that, I think, will

        15       withstand the test of time.

        16                      SENATOR ABATE:  Will the Senator

        17       yield?

        18                      ACTING PRESIDENT KUHL:  Senator

        19       Volker, do you continue to yield?

        20                      SENATOR VOLKER:  Sure.

        21                      ACTING PRESIDENT KUHL:  The

        22       Senator continues to yield.

        23                      SENATOR ABATE:  I have a number











                                                             
7596

         1       of questions.

         2                      SENATOR VOLKER:  Certainly.

         3                      SENATOR ABATE:  Thank you,

         4       Senator.

         5                      You're absolutely right that

         6       these are complex issues and in 1985 there was

         7       an attempt through a sentence guideline

         8       commission and I was a staff member involved in

         9       that commission then, and I know how laborious a

        10       process that was.  There were district attorneys

        11       involved and people from the Legislature, and

        12       after an entire year, because the matter was so

        13       complex, there was no agreement reached, and yet

        14       what circumstances have changed that ten years

        15       later we think we have all the knowledge within

        16       this chamber and the other chamber within a

        17       matter of weeks to dramatically change the

        18       sentence guidelines in this state?  What has

        19       changed over ten years that has made this

        20       process an acceptable process?

        21                      SENATOR VOLKER:  Let me just say

        22       to you, Senator, we don't -- I don't think

        23       there's anyone that would say that we have all











                                                             
7597

         1       the knowledge or that we profess to be the

         2       experts on any of this stuff, but I will tell

         3       you this:  I guess the answer to you is that a

         4       governor -- and a governor who I think has shown

         5       himself to be very, very knowledgeable in the

         6       area of criminal justice and willing to deal in

         7       some very difficult areas and two houses of the

         8       Legislature have gotten together and felt that

         9       we need it now in 1995 to move in the area of

        10       sentencing reform, and that's what we did and,

        11       you know, I think that you can always sit back,

        12       I suppose, and say we could wait another ten

        13       years to do sentencing reform, but I'm not sure

        14       the people of this state are ready to do that

        15       and certainly I think there's a number of people

        16       on both sides of this Capitol who felt that we

        17       couldn't wait that long and, very honestly, the

        18       people in the Governor's office felt that way

        19       also.

        20                      SENATOR ABATE:  Senator Volker, I

        21       agree with you, we should not wait another year,

        22       maybe not even another six months, another ten

        23       years for sentencing reform, but you talk about











                                                             
7598

         1       urgency, because I don't see any positive fiscal

         2       impact.  No savings are going to come about

         3       because of this bill or at least I haven't seen

         4       a document that shows this, why are we passing

         5       this bill in the middle of a very contentious,

         6       difficult budget?  Why don't we pass the budget,

         7       even take the next two weeks to hold hearings

         8       and everyone is better educated?  What is the

         9       urgency, because I don't see the link between

        10       the budget and necessarily passing this

        11       programmatic, very difficult bill.

        12                      SENATOR VOLKER:  I can assure

        13       you, Senator, there is a very big budgetary

        14       impact on this.  In fact, some people across the

        15       hall claim there's this huge impact that they've

        16       been giving down the road, but I think the

        17       biggest thing is that if we genuinely are going

        18       to deal with the issue of diversion, then the

        19       faster we get Willard up and operating and the

        20       faster we can get inmates to -- into the alcohol

        21       and drug diversion program, obviously we'll be

        22       saving some money, and many people on your side

        23       of the aisle have been suggesting that we do











                                                             
7599

         1       this sort of thing and have been saying that

         2       it's important for us to get into this sort of

         3       thing.

         4                      By the way, the date was just

         5       told as far as the federal money -- access to

         6       the federal money is October 1st.  After that

         7       date, we will be able to access the $20 million,

         8       and with the sentencing changes in this bill,

         9       the estimates are that we could save up to $30

        10       million.

        11                      SENATOR ABATE:  Where are we

        12       going to -

        13                      ACTING PRESIDENT KUHL:  Senator

        14       Volker, do you continue to yield?

        15                      SENATOR VOLKER:  Yes.

        16                      ACTING PRESIDENT KUHL:  The

        17       Senator continues to yield.

        18                      SENATOR ABATE:  Yes.  Thank you.

        19                      You estimate that the fiscal

        20       impact would be a savings of $30 million per

        21       year?

        22                      SENATOR VOLKER:  That's right.

        23                      SENATOR ABATE:  And that is











                                                             
7600

         1       taking into consideration the violent felons

         2       that are going to stay much longer and that the

         3        -- either the incarc... existing incarcerated

         4       population is going to be diverted to the

         5       street -

         6                      SENATOR VOLKER:  Right.

         7                      SENATOR ABATE:  -- or the

         8       incoming second felony offender that may be

         9       diverted?

        10                      SENATOR VOLKER:  Right.

        11                      SENATOR ABATE:  Can you give me

        12       an estimate of how many more -- I don't know if

        13       there's a bed capacity analysis done.  I would

        14       like to see that and maybe could that be shared

        15       with the members of the conference.  How many

        16       bed/day savings will there be as a result of

        17       this per year because, clearly, we cannot pass

        18       this bill without a clear bed/day savings so we

        19       really understand the impact of these judicial

        20       sentencing decisions.

        21                      SENATOR VOLKER:  According to our

        22       best estimates, it will mean about 2,000 bed

        23       days for our inmates.  Of course, taken into











                                                             
7601

         1       consideration, this is -- this is June -- what,

         2       June 2nd, and we have to get this program up and

         3       moving and that, of course, is one of the

         4       reasons why this has to get going.

         5                      Keep in mind, this is not April

         6       1st, this is June 2nd, and a lot of the things

         7       that we're talking about here need to move as

         8       quickly as possible because bed days for inmates

         9       are not cheap, so that getting them into this

        10       program will save us a considerable amount of

        11       money and that's where I think a good deal of

        12       the money comes in.

        13                      SENATOR ABATE:  I guess I'd like

        14       to have a better understanding of the 2,000 bed

        15       days.  Is that an assumption that the 750 days

        16       that Willard would be fully occupied 12 months

        17       of the year?

        18                      SENATOR VOLKER:  Well, keep in

        19       mind that these people are not -- when you say

        20       "750", we will have some people accessing from

        21       the prison itself and, of course, people

        22       obviously coming in from outside.  The way it

        23       works is when you talk about 750, that's 750 at











                                                             
7602

         1       any one time.

         2                      SENATOR ABATE:  That's right.

         3                      SENATOR VOLKER:  In other words,

         4       the people keep rolling over.

         5                      SENATOR ABATE:  It could be 30

         6       days.

         7                      SENATOR VOLKER:  In on 30- to

         8       90-day periods, you're rolling over a great

         9       number of people.  So that's where the numbers

        10       come from.  The numbers presumably would be

        11       greater, by the way, in the future obviously

        12       when this site is up and running for a longer

        13       period of time.

        14                      SENATOR ABATE:  But has some -

        15       would the Senator -

        16                      ACTING PRESIDENT KUHL:  Senator

        17       Volker, do you continue to yield?

        18                      SENATOR VOLKER:  Sure.

        19                      ACTING PRESIDENT KUHL:  The

        20       Senator continues to yield.

        21                      SENATOR ABATE:  Has someone done

        22       any planning to say that a certain percentage

        23       will be doing 30 days at Willard, another











                                                             
7603

         1       percentage 60, another percentage 90 and that

         2       there will be a 90 percent filled capacity of

         3       those 750 beds and then comparing it to the

         4       additional bed days that are needed to house the

         5       violent felons that are now going to have to do

         6       longer time?

         7                      Has there been a comparative

         8       analysis to come up with that 30 million?

         9                      SENATOR VOLKER:  Yeah, but let's

        10       keep in mind something that some of the people

        11       in the Assembly didn't understand.  Since we're

        12       increasing the minimum sentences here -- in

        13       other words, we're bobbing up the minimums, the

        14       impact of this bill on -- on people will not be

        15       felt for a number of years down the line.  This

        16       bill should not generally -- obviously, you

        17       know, you have some other issues involved, but

        18       the increase in the felony VFO sentences,

        19       primarily the impact of that will be felt down

        20       the line some years because, if you increase the

        21       minimum, for instance, from four to eight years,

        22       that person is going to get four years anyway.

        23       Now he or she is going to get eight years.  Some











                                                             
7604

         1       people say, "Well, that may increase the

         2       pressure for police."  That may be true.

         3       Whether he will get, some people claim, the

         4       lesser sentences or something, that's another

         5       thing, but it will not increase immediately the

         6        -- the amount of people -- the amount of the

         7       sentence.  So that actually it will not increase

         8       for some years and we would hope by then, by the

         9       way, that all of the things that we're doing

        10       will decrease the number of inmates so that

        11       we'll have fewer inmates anyway.

        12                      So the answer to your question is

        13       we expect that this will see a positive impact

        14       on the prison system and that's where we'll see

        15       the savings.

        16                      SENATOR ABATE:  When do you

        17       think -

        18                      ACTING PRESIDENT KUHL:  Senator

        19       Volker, do you continue to yield?

        20                      SENATOR VOLKER:  Sure.

        21                      ACTING PRESIDENT KUHL:  The

        22       Senator continues to yield.

        23                      SENATOR ABATE:  You say the











                                                             
7605

         1       prisons will feel an impact some time down the

         2       road.  At what year?

         3                      SENATOR VOLKER:  We can't say.

         4                      SENATOR ABATE:  Third year,

         5       fourth year, fifth year?

         6                      SENATOR VOLKER:  There's no way

         7        -- we could make some -- we could make some

         8       estimates, but remember what we're talking

         9       about.  Since you're raising the minimums, it

        10       would just depend on how -- who is sentenced to

        11       what, whether it's four years down the line, in

        12       some cases it maybe eight years down the line or

        13       even ten or twelve.  So you're staggering the

        14       number of people depending on -- and who is

        15       convicted and on what charges.

        16                      SENATOR ABATE:  My concern is how

        17       did the individuals that negotiated this

        18       legislation come up with a ten-year sunset?  Why

        19       isn't it five years?  Because there's so many

        20       unanswered questions.  You yourself would say,

        21       "I don't know how many D.A.s would sign off on

        22       people being diverted or agreeing upon a second

        23       felony offender to get immediate parole











                                                             
7606

         1       release."  There's so many intangibles to this

         2       bill, and it's further complicated by the lack

         3       of planning.

         4                      Why put off a sunset to ten years

         5       when it could be really disastrous?  We could

         6       have a prison system beyond 150 percent

         7       capacity, 200 percent capacity.  We don't have

         8       the money potentially to build more prisons.  We

         9       could be in a crisis.  Don't we need to evaluate

        10       this much before the ten-year sunset?

        11                      SENATOR VOLKER:  Senator, we are

        12       the Legislature and we have a governor.  The way

        13       you develop plans -- and I think there was a lot

        14       more planning into this than you say.  Sunsets

        15       don't provide planning.  Personally, I think the

        16       ten-year sunset was something that is really -

        17       is really something that's not really needed but

        18       the Assembly thought they had to have some sort

        19       of sunset.  You don't set criminal justice on

        20       sunsets.

        21                      In fact, let me tell you

        22       something.  The truth is that there was talk of

        23       some even earlier sunset.  That creates, in my











                                                             
7607

         1       mind, some real planning problems of bigger

         2       proportions and, in fact, I think could create

         3       some other kinds of criminal justice problems.

         4                      The truth is that, if we have

         5       problems, we'll deal with them.  That's why we

         6       have two houses of the Legislature and a

         7       governor, and I don't think we really need the

         8       sunset provision, but I think the feeling of the

         9       parties was that there was some pressure, very

        10       honestly, by the Assembly to set up some sort of

        11       a sunset ten years down the line.  Frankly, I

        12       don't expect to be here and you probably will be

        13       here and lot of maybe some other people here,

        14       but I doubt very seriously I'll be here, but

        15       hopefully by then the criminal justice system

        16       will have righted itself even more and we won't

        17       have to worry about it, but if there are

        18       problems, we'll deal with them, but I personally

        19       think that this is a rational plan and I think

        20       that it will work out much better than I think a

        21       lot of people think.

        22                      SENATOR ABATE:  Thank you,

        23       Senator.











                                                             
7608

         1                      On the bill.

         2                      ACTING PRESIDENT KUHL:  Senator

         3       Abate on the bill.

         4                      SENATOR ABATE:  I have taken -- I

         5       have written some Op Ed pieces recently

         6       applauding the Governor around his courage to

         7       talk about criminal justice reform, particularly

         8       around second felony, non-violent drug offenders

         9       and Rockefeller Drug Laws, so I see this

        10       legislation as a monumental moment.  Many of us

        11       in the criminal justice have been talking about

        12       reform for a very long time, and to have this

        13       piece in a -- in a critical piece of legislation

        14       is absolutely heartening, and clearly the other

        15       side of the legislation which talks about giving

        16       violent offenders, particularly second felony

        17       offender, violent offenders more time is

        18       something that's rational, people can't fight

        19       against.

        20                      My problem is doing this bill in

        21       this way is so reprehensible to me -- I mean,

        22       maybe these words are a little bit strong -

        23       without all the data.  I don't feel responsibly











                                                             
7609

         1       that I could make an informed decision around

         2       this bill when there's no urgency.  We're not

         3       talking about a system that's going to fail

         4       because staff is not going to be funded, that

         5       there has to be revenue or local assistance

         6       that's going out there, that there is tremendous

         7       savings immediately.  We heard that the savings

         8       may not occur.  We don't know exactly when the

         9       savings -- what I'm suggesting is, I think we

        10       would all be more comfortable if we could put

        11       this aside for a short period of time, get input

        12       from the professionals in the field, from parole

        13        -- I haven't heard from parole.  I haven't

        14       heard from correction what the impact will be,

        15       what the judiciary thinks about this, what the

        16       D.A.s, what Legal Aid, what the not-for-profits,

        17       the alternative to incarceration people, what

        18       the treatment people feel about a 30- or 60- or

        19       90- day quasi-treatment program.  What will the

        20       aftercare program look like in parole?

        21                      There's so many unanswered

        22       questions and this will have such long-term,

        23       dramatic impact on our criminal justice system,











                                                             
7610

         1       and I say "our criminal justice system".  We're

         2       fooling ourselves.  Any decision that's made on

         3       the front end in the sentencing end will impact

         4       obviously all the way through the system, and we

         5       need to be able to measure that impact.

         6                      I think we all owe it to

         7       ourselves to make an informed decision.  I'm not

         8       saying that I am philosophically, totally

         9       against what we're doing here.  I just don't

        10       know whether our goals that we are -- intend

        11       will be produced by this bill.  We owe it to

        12       ourselves.  We owe it to the state to put this

        13       aside a little bit longer, hold some hearings,

        14       get some of the data that I'm talking about, the

        15       bed capacity analysis, the fiscal impact.  What

        16       are we going to do for the offenders when they

        17       get to the streets so we don't jeopardize public

        18       safety that much further?

        19                      I wish -- I never thought I would

        20       be standing on the floor voting against a

        21       criminal justice reform that honestly looked -

        22       and not -- a second felony offender reform, but

        23       I think I would be irresponsible to push this











                                                             
7611

         1       legislation through with as little information

         2       as we have before us today; and with all due

         3       respect, Senator Volker, you were at the table.

         4       You have a lot more information than many of us

         5       have, but I think you need and others of us need

         6       to have a public debate, a public forum so all

         7       of these issues can be addressed.

         8                      I respect you.  I know you have

         9       been involved in this process.  My opposition to

        10       this has nothing to do with your integrity, your

        11       work around this issue.  I just think this is

        12       premature to take on such a huge issue such as

        13       this.

        14                      ACTING PRESIDENT KUHL:  Excuse

        15       me, Senator Abate.

        16                      Why do you rise, Senator

        17       Padavan?

        18                      SENATOR PADAVAN:  I would like to

        19       be put on the list, if there is one.

        20                      ACTING PRESIDENT KUHL:  There is

        21       a list running.

        22                      The Chair recognizes Senator

        23       Waldon.











                                                             
7612

         1                      SENATOR WALDON:  Thank you very

         2       much, Mr. President.

         3                      Would the chairman of our

         4       Committee on Crimes and Correction yield to a

         5       question?

         6                      ACTING PRESIDENT KUHL:  Senator

         7       Volker, do you -- excuse me, Senator Nozzolio.

         8                      SENATOR WALDON:  Codes.  Did I

         9       misquote your committee, Senator?

        10                      ACTING PRESIDENT KUHL:  You gave

        11       him -

        12                      SENATOR WALDON:  I apologize for

        13       that.  The hour is late.

        14                      SENATOR VOLKER:  It's okay.

        15                      ACTING PRESIDENT KUHL:  Would you

        16       like Senator Volker to yield?

        17                      SENATOR WALDON:  I haven't been

        18       taking coffee with caffeine.

        19                      ACTING PRESIDENT KUHL:  Senator

        20       Volker, do you yield to Senator Waldon?  The

        21       Senator yields.

        22                      SENATOR WALDON:  Thank you very

        23       much, Mr. President.











                                                             
7613

         1                      Thank you, Senator.

         2                      Senator, is there any information

         3       on the number of people who are in prison at

         4       this moment who would qualify for consideration

         5       to go to Willard under this program?

         6                      SENATOR VOLKER:  Yeah.  The

         7       estimates are -- I am just figuring on the ones

         8       who would actually do it versus the ones who

         9       would be eligible.  The estimates are that about

        10       3- to 4,000 people would be eligible.  That

        11       doesn't mean that they're actually going to be

        12       diverted, but they would be eligible to be

        13       diverted -- to be diverted.

        14                      SENATOR WALDON:  Mr. President,

        15       may I continue?

        16                      ACTING PRESIDENT KUHL:  The

        17       Senator continues to yield.

        18                      SENATOR VOLKER:  Yes.

        19                      SENATOR WALDON:  Thank you, Mr.

        20       President.

        21                      Senator, is that for immediate

        22       diversion?

        23                      SENATOR VOLKER:  No, not











                                                             
7614

         1       necessarily, not immediate diversion but -- the

         2       pool would be 4,000 for those people that would

         3       be eligible.  They're estimating the likelihood

         4       at about 1500 of that -- of that pool who would

         5       be -- would be diverted for alcohol and drug

         6       treatment.

         7                      SENATOR WALDON:  Mr. President,

         8       may I continue?

         9                      SENATOR VOLKER:  Sure.

        10                      ACTING PRESIDENT KUHL:

        11       Certainly.  Senator Volker, do you continue to

        12       yield?

        13                      SENATOR VOLKER:  Sure.

        14                      ACTING PRESIDENT KUHL:  The

        15       Senator yields.

        16                      SENATOR WALDON:  Senator Volker,

        17       is there any information in the universe of

        18       criminal justice regarding the anticipated

        19       number of people in this state who are arrested,

        20       indicted, tried, prosecuted and who would become

        21       eligible on a monthly basis for this program?

        22                      SENATOR VOLKER:  The estimates

        23       are about 125 a month, would be -- would be











                                                             
7615

         1       diverted.  You're talking about people who are

         2       on the streets now?

         3                      SENATOR WALDON:  Yes.

         4                      SENATOR VOLKER:  About 125 a

         5       month.

         6                      SENATOR WALDON:  Mr. President,

         7       may I continue?

         8                      ACTING PRESIDENT KUHL:  Senator

         9       Volker, do you continue to yield?

        10                      SENATOR VOLKER:  Sure.

        11                      ACTING PRESIDENT KUHL:  The

        12       Senator continues to yield.

        13                      SENATOR WALDON:  If I understand

        14       the information you have just given us, Senator

        15       Volker, there would be 1500 on an annual basis

        16       who would qualify for Willard from within the

        17       prison system and 125 per month from without the

        18       prison system.  I understand that there are only

        19       750 beds in Willard, is that correct?

        20                      SENATOR VOLKER:  That's right, up

        21       to 750.

        22                      SENATOR WALDON:  Okay.  Up to 750

        23       beds, and the question -- let me preface the











                                                             
7616

         1       question with an assumption.  Assuming that of

         2       the 1500 available for the first fiscal -- not

         3       fiscal, but the first operative year of this

         4       process, then the next year another number would

         5       become eligible and the next year another number

         6        -- technically -- not technically, but in

         7       theory, the 30-, 60-, 90-day phase within

         8       Willard, we could find Willard fully occupied

         9       with the first group of people who become

        10       eligible; is that a fair assumption?

        11                      SENATOR VOLKER:  That's -- I

        12       don't fully occupy, but I think what you're

        13       saying is that -- remember, these people, the

        14       way it would work is they would go in and

        15       obviously go out, depending when they're

        16       finished with their treatment.  So that I would

        17       think that in a short period of time you would

        18       probably have it fully occupied, and if you're

        19       going to ask me whether at some point you may

        20       need to expand it, that may very well be true.

        21                      SENATOR WALDON:  Thank you for

        22       anticipating my question, Senator Volker, if the

        23       gentleman would continue to yield.











                                                             
7617

         1                      ACTING PRESIDENT KUHL:  Senator

         2       Volker, do you continue to yield?

         3                      SENATOR VOLKER:  Sure.

         4                      ACTING PRESIDENT KUHL:  The

         5       Senator continues to yield.

         6                      SENATOR WALDON:  Assuming from

         7       your statement just now that there does come a

         8       time when Willard is max'ed out, the population

         9       in the prison has continued to grow for several

        10       reasons:  One, people are still committing crime

        11       which qualifies them and also now we have an

        12       increased length of time serving within the

        13       prison system, and those who are on the street

        14       are continuing to commit crime and qualifying

        15       for this program, and we now have perhaps a

        16       mushrooming of the base of people who could

        17       qualify for the program but no place to put

        18       them.  The question then is what do we do now,

        19       Senator Volker?

        20                      SENATOR VOLKER:  Well, we would

        21       probably do the same thing we did here.  By the

        22       way, the estimates are -- I was just looking at

        23       the estimates on the violent felony offender











                                                             
7618

         1       side and the estimates are that this bill would

         2       have virtually no fiscal impact for the first

         3       several years.  The first impact would really be

         4       felt after the third year.

         5                      The answer to that, I guess, is

         6       that, if that situation occurred, we would have

         7       to look for a further place to provide treatment

         8       at that point.  I think that's something down

         9       the road.  We think this would be sufficient for

        10       the time being, but when that -- when that time

        11       occurred, of course, we would look for further

        12       help.

        13                      SENATOR WALDON:  May I continue,

        14       Mr. President?

        15                      ACTING PRESIDENT KUHL:  Senator

        16       Volker, do you continue to yield?

        17                      SENATOR VOLKER:  Sure.

        18                      ACTING PRESIDENT KUHL:  The

        19       Senator continues to yield.

        20                      SENATOR WALDON:  May I, Senator

        21       Volker, preface my next question with some

        22       information.

        23                      I thought I read today in one of











                                                             
7619

         1       the papers, the Times Union or New York Times, I

         2       don't know which one, that the writer of the

         3       article anticipates that this program will cost

         4       us, beyond current and present expectation, $20

         5       billion because it will dictate proliferation of

         6       prison cells in this state because this program

         7       is not really one of mandatory minimums but

         8       because of the construct of this bill, it is

         9       really mandatory maximums.

        10                      Do you have any thoughts on

        11       whether or not we will need that many prison

        12       cells, meaning equaling about $20 billion above

        13       what we're doing now in terms of construction of

        14       prison cells?

        15                      SENATOR VOLKER:  There were some

        16       incredibly outrageous and irresponsible

        17       accusations made by some people over in the

        18       Assembly, and I would hope that the person that

        19       gave some of those figures who also, by the way,

        20       gave some of those same outrageous figures

        21       during the death penalty debate, it would be

        22       wise for him to do his job that he was supposed

        23       to do and stop interfering -- I think











                                                             
7620

         1       "interfering" is a good word -- in legislative

         2       matters and do the job that his job suggested

         3       that he do.

         4                      He really doesn't have any better

         5       information than we do.  We have better

         6       information than he does, and to give estimates

         7       of billions of dollars and outrageous numbers on

         8       prison population is pretty ridiculous.

         9                      The answer is there was just

        10       absolutely no basis for that and the reporter -

        11       one of the reporters called me and asked me and

        12       I said, "Where did you get those figures from?"

        13       He said, "Well, they just estimated it."

        14                      The answer is there's absolutely

        15       no basis for any numbers of that nature and, in

        16       fact, no one could come up with those figures, I

        17       don't think, even if you came up with a worst

        18       case scenario, could you come up with the kind

        19       of numbers that was estimated.

        20                      Of course, on the other hand, let

        21       me tell you something.  We do not know obviously

        22       what the future is going to hold.  This bill is

        23       not going to create any kind of havoc as has











                                                             
7621

         1       been said, but we do not know what the future

         2       holds in this state.  We would hope that this

         3       bill will help the prison situation and will

         4       actually help to cure our population of some of

         5       its ills.

         6                      There's obviously a lot of other

         7       things that have to be done in addition to

         8       this.  I'm not a believer that we're going to

         9       solve the problems of society with this bill,

        10       but I do say to you that this is not going to

        11       create any kind of havoc in the prison system as

        12       has been suggested by a few people.

        13                      SENATOR WALDON:  Would the

        14       distinguished chairman continue to yield?

        15                      ACTING PRESIDENT KUHL:  Senator

        16       Volker, do you continue to yield?

        17                      SENATOR VOLKER:  Yes.

        18                      ACTING PRESIDENT KUHL:  The

        19       Senator continues to yield.

        20                      SENATOR WALDON:  I will make an

        21       effort, Mr. President, to be as quick as I can

        22       regarding what I am trying to find out, but I

        23       need to ask some more questions.











                                                             
7622

         1                      Senator Volker, suppose someone

         2       qualifies for this program and they arrive at

         3       Willard from outside or inside, it doesn't

         4       matter, and they are actually treated for the 90

         5       days.  They are sent to some -- outside of the

         6       prison setting, outside of the DOCS facility,

         7       perhaps OASAS is the local development

         8       corporation or whatever we want to call it, not

         9       for-profit corporation involved with the

        10       treatment modality, and they fail the dole

        11       test.  What happens to that person when they

        12       have failed the dole test and what sentence will

        13       they receive compared to what they could receive

        14       under today's law?

        15                      SENATOR VOLKER:  They would be -

        16       their parole would be revoked and they would get

        17       whatever sentence they were sentenced to

        18       originally.

        19                      Let me just point out to you,

        20       there seems to be an impression being given by

        21       some people in the Assembly and some other

        22       people -- I don't mean to say the Assembly -

        23       that somehow these are drug addicts, and so











                                                             
7623

         1       forth.  Many of these people don't have serious

         2       drug and alcohol problems, but some do.  A

         3       number of them that have been in prison for a

         4       period of time presumably have already been

         5       dried out or whatever and hopefully don't need

         6       long-term -- don't really need long-term help.

         7       Some will, but the hope is that some, I think,

         8       will not.  So the answer is that a number of

         9       these people, probably the 30 to 90 days will

        10       take care of their problems.

        11                      The others, that's something that

        12       has to be taken care of in the -- as part of the

        13       parole process, and if they violate that

        14       process, they'll be back in the prison system.

        15                      SENATOR WALDON:  Mr. President, I

        16       have, I think, just two more questions.

        17                      ACTING PRESIDENT KUHL:  The

        18       Senator continues to yield.

        19                      SENATOR WALDON:  Senator, I have

        20       read in a number of publications over the years

        21       that -- two things, that most of the people in

        22       our prison system are there as a direct result

        23       of having been using -- at the moment they











                                                             
7624

         1       committed the crime involved which caused them

         2       to be sentenced, using alcohol or drugs, and the

         3       second part of these articles I have read said

         4       in sum and substance that once one becomes an

         5       alcoholic or once one becomes a drug addict,

         6       there is no quick fix to turning that person's

         7       life around.  It requires a long-range approach

         8       and it is not unusual for a person to be in

         9       treatment for five or more years until they can

        10       be sanctioned by the particular treatment

        11       facility or treatment modality as having a

        12       chance at successfully facing life.

        13                      Have you seen anything similar to

        14       that, and if so -- and if not, do you have any

        15       comments about the statement I just made?

        16                      SENATOR VOLKER:  Well, first of

        17       all, I think there are a number of people in our

        18       prison system, no question, who, as part of

        19       their criminal background, have alcohol and drug

        20       problems, possibly the percentage -- I guess the

        21       percentage would vary depending on the area and

        22       the situation, but there's no question there is

        23       a fairly substantial percentage of people who -











                                                             
7625

         1       who have alcohol and drug problems.

         2                      Obviously, not as many as some

         3       people think because there's something, an

         4       assumption that we have this huge number of

         5       Rockefeller drug people in the prison system who

         6       don't exist much anymore.  We have a lot more

         7       people who are there because of second felony

         8       offender than because of the Rockefeller Drug

         9       Laws.

        10                      Certainly, there are some people

        11       who would need long-term treatment, and that is

        12       something that we certainly realize, but there

        13       have been some -- I think some studies that have

        14       shown that a number of people can be dealt with

        15       on a -- on a reasonably short-term but intensive

        16       basis and with aftercare afterwards, and I think

        17       that's what we're looking at here.  Some people,

        18       frankly, need very little treatment if their -

        19       if they're comparatively, I don't want to say

        20       minor offenders, because everybody that goes

        21       through our prison system is a fairly major

        22       offender one way or another, but comparatively

        23       minor offenders and we are hopeful that the











                                                             
7626

         1       treatment that they will get at Willard will

         2       resolve their problems and they'll become good

         3       citizens again.

         4                      SENATOR WALDON:  My last

         5       question, if I may, Mr. President.

         6                      ACTING PRESIDENT KUHL:  Senator

         7       Volker, do you continue to yield?

         8                      SENATOR VOLKER:  Certainly.

         9                      ACTING PRESIDENT KUHL:  The

        10       Senator continues to yield.

        11                      SENATOR WALDON:  Thank you, Mr.

        12       President.  Thank you very much, Senator Volker,

        13       for your indulgence to this moment.

        14                      I'm going to do as I have done on

        15       the previous questions or at least on most of

        16       them, I'm going to preface my question with a

        17       kind of statement.  We have a long history in

        18       the state of professionals in our criminal

        19       justice system.  Each component of the criminal

        20       justice system, for the most part, are doing a

        21       very fine job.  We have police officers as you

        22       and I were in different parts of the state doing

        23       their job, the judges in the courts and court











                                                             
7627

         1       officers doing their job, the district attorneys

         2       doing their job.  We've had people in the

         3       correctional system both at the city or county

         4       or state level doing their job, and we have had

         5       for those who are not in the prison per se but

         6       under the jurisdiction of the criminal justice

         7       system having very decent, professional

         8       probation and/or parole officers involved with

         9       them ensuring that they are monitored and

        10       hopefully transitioned into being productive

        11       citizens.

        12                      I did not notice any money in

        13       this bill for probation or parole specifically.

        14       I did not notice anything in the bill which said

        15       we will shore up the parole system so that it

        16       can monitor these people along with whatever

        17       treatment modality they are in and transitioned

        18       out of, so our society can be less fearful of

        19       their return to the streets of the cities and

        20       state of New York.

        21                      Can you tell us, one, is there

        22       such money; two, what amount and what role

        23       parole and probation will play and then, three,











                                                             
7628

         1       which is really the reason I'm asking the

         2       question, why was there not a greater

         3       opportunity for parole and probation to be not

         4       involved in but immersed in this process because

         5       the success, as I understand it at least, of one

         6       making it back on the street is determined by -

         7       regarding drug addicts, they have kicked the

         8       habit permanently.  They now feel good about

         9       themselves and can be productive citizens and

        10       there's someone to ensure that what they say

        11       they will be, they will be representing the

        12       state of New York.

        13                      I apologize for the lengthiness

        14       of the question, but I think I needed to say all

        15       of that.

        16                      SENATOR VOLKER:  Sure.  Let me

        17       just start out with the last of your questions

        18       and answer it that way.  The Parole Department

        19       and the Department of Correctional Services has

        20       been very much involved in setting up the

        21       program at Willard.  The decision to do this or

        22       to set this program up was made in conjunction

        23       with them and the -- both departments have been











                                                             
7629

         1       working to -- with the idea -- in fact, I have

         2       talked myself on several occasions with

         3       Commissioner Coombe about -- you know, about

         4       this -- this potential program and how it would

         5       operate, and so forth, and I know Senator

         6       Nozzolio has even communicated even more with

         7       the Correction Department and with parole on

         8       this issue.

         9                      The second question was on

        10       aftercare money.  I'm sorry.  It's 5.8 million,

        11       which is part of the federal -- is going to be

        12       part of the federal drug money which we will be

        13        -- I presume be passing I hope in the next week

        14       or so.  That's something that still remains to

        15       be done, but there is 5.8 million in there that

        16       I think has been virtually agreed on by everyone

        17       and that will be part of this.

        18                      And finally there is money in the

        19       intensive supervision lines of the Parole

        20       Department which would also be used to assist in

        21       this program.

        22                      SENATOR WALDON:  Thank you very

        23       much, Senator Volker.











                                                             
7630

         1                      I appreciate your indulgence and,

         2       Mr. President, if I may on the bill.

         3                      ACTING PRESIDENT KUHL:  Senator

         4       Waldon on the bill.

         5                      SENATOR WALDON:  Thank you very

         6       kindly, Mr. President.

         7                      I sincerely am looking for hope,

         8       not a panacea, but hope in regard to those who,

         9       unfortunately, are the predators in our society

        10       and who need to be dealt with in a prison

        11       system, need to be dealt with harshly by the

        12       criminal justice system.

        13                      I don't think that this bill is

        14       the answer.  I think that this bill will become

        15       known one day down the road as the mandatory

        16       maximum bill.

        17                      The idea of sentencing reform is

        18       long overdue and it's great, because in this

        19       state, the Rockefeller Drug Law failed miserably

        20       and that's one of the reasons that our prisons

        21       were bursting at the seams for so many years

        22       with people that should have been treated from

        23       the first day and in the first instance in a











                                                             
7631

         1       medicological, pharmacological setting, and if

         2       that's what we want to do, turn people around in

         3       terms of their drug addiction and alcohol

         4       addiction, then this approach won't work.

         5                      I'm not antagonistic towards

         6       those who tried to make something work and came

         7       up with this proposal.  I believe that they

         8       worked well and were trying to do the best

         9       thing.  I just think the pressure is on them to

        10       take a hard line regarding violent felony

        11       offenders who forced us to have to deal with

        12       what we're dealing with here.

        13                      Unfortunately, I think that we're

        14       going to find a proliferation of prison cells.

        15       I think we're going to find a lot of technical

        16       violators who will cause the cells to be

        17       bursting on the front end and back end, because

        18       there will not be sufficient treatment of those

        19       who have a problem.

        20                      Now, some of us in this room have

        21       gone into the prisons.  I know I have.  Some of

        22       us have worked with local development

        23       corporations which deal with the people who have











                                                             
7632

         1       addictions.  I have.  Some of us may even have

         2       seen firsthand what happens to family structures

         3       when people are drug addicted or alcohol

         4       addicted.  It is a terrible, terrible problem.

         5       It is not one easily treated.

         6                      There's no piece of candy that

         7       turns someone around when they have been an

         8       alcoholic and abusive for many, many years or

         9       drug addicted and self-abusive for many, many

        10       years.  It's a long, hard struggle.

        11                      I don't think that this is the

        12       answer.  I wish it were.  I wish I could support

        13       it because I think the direction that Senator

        14       Volker is trying to take us in is a right

        15       direction, meaning putting those in prisons for

        16       long times who should be there.  They are not

        17       the drug addicted and alcohol addicted.  They

        18       are sick people and we should treat them as

        19       such.

        20                      So regrettably, Mr. President,

        21       even though I think that the credo, the

        22       movement, the motivation for Senator Volker was

        23       well founded and was positively directed, I











                                                             
7633

         1       think that the result is not what we need at

         2       this moment in time, and I'll state -- and I

         3       will have to vote against this and I regret

         4       that.

         5                      ACTING PRESIDENT KUHL:  The Chair

         6       recognizes Senator Nozzolio on the bill.

         7                      SENATOR NOZZOLIO:  Thank you, Mr.

         8       President, my colleagues.

         9                      The Governor, in formulating this

        10       bill, acting as we are as policymakers, has an

        11       extremely important objective of taking violent

        12       felons off the streets of the state.

        13                      Some of my colleagues on the

        14       other side of the aisle have discussed revolving

        15       doors in the criminal justice system.  Absolute

        16       ly right, but that revolving door isn't neces

        17       sarily revolving with drug offenders at this

        18       time.  It is revolving with those who have

        19       committed the most violent and heinous crimes

        20       that could be committed in this state.  That

        21       revolving door has been used during the process

        22       of work release where work release was placing

        23       24,000 inmates in this state out into the











                                                             
7634

         1       streets every year before their sentences were

         2       up, many of whom had no work to be released to,

         3       many of whom went into the environment without

         4       the proper review, without the proper super

         5       vision, without the proper understanding of who

         6       those criminals were being let out into the

         7       street by prior administrations in a willy-nilly

         8       fashion, because there was no room at the inn.

         9       The prisons were packed.  There was no room for

        10       violent felons.

        11                      Last year, the Corrections

        12       Committee of this Senate held a hearing on work

        13       release.  Then Commissioner Coughlin indicated

        14       that there are 12,000 inmates a year who are out

        15       on work release that have committed violent

        16       crimes, and of those who have been out on work

        17       release last year alone, there were 4,000 who

        18       absconded, half of whom have committed violent

        19       crimes.  In every city of this state, not just

        20       New York, but every city of this state -- in

        21       Rochester, Syracuse, Buffalo, there have been

        22       incidents of those who are out on work release

        23       and parole who have committed violent crimes











                                                             
7635

         1       while out on work release.

         2                      That is the circumstance that the

         3       Governor was faced with, violent criminals out

         4       before their sentences were up, into society

         5       committing very criminal conduct in most cases,

         6       very disruptive conduct, very violent conduct.

         7       Our prisons were crowded and busting at the

         8       seams.  The Governor took a very progressive, a

         9       very dramatic step this winter, in one of his

        10       first acts, establishing an executive order to

        11       stop work release for violent felons.

        12                      Now, we're trying to change other

        13       aspects of the criminal justice system and the

        14       criminal penalty system.  Senator Volker is to

        15       be complimented for his tremendous activity, his

        16       tremendous guidance of this entire process.  I

        17       for one thank him immensely.

        18                      The Governor is to be thanked for

        19       his approach to trying to do something about

        20       those who are non-violent but are taking,

        21       because of their sentence, because of their drug

        22       offense, because of their, in some cases, second

        23       felony DWIs where they have been sentenced to











                                                             
7636

         1       places like Cayuga Correctional Facility, a

         2       medium correctional facility, special housing,

         3       some who have committed second felony DWI, yet

         4       that facility is geared to those who have

         5       committed more significant conduct, dangerous to

         6       society -- not that DWI is not dangerous, but

         7       the inmates in and of themselves and the

         8       criminals in and of themselves would not have

         9       exhibited as violent behavior as those who have

        10       committed rape, robbery and other larceny with

        11       armed weapons, those types of individuals who

        12       are incarcerated, are instead of being put out

        13       into the street the Governor is trying to keep

        14       them behind bars in order to enhance and

        15       increase their penalties, in order for New York

        16       to comply with federal crime bill money, in

        17       order to assist us in complying with the federal

        18       statutes that we nonetheless have to do more to

        19       keep violent criminals off the streets.

        20                      I dare say no one on the other

        21       side of the aisle, no one in the Assembly in the

        22       Majority wishes to build new prisons.  The

        23       Governor had to do something to keep violent











                                                             
7637

         1       criminals off the streets, and what he has come

         2       up with, in my opinion, is a very unique concept

         3       in allowing those non-violent drug offenders

         4       into a treatment mode as a condition of their

         5       sentence.  They are to participate in drug

         6       rehabilitation -- drug rehabilitation in this

         7       proposal that is modeled after the same type of

         8       drug rehabilitation now given by OASAS across

         9       this state.  As a matter of fact, OASAS is going

        10       to manage the drug treatment operations at the

        11       Willard campus.

        12                      Parole will be very much involved

        13       in this entire process and the carrot will be

        14       participating in drug treatment, getting into

        15       this new system and, in effect, getting out in a

        16       more rehabilitated way than any other time in

        17       our state's history.

        18                      We have a Governor not just

        19       giving lip service to rehabilitation.  We're

        20       saying, the Governor is saying, this proposal is

        21       saying, and hopefully we will be saying soon

        22       that this is the way to go to stop the revolving

        23       door of drug offenders.











                                                             
7638

         1                      To those who have criticized the

         2       process, in terms of it being not less than

         3       open, I must say that this issue has been

         4       discussed at length.  It was discussed by the

         5       Governor at length in a variety of open forums.

         6       It's been discussed before those in the budget

         7       committee when the Corrections Commissioner came

         8       before us.  It was discussed when the head of

         9       the Department of Criminal Justice Services, the

        10       head of the Division of Criminal Justice

        11       Services came before the Crime and Corrections

        12       Committee, when the heads of probation, the

        13       heads of parole came before the Corrections

        14       Committee this issue was discussed.

        15                      Mr. President, what we have is an

        16       ideal alternative, one unique to New York State

        17       and I dare say unique to the nation, where the

        18       Department of Corrections is going to be

        19       cooperating with OASAS in providing the type of

        20       clinical rehabilitation necessary to reform

        21       those who have committed crimes because of drugs

        22       and alcohol, those non-violent criminals who but

        23       for drugs and alcohol would not have engaged in











                                                             
7639

         1       criminal conduct; and what this does, as Senator

         2       Volker has explained very well, is free up cell

         3       space at medium and maximum security facilities

         4       in this state to use that cell space to keep the

         5       violent criminals off the streets, something

         6       that each and every one of us, I know, shares as

         7       an objective, and what I believe, Mr. President,

         8       is the best step that the Governor and this body

         9       can take in order for us to make our streets

        10       safe again.

        11                      I applaud those who have been

        12       involved in this effort.  I compliment the

        13       Governor for his steadfast approach to this

        14       problem, and I urge its passage.

        15                      ACTING PRESIDENT KUHL:  The Chair

        16       recognizes Senator Dollinger.

        17                      SENATOR DOLLINGER:  Thank you,

        18       Mr. President.

        19                      I can't be unmindful of the

        20       President when he informs me that the speakers

        21       list is not as long as the list of those who

        22       want to leave.  So I'll make my comments in that

        23       context.











                                                             
7640

         1                      I promised my colleague, Senator

         2       Jones, that I would quote a great American

         3       philosopher, and I intend to do that.  Passing a

         4       bill that reforms the sentencing system in New

         5       York State in one fell swoop is a little bit

         6       like that comment that his mother made to

         7       Forrest Gump, about life, Passing a bill is like

         8       a box of chocolates.  You never quite know what

         9       you're going to get.  You open the box of

        10       chocolates and on the cover it says sort of

        11       Pataki chocolates, says it's got -- advertises

        12       that it's going to be good tasting and it's

        13       going to be appetizing and it will solve some

        14       problems, and you open up the box and what do

        15       you see?  You immediately see some kinds of

        16       chocolates that you've eaten before, some thing

        17       that look good, look appetizing that you've seen

        18       before -- determinate sentencing, taking violent

        19       felons and putting them in for longer periods of

        20       time.  Sounds like a good idea.  I've tasted

        21       that before; I think it will work.

        22                      I'd love to sample some of those

        23       chocolates, so I pick up some of those, and I'm











                                                             
7641

         1       prepared to eat those, but there are some other

         2       things in there that I've never had before.  You

         3       know, the big sort of fluffy ones that may have

         4       all kinds of creams in them.  I'm not a cream

         5       chocolate eater; I'm not quite sure what they're

         6       going to taste like.  So what do I do? I take a

         7       little bit of a taste and I try to figure out

         8       what's in them.  Well, doesn't taste too bad,

         9       but, lo and behold, I eat a couple of those that

        10       don't taste too bad upon the first bite and I

        11       find out, however, when they get into my

        12       stomach, several hours later I realize I've got

        13       a stomach ache because although -- even though

        14       it didn't taste too bad when it got in my

        15       system, it got in my stomach, then I wound up

        16       being sick.

        17                      Well, at least from my point of

        18       view, some of the things that are -- that are in

        19       this bill may be just those kinds of

        20       chocolates.  You may have to wait until you

        21       digest them a bit to find out that either the

        22       taste at the start was a good indication that

        23       they weren't going to be successful at the end.











                                                             
7642

         1                      The issue of the drug treatment

         2       that is in this program I'm concerned about.  I

         3       think it may end up being one of those cream

         4       filled chocolates that isn't good for you.  It

         5       may look good.  It may have a nice appearance on

         6       the top of the chocolate, but it may not be good

         7       for our body politick in the long run.  It may

         8       be difficult to digest.

         9                      We may end up in a system where

        10       90 days of drug treatment, if you've talked to

        11       people in the drug treatment base, is a little

        12       tiny bit.  I went with Father Young -- Senator

        13       Jones and I went with Father Young on the

        14       Altamont Program, tremendous program.  Four,

        15       five years to get people out of drugs, serious

        16       drug problems, coming out of jails and it seems

        17       to me that today what we're asked to do is buy

        18       that box of chocolates.

        19                      I have no choice.  I'm not in the

        20       Majority.  I see parts of this box that I want

        21       to buy, that I want to take.  I see other parts

        22       of it that are just as risky as that box of

        23       chocolates.  I don't know what they're going to











                                                             
7643

         1       taste like.  I don't know if they're going to

         2       end up being good for me in the long run.  They

         3       may be, may all turn out to work.  It may turn

         4       out that all of the chocolates are good for me,

         5       I'm not sure of it.

         6                      I know enough that I'm going to

         7       vote yes.  I'm going to take the chocolates that

         8       I like, but I have a fear and Senator Waldon has

         9       talked about the consequences, and Senator Abate

        10       has talked about the consequences, but I have

        11       this fear that like Forrest Gump, this state may

        12       be waiting for a long time to get on the right

        13       bus that will take us to where we really want to

        14       go, and all we've got is a box of chocolates and

        15       we never know quite which one we're going to

        16       get.

        17                      ACTING PRESIDENT KUHL:  Chair

        18       recognizes Senator Padavan.

        19                      SENATOR PADAVAN:  Very, very

        20       briefly, there are two parts, two issues, that I

        21       would like to address, one that has not been

        22       spoken of up to this point.

        23                      On page 20 and 21 of this bill











                                                             
7644

         1       you'll see an entire section that deals with the

         2       deportation of illegal aliens in our prison

         3       system.  In 1983, the Department of Correctional

         4       Services reported to our Senate Majority Task

         5       Force on Immigration that there were

         6       approximately 4,000 visitors in the state system

         7       who were identified as undocumented illegal

         8       aliens.

         9                      That was out of a total

        10       population of immigrants of over 8,000.  In our

        11       local correctional facility such as Rikers

        12       Island in the city of New York, there are also

        13       significant numbers of illegal aliens.  What

        14       this bill provides for is a very well structured

        15       mechanism whereby deportation procedures can be

        16       initiated for certain categories of offenders

        17       where deportation orders are generated through

        18       INS on an expedited basis.

        19                      The net result of all of this is

        20       that we will empty out a number of our cells by

        21       deporting these illegal aliens whom we are

        22       providing, at great expense, at great cost,

        23       accommodations which could be used obviously for











                                                             
7645

         1       other inmates for other reasons, for other

         2       purposes.

         3                      So that's one very positive part

         4       of this bill.  It's not hypothetical.  It's

         5       being done in Florida.  During 1994, they were

         6       able to deport approximately 1500 prisoners out

         7       of their jail system using a very similar if not

         8       only identical procedure.  We had urged our

         9       governor, Governor Cuomo, to implement that

        10       process.  He was considering it and trying to

        11       develop it.  His criminal justice coordinator

        12       was in support of it, but the bottom line is

        13       they didn't do it.

        14                      We are now doing it in this bill,

        15       and I think it's a major step forward.  It's

        16       going to save us a great deal of money.  It's

        17       going to provide additional space for other

        18       types of prisoners, and I think it's a major

        19       step forward.

        20                      And the other thing I would like

        21       to touch on very briefly -- and a number of you

        22       have spoken to it.  In 1986, the Senate

        23       committee then was Mental Hygiene and Addiction











                                                             
7646

         1       Control, put out a report after a number of

         2       hearings dealing with drug abuse priorities in

         3       New York.

         4                      One section of the report dealt

         5       specifically with the treatment of alcohol and

         6       drug-addicted individuals in our state system

         7       and in the report, too extensive for me to start

         8       quoting here, but voluntary providers,

         9       professional effort professionals came before

        10       the committee people from Phoenix House and

        11       other well known organizations and said mandated

        12       drug treatment and alcohol treatment, wherever

        13       you can mandate it in prison, produces positive

        14       results.  It reduces recidivism.  It overcomes a

        15       number of hurdles which voluntary providers

        16       unfortunately are burdened with.  Now, granted

        17       six months is better than 90 days, a year is

        18       better than six months, but the fact remains

        19       this mandated program cannot help but produce

        20       some positive results.

        21                      How many of those who go through

        22       it and then are followed back to their locali

        23       ties for follow-up, review and treatment, and so











                                                             
7647

         1       on, who will not get in the recidivism pattern

         2       is an open question.  No one's going to be able

         3       to answer that, but I would say to you and you

         4       mentioned Father Young, and I've been to the

         5       Altamont Program too, if you talk to him, he

         6       will tell you that the more people he can reach

         7       in prison, the better off we are.  If he can

         8       pigeonhole them into a program and when they are

         9       released, the better off they are and the better

        10       off we are.

        11                      So I would say to you that while

        12       nothing is perfect either in this bill or in

        13       anything else we ever do, this too is a major

        14       step forward.

        15                      ACTING PRESIDENT KUHL:  Secretary

        16       will read the last section.

        17                      THE SECRETARY:  Section 74.  This

        18       act shall take effect immediately.

        19                      ACTING PRESIDENT KUHL:  Call the

        20       roll.

        21                      (The Secretary called the roll. )

        22                      SENATOR MARKOWITZ:  Explain my

        23       vote.











                                                             
7648

         1                      ACTING PRESIDENT KUHL:  Announce

         2       the results when tabulated.

         3                      SENATOR MARKOWITZ:  Explain my

         4       vote.

         5                      ACTING PRESIDENT KUHL:  Senator

         6       Markowitz to explain his vote.

         7                      SENATOR MARKOWITZ:  Thank you,

         8       Mr. President.

         9                      I want to make it clear no matter

        10       how we vote on this bill, that every one of us,

        11       Republican and Democrat alike, are committed to

        12       reducing criminal activity in our state,

        13       municipalities, counties and cities and

        14       boroughs, number one, and number two, cracking

        15       down to the greatest degree possible on violent

        16       crime.

        17                      It's areas like ours from

        18       Brooklyn, South Queens, Bronx, Manhattan, that

        19       suffer the most, the result of violent crime and

        20       that's why we care the most to get the kind of

        21       legislation that will really make an impact on

        22       the lives of all of us in our society that want

        23       to live the best way we know how.











                                                             
7649

         1                      Now, you and I know the short

         2       cuts that fail and the job, jobs, jobs, family

         3       development, role counseling, family support

         4       programs, quality education, decent health care,

         5       we know you've heard it all before, there are no

         6       short-cuts to losing weight except by exercise

         7       and less consumption of food.  There are no

         8       short-cuts to resolving this problem that our

         9       society continues to face.  That's for sure.

        10                      I hope that we'll come back with

        11       a bill in the near future, Senator Volker, that

        12       will really move on resolving the issues to the

        13       greatest degree that the society can in terms of

        14       preventing crime, cracking down on those that

        15       abuse our system, but on the other hand, on the

        16       other hand, not resulting in a prison expansion

        17       that takes away even more money from society to

        18       help prevent the very crime we're trying to

        19       impact on this evening and, secondly, will not

        20       be dumping more of those that are drug afflicted

        21       into our communities.

        22                      I vote no.

        23                      ACTING PRESIDENT KUHL:  Senator











                                                             
7650

         1       Markowitz will be recorded in the negative.

         2                      Senator Leichter to explain his

         3       vote.

         4                      SENATOR LEICHTER:  Yes, Mr.

         5       President.  I think some good concepts have

         6       become terribly convoluted because of the

         7       secretive process that was -- that has

         8       characterized this bill, and nowhere have the

         9       people of the state of New York paid a greater

        10       price for the failure to have open deliberative

        11       legislative consideration than in this

        12       particular bill, because I think the potential

        13       that we had a few new incarcerated prisoners

        14       deal in a more rational way with people who are

        15       not violent, I think, has become so twisted, I

        16       think what we have here is a mish-mash.

        17                      We don't have the programs; we

        18       don't have the support, the financial support

        19       for the programs.  We have not had the

        20       opportunity to really let the law enforcement

        21       community comment on this, have an input and

        22       Senator Volker said, Well, the D.A.s have

        23       approved this.  I've seen absolutely nothing by











                                                             
7651

         1       the D.A.s to approve it.  I don't know what they

         2       could have approved because, when I got the bill

         3       two hours ago, held it, it was hot.  It had just

         4       come off the press.

         5                      There has been no review of this

         6       bill by people who certainly should have had an

         7       input and who could have guided us.  Three men

         8       in a room with a budget for weeks after weeks,

         9       failure to include the whole Legislature,

        10       refusal to let the public in on the process,

        11       results in taking a good idea and ending up with

        12       something that I don't believe is going to

        13       work.

        14                      Yes, like every -- like everyone

        15       else here, I want to deal with crime, but I

        16       don't believe this is the way to do it.

        17                      Mr. President, I vote in the

        18       negative.

        19                      ACTING PRESIDENT KUHL:  Senator

        20       Leichter will be recorded in the negative.

        21                      Results.

        22                      THE SECRETARY:  Those recorded in

        23       the negative on Calendar Number 1092 are











                                                             
7652

         1       Senators Abate, Babbush, Connor, Leichter,

         2       Markowitz, Nanula, Paterson and Waldon, also

         3       Senator Montgomery, also Senator Smith.  Ayes

         4       47, nays 10.

         5                      ACTING PRESIDENT KUHL:  The bill

         6       is passed.

         7                      Senator Stachowski, why do you

         8       rise?

         9                      SENATOR STACHOWSKI:  Mr.

        10       President, I'd like to request unanimous consent

        11       to be recorded in the negative on Calendar

        12       Number 1091.

        13                      ACTING PRESIDENT KUHL:  Without

        14       objection, hearing no objection, Senator

        15       Stachowski will be recorded in the negative on

        16       Calendar Number 1091.

        17                      Senator Nanula.

        18                      SENATOR NANULA:  I, too, Mr.

        19       President, would like to request unanimous

        20       consent to be recorded in the negative on

        21       Calendar Number 1091.

        22                      ACTING PRESIDENT KUHL:  Hearing

        23       no objection, without objection, Senator Nanula











                                                             
7653

         1       will be recorded in the negative on Calendar

         2       Number 1091.

         3                      SENATOR SKELOS:  Mr. President,

         4       is there any housekeeping at the desk?

         5                      ACTING PRESIDENT KUHL:  No

         6       housekeeping.  It's been all taken care of,

         7       apparently Senator Skelos.

         8                      Senator Skelos.

         9                      SENATOR SKELOS:  There being no

        10       further business, I move that we adjourn until

        11       Monday, June 5th, 1995 at 3:00 p.m., intervening

        12       days to be legislative days.

        13                      ACTING PRESIDENT KUHL:  Without

        14       objection, the Senate stands adjourned until

        15       Monday, June 5th, at 3:00 p.m.

        16                      (Whereupon at 10:55 p.m., the

        17       Senate adjourned. )

        18

        19

        20

        21

        22

        23