Regular Session - June 12, 1995

                                                               
8654

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         8                       ALBANY, NEW YORK

         9                        June 12, 1995

        10                          10:02 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











                                                             
8655

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

         2                      ACTING PRESIDENT KUHL:  The

         3       Senate will come to order.  Members, those who

         4       are here, please find their places.  Ask you all

         5       to rise and join with me in saying the Pledge of

         6       Allegiance to the Flag.

         7                      (The assemblage repeated the

         8       Pledge of Allegiance to the Flag.)

         9                      In the absence of clergy, may we

        10       bow our heads in a moment of silence.

        11                      (A moment of silence was

        12       observed.)

        13                      Reading of the Journal.

        14                      THE SECRETARY:  In Senate,

        15       Sunday -

        16                      SENATOR BRUNO:  Excuse me.  I

        17       wonder if we could have a roll call before we

        18       start the proceedings.

        19                      ACTING PRESIDENT KUHL:  The

        20       Secretary will call the roll.

        21                      THE SECRETARY:  Senator Abate.

        22                      (There was no response.)

        23                      Senator Babbush.











                                                             
8656

         1                      (There was no response.)

         2                      Senator Bruno.

         3                      SENATOR BRUNO:  Here.

         4                      THE SECRETARY:  Senator Connor.

         5                      SENATOR CONNOR:  Here.

         6                      THE SECRETARY:  Senator Cook.

         7                      SENATOR COOK:  Here.

         8                      THE SECRETARY:  Senator

         9       DeFrancisco.

        10                      SENATOR DeFRANCISCO:  Here.

        11                      THE SECRETARY:  Senator DiCarlo.

        12                      SENATOR DiCARLO:  Here.

        13                      THE SECRETARY:  Senator

        14       Dollinger.

        15                      SENATOR DOLLINGER:  Here.

        16                      THE SECRETARY:  Senator Espada.

        17                      (There was no response.)

        18                      Senator Farley.

        19                      SENATOR FARLEY:  Here.

        20                      THE SECRETARY:  Senator Galiber.

        21                      (There was no response.)

        22                      Senator Gold.

        23                      (There was no response.)











                                                             
8657

         1                      Senator Gonzalez.

         2                      (There was no response.)

         3                      Senator Goodman.

         4                      (There was no response.)

         5                      Senator Hannon.

         6                      SENATOR HANNON:  Here.

         7                      THE SECRETARY:  Senator Hoblock.

         8                      SENATOR HOBLOCK:  Here.

         9                      THE SECRETARY:  Senator Hoffmann.

        10                      (There was no response.)

        11                      Senator Holland.

        12                      SENATOR HOLLAND:  Here.

        13                      THE SECRETARY:  Senator Johnson.

        14                      SENATOR JOHNSON:  Here.

        15                      THE SECRETARY:  Senator Jones.

        16                      SENATOR JONES:  Here.

        17                      THE SECRETARY:  Senator Kruger.

        18                      (There was no response.)

        19                      Senator Kuhl.

        20                      SENATOR KUHL:  Present.

        21                      THE SECRETARY:  Senator Lack.

        22                      (There was no response.)

        23                      Senator Larkin.











                                                             
8658

         1                      SENATOR LARKIN:  Here.

         2                      THE SECRETARY:  Senator LaValle.

         3                      (There was no response.)

         4                      Senator Leibell.

         5                      SENATOR LEIBELL:  Here.

         6                      THE SECRETARY:  Senator Leichter.

         7                      (There was no response.)

         8                      Senator Levy.

         9                      (There was no response.)

        10                      Senator Libous.

        11                      SENATOR LIBOUS:  Aye -- here.

        12                      THE SECRETARY:  Senator Maltese.

        13                      SENATOR MALTESE:  Present.

        14                      THE SECRETARY:  Senator

        15       Marcellino.

        16                      SENATOR MARCELLINO:  Here.

        17                      THE SECRETARY:  Senator Marchi.

        18                      SENATOR MARCHI:  Here.

        19                      THE SECRETARY:  Senator

        20       Montgomery.

        21                      (There was no response.)

        22                      Senator Maziarz.

        23                      SENATOR MAZIARZ:  Here.











                                                             
8659

         1                      THE SECRETARY:  Senator Mendez.

         2                      (There was no response.)

         3                      Senator Montgomery.

         4                      (There was no response.)

         5                      Senator Nanula.

         6                      SENATOR NANULA:  Here.

         7                      THE SECRETARY:  Senator Nozzolio.

         8                      (There was no response.)

         9                      Senator Onorato.

        10                      SENATOR ONORATO:  Here.

        11                      THE SECRETARY:  Senator

        12       Oppenheimer.

        13                      (There was no response.)

        14                      Senator Padavan.

        15                      (There was no response.)

        16                      Senator Paterson.

        17                      SENATOR PATERSON:  Here.

        18                      THE SECRETARY:  Senator Present.

        19                      SENATOR PRESENT:  Here.

        20                      THE SECRETARY:  Senator Rath.

        21                      (Affirmative indication.)

        22                      Senator Saland.

        23                      (There was no response.)











                                                             
8660

         1                      Senator Santiago.

         2                      (There was no response.)

         3                      Senator Sears.

         4                      SENATOR SEARS:  Aye.

         5                      THE SECRETARY:  Senator Seward.

         6                      (There was no response.)

         7                      Senator Skelos.

         8                      SENATOR SKELOS:  Here.

         9                      THE SECRETARY:  Senator Smith.

        10                      SENATOR SMITH:  Present.

        11                      THE SECRETARY:  Senator Solomon.

        12                      (There was no response.)

        13                      Senator Spano.

        14                      (There was no response.)

        15                      Senator Stachowski.

        16                      SENATOR STACHOWSKI:  Here.

        17                      THE SECRETARY:  Senator Stafford.

        18                      SENATOR STAFFORD:  Present.

        19                      THE SECRETARY:  Senator Stavisky.

        20                      (There was no response.)

        21                      Senator Trunzo.

        22                      SENATOR TRUNZO:  Here.

        23                      THE SECRETARY:  Senator Tully.











                                                             
8661

         1                      (There was no response.)

         2                      Senator Velella.

         3                      SENATOR VELELLA:  Present.

         4                      THE SECRETARY:  Senator Volker.

         5                      SENATOR VOLKER:  Present.

         6                      THE SECRETARY:  Senator Waldon.

         7                      (There was no response.)

         8                      Senator Wright.

         9                      SENATOR WRIGHT:  Present.

        10                      ACTING PRESIDENT KUHL:  Senator

        11       Bruno, a quorum is present.

        12                      SENATOR BRUNO:  Mr. President,

        13       would you at this time proceed with the reading

        14       of the Journal.

        15                      ACTING PRESIDENT KUHL:  The

        16       Secretary will read the Journal.

        17                      THE SECRETARY:  In Senate,

        18       Sunday, June 11.  The Senate met pursuant to

        19       adjournment, Senator Farley in the Chair upon

        20       designation of the Temporary President.  The

        21       Journal of Saturday, June 10th, was read and

        22       approved.  On motion, the Senate adjourned.

        23                      ACTING PRESIDENT KUHL:  Hearing











                                                             
8662

         1       no objection, the Journal stands approved as

         2       read.

         3                      Presentation of petitions.

         4                      Messages from the Assembly.

         5                      Messages from the Governor.

         6                      Reports of standing committees.

         7                      Reports of select committees.

         8                      Communications and reports from

         9       state officers.

        10                      Motions and resolutions.

        11                      The Chair recognizes Senator

        12       Farley.

        13                      SENATOR FARLEY:  Thank you, Mr.

        14       President.

        15                      On behalf of Senator Levy, please

        16       remove the star -- let me start it again.  On

        17       page 43, I offer the following amendments to

        18       Calendar Number 414, Senate Print 4050 and

        19       please remove the star from that bill also.

        20                      ACTING PRESIDENT KUHL:  The star

        21       on Calendar Number 414 will be removed at the

        22       request of the sponsor.  The amendments are

        23       received and adopted.











                                                             
8663

         1                      SENATOR FARLEY:  On behalf of

         2       Senator Spano, Mr. President, on page 26, I

         3       offer the following amendments to Calendar

         4       Number 861, Senate Print 3975-B, and I ask that

         5       that bill retain its place on the Third Reading

         6       Calendar.

         7                      ACTING PRESIDENT KUHL:  The

         8       amendments to Calendar Number 861 are received

         9       and adopted.  The bill will retain its place on

        10       the Third Reading Calendar.

        11                      Senator Farley.

        12                      SENATOR FARLEY:  On behalf of

        13       Senator Volker, I wish to call up his Bill

        14       Number 1140 which has passed both houses and not

        15       delivered to the Governor.

        16                      ACTING PRESIDENT KUHL:  The

        17       Secretary will read the title.

        18                      THE SECRETARY:  Calendar Number

        19       313, by Senator Volker, Senate Print 1140, an

        20       act to amend Chapter 198 of the Laws of 1978,

        21       relating to authorized projects.

        22                      SENATOR FARLEY:  Mr. President, I

        23       now move to reconsider the vote by which this











                                                             
8664

         1       bill was passed, and I ask the bill be restored

         2       to the order of third reading.

         3                      ACTING PRESIDENT KUHL:  The

         4       Secretary will call the roll on consideration.

         5                      (The Secretary called the roll on

         6       reconsideration.)

         7                      THE SECRETARY:  Ayes 35.

         8                      ACTING PRESIDENT KUHL:  Senator

         9       Farley.

        10                      SENATOR FARLEY:  I now move to

        11       recommit Senate Print Number 1140, Calendar 313

        12       on the order of third reading, that it be

        13       recommitted to the Health Committee with

        14       instructions to strike out the enacting clause.

        15                      ACTING PRESIDENT KUHL:  The

        16       Senate bill will be recommitted and the enacting

        17       clause will be stricken.

        18                      Senator Farley.

        19                      SENATOR FARLEY:  Thank you, Mr.

        20       President.

        21                      On behalf of a number of Senators

        22       here, Senator Velella -- I'm going to offer

        23       amendments to withdraw all of these bills.











                                                             
8665

         1                      By Senator Velella, on page 17,

         2       Calendar 222, Senate Print 2764-B;

         3                      Senator Farley, on page 11, 416,

         4       Senate Print 15-A;

         5                      Senator Levy, page 12, Calendar

         6       462, Senate Print 4168;

         7                      Senator Lack, page 13, Calendar

         8       507, Senate Print 3775;

         9                      Also, Senator Lack on page 22,

        10       Calendar 771, Senate Print 4427;

        11                      Senator Goodman, on page 25,

        12       Calendar 858, Senate Print 3466-A;

        13                      Also on behalf of Senator Goodman

        14       on page 27, Calendar 885, Senate Print 3455;

        15                      Senator Cook, page 37, Calendar

        16       1173, Senate Print 5164;

        17                      On behalf of Senator Goodman, on

        18       page 39, Calendar 1221, Senate Print 4688-B;

        19                      Senator Larkin, on page 41,

        20       Calendar 215, Senate Print 2090-B.

        21                      Mr. President, I offer the

        22       amendments to those bills and I ask that they

        23       retain their place on the Third Reading











                                                             
8666

         1       Calendar.

         2                      ACTING PRESIDENT KUHL:  The

         3       amendment to Calendar Number -- the amendments

         4       to Calendar Number 222, 416, 462, 507, 771, 858,

         5       885, 1173, 1221 and 215 are received and adopted

         6       and the bills will retain their place on the

         7       Third Reading Calendar.

         8                      Senator Larkin, why do you rise?

         9                      SENATOR LARKIN:  Mr. President,

        10       would you remove a sponsor's star from Calendar

        11       557, Senate Bill 3069; we've already done 215.

        12                      ACTING PRESIDENT KUHL:  Sponsor's

        13       star on Calendar Number 557 will be removed at

        14       the request of the sponsor.

        15                      The Chair recognizes Senator

        16       Onorato.

        17                      SENATOR ONORATO:  Mr. President,

        18       on behalf of Senator Solomon who just called me

        19        -- he's still stuck on the ramp of the Empire

        20       Plaza trying to get in here -- and he asked that

        21       on page 44, he offers the following amendments

        22       to Calendar Number 705, Print Number 4223, and

        23       remove the star and ask that bill replace -











                                                             
8667

         1       retain its place on the Third Reading Calendar.

         2                      ACTING PRESIDENT KUHL:  The star

         3       on Calendar Number 705 will be removed at the

         4       request of the sponsor.  The amendments are

         5       received and adopted and the bill will retain

         6       its place on the Third Reading Calendar.

         7                      Senator Onorato.

         8                      SENATOR ONORATO:  Mr. President,

         9       I also wish to call up my bill, Print Number

        10       2854, recalled from the Assembly which is now at

        11       the desk.

        12                      ACTING PRESIDENT KUHL:  The

        13       Secretary will read the title.

        14                      THE SECRETARY:  Calendar Number

        15       1189, by Senator Solomon, Senate Print 2854, an

        16       act to amend the Civil Practice Law and Rules,

        17       in relation to fees for referees.

        18                      ACTING PRESIDENT KUHL:  Senator

        19       Onorato.

        20                      SENATOR ONORATO:  Mr. President,

        21       I now move to reconsider the vote by which this

        22       bill was passed.

        23                      ACTING PRESIDENT KUHL:  The











                                                             
8668

         1       Secretary will call the roll on reconsideration.

         2                      (The Secretary called the roll on

         3       reconsideration.)

         4                      THE SECRETARY:  Ayes 38.

         5                      ACTING PRESIDENT KUHL:  Senator

         6       Onorato.

         7                      SENATOR ONORATO:  Mr. President,

         8       I now offer the following amendments.

         9                      ACTING PRESIDENT KUHL:  The

        10       amendments are received and adopted.

        11                      Senator Libous.

        12                      SENATOR LIBOUS:  Yes, Mr.

        13       President.

        14                      Mr. President, on behalf of

        15       Senator Skelos, on page 21, I offer the

        16       following amendments to Calendar Number 751,

        17       Senate Print Number 1243-A, and ask that said

        18       bill retain its place on the Third Reading

        19       Calendar.

        20                      ACTING PRESIDENT KUHL:  The

        21       amendments to Calendar Number 751 are received

        22       and adopted.  The bill will retain its place on

        23       the Third Reading Calendar.











                                                             
8669

         1                      Senator Libous.

         2                      SENATOR LIBOUS:  Thank you, Mr.

         3       President.

         4                      On behalf of Senator Rath, I wish

         5       to call up her bill, Print Number 901, recalled

         6       from the Assembly which is now at the desk.

         7                      ACTING PRESIDENT KUHL:  The

         8       Secretary will read the title.

         9                      THE SECRETARY:  Calendar Number

        10       160, by Senator Rath, Senate Print 901, an act

        11       to amend the State Administrative Procedure Act,

        12       in relation to advance notice of ruling making.

        13                      ACTING PRESIDENT KUHL:  Senator

        14       Libous.

        15                      SENATOR LIBOUS:  Thank you, Mr.

        16       President.

        17                      I now move to reconsider the vote

        18       by which this bill was passed.

        19                      ACTING PRESIDENT KUHL:  The

        20       Secretary will call the roll on reconsideration.

        21                      (The Secretary called the roll on

        22       reconsideration.)

        23                      THE SECRETARY:  Ayes 35.











                                                             
8670

         1                      ACTING PRESIDENT KUHL:  The bill

         2       is before the house.

         3                      Senator Libous.

         4                      SENATOR LIBOUS:  Thank you, Mr.

         5       President.

         6                      I now offer up the following

         7       amendments.

         8                      ACTING PRESIDENT KUHL:  The

         9       amendments are received and adopted.

        10                      Senator Libous.

        11                      SENATOR LIBOUS:  Mr. President,

        12       on behalf of Senator Lack, I wish to call up his

        13       bill, Senate Print Number 2833-A, recalled from

        14       the Assembly which is now at the desk.

        15                      ACTING PRESIDENT KUHL:  The

        16       Secretary will read the title.

        17                      THE SECRETARY:  Calendar Number

        18       387, by Senator Lack, Senate Print 2833-A, an

        19       act to amend Chapter 689 of the Laws of 1993,

        20       amending the Criminal Procedure Law.

        21                      ACTING PRESIDENT KUHL:  Senator

        22       Libous.

        23                      SENATOR LIBOUS:  Mr. President, I











                                                             
8671

         1       now move to reconsider the vote by which this

         2       bill was passed.

         3                      ACTING PRESIDENT KUHL:  The

         4       Secretary will call the roll on reconsideration.

         5                      (The Secretary called the roll on

         6       reconsideration.)

         7                      THE SECRETARY:  Ayes 35.

         8                      ACTING PRESIDENT KUHL:  Senator

         9       Libous.

        10                      SENATOR LIBOUS:  Mr. President, I

        11       now offer up the following amendments.

        12                      ACTING PRESIDENT KUHL:  The

        13       amendments are received and adopted.

        14                      Senator Libous.

        15                      SENATOR LIBOUS:  Thank you, Mr.

        16       President.

        17                      On behalf of my colleague,

        18       Senator Sears, I wish to call up his bill,

        19       Senate Print Number 3331, recalled from the

        20       Assembly which is now at the desk.

        21                      ACTING PRESIDENT KUHL:  The

        22       Secretary will read the title.

        23                      THE SECRETARY:  Calendar Number











                                                             
8672

         1       1027, by Senator Sears, Senate Print 3331, an

         2       act in relation to authorizing the town of Lee,

         3       county of Oneida, to lease certain park lands.

         4                      ACTING PRESIDENT KUHL:  Senator

         5       Libous.

         6                      SENATOR LIBOUS:  Mr. President, I

         7       now move to reconsider the vote by which this

         8       bill was passed.

         9                      ACTING PRESIDENT KUHL:  The

        10       Secretary will call the roll on reconsideration.

        11                      (The Secretary called the roll on

        12       reconsideration.)

        13                      THE SECRETARY:  Ayes 36.

        14                      ACTING PRESIDENT KUHL:  The bill

        15       is before the house.

        16                      Senator Libous.

        17                      SENATOR LIBOUS:  Mr. President, I

        18       offer up the following amendments.

        19                      ACTING PRESIDENT KUHL:  The

        20       amendments are received and adopted.

        21                      Senator Libous.

        22                      SENATOR LIBOUS:  Mr. President,

        23       on behalf of Senator Cook, please place a











                                                             
8673

         1       sponsor's star on Calendar Number 514 and also

         2       Calendar Number 809.

         3                      ACTING PRESIDENT KUHL:  The stars

         4       are placed on Calendar Number 514 and 809 at the

         5       request of the sponsor.

         6                      Senator Dollinger.

         7                      SENATOR DOLLINGER:  Mr.

         8       President, pursuant to Rule XI, I'm providing

         9       notice of my intention to move to alter the

        10       rules on June 13th, 1995, specifically Rule XI,

        11       to change the deadline from the second Tuesday

        12       in April to the fourth Tuesday in June for

        13       discharging a committee from consideration of a

        14       bill and require only one calendar legislative

        15       day's notice and upon adoption of said motion

        16       will move to discharge the Rules Committee from

        17       consideration of 5252 which would ban the

        18       possession of assault weapons.

        19                      ACTING PRESIDENT KUHL:  I'll

        20       direct the Secretary to record the notice in the

        21       Journal.

        22                      Senator Bruno, we have one

        23       substitution at the desk, if you would like to











                                                             
8674

         1       take that at this time.

         2                      SENATOR BRUNO:  Make the

         3       substitution, Mr. President.

         4                      ACTING PRESIDENT KUHL:  The

         5       Secretary will read the substitution.

         6                      THE SECRETARY:  On page 38,

         7       Senator Waldon moves to discharge from the

         8       Committee on Rules, Assembly Bill Number 2837

         9       and substitute it for the identical Calendar

        10       Number 1215.

        11                      ACTING PRESIDENT KUHL:  The

        12       substitution is ordered.

        13                      Senator Skelos, that brings us to

        14       the calendar.  What's your pleasure?

        15                      SENATOR SKELOS:  I would like to

        16       hand up the following resolution.  I'd ask that

        17       the title be read and the resolution adopted.

        18                      THE SECRETARY:  By Senator Bruno,

        19       concurrent resolution of the Senate and

        20       Assembly, authorizing the Senate and Assembly of

        21       New York State to purchase copies of the New

        22       York Red Book for 1995-96.

        23                      ACTING PRESIDENT KUHL:  The











                                                             
8675

         1       question is on the resolution.  All those in

         2       favor signify by saying aye.

         3                      (Response of "Aye".)

         4                      Opposed, nay.

         5                      (There was no response.)

         6                      The resolution is adopted.

         7                      Senator Skelos.

         8                      SENATOR SKELOS:  Mr. President,

         9       if we could take up the non-controversial

        10       calendar.

        11                      ACTING PRESIDENT KUHL:  The

        12       Secretary will read the non-controversial

        13       calendar.

        14                      THE SECRETARY:  On page 4,

        15       Calendar Number 91, by Senator Holland, Senate

        16       Print 2046-B -

        17                      SENATOR PATERSON:  Lay it aside.

        18                      ACTING PRESIDENT KUHL:  Lay the

        19       bill aside.

        20                      THE SECRETARY:  Calendar Number

        21       94, by Senator Johnson, Senate Print 571-A, an

        22       act to amend the Tax Law, in relation to

        23       procedures for written communications.











                                                             
8676

         1                      ACTING PRESIDENT KUHL:  The

         2       Secretary will read the last section.

         3                      THE SECRETARY:  Section 3.  This

         4       act shall take effect on the first day of the

         5       calendar.

         6                      ACTING PRESIDENT KUHL:  Call the

         7       roll.

         8                      (The Secretary called the roll.)

         9                      THE SECRETARY:  Ayes 36.

        10                      ACTING PRESIDENT KUHL:  The bill

        11       is passed.

        12                      THE SECRETARY:  Calendar Number

        13       98, by Senator Goodman, Senate Print 1367-B, an

        14       act to amend the Arts and Cultural Affairs Law,

        15       in relation to autographed sports collectibles.

        16                      ACTING PRESIDENT KUHL:  The

        17       Secretary will read the last section.

        18                      THE SECRETARY:  Section 2.  This

        19       act shall take effect on the first day of

        20       January.

        21                      ACTING PRESIDENT KUHL:  Call the

        22       roll.

        23                      (The Secretary called the roll.)











                                                             
8677

         1                      THE SECRETARY:  Ayes 37.

         2                      ACTING PRESIDENT KUHL:  The bill

         3       is passed.

         4                      THE SECRETARY:  Calendar Number

         5       186, by Senator Marchi, Senate Print 2037, an

         6       act to amend the -

         7                      SENATOR PATERSON:  Lay it aside.

         8                      ACTING PRESIDENT KUHL:  Lay the

         9       bill aside.

        10                      THE SECRETARY:  Calendar Number

        11       341, by Senator LaValle, Senate Print -

        12                      SENATOR PATERSON:  Lay it aside.

        13                      ACTING PRESIDENT KUHL:  Lay the

        14       bill aside.

        15                      THE SECRETARY:  Calendar Number

        16       373, by Senator Cook, Senate Print 2902-A, an

        17       act to amend the Education Law, in relation to

        18       authorizing electronic funds transfer.

        19                      ACTING PRESIDENT KUHL:  The

        20       Secretary will read the last section.

        21                      THE SECRETARY:  Section 4.  This

        22       act shall take effect on the first day of July.

        23                      ACTING PRESIDENT KUHL:  Call the











                                                             
8678

         1       roll.

         2                      (The Secretary called the roll.)

         3                      THE SECRETARY:  Ayes 37.

         4                      ACTING PRESIDENT KUHL:  The bill

         5       is passed.

         6                      THE SECRETARY:  Calendar Number

         7       374, by Senator Farley, Senate Print 3058-A, an

         8       act to amend the Education Law, in relation to

         9       the funding of certain libraries.

        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 37.

        18                      ACTING PRESIDENT KUHL:  The bill

        19       is passed.

        20                      THE SECRETARY:  Calendar Number

        21       397, by Senator Lack, Senate Print 3632-A, an

        22       act to amend the Public Authorities Law, in

        23       relation to authorizing the Dormitory Authority











                                                             
8679

         1       to construct and finance all necessary and

         2       related facilities.

         3                      ACTING PRESIDENT KUHL:  The

         4       Secretary will read the last section.

         5                      THE SECRETARY:  Section 4.  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 37.

        11                      ACTING PRESIDENT KUHL:  The bill

        12       is passed.

        13                      THE SECRETARY:  Calendar Number

        14       411, by Senator Levy, Senate Print 4036-A, an

        15       act to amend Chapter 56 of the Laws of 1993,

        16       amending the Highway Law.

        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.)











                                                             
8680

         1                      THE SECRETARY:  Ayes 38.

         2                      ACTING PRESIDENT KUHL:  The bill

         3       is passed.

         4                      THE SECRETARY:  Calendar Number

         5       422, by Senator Cook, Senate Print 3913, an act

         6       to amend the Education Law, in relation to the

         7       transportation of pupils.

         8                      ACTING PRESIDENT KUHL:  The

         9       Secretary will read the last section.

        10                      THE SECRETARY:  Section 2.  This

        11       act shall take effect on the second day of July.

        12                      ACTING PRESIDENT KUHL:  Call the

        13       roll.

        14                      (The Secretary called the roll.)

        15                      THE SECRETARY:  Ayes 38.

        16                      ACTING PRESIDENT KUHL:  The bill

        17       is passed.

        18                      THE SECRETARY:  Calendar Number

        19       441, by Senator Saland, Senate Print 3623-A, an

        20       act to amend the Insurance Law, in relation to

        21       permitting an employer or employer-sponsored

        22       irrevocable trust.

        23                      ACTING PRESIDENT KUHL:  The











                                                             
8681

         1       Secretary will read the last section.

         2                      THE SECRETARY:  Section 5.  This

         3       act shall take effect immediately.

         4                      ACTING PRESIDENT KUHL:  Call the

         5       roll.

         6                      (The Secretary called the roll.)

         7                      THE SECRETARY:  Ayes 38.

         8                      ACTING PRESIDENT KUHL:  The bill

         9       is passed.

        10                      THE SECRETARY:  Calendar Number

        11       449, by Senator DiCarlo, Senate Print 4014-A, an

        12       act to amend the Executive Law, in relation to

        13       the elderly pharmaceutical insurance coverage

        14       program.

        15                      ACTING PRESIDENT KUHL:  The

        16       Secretary will read the last section to Calendar

        17       Number 449.

        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 38.











                                                             
8682

         1                      ACTING PRESIDENT KUHL:  The bill

         2       is passed.

         3                      THE SECRETARY:  Calendar Number

         4       490, by Senator Volker, Senate Print 2960-A, an

         5       act to amend the Public Authorities Law, in

         6       relation to creating the Livingston County Water

         7       and Sewer Authority.

         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 38.

        16                      ACTING PRESIDENT KUHL:  The bill

        17       is passed.

        18                      THE SECRETARY:  Calendar Number

        19       502, by Senator Sears, Senate Print 3325-A, an

        20       act to amend the General Business Law, in

        21       relation to prohibiting presentment of a Social

        22       Security number.

        23                      ACTING PRESIDENT KUHL:  The











                                                             
8683

         1       Secretary will read the last section.

         2                      THE SECRETARY:  Section 2.  This

         3       act shall take effect on the first day of

         4       November.

         5                      ACTING PRESIDENT KUHL:  Call the

         6       roll.

         7                      (The Secretary called the roll.)

         8                      THE SECRETARY:  Ayes 38.

         9                      ACTING PRESIDENT KUHL:  The bill

        10       is passed.

        11                      THE SECRETARY:  Calendar Number

        12       50...  in relation to Calendar Number 502, ayes

        13       37, nays 1, Senator Hannon recorded in the

        14       negative.

        15                      ACTING PRESIDENT KUHL:  The bill

        16       is passed.

        17                      THE SECRETARY:  Calendar Number

        18       503, by Senator Hannon, Senate Print 3467-A, an

        19       act to amend the General Business Law, in

        20       relation to unauthorized or improper use of a

        21       debit card.

        22                      ACTING PRESIDENT KUHL:  The

        23       Secretary will read the last section.











                                                             
8684

         1                      THE SECRETARY:  Section 7.  This

         2       act shall take effect on the first day of

         3       January.

         4                      ACTING PRESIDENT KUHL:  Call the

         5       roll.

         6                      (The Secretary called the roll.)

         7                      THE SECRETARY:  Ayes 38.

         8                      ACTING PRESIDENT KUHL:  The bill

         9       is passed.

        10                      THE SECRETARY:  Calendar Number

        11       564, by Senator Skelos, Senate Print 4182-A, an

        12       act to amend the Nassau County Civil Divisions

        13       Act, in relation to the volunteer and exempt

        14       Firemen's Benevolent Association.

        15                      ACTING PRESIDENT KUHL:  The

        16       Secretary will read the last section to Calendar

        17       Number 564.

        18                      THE SECRETARY:  Section 5.  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 38.











                                                             
8685

         1                      ACTING PRESIDENT KUHL:  We

         2       mistakenly read Calendar Number 564 out of

         3       order.  We'll take up Calendar Number 558 next

         4       for the benefit of the members -- excuse me,

         5       558.  564 passed.

         6                      THE SECRETARY:  Calendar Number

         7       558, by Senator Nozzolio, Senate Print 3202-A,

         8       an act to amend the Town Law, in relation to

         9       providing for the election of a third town

        10       justice.

        11                      ACTING PRESIDENT KUHL:  The

        12       Secretary will read the last section.

        13                      THE SECRETARY:  Section 2.  This

        14       act shall take effect immediately.

        15                      ACTING PRESIDENT KUHL:  Call the

        16       roll.

        17                      (The Secretary called the roll.)

        18                      THE SECRETARY:  Ayes 38.

        19                      ACTING PRESIDENT KUHL:  The bill

        20       is passed.

        21                      THE SECRETARY:  Calendar Number

        22       583, by Senator Levy, Senate Print 4146, an act

        23       to amend the Transportation Law, in relation to











                                                             
8686

         1       requiring the Commissioner of Transportation to

         2       take an annual inventory.

         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                      ACTING PRESIDENT KUHL:  Announce

        11       the results when tabulated.

        12                      THE SECRETARY:  Those recorded in

        13       the negative on Calendar 583 are Senators

        14       DeFrancisco, Farley, Present and Rath.  Also,

        15       Senator Hoblock.  Ayes 33, nays 5.

        16                      ACTING PRESIDENT KUHL:  The bill

        17       is passed.

        18                      THE SECRETARY:  Calendar Number

        19       642, by Senator Levy, Senate Print 4336, an act

        20       to amend the Transportation Law, in relation to

        21       nighttime construction projects.

        22                      ACTING PRESIDENT KUHL:  The

        23       Secretary will read the last section.











                                                             
8687

         1                      THE SECRETARY:  Section 3.  This

         2       act shall take effect immediately.

         3                      ACTING PRESIDENT KUHL:  Call the

         4       roll.

         5                      (The Secretary called the roll.)

         6                      THE SECRETARY:  Ayes 38.

         7                      ACTING PRESIDENT KUHL:  The bill

         8       is passed.

         9                      THE SECRETARY:  Calendar Number

        10       657, by Senator Hoblock, Senate Print 3109-A, an

        11       act to authorize the conveyance of certain state

        12       lands to Pinehaven Country Club, Incorporated.

        13                      ACTING PRESIDENT KUHL:  The

        14       Secretary will read the last section.

        15                      THE SECRETARY:  Section 7.  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 38.

        21                      ACTING PRESIDENT KUHL:  The bill

        22       is passed.

        23                      THE SECRETARY:  Calendar Number











                                                             
8688

         1       703, by Senator Velella, Senate Print 4112-B, an

         2       act to amend the Insurance Law, in relation to

         3       investments.

         4                      ACTING PRESIDENT KUHL:  The

         5       Secretary will read the last section.

         6                      THE SECRETARY:  Section 5.  This

         7       act shall take effect immediately.

         8                      ACTING PRESIDENT KUHL:  Call the

         9       roll.

        10                      (The Secretary called the roll.)

        11                      ACTING PRESIDENT KUHL:  Announce

        12       the results when tabulated.

        13                      THE SECRETARY:  Ayes 36, nays 2,

        14       Senators Maltese and Maziarz recorded in the

        15       negative.

        16                      ACTING PRESIDENT KUHL:  The bill

        17       is passed.

        18                      THE SECRETARY:  Calendar Number

        19       727, by Member of the Assembly Gottfried,

        20       Assembly Print 6516, an act to amend the Public

        21       Health Law and the Insurance Law, in relation to

        22       physical therapy services referrals.

        23                      ACTING PRESIDENT KUHL:  The











                                                             
8689

         1       Secretary will read the last section.

         2                      THE SECRETARY:  Section 2.  This

         3       act shall take effect immediately.

         4                      ACTING PRESIDENT KUHL:  Call the

         5       roll.

         6                      (The Secretary called the roll.)

         7                      THE SECRETARY:  Ayes 38.

         8                      ACTING PRESIDENT KUHL:  The bill

         9       is passed -- announce the results when tabulated

        10       on Calendar Number 727.

        11                      THE SECRETARY:  On Calendar 727,

        12       ayes 37, nays 1, Senator DeFrancisco recorded in

        13       the negative.

        14                      ACTING PRESIDENT KUHL:  The bill

        15       is passed.

        16                      THE SECRETARY:  Calendar Number

        17       733, by Senator Goodman, Senate Print 4017-B, an

        18       act to amend the Mental Hygiene Law, in relation

        19       to establishing performance standards for

        20       alcoholism, substance abuse and chemical

        21       dependence programs.

        22                      ACTING PRESIDENT KUHL:  The

        23       Secretary will read the last section.











                                                             
8690

         1                      THE SECRETARY:  Section 2.  This

         2       act shall take effect immediately.

         3                      ACTING PRESIDENT KUHL:  Call the

         4       roll.

         5                      (The Secretary called the roll.)

         6                      THE SECRETARY:  Ayes 38.

         7                      ACTING PRESIDENT KUHL:  The bill

         8       is passed.

         9                      THE SECRETARY:  Calendar Number

        10       740, by Senator Goodman, Senate Print 3424-B, an

        11       act to amend the Administrative Code of the city

        12       of New York, in relation to a credit against the

        13       unincorporated business income tax.

        14                      ACTING PRESIDENT KUHL:  The

        15       Secretary will read the last section.

        16                      THE SECRETARY:  Section 17.  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 38.

        22                      ACTING PRESIDENT KUHL:  The bill

        23       is passed.











                                                             
8691

         1                      THE SECRETARY:  Calendar Number

         2       869, by Senator Levy, Senate Print 4856-B, an

         3       act to amend the Vehicle and Traffic Law, in

         4       relation to increasing fines for violations of

         5       certain provisions.

         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 90th 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       875, by Senator Levy, Senate Print 4985-A, an

        18       act to amend the Transportation Law, in relation

        19       to the investigation of accidents by the state

        20       Public Transportation Safety Board.

        21                      ACTING PRESIDENT KUHL:  The

        22       Secretary will read the last section.

        23                      THE SECRETARY:  Section 2.  This











                                                             
8692

         1       act shall take effect immediately.

         2                      ACTING PRESIDENT KUHL:  Call the

         3       roll.

         4                      (The Secretary called the roll.)

         5                      THE SECRETARY:  Ayes 38.

         6                      ACTING PRESIDENT KUHL:  The bill

         7       is passed.

         8                      THE SECRETARY:  Calendar Number

         9       989, by Senator Leibell, Senate Print 3786-A, an

        10       act to amend Chapter 514 of the Laws of 1983,

        11       amending the Private Housing Finance Law.

        12                      ACTING PRESIDENT KUHL:  The

        13       Secretary will read the last section.

        14                      THE SECRETARY:  Section 4.  This

        15       act shall take effect immediately.

        16                      ACTING PRESIDENT KUHL:  Call the

        17       roll.

        18                      THE SECRETARY:  Ayes 38.

        19                      ACTING PRESIDENT KUHL:  The bill

        20       is passed.

        21                      THE SECRETARY:  Calendar Number

        22       990, by Senator Leibell, Senate Print -

        23                      SENATOR PATERSON:  Lay it aside.











                                                             
8693

         1                      ACTING PRESIDENT KUHL:  Lay the

         2       bill aside.

         3                      THE SECRETARY:  Calendar Number

         4       994, by Senator Leibell -

         5                      SENATOR PATERSON:  Lay it aside.

         6                      ACTING PRESIDENT KUHL:  Lay the

         7       bill aside.

         8                      THE SECRETARY:  Calendar Number

         9       1041, by Senator Kuhl, Senate Print 3119-A, an

        10       act to amend the Environmental Conservation Law,

        11       in relation to the definition of angling.

        12                      ACTING PRESIDENT KUHL:  The

        13       Secretary will read the last section.

        14                      THE SECRETARY:  Section 2.  This

        15       act shall take effect on the 120th day.

        16                      ACTING PRESIDENT KUHL:  Call the

        17       roll.

        18                      (The Secretary called the roll.)

        19                      THE SECRETARY:  Ayes 38.

        20                      ACTING PRESIDENT KUHL:  The bill

        21       is passed.

        22                      THE SECRETARY:  Calendar Number

        23       1058, by Senator Libous, Senate Print 2779, an











                                                             
8694

         1       act to amend the -

         2                      SENATOR PATERSON:  Lay it aside.

         3                      ACTING PRESIDENT KUHL:  There's a

         4       home rule message at the desk.  The bill will be

         5       laid aside.

         6                      THE SECRETARY:  Calendar Number

         7       1107, by Senator Tully, Senate Print 4673-A, an

         8       act to amend the Environmental Conservation Law,

         9       in relation to exempting certain bakeries from

        10       regulation pursuant to the Clear Air Act.

        11                      SENATOR PATERSON:  Lay it aside.

        12                      ACTING PRESIDENT KUHL:  Lay the

        13       bill aside.

        14                      THE SECRETARY:  Calendar Number

        15       1197, by Senator Velella, Senate Print 3663-B,

        16       an act to amend -

        17                      SENATOR PATERSON:  Lay it aside.

        18                      ACTING PRESIDENT KUHL:  Lay the

        19       bill aside.

        20                      THE SECRETARY:  Calendar Number

        21       1199, by Senator Leibell, Senate Print 3853-A,

        22       an act to amend the Public Authorities Law, in

        23       relation to the powers of the New York -- state











                                                             
8695

         1       of New York Mortgage Agency.

         2                      ACTING PRESIDENT KUHL:  The

         3       Secretary will read the last section.

         4                      THE SECRETARY:  Section 2.  This

         5       act shall take effect immediately.

         6                      ACTING PRESIDENT KUHL:  Call the

         7       roll.

         8                      (The Secretary called the roll.)

         9                      THE SECRETARY:  Ayes 38.

        10                      ACTING PRESIDENT KUHL:  The bill

        11       is passed.

        12                      THE SECRETARY:  Calendar Number

        13       1213, by Senator Montgomery, Senate Print 595,

        14       an act authorizing the city of New York to

        15       reconvey its interest in certain real property

        16       acquired by in rem tax foreclosure in the

        17       borough of Brooklyn.

        18                      ACTING PRESIDENT KUHL:  There's a

        19       home rule message at the desk.  The Secretary

        20       will read the last section.

        21                      THE SECRETARY:  Section 5.  This

        22       act shall take effect immediately.

        23                      ACTING PRESIDENT KUHL:  Call the











                                                             
8696

         1       roll.

         2                      (The Secretary called the roll.)

         3                      THE SECRETARY:  Ayes 38.

         4                      ACTING PRESIDENT KUHL:  The bill

         5       is passed.

         6                      THE SECRETARY:  Calendar Number

         7       1215, by Member of the Assembly Scarborough,

         8       substituted earlier today, Assembly Print 2837,

         9       an act authorizing the city of New York to

        10       reconvey its interest in certain real property

        11       acquired by in rem tax foreclosure in the

        12       borough of Queens.

        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 38.

        21                      ACTING PRESIDENT KUHL:  The bill

        22       is passed.

        23                      THE SECRETARY:  Calendar Number











                                                             
8697

         1       1216, by Senator Farley, Senate Print 2992, an

         2       act to amend the Banking Law, in relation to

         3       permissible fees in connection with open ended

         4       loans.

         5                      ACTING PRESIDENT KUHL:  The

         6       Secretary will read the last section.

         7                      THE SECRETARY:  Section 2.  This

         8       act shall take effect immediately.

         9                      ACTING PRESIDENT KUHL:  Call the

        10       roll.

        11                      (The Secretary called the roll.)

        12                      THE SECRETARY:  Ayes 38.

        13                      ACTING PRESIDENT KUHL:  The bill

        14       is passed.

        15                      THE SECRETARY:  Calendar Number

        16       1217, by Senator Paterson, Senate Print 3127, an

        17       act to amend the Penal Law, in relation to

        18       defining offenses against a family.

        19                      ACTING PRESIDENT KUHL:  The

        20       Secretary will read the last section.

        21                      THE SECRETARY:  Section 2.  This

        22       act shall take effect on the first day of

        23       November.











                                                             
8698

         1                      SENATOR SKELOS:  Mr. President.

         2                      ACTING PRESIDENT KUHL:  Senator

         3       Skelos.

         4                      SENATOR SKELOS:  We're on

         5       Calendar Number 1217 by Senator Gold?

         6                      ACTING PRESIDENT KUHL:  That's

         7       what we're just inquiring about, Senator

         8       Skelos.  The Secretary will read Calendar Number

         9       1217, the title.

        10                      THE SECRETARY:  Calendar Number

        11       1217, by Senator Gold, Senate Print 3217, an act

        12       to amend the Penal Law, in relation to a metal

        13       knuckle knife.

        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 38.

        22                      ACTING PRESIDENT KUHL:  The bill

        23       is passed.











                                                             
8699

         1                      THE SECRETARY:  Calendar Number

         2       1218, by Senator Maltese, Senate Print 3718-A,

         3       an act to amend the Administrative Code of the

         4       city of New York, in relation to the title and

         5       compensation of certain police.

         6                      ACTING PRESIDENT KUHL:  The

         7       Secretary will read the last section.

         8                      THE SECRETARY:  Section 3.  This

         9       act shall take effect immediately.

        10                      ACTING PRESIDENT KUHL:  Call the

        11       roll.

        12                      (The Secretary called the roll.)

        13                      THE SECRETARY:  Ayes 38.

        14                      ACTING PRESIDENT KUHL:  The bill

        15       is passed.

        16                      THE SECRETARY:  Calendar Number

        17       1219, by Senator Hoblock, Senate Print 3891, an

        18       act to amend the Labor law, in relation to

        19       providing for eligibility of unemployment

        20       insurance benefits.

        21                      ACTING PRESIDENT KUHL:  The

        22       Secretary will read the last section.

        23                      THE SECRETARY:  Section 2.  This











                                                             
8700

         1       act shall take effect immediately.

         2                      ACTING PRESIDENT KUHL:  Call the

         3       roll.

         4                      (The Secretary called the roll.)

         5                      THE SECRETARY:  Ayes 38.

         6                      ACTING PRESIDENT KUHL:  The bill

         7       is passed.

         8                      THE SECRETARY:  Calendar Number

         9       1220, by Senator Seward, Senate Print 4649, an

        10       act to amend the Alcoholic Beverage Control Law,

        11       in relation to authorizing liquor stores to

        12       operate on Christmas Eve and New Year's Eve.

        13                      ACTING PRESIDENT KUHL:  The

        14       Secretary will read the last section.

        15                      SENATOR SMITH:  Lay it aside.

        16                      ACTING PRESIDENT KUHL:  Lay the

        17       bill aside.

        18                      Senator Skelos, that completes

        19       the non-controversial calendar.

        20                      SENATOR SKELOS:  Mr. President.

        21                      ACTING PRESIDENT KUHL:  The Chair

        22       recognizes Senator DeFrancisco.

        23                      SENATOR DeFRANCISCO:  Mr.











                                                             
8701

         1       President, when 727 on the calendar was called,

         2       I mistakenly voted in the negative.  I would

         3       request unanimous consent to be voted in the

         4       affirmative.

         5                      ACTING PRESIDENT KUHL:  Without

         6       objection.  Hearing no objection, Senator

         7       DeFrancisco will be recorded in the affirmative

         8       on Calendar Number 727.

         9                      Senator Skel... excuse me.

        10                      Senator Sears, why do you rise?

        11                      SENATOR SEARS:  503, I would like

        12       to be recorded in the negative, please.

        13                      ACTING PRESIDENT KUHL:  Without

        14       objection.  Hearing no objection, Senator Sears

        15       will be recorded in the negative on Calendar

        16       Number 503.

        17                      Senator Skelos.

        18                      SENATOR SKELOS:  Mr. President,

        19       as we start the controversial calendar -- and I

        20       know there will be at least one supplemental

        21       calendar, I urge the members who have bills on

        22       the calendar to be debated to please be in the

        23       chambers so that we can move in an orderly











                                                             
8702

         1       fashion.

         2                      ACTING PRESIDENT KUHL:  The

         3       Secretary will read the controversial -- excuse

         4       me.

         5                      Senator Paterson, why do you

         6       rise?

         7                      SENATOR PATERSON:  Mr. President,

         8       I just rose to tell you that I agree with the

         9       Acting Majority Leader.  The quicker we get in

        10       here, the quicker we can debate these bills.

        11                      ACTING PRESIDENT KUHL:  The

        12       Secretary will read the controversial calendar.

        13                      THE SECRETARY:  Calendar Number

        14       91, by Senator Holland, Senate Print 2046-B, an

        15       act to amend the Social Services Law and the

        16       Workers' Compensation Law, in relation to liens

        17       for public assistance.

        18                      SENATOR PATERSON:  Explanation.

        19                      ACTING PRESIDENT KUHL:  Senator

        20       Holland, an explanation has been asked for by

        21       both Senator Paterson and Senator Stachowski.

        22                      SENATOR HOLLAND:  Mr. President,

        23       this bill provides that the Department of Social











                                                             
8703

         1       Services may place a lien for the repayment of

         2       public assistance upon any lump sum benefit paid

         3       under the Workers' Compensation Law.

         4                      SENATOR PATERSON:  Mr. President.

         5                      ACTING PRESIDENT KUHL:  Senator

         6       Paterson.

         7                      SENATOR PATERSON:  I apologize.

         8                      ACTING PRESIDENT KUHL:  Senator

         9       Paterson, would you hesitate just a moment until

        10       we get some order in the chamber.  It's Monday

        11       morning, a lot of noise.  Ask the staff to take

        12       their places, the members to take their

        13       conversations out of the chamber.

        14                      Thank you, Senator Paterson.

        15                      SENATOR PATERSON:  Mr. President,

        16       and thank you.

        17                      I couldn't hear Senator Holland's

        18       explanation.  Would he mind repeating it?

        19                      SENATOR HOLLAND:  I would be glad

        20       to.

        21                      This bill provides that the

        22       Department of Social Services may place a lien

        23       for the payment of public assistance upon any











                                                             
8704

         1       lump sum benefit paid under the Workers'

         2       Compensation Law.

         3                      SENATOR PATERSON:  Mr. President.

         4                      ACTING PRESIDENT KUHL:  Senator

         5       Paterson.

         6                      SENATOR PATERSON:  Why was the -

         7       if Senator Holland would yield for a question.

         8                      ACTING PRESIDENT KUHL:  Senator

         9       Holland, do you yield to Senator Paterson?  The

        10       Senators yields.

        11                      SENATOR PATERSON:  Why was

        12       Workers' Compensation excluded in the first

        13       place, Senator Holland?

        14                      SENATOR HOLLAND:  We did a little

        15       research on that, Senator.  We were not able to

        16       find a reason why it was not excluded in 1964,

        17       but it doesn't make any sense to me that some

        18       people have to repay loans and in this

        19       situation, they would be receiving benefits from

        20       two benefit agencies of the state of New York

        21       and when they receive their grant or their court

        22       settlement, they wouldn't have to repay the loan

        23       from DSS.











                                                             
8705

         1                      ACTING PRESIDENT KUHL:  Senator

         2       Paterson.

         3                      SENATOR PATERSON:  Mr. President

         4        -- Senator Holland, even as a prerequisite to

         5       the questions I want to ask, if what you're

         6       saying is true, why have we in this bill

         7       excluded EMS workers and firefighters?

         8                      SENATOR HOLLAND:  Good question.

         9       It -- I really don't have an answer for that,

        10       Senator.  Do you want to put them in?

        11                      SENATOR PATERSON:  No, Mr.

        12       President.  I want Senator Holland to know that

        13       I would figure that we would take them out.  In

        14       other words, I would figure that workers would

        15       be treated the same.

        16                      SENATOR HOLLAND:  That -- that

        17       makes a lot of sense to me, Senator.  I would be

        18       glad to talk to you about that next year or

        19       later this week, if you would like.

        20                      ACTING PRESIDENT KUHL:  Senator

        21       Paterson.

        22                      SENATOR PATERSON:  Mr. President,

        23       would Senator Holland tell me, are we going











                                                             
8706

         1       to -

         2                      ACTING PRESIDENT KUHL:  Senator

         3       Holland, do you continue to yield?

         4                      SENATOR HOLLAND:  Yes.

         5                      ACTING PRESIDENT KUHL:  The

         6       Senator continues to yield.

         7                      SENATOR PATERSON:  Do you want to

         8       pass the bill as it is right now and change it

         9       later; is that what you're saying?

        10                      SENATOR HOLLAND:  Senator, I

        11       certainly want to pass the bill as it is right

        12       now.  This bill has been on the floor for a

        13       number of years.  I really think it is an unfair

        14       situation.  Maybe it's not a perfect bill, but

        15       we pass a lot of bills that are not perfect and

        16       this will correct some inequities that have been

        17       going on for much too long in this state.

        18                      ACTING PRESIDENT KUHL:  Senator

        19       Paterson.

        20                      SENATOR PATERSON:  Mr. President,

        21       just on the bill, just for that moment.

        22                      ACTING PRESIDENT KUHL:  Senator

        23       Paterson on the bill.











                                                             
8707

         1                      SENATOR PATERSON:  I understand

         2       what Senator Holland is saying, but I really

         3       think it would be better for the process if we

         4       addressed all the issues in this particular

         5       legislation at once.

         6                      Now, I'm opposed to this bill,

         7       Mr. President, and I'm going to go into why in a

         8       moment, but I really would implore Senator

         9       Holland that as we're already conceding that

        10       there are some inconsistencies or some

        11       idiosyncratic situations that would be treated

        12       as -- arising from the passage of this bill -- I

        13       understand that he's waited a long time, but I

        14       really think it would be better government for

        15       us not to concede that we often pass bills that

        16       are not perfect.  I think that is the result of

        17       our work but it is not the intent.  We would

        18       hope that we're always passing bills that are

        19       the best possible bill we can have, and I just

        20       urge the sponsor to lay the bill aside and

        21       either give us an explanation for why we should

        22       have the EMS and firefighters or to just remove

        23       them and go forward with the bill.











                                                             
8708

         1                      But now back to the actual piece

         2       of legislation, if Senator Holland would mind

         3       yielding for a couple of questions.

         4                      ACTING PRESIDENT KUHL:  Senator

         5       Holland, do you yield to Senator Paterson?  The

         6       Senator yields.

         7                      SENATOR PATERSON:  Senator, for a

         8       long period of time, Section 33 of the Workers'

         9       Compensation Law and Section 104(b) of the

        10       Social Services Law seem to have allowed for

        11       this exclusion, and I think the reason they do

        12       it is because of the rates at which an

        13       individual who is injured can be paid.  The

        14       Workers' Compensation Law really restricts the

        15       payment that an individual can receive.  We're

        16       not talking about individuals who applied for

        17       some sort of social service benefit, Senator.

        18       We're talking about people who were working who

        19       either were injured accidentally on the job or

        20       contracted some job-related disease, and so I

        21       think that these individuals have already gone

        22       through an ordeal and Section 15 of the Workers'

        23       Compensation Law makes it very clear that they











                                                             
8709

         1       never received the compensation that they would

         2       have accrued had they been working, so they're

         3       already at a financial disadvantage.

         4                      Now, we have one exception.  We

         5       will go into Workers' Compensation payments

         6       where there is a mitigating circumstance where

         7       we are balancing the hardship of the worker with

         8       the difficulties that other family members have,

         9       Senator Holland, so we do have that exception so

        10       we don't have other family members living in

        11       poverty as a result of the job-related injury,

        12       but to the individual who is suffering, the

        13       Workers' Compensation Law makes it very clear

        14       that they're never in the position, even with

        15       Workers' Compensation, that they were in at the

        16       time of the accident or the ordeal has occurred,

        17       and so why we would want to take the meager

        18       funds that are available to them and pay back

        19       Social Services is something that, I think the

        20       Legislature addressed many years ago, and that

        21       is to not want to further restrict the

        22       individual who is already restricted by Workers'

        23       Compensation payments.











                                                             
8710

         1                      My question to you is why would

         2       you want to change that?  That seems -- I mean,

         3       it seems to me that we're picking on people who

         4       really, but for the fact that they were working

         5        -- in other words, they weren't lazy.  They

         6       didn't fail to go out and look for a job.  They

         7       are individuals who are injured, individuals who

         8       are often suffering from a malady.  Why would we

         9       want to take any further money out of their

        10       pockets?

        11                      SENATOR HOLLAND:  See, I don't

        12       see it that way, Senator.  I see it as the

        13       person being injured or needing assistance and

        14       DSS coming to their assistance for a period of

        15       time until the court finishes the claim.  When

        16       the claim is adjudicated, then I believe the

        17       loan -- and I see it as a loan from DSS -

        18       should be repaid just as anybody else would have

        19       to do, have to repay a loan; just as anybody

        20       else who might have a problem for a period of

        21       time might have to take a loan.

        22                      SENATOR PATERSON:  Mr. President

        23        -- but, Senator, you're aware that when people











                                                             
8711

         1       go on to -

         2                      ACTING PRESIDENT KUHL:  Senator

         3       Holland, do you continue to yield?

         4                      SENATOR HOLLAND:  Yes, sir.

         5                      ACTING PRESIDENT KUHL:  The

         6       Senator continues to yield.

         7                      SENATOR PATERSON:  Mr. President,

         8       thanks.

         9                      Senator Holland, when the person

        10       goes on Social Security, often they are paid

        11       Social Security Disability Insurance which, in a

        12       sense, tides the individual over until the

        13       Social Security Insurance is now -- now kicks

        14       in, but the Social Security Insurance often is

        15       retroactive to the point that they receive

        16       Social Security Disability Insurance and,

        17       although you might see that as a loan, generally

        18       what the Social Security Law feels is that that

        19       initial effort to assist the person is something

        20       that even with the -- the special benefit of

        21       SSDI, the federal law generally considers that

        22       the individual never really reaches a point of

        23       equity.











                                                             
8712

         1                      And so what I'm sort of saying to

         2       you, Senator, is based on logic, I think that

         3       you're correct in your assumption, but I think

         4       the point, if I could get you to realize it,

         5       that might make you reconsider this bill is the

         6       fact that you see, even with the slight funds

         7       that may be paid from Social Services, even when

         8       the Workers' Compensation kicks in, it's

         9       understood in the law -- it's actually written

        10       right into Section 15 -- that the person is

        11       never in the place that they would have been if

        12       they continued to be working.

        13                      Now, if the individual was, in a

        14       sense, receiving a benefit from our government

        15       just on -- based on need alone, then I think I

        16       would be more persuaded to vote for your bill,

        17       but these individuals, I must repeat, were

        18       injured on the job or suffered a job-related

        19       circumstance that caused them to contract some

        20       sort of disease.

        21                      So, in other words, if we're

        22       really talking about equity, Senator, they have

        23       really had bad luck.  I mean, that's about the











                                                             
8713

         1       only way to describe it, and to further

         2       complicate this situation by, in a sense, taking

         3       back the funds that they receive from Social

         4       Services, in my opinion, just is not fair to

         5       them, and I don't know -- or maybe you would

         6       like to tell me if you would yield for this

         7       question, how much money would you project we

         8       could save the state in a year; is it really

         9       worth it?

        10                      SENATOR HOLLAND:  I do not have a

        11       specific amount, Senator, but I guess -- I have

        12       to repeat myself in answer to your question.  I

        13       see it as double dipping.  I see it as we are

        14       taking care of the people who are injured on the

        15       job or get a disease on the job or have a

        16       problem on the job, and if they get a claim

        17       which would pay back that loan while we were

        18       taking care of them, whether it's through

        19       compensation or DSS, I believe that should be

        20       repaid.  I think a normal taxpayer who didn't

        21       have that benefit would have to repay any loan,

        22       would have to work over that period of time.  I

        23       see this as receiving benefits from two











                                                             
8714

         1       government benefit agencies and that when the

         2       claim is finalized, one of them should be

         3       repaid.

         4                      ACTING PRESIDENT KUHL:  Senator

         5       Paterson.

         6                      SENATOR PATERSON:  Yeah, Senator

         7       Holland, I don't -- Mr. President, I don't think

         8       that there is really much disagreement between

         9       either of us on what we're actually doing but,

        10       Senator Holland, what I would wish we would

        11       acknowledge is the fact that these individuals

        12       are taxpayers.  They were taxpayers at the time

        13       that they accumulated the injury.  What they may

        14       be is individuals who, in a sense, due to the

        15       injury, are in far greater straits than the

        16       individual who might have the personal finances

        17       to sustain themself until the Workmen's

        18       Compensation comes through.

        19                      And so all I'm saying to you,

        20       Senator Holland -- and, you know, I appreciate

        21       what you're trying to say, but all I'm asking

        22       you to consider is when you have a tort

        23       liability action and the defendant is found at











                                                             
8715

         1       fault, the general -- generally held saw of

         2       legal compensation is that you take the victims

         3       as you find them.  In other words, if you knock

         4       someone down the stairs and they get a bump on

         5       the head and they have to go and have X-rays,

         6       then you pay for X-rays.  If you knock someone

         7       down the stairs and they had an unusually thin

         8       skull and they fracture their skull, even though

         9       most people might not have had that particular

        10       malady because you knocked them down the stairs,

        11       you now have to pay for everything.

        12                      I think that as a state, if we

        13       would consider this more as a tort action and

        14       take our victims as we find them, we would find

        15       that the individuals who happen to be, let's say

        16       lower income, they don't have as much savings as

        17       perhaps the individual who's suffering from the

        18       same injury but since we as a state, by the fact

        19       that we pay Workers' Compensation, deem

        20       ourselves to be responsible, what I'm contending

        21       is that I think that that difference, even

        22       though we're paying from both agencies and even

        23       though under the definition of what double











                                                             
8716

         1       dipping would mean, I guess I'd have to go along

         2       with you, Senator Holland, but I'm saying in the

         3       greatest equity, in the greatest fairness, in

         4       the greatest consideration of what the victim

         5       has sustained, I think it would be more fair to

         6       put the victim in as best a position as we can

         7       even if each victim who suffers as a result of a

         8       job-related injury or disease that arose from a

         9       job-related situation, that that would be a

        10       better goal for government than to have a

        11       uniform standard where we are really, in a

        12       sense, shuffling the deck and rearranging funds

        13       that we have not demonstrated are going to be of

        14       any great savings to the state and at the same

        15       time, would have great value if they could be in

        16       the hands of the injured party.

        17                      SENATOR HOLLAND:  Is that a

        18       question?

        19                      ACTING PRESIDENT KUHL:

        20       Senator -

        21                      SENATOR PATERSON:  No, that was

        22       not a question.  It was just -- on the bill, it

        23       is my point of view, but if you do have a











                                                             
8717

         1       feeling about it, I would be delighted to hear

         2       it.

         3                      ACTING PRESIDENT KUHL:  Senator

         4       Holland, would you like to respond?

         5                      SENATOR HOLLAND:  No.

         6                      ACTING PRESIDENT KUHL:  Senator

         7       Stachowski was rising.

         8                      Senator Stachowski.

         9                      SENATOR STACHOWSKI:  If they're

        10       finished, I would like to speak on the bill.

        11                      ACTING PRESIDENT KUHL:  Senator

        12       Stachowski on the bill.

        13                      SENATOR STACHOWSKI:  On the bill.

        14                      I think that this bill is -

        15       although the sponsor means well in recouping

        16       money, he in essence is telling people that work

        17       in the state of New York that, if you have the

        18       misfortune of being hurt on the job and qualify

        19       for at least the procedure that will possibly

        20       enable you to get Workmen's Compensation

        21       benefits, then even though you paid taxes all

        22       your working life while you worked and even

        23       though you're a member of our society and a











                                                             
8718

         1       regular taxpayer, as the term was used in the

         2       earlier part of this debate, that you shouldn't

         3       get public assistance if by no fault of your own

         4       because of this injury or illness you're forced

         5       on the public rolls -- which isn't always the

         6       most pleasant thing for a man or a woman who

         7       happens to be the bread earner of their family,

         8       worked all their life, has a great work ethic

         9       and now they're forced to take public assistance

        10       which in many people's cases is like the last

        11       resort; they don't even want to do it.  They

        12       only do it when they're forced to do it and now

        13       even though you've paid into that system by

        14       paying taxes all your life, you're told that, if

        15       you use that system because through delays in

        16       the Workmen's Comp' system, you're not getting

        17       your benefits or you're not getting a speedy

        18       enough trial to get you benefits, then you're

        19       not entitled to get this and actually this is

        20       only a loan by the state of New York and you

        21       should pay this back even though all your life

        22       you worked, you paid taxes, you're a pillar of

        23       the community, but that's too bad.  You had the











                                                             
8719

         1       misfortune of getting sick or you had the

         2       misfortune of getting hurt and even though

         3       you'll probably never be the same because if you

         4       were going to be the same you wouldn't be

         5       getting the benefits or winning the court

         6       action, that that's the way it is.

         7                      This new state of New York

         8       government, the all friendly, open door state

         9       that we now have, is going to tell you that you

        10       have to pay back this public assistance that,

        11       although there's people that are on it and

        12       although we can afford to give companies massive

        13       loans because they put together sheets that say

        14       "We're going to create 'X' amount of jobs and

        15       we want like $20 million or we're going to leave

        16       the state", and we give them that loan and they

        17       never create the jobs and oftentimes they leave

        18       the state and they never have to pay back any

        19       thing, but that's all right, because that's for

        20       business and we are a business-friendly state,

        21       but you, the worker, you've worked hard.  You

        22       got hurt.  You're going to get a compensation

        23       benefit.  You win your case.  You're fortunate











                                                             
8720

         1       enough that you're hurt bad enough that you win

         2       a case in court and you get a settlement so you

         3       should pay back that public assistance that you

         4       so richly deserved, but that's too bad.  You

         5       should pay it back because you had no right

         6       getting that benefit from the state of New

         7       York.

         8                      I just think the logic of the

         9       bill is nuts.  I think that, if people work and

        10       they find themselves in that predicament, that's

        11       a terrible situation.  They don't like to use

        12       public assistance and I think that the average

        13       working person, it's the last thing they have in

        14       their mind.  There's often people that do

        15       everything possible before they would even take

        16       this, and I just think the coldness of this bill

        17       is just unbelievable to me and unless somebody's

        18       missing the explanation, the explanation I heard

        19       was -- it doesn't justify this bill.

        20                      This is just a cold effort to

        21       have the working men and women of this state try

        22       to fill in the budget deficits that we're going

        23       to face in the future for whatever reason, and I











                                                             
8721

         1       just -- I don't understand the logic.  Maybe I'm

         2       missing something.  Maybe I didn't read the bill

         3       correctly.  Maybe the memos that were sent to us

         4       are wrong and maybe I just didn't hear the

         5       debate properly, but I think this is a terrible

         6       bill.  This is a slap in the face to the working

         7       men and women of our state.  This is a terrible

         8       message to tell people that have the misfortune

         9       of being hurt at work.  I just believe it and I

        10       suggest that most people would vote no against

        11       this bill.

        12                      ACTING PRESIDENT KUHL:  The

        13       Secretary will read the last section.

        14                      Senator Dollinger -- Senator

        15       Holland, do you want to respond?

        16                      SENATOR HOLLAND:  I do a little

        17       bit, yes.

        18                      ACTING PRESIDENT KUHL:  Senator

        19       Holland first, Senator Dollinger next.

        20                      SENATOR HOLLAND:  Both Senators

        21       said basically the same thing, that we don't

        22       care about people who pay taxes, and we're not

        23       helping people who pay taxes.  We absolutely











                                                             
8722

         1       are.

         2                      That's what DSS is there for.  We

         3       don't mind helping those people.  We encourage

         4       them to come when they need assistance, but they

         5       are at the end after the court case double

         6       dipping and they are hurting the workers of this

         7       state who are paying the taxes, who are trying

         8       to help people.

         9                      This is a double-dipping

        10       situation, Senator.  I don't understand why you

        11       cannot see it.  We are helping the people that

        12       need to be helped.  After the court case is

        13       settled, we're asking them to pay back the

        14       loan.  That's as simple as it is.

        15                      ACTING PRESIDENT KUHL:  Senator

        16       Dollinger.

        17                      SENATOR DOLLINGER:  Mr.

        18       President, would the sponsor yield to a couple

        19       of questions?

        20                      ACTING PRESIDENT KUHL:  Senator

        21       Holland, do you yield to Senator Dollinger?  The

        22       Senator yields.

        23                      SENATOR DOLLINGER:  Senator, does











                                                             
8723

         1       this bill apply to the medical benefit portion

         2       in addition to the wage portion of the Workers'

         3       Comp' award?

         4                      SENATOR HOLLAND:  Yes.

         5                      SENATOR DOLLINGER:  Does that

         6       mean -- through you, Mr. President, if the

         7       sponsor would continue to yield.

         8                      ACTING PRESIDENT KUHL:  Senator

         9       Holland, do you continue to yield?

        10                      SENATOR HOLLAND:  Yes.

        11                      ACTING PRESIDENT KUHL:  The

        12       Senator continues to yield.

        13                      SENATOR DOLLINGER:  Does that

        14       mean that if you receive a wage supplement from

        15       the Department of Social Services and you are

        16       awarded eventually a compensation award for lost

        17       wages and for the medical costs, that you can

        18       assert the lien for wages paid through -- or

        19       through dis... benefits through DSS, you can

        20       assert that against both the lost wage component

        21       and the medical component?

        22                      SENATOR HOLLAND:  DSS can only

        23       collect what Workers' Comp' was meant to cover











                                                             
8724

         1       for the same services.

         2                      SENATOR DOLLINGER:  Is that

         3       provided for in this bill?  The reason why I

         4       ask, Senator, is my concern is this:  If the

         5       lump sum payment under Workers' Comp' comes in

         6       two forms, it comes in a lost wage component for

         7       the time that you lost work depending on the

         8       extent of your disability and wage rate and then

         9       there's also a payment for medical expenses.

        10                      My question is does the Social

        11       Services lien that you want to attach here,

        12       which is largely in the form of income mainten

        13       ance, does that lien attach to both the lost

        14       wage portion and the medical portion; because if

        15       that's the case, then the Social Service

        16       Department is liening -- is giving a wage

        17       supplement but yet liening something necessary

        18       to pay for medical bills, putting the lien

        19       against the medical portion as well.  That's my

        20       question.

        21                      SENATOR HOLLAND:  If I can read

        22       the section of the bill here.  "Services" -

        23       let's start at 3.











                                                             
8725

         1                      SENATOR DOLLINGER:  Senator, if

         2       you could just -- through you, Mr. President.

         3       Could you just tell me which lines you're

         4       reading so I can read it with you?

         5                      SENATOR HOLLAND:  I'm reading

         6       page 2, section -- lines 3 and 4.

         7                      SENATOR DOLLINGER:  Okay.

         8                      SENATOR HOLLAND:  Is -- " *** by

         9       a Social Services official with the board for

        10       reimbursement out of the proceeds of the award

        11       for that portion of the covered period for which

        12       the public assistance and care was paid."

        13                      SENATOR DOLLINGER:  That's my

        14       concern, Senator, is whether the term "award"

        15       includes both the lost wage component of the

        16       award and the medical cost, because if you're

        17       liening the medical portion as well as the lost

        18       wage portion of that, you're actually telling

        19       the working person who's hurt that the money

        20       that they would get to pay for their medical

        21       expenses is going to be liened to cover the cost

        22       of their income maintenance that they've

        23       received from the Department of Social











                                                             
8726

         1       Services.  Is that the intent?

         2                      SENATOR HOLLAND:  The intent is

         3       just to cover the medical portion.

         4                      SENATOR DOLLINGER:  Just to cover

         5       the wage portion, correct?

         6                      SENATOR HOLLAND:  I'm sorry, the

         7       wage portion.

         8                      SENATOR DOLLINGER:  As I

         9       understand the bill, what you're saying is

        10       you're getting -- Workers' Comp' is in essence

        11       paying for a lost wage component and the

        12       Department of Social Services is also paying you

        13       a wage supplement, that those are, in essence, a

        14       form of double dipping.  That's why my question

        15       about the bill is it wouldn't be double dipping

        16       if what you're -- the second portion of the

        17       award is the medical portion and yet the income

        18       maintenance from Social Services is liening the

        19       medical payments under the comp' award.  That's

        20       why -- my question is, it appears as though it's

        21       broader than you intended if it applies to just

        22       the, quote, "award" because the award would

        23       include both medical expense and income and yet











                                                             
8727

         1       what you want to do is put a lien for the Social

         2       Services which I agree with and voted for this

         3       bill in the past and will vote for it again if

         4       that's the intent.

         5                      SENATOR HOLLAND:  The medical

         6       portion is paid to the vendor, so it's just the

         7       wages.

         8                      SENATOR DOLLINGER:  There will be

         9       no reimbursement paid to the individual for

        10       medical expenses if they paid for them out of

        11       their pocket?

        12                      SENATOR HOLLAND:  The Workers'

        13       Compensation award would pay for that.

        14                      SENATOR DOLLINGER:  But there

        15       could be -- if the worker -- the claim is

        16       controverted which is what you addressed,

        17       because it's only in the case where there's a

        18       controverted claim that you will have the time

        19       delay that the person will have to go seek

        20       public service -- Social Services for, so it's a

        21       controverted claim.

        22                      In those instances there may be

        23       cases where, because of the nature of the











                                                             
8728

         1       controversy, the Comp' Board hasn't authorized

         2       payment of the medical expense because the claim

         3       is controverted and the individual may have to

         4       pay for those expenses out of their pocket while

         5       waiting for the board to resolve whether or not

         6       it's a covered injury.  So you end up with no

         7       income and no payment of the medical expenses.

         8       In those instances, the individual may have to

         9       pay for the medical expenses out of their own

        10       pocket if they don't have private insurance.

        11                      SENATOR HOLLAND:  I don't know

        12       how to get this across.  The intent of the bill

        13       is to pay back whatever they can with -- through

        14       the compensation claim.

        15                      SENATOR DOLLINGER:  All right.

        16       Mr. President, through you.  I just -

        17                      ACTING PRESIDENT KUHL:  Senator

        18       Holland, do you continue to yield?

        19                      SENATOR HOLLAND:  Yes.

        20                      ACTING PRESIDENT KUHL:  The

        21       Senator continues to yield.

        22                      SENATOR DOLLINGER:  I voted for

        23       this bill in the past.  I'll vote for it again











                                                             
8729

         1       if this bill does that.  That's my -- my

         2       question -

         3                      SENATOR HOLLAND:  That's the

         4       intent.

         5                      SENATOR DOLLINGER:  Right.

         6       That's the clear intent, but by defining "award"

         7       as including the medical portion and the lost

         8       wage portion, you may be inadvertently attaching

         9       payments to cover lost income for which they are

        10       actually paid to reimburse them for medical

        11       expenses and to that extent, the bill may go

        12       beyond what you intended to do and that's why I

        13       voted for this bill in the past.  I agree with

        14       you that to repay that portion seems to me to be

        15       fair.

        16                      I appreciate Senator Stachowski's

        17       and Senator Paterson's comments, but I voted for

        18       this in the past and my understanding in the

        19       past was it would only affect the wage portion.

        20       As I read it today, in my due diligence this

        21       morning, I realize it's broader than what I

        22       think both you wanted to do and what I voted for

        23       in the past because it would include beyond











                                                             
8730

         1       simply -- the award would include both lost

         2       wages and lost medical expenses and that's

         3       beyond the scope of what you wanted to do.

         4                      SENATOR HOLLAND:  I don't believe

         5       it is, Senator but, if it is, I will certainly

         6       work with you and anyone else to correct that

         7       portion of it.

         8                      SENATOR DOLLINGER:  Okay.  Just

         9       one other question, Mr. President, to clarify

        10       one other term.

        11                      ACTING PRESIDENT KUHL:  Senator

        12       Holland, do you continue to yield?

        13                      SENATOR HOLLAND:  Yes.

        14                      ACTING PRESIDENT KUHL:  The

        15       Senator continues to yield.

        16                      SENATOR DOLLINGER:  Does this

        17       apply to benefits that were received prior to

        18       the injury?

        19                      SENATOR HOLLAND:  No, it does

        20       not.

        21                      SENATOR DOLLINGER:  Only in the

        22       covered period, that is the period of time after

        23       the injury occurred, before the controverted











                                                             
8731

         1       claim is resolved?

         2                      SENATOR HOLLAND:  Correct.

         3                      SENATOR DOLLINGER:  All right.

         4       Anything received -- it doesn't -- We're not

         5       going to go back and -

         6                      SENATOR HOLLAND:  Absolutely not.

         7                      SENATOR DOLLINGER:  Or after -- I

         8       mean after the controversy is resolved and the

         9       payments are made, the lien would only apply -

        10                      SENATOR HOLLAND:  No, not

        11       designed before or after, no.

        12                      SENATOR DOLLINGER:  Thank you,

        13       Mr. President.

        14                      ACTING PRESIDENT KUHL:  The

        15       Secretary will read the last section.

        16                      THE SECRETARY:  Section 4.  This

        17       act shall take effect immediately.

        18                      ACTING PRESIDENT KUHL:  Senator

        19       Paterson.

        20                      SENATOR PATERSON:  We would like

        21       a slow roll call on this bill.

        22                      ACTING PRESIDENT KUHL:  All

        23       right.  Read the last section.











                                                             
8732

         1                      THE SECRETARY:  Section 4.  This

         2       act shall take effect immediately.

         3                      ACTING PRESIDENT KUHL:  There

         4       were five Senators who stood asking for a slow

         5       roll call, so the Secretary will call the slow

         6       roll call.  The bells are ringing.

         7                      THE SECRETARY:  Senator Abate.

         8                      SENATOR ABATE:  No.

         9                      THE SECRETARY:  Senator Babbush.

        10                      (There was no response.)

        11                      Senator Bruno.

        12                      (Affirmative indication.)

        13                      THE SECRETARY:  Aye.

        14                      Senator Connor.

        15                      (Negative indication.)

        16                      THE SECRETARY:  Negative.

        17                      Senator Cook.

        18                      SENATOR COOK:  Yes.

        19                      THE SECRETARY:  Senator

        20       DeFrancisco.

        21                      (There was no response.)

        22                      Senator DiCarlo.

        23                      SENATOR DiCARLO:  Yes.











                                                             
8733

         1                      THE SECRETARY:  Senator

         2       Dollinger.

         3                      SENATOR DOLLINGER:  Mr.

         4       President, to explain my vote.

         5                      ACTING PRESIDENT KUHL:  Senator

         6       Dollinger to explain his vote.

         7                      SENATOR DOLLINGER:  Mr.

         8       President, I'm concerned about the issue I

         9       raised with Senator Holland and it raises enough

        10       of a question in my mind.  I agree with the

        11       intent of this bill.  I believe as drafted it

        12       may go beyond what the Senator or the sponsor

        13       intend.

        14                      Therefore, Mr. President, because

        15       of that drafting problem, although I agree with

        16       the concept, I'm going to vote in the negative

        17       on this particular piece.

        18                      ACTING PRESIDENT KUHL:  Senator

        19       Dollinger will be recorded in the negative.

        20                      THE SECRETARY:  Senator Espada.

        21                      (There was no response.)

        22                      Senator Farley.

        23                      (There was no response.)











                                                             
8734

         1                      Senator Galiber.

         2                      (There was no response.)

         3                      Senator Gold.

         4                      (There was no response.)

         5                      Senator Gonzalez.

         6                      (There was no response.)

         7                      Senator Goodman.

         8                      (There was no response.)

         9                      Senator Hannon.

        10                      (There was no response.)

        11                      Senator Hoblock.

        12                      (There was no response.)

        13                      Senator Hoffmann.

        14                      (There was no response.)

        15                      Senator Holland.

        16                      SENATOR HOLLAND:  Yes.

        17                      THE SECRETARY:  Senator Johnson.

        18                      (There was no response.)

        19                      Senator Jones.

        20                      (There was no audible response.)

        21                      Senator Kruger.

        22                      (There was no response.)

        23                      Senator Kuhl.











                                                             
8735

         1                      SENATOR KUHL:  Aye.

         2                      THE SECRETARY:  Senator Lack.

         3                      (There was no response.)

         4                      Senator Larkin.

         5                      (There was no response.)

         6                      Senator LaValle.

         7                      SENATOR LAVALLE:  Aye.

         8                      THE SECRETARY:  Senator Leibell.

         9                      SENATOR LEIBELL:  Aye.

        10                      THE SECRETARY:  Senator Leichter.

        11                      (There was no response.)

        12                      Senator Levy.

        13                      (There was no response.)

        14                      Senator Libous.

        15                      SENATOR LIBOUS:  Aye.

        16                      THE SECRETARY:  Senator Maltese.

        17                      SENATOR MALTESE:  Aye.

        18                      THE SECRETARY:  Senator

        19       Marcellino.

        20                      SENATOR MARCELLINO:  Aye.

        21                      THE SECRETARY:  Senator Marchi.

        22                      SENATOR MARCHI:  Aye.

        23                      THE SECRETARY:  Senator











                                                             
8736

         1       Markowitz.

         2                      (There was no response.)

         3                      Senator Maziarz.

         4                      SENATOR MAZIARZ:  Yes.

         5                      THE SECRETARY:  Senator Mendez.

         6                      (There was no response.)

         7                      Senator Montgomery.

         8                      (There was no response.)

         9                      Senator Nanula.

        10                      SENATOR NANULA:  No.

        11                      THE SECRETARY:  Senator Nozzolio.

        12                      SENATOR NOZZOLIO:  Aye.

        13                      THE SECRETARY:  Senator Onorato.

        14                      SENATOR ONORATO:  No.

        15                      THE SECRETARY:  Senator

        16       Oppenheimer.

        17                      SENATOR OPPENHEIMER:  No.

        18                      THE SECRETARY:  Senator Padavan.

        19                      (There was no response.)

        20                      Senator Paterson.

        21                      SENATOR PATERSON:  No.

        22                      THE SECRETARY:  Senator Present.

        23                      SENATOR PRESENT:  Aye.











                                                             
8737

         1                      THE SECRETARY:  Senator Rath.

         2                      SENATOR RATH:  Here -- aye.

         3                      THE SECRETARY:  Senator Saland.

         4                      SENATOR SALAND:  Aye.

         5                      THE SECRETARY:  Senator Santiago.

         6                      (There was no response.)

         7                      Senator Sears.

         8                      SENATOR SEARS:  Aye.

         9                      THE SECRETARY:  Senator Seward.

        10                      SENATOR SEWARD:  Present and

        11       voting aye.

        12                      THE SECRETARY:  Senator Skelos.

        13                      SENATOR SKELOS:  Yes.

        14                      THE SECRETARY:  Senator Smith.

        15                      SENATOR SMITH:  No.

        16                      THE SECRETARY:  Senator Solomon.

        17                      SENATOR SOLOMON:  No.

        18                      THE SECRETARY:  Senator Spano.

        19                      SENATOR SPANO:  Aye.

        20                      THE SECRETARY:  Senator

        21       Stachowski.

        22                      SENATOR STACHOWSKI:  No.

        23                      THE SECRETARY:  Senator Stafford.











                                                             
8738

         1                      SENATOR STAFFORD:  Aye.

         2                      THE SECRETARY:  Senator Stavisky.

         3                      (There was no response.)

         4                      Senator Trunzo.

         5                      SENATOR TRUNZO:  Yes.

         6                      THE SECRETARY:  Senator Tully.

         7                      (There was no response.)

         8                      Senator Velella.

         9                      SENATOR VELELLA:  Yes.

        10                      THE SECRETARY:  Senator Volker.

        11                      SENATOR VOLKER:  Yes.

        12                      THE SECRETARY:  Senator Waldon.

        13                      (Negative indication.)

        14                      Senator Wright.

        15                      SENATOR WRIGHT:  Aye.

        16                      ACTING PRESIDENT KUHL:  The

        17       Secretary will call the absentees.

        18                      THE SECRETARY:  Senator Babbush.

        19                      (There was no response.)

        20                      Senator DeFrancisco.

        21                      SENATOR DeFRANCISCO:  Yes.

        22                      THE SECRETARY:  Senator Espada.

        23                      (There was no response.)











                                                             
8739

         1                      Senator Farley.

         2                      (There was no response.)

         3                      Senator Galiber, excused.

         4                      Senator Gold.

         5                      (There was no response.)

         6                      Senator Gonzalez.

         7                      (There was no response.)

         8                      Senator Goodman.

         9                      (There was no response.)

        10                      Senator Hannon.

        11                      SENATOR HANNON:  Yes.

        12                      THE SECRETARY:  Senator Hoblock.

        13                      (There was no response.)

        14                      Senator Hoffmann.

        15                      (There was no response.)

        16                      Senator Johnson.

        17                      SENATOR JOHNSON:  Aye.

        18                      THE SECRETARY:  Senator Kruger.

        19                      (There was no response.)

        20                      Senator Lack.

        21                      (There was no response.)

        22                      Senator Larkin.

        23                      SENATOR LARKIN:  Aye.











                                                             
8740

         1                      THE SECRETARY:  Senator Leichter.

         2                      SENATOR LEICHTER:  No.

         3                      THE SECRETARY:  Senator Levy.

         4                      SENATOR LEVY:  Aye.

         5                      THE SECRETARY:  Senator

         6       Markowitz.

         7                      (There was no response.)

         8                      Senator Mendez.

         9                      (There was no response.)

        10                      Senator Montgomery.

        11                      (There was no response.)

        12                      Senator Padavan.

        13                      (There was no response.)

        14                      Senator Santiago.

        15                      (There was no response.)

        16                      Senator Stavisky.

        17                      (There was no response.)

        18                      Senator Tully.

        19                      (There was no response.)

        20                      ACTING PRESIDENT KUHL:  Announce

        21       the results.

        22                      THE SECRETARY:  Ayes 31, nays

        23       12.  Senator Kruger.











                                                             
8741

         1                      SENATOR KRUGER:  No.

         2                      ACTING PRESIDENT KUHL:  Announce

         3       the results.

         4                      THE SECRETARY:  Ayes 31, nays 13.

         5                      ACTING PRESIDENT KUHL:  The bill

         6       is passed.

         7                      The Secretary will continue to

         8       call the controversial calendar.

         9                      THE SECRETARY:  Calendar Number

        10       186, by Senator Marchi, Senate Print 2037, an

        11       act to amend the Education Law, in relation to

        12       the establishment of a Staten Island Borough

        13       School District.

        14                      SENATOR PATERSON:  Explanation.

        15                      ACTING PRESIDENT KUHL:  Senator

        16       Marchi, an explanation of Calendar Number 186

        17       has been asked for by the Acting Minority

        18       Leader, Senator Paterson.

        19                      SENATOR MARCHI:  Mr. President,

        20       the -- the referendum which was held on Staten

        21       Island in response to legislation that we had

        22       passed earlier in two different sessions of the

        23       Legislature provided for something like this,











                                                             
8742

         1       but this is not a literal implementation of

         2       that, because it must attend other developments.

         3                      However, it does implement the

         4       sense of the vote that was taken in Staten

         5       Island at that time, and that was to establish a

         6       separate independent board on Staten Island

         7       which would assume control on January 1, 1996 to

         8       operate the schools of the district for the

         9       school years beginning with the years '96 -

        10       1996-97 and also providing for the election of

        11       members of the Staten Island Borough Board of

        12       Education which would be held in November 1997

        13       general election and the members would take

        14       office in January 1998.

        15                      I have to point out that the

        16       number of students that -- this is rather a -

        17       sufficient numbers in that district.  In the

        18       district itself there are over 40,000 students

        19       which makes it perhaps the largest school

        20       district in the city of New York.

        21                      It does provide the election -

        22       elective process for the members of the board

        23       provides for voting islandwide and every voter











                                                             
8743

         1       would have three -- three ballots to cast.

         2                      In the legislation that had been

         3       approved for an independent Staten Island, I was

         4       successful in getting cumulative voting

         5       introduced, and I don't think there's another

         6       place in the state of New York that has that.

         7       This bill does not have it simply because the

         8       machines are not quite ready yet to implement

         9       the concept of cumulative voting.

        10                      I might add that I had some

        11       interesting correspondence with Lani Guinier on

        12       this subject and she thought it was a very good

        13       method of ending up with an election that

        14       ensures a proper representation to the elements

        15       that make up the school body.

        16                      We provide for a financial

        17       officer who would experience some pain if that

        18       trust were not honored and the process of

        19       identifying the financial officer, of course,

        20       would be -- would be one that would have to be

        21       sanctioned by the board and by the

        22       superintendent and confirmed by the commissioner

        23       of the Board of Education -- of the state











                                                             
8744

         1       educational system.

         2                      We've gone to great lengths to

         3       provide a model, and it could well serve as a

         4       model for other school bills in other counties,

         5       providing for that degree of decentralization

         6       and experience which might be useful to the

         7       other counties.

         8                      So I feel, Mr. President, that in

         9       passing this legislation we offer the

        10       possibility of conducting an experiment, I

        11       believe, on prudent lines, judicious lines with

        12       a great deal -- with great evidence given the

        13       rather sane and comfortable functioning of that

        14        -- of the school system on Staten Island.  It

        15       has the highest reading scores and in all the

        16       other indices, they are doing well.

        17                      It offers an opportunity, I

        18       think, to enhance the -- the strength of a

        19       community district -- and this is an experience

        20       that those of you around the state know it only

        21       too well because you have it.  You live with it,

        22       but we don't live with it in the -- in the city

        23       of New York and we have been unable to implement











                                                             
8745

         1       the original legislation that the commission had

         2       advanced to -- to several -- several years ago

         3       as the result of many added factors that sort of

         4       overheated the machine there and made it most

         5       difficult to submit that to the -- the judgment

         6       of the City as a whole.

         7                      So this bill really provides an

         8       experiment under ideal conditions.  It does not

         9       propose to -- its funding would still be

        10       dependent on the state and the city of New York

        11       for its funding.  It does not say that it ought

        12       to be on a quid pro quo basis or anything.  It

        13       refers back to the methodology of making

        14       apportionments of public substance, allocations,

        15       appropriations in the same manner in which they

        16       have been making them right along with perhaps a

        17       slight overlay with whatever additional

        18       administrative costs might be involved.

        19                      I might point out with reference

        20       to any other county, we still might be conducted

        21       at a cost lesser than the other counties because

        22       our numbers already justify the creation of two

        23       districts instead of one and we would get more











                                                             
8746

         1       money for that.  The money that we would get in

         2       that case would be sufficient to take care of

         3       administrative expenses.

         4                      So it's -- it's an ideal

         5       circumstance and an opportunity to see how an

         6       independent district can function and perhaps

         7       serve as a useful model, varied if other

         8       circumstances are indicated in other boroughs of

         9       the city of New York, but an opportunity to see

        10       it function, I think, with -- with the better

        11       guarantees that we had when we engaged in the

        12       original decentralization process when a

        13       district was selected that really had enormous

        14       problems and should have been given greater

        15       assistance rather than being thrown out on their

        16       own to resolve their own problems.

        17                      So I hope that we give this

        18       opportunity to create a model which could inure

        19       to the benefit of the other four boroughs of the

        20       city of New York as they pick and choose or

        21       adopt elements that appeal to them for the

        22       experience of the city.

        23                      I don't want to get into the











                                                             
8747

         1       question of Mr. Cortines.  I think he's trying

         2       very hard.  He's a very fine individual, but I'm

         3       just saying the system itself perhaps could

         4       prosper with a closer rapport between the -- the

         5       target population, the young children and the

         6       faculty and the school system itself and its

         7       governance and policy-making.

         8                      So I offer you this and I hope it

         9       has your approbation.

        10                      ACTING PRESIDENT KUHL:  Senator

        11       Paterson.

        12                      SENATOR PATERSON:  Mr. President,

        13       I want to thank Senator Marchi for the

        14       explanation and, if he would yield, I have a

        15       couple of questions.

        16                      ACTING PRESIDENT KUHL:  Senator

        17       Marchi, do you yield?  The Senator yields.

        18                      SENATOR MARCHI:  Certainly.

        19                      SENATOR PATERSON:  Senator, if

        20       the school district in Staten Island were

        21       independent and if it were separated from the

        22       rest of the state, our research shows -- and you

        23       may or may not agree with this -- that actually











                                                             
8748

         1       the district would probably be eligible for less

         2       funding than it receives now in comparison with

         3       how it interacts with the other four boroughs of

         4       the City, and so, if that's the case, then in

         5       many ways doesn't this bill accomplish the

         6       financial result of, in a sense, benefiting from

         7       the association with the other four boroughs but

         8       at the same time receiving the special benefit

         9       that arises from the decision-making capacity?

        10       So, in other words, is this bill really giving

        11       the Staten Island district the best of both

        12       worlds?

        13                      SENATOR MARCHI:  No.  I think

        14       that the -- the fiscal effect when I first

        15       entered into the question of secession was held

        16       by the ones who took charge and conducted the

        17       study in conjunction with the Senate Finance

        18       Committee at that time was Abraham Lackman and

        19       Mark Shaw, both very conscientious, exacting

        20       students and they didn't come out with an

        21       adverse picture.  We probably would have less

        22       special students so that that lifts -- that

        23       lifts the average in some of the other counties.











                                                             
8749

         1                      On the other hand, we have an

         2       attendance -- you know, the argument goes on

         3       whether we should compensate on the basis of

         4       enrollment or attendance.  We have a very high

         5       degree of attendance.  Our attendance is no

         6       different from the attendance that you

         7       experience in the other sections of the state,

         8       and that's not the case in the city of New York,

         9       so that based on attendance alone we would do

        10       all right.

        11                      I don't think that what we found

        12       out on the bottom line is that it would be user

        13       neutral as far as dollars and cents.  It would,

        14       though, however, give us a degree of flexibility

        15       in administering the public policy of the Island

        16       school system.

        17                      SENATOR PATERSON:  Mr. President.

        18                      ACTING PRESIDENT KUHL:  Senator

        19       Paterson.

        20                      SENATOR PATERSON:  In Senator

        21       Marchi's continuing effort to educate me, I know

        22       that he will yield for one last question, but I

        23       would like you to check with him.











                                                             
8750

         1                      ACTING PRESIDENT KUHL:  The

         2       Senator yields.

         3                      SENATOR PATERSON:  Senator, my

         4       final question is that the State Temporary

         5       Commission on Education recommended that the

         6       school districts in New York City be

         7       decentralized but unified.  Since the commission

         8       was in existence -- and I know you were very

         9       involved for a year and a half and spent

        10       $500,000 of taxpayer money -- do you think it's

        11       a good idea to stray that far from the

        12       commission's recommendation and take this sort

        13       of bifurcated approach?

        14                      SENATOR MARCHI:  Well, we

        15       certainly were very hopeful on the commission

        16       that it be approved.  Dean Byrne -- the dean of

        17       public administration at the New York

        18       University, along with key elements of the -- of

        19       that school, seconded our efforts and followed

        20       through and we had an excellent -- we had an

        21       excellent membership on that body, people like

        22       Saul Cohen now who is on the Board of Regents.

        23       I mean, we had very, very strong -- a very, very











                                                             
8751

         1       strong membership on that body, but unhappily

         2       that -- when the question came up that we might

         3       go further -- oh, yes, Senator -- Senatrix, you

         4       were a very distinguished member.

         5                      When the time came to move, the

         6       whole system went off on rainbow curriculums and

         7       other -- I'm not saying good or bad about the

         8       subject, but totally displaced and preempted any

         9       consideration that we might have received, and,

        10       you know, we stood around spinning our thumbs

        11       and pleaded saying, "Please, let's get going.

        12       We have something worthwhile here", and the

        13       dynamics had changed so radically.  I don't

        14       know.  Perhaps it -- you know, today might be

        15       another time.

        16                      If we pass this bill, it might

        17       generate interest in doing precisely what you're

        18       suggesting now, so it might be an indirect way

        19        -- mine is a direct way of accomplishing

        20       something.  In your case, I think, by supporting

        21       this, might also be calling attention to the

        22       fact that we still have a work product that, I

        23       think, is useful.











                                                             
8752

         1                      SENATOR PATERSON:  Thank you,

         2       Senator.

         3                      ACTING PRESIDENT KUHL:  The

         4       Secretary will read the last section.

         5                      THE SECRETARY:  Section 5.  This

         6       act shall take effect January 1st.

         7                      ACTING PRESIDENT KUHL:  Call the

         8       roll.

         9                      (The Secretary called the roll.)

        10                      ACTING PRESIDENT KUHL:  Announce

        11       the results when tabulated.

        12                      THE SECRETARY:  Those recorded in

        13       the negative on Calendar 186 are Senators Abate,

        14       Connor and Paterson.  Ayes 44, nays 3.

        15                      ACTING PRESIDENT KUHL:  The bill

        16       is passed.

        17                      Senator Marcellino.

        18                      SENATOR MARCELLINO:  Mr.

        19       President, I believe it would be a good idea to

        20       return to resolutions -- motions and

        21       resolutions.

        22                      ACTING PRESIDENT KUHL:  Before we

        23       do that, Senator Mendez, why do you rise?











                                                             
8753

         1                      SENATOR MENDEZ:  Mr. President, I

         2       would like the record to show that in the roll

         3       call on Calendar 91, had I been -- had I been

         4       present in the chamber, I would have voted in

         5       the negative.

         6                      ACTING PRESIDENT KUHL:  Senator

         7       Mendez, the record will reflect that had you

         8       been present when the roll call on Calendar

         9       Number 91 was taken that you would have voted in

        10       the negative.  We will return to -

        11                      Senator Farley.

        12                      SENATOR FARLEY:  I would like the

        13       record to show that I was downstairs with about

        14       60 students in the well of -- when  91 was

        15       called and I would vote in the affirmative,

        16       Senator Mendez.

        17                      ACTING PRESIDENT KUHL:  Senator

        18       Farley, the record will show that, in fact, you

        19       were downstairs in the Capitol present having

        20       been here earlier, and had you been present when

        21       the roll call was taken that you would have been

        22       recorded in the affirmative.

        23                      Senator Levy.











                                                             
8754

         1                      SENATOR LEVY:  Yes, Mr.

         2       President.  There's a privileged resolution at

         3       the desk.  I ask that 1613 be called up, the

         4       title read and the resolution read in its

         5       entirety.

         6                      ACTING PRESIDENT KUHL:  We will

         7       return to motions and resolutions and the

         8       Secretary will read Resolution Number 1613 -

         9                      THE SECRETARY:  By Senator -

        10                      ACTING PRESIDENT KUHL:  -- in its

        11       entirety.

        12                      THE SECRETARY:  By Senator Levy,

        13       Legislative Resolution, honoring Emanuel Kafka

        14       upon the occasion of his retirement from the New

        15       York State United Teachers.

        16                      WHEREAS, Emanuel "Manny" Kafka

        17       retired from the New York State United Teachers

        18       on August 5, 1994 after having given more than

        19       22 years of outstanding leadership to and on

        20       behalf of New York State United Teachers and New

        21       York State Education; and

        22                      WHEREAS, "Manny" Kafka has

        23       compiled an outstanding record of achievements











                                                             
8755

         1       and accomplishments as assistant director of

         2       legislation for New York State United Teachers

         3       from 1972 to 1994 at both the state and federal

         4       levels of government; and

         5                      WHEREAS, Emanuel "Manny" Kafka

         6       has over the years selflessly devoted his

         7       leadership, time and energy to the important

         8       concerns, interests, goals and achievements of

         9       New York State United Teachers and all public

        10       school teachers across New York.

        11                      Emanuel "Manny" Kafka has earned

        12       the respect, gratitude and admiration of

        13       teachers, administrators and other educators

        14       across New York State through his hard and

        15       successful work for and on behalf of public

        16       school education.

        17                      Emanuel "Manny" Kafka in the

        18       truest sense and spirit of service to his fellow

        19       citizens selflessly devoted his time and energy

        20       to important educational, civic and community

        21       concerns and causes.

        22                      Emanuel "Manny" Kafka as a vital,

        23       vigorous and responsive leader has selflessly











                                                             
8756

         1       devoted his time and energy to important

         2       educational, professional and other concerns and

         3       interests thereby leaving upon them his own

         4       indelible and lasting mark.

         5                      Emanuel "Manny" Kafka who

         6       graduated in 1949 from Brooklyn College began

         7       his distinguished and successful career as a

         8       teacher at Brandeis Elementary School in

         9       Woodmere, New York, thereafter moving on to

        10       teach at Elementary School 27 in the West

        11       Hempstead Union Free School District for more

        12       than 20 years before joining New York State

        13       United Teachers in 1972.

        14                      Emanuel "Manny" Kafka, an

        15       exemplary teacher, always enjoyed the highest

        16       esteem of his students, their parents, teachers,

        17       administrators and taxpayers of the West

        18       Hempstead Union Free School District.

        19                      Emanuel "Manny" Kafka has

        20       significantly contributed to improving and

        21       bettering the quality of life of the residents

        22       of North Bellmore, West Hempstead, Nassau County

        23       and New York State by always seeking to increase











                                                             
8757

         1       community pride, respect and understanding

         2       through his professional leadership and

         3       community efforts.

         4                      Emanuel "Manny" Kafka has

         5       demonstrated a deep and continuing concern for

         6       others and in doing so, he has inspired others

         7       to do the same.

         8                      Emanuel "Manny" Kafka's record of

         9       achievements is an inspiration to all who have

        10       the privilege and honor of knowing him.

        11                      Emanuel "Manny" Kafka has many -

        12       has been recognized as a pillar within the home

        13       communities of North Bellmore, West Hempstead,

        14       Nassau County and New York State, always seeking

        15       to build the firmest foundations upon which

        16       North Bellmore, West Hempstead, Nassau County,

        17       New York State and our nation will continue to

        18       grow and prosper, now, therefore, be it

        19                      RESOLVED, that this legislative

        20       body pause in its deliberations to applaud,

        21       warmly congratulate, commend and salute Emanuel

        22       Kafka upon the occasion of his retirement from

        23       the New York State United Teachers after having











                                                             
8758

         1       given more than 22 years of outstanding leader

         2       ship, selfless dedication and contributions to

         3       and on behalf of New York State United Teachers,

         4       and to further commend and salute him for his

         5       more than 21 years of extraordinarily successful

         6       leadership and selfless dedicated public service

         7       as an educator in the West Hempstead Union Free

         8       School District for the edification and

         9       emulation of all, and be it further

        10                      RESOLVED, that a copy of this

        11       resolution, suitably engrossed, be transmitted

        12       to Emanuel Kafka.

        13                      ACTING PRESIDENT KUHL:  The Chair

        14       recognizes Senator Levy on the resolution.

        15                      SENATOR LEVY:  Thank you, very

        16       much, Mr. President.

        17                      When we learned that Manny was

        18       going to retire, it was a bittersweet occasion

        19       for all of his friends.  It was sad because we

        20       who saw him on an everyday basis every day that

        21       the Legislature was in session wouldn't be

        22       seeing him on an everyday basis anymore, but as

        23       his friends, we were happy.  We were pleased











                                                             
8759

         1       and, in a sense, relieved for him and his family

         2       that he was going to have the opportunity to do

         3       and to pursue the many interests that he had

         4       postponed over the years and interests which he

         5       enjoyed.

         6                      I've known Manny, as so many in

         7       this chamber who have served for a long period

         8       of time, and those that have only known him for

         9       a short period of time, I have known him for 22

        10       years and I have first-hand knowledge of his

        11       extraordinary knowledge.  He, in his dealings as

        12       a governmental rep', he was always fair.  He was

        13       always honest.  He was always straight, and he

        14       was always helpful.

        15                      Teacher that he is and teacher

        16       that he was, Manny was zealously committed to

        17       ensuring that every child receive a quality

        18       education and have the opportunity therefor, and

        19       that New York State meet its responsibilities

        20       for funding that education.  That was Manny's

        21       hallmark, his tradition, and his legacy.

        22                      Manny Kafka is the best and he

        23       deserves this -- he deserves the best and on the











                                                             
8760

         1       occasion of this loving Manny, we wish you good

         2       health and enjoy and we are delighted that

         3       Sheila is with you today to join in these

         4       festivities.

         5                      ACTING PRESIDENT KUHL:  The Chair

         6       recognizes Senator Skelos.

         7                      SENATOR SKELOS:  Thank you, Mr.

         8       President.

         9                      When I arrived in the Senate in

        10       1985, one of the first people that I was

        11       acquainted with was Manny Kafka who, as we all

        12       know, represented the teachers so ably.

        13                      We had some misunderstanding at

        14       the time over what occurred several months

        15       earlier, but certainly we developed a fine

        16       professional relationship, after about a month

        17       or so of conversations with Norman Levy, of

        18       course, teaching me a little bit about the

        19       Albany process; but I had a great relationship

        20       with Manny for so many years and certainly he

        21       has been a strong advocate for the teaching

        22       profession, but not only that, I always found

        23       him to be fair.











                                                             
8761

         1                      He understood our point of view.

         2       He respected our point of view.  He never would

         3       mislead us as a lobbyist for the teachers' union

         4       and that's something we definitely respect as

         5       legislators.

         6                      So, Manny, we are going to miss

         7       you, but we wish you a long, healthy, happy

         8       retirement, but please come back and visit us.

         9                      ACTING PRESIDENT KUHL:  Senator

        10       Cook.

        11                      SENATOR COOK:  Mr. President, I'm

        12       not going to add a lot of words to what my

        13       colleagues have already said and what the

        14       resolution said, because I think they really did

        15       summarize Manny's accomplishments, but I would

        16       be remiss if I didn't say thank you, because

        17       certainly in the responsibilities that I took

        18       over not so many years ago, Manny was there as a

        19       teacher for me and has always been very helpful

        20       and I am very grateful for everything that you

        21       have done for me, and I certainly want to add my

        22       good wishes for many happy years.

        23                      ACTING PRESIDENT KUHL:  Senator











                                                             
8762

         1       LaValle.

         2                      SENATOR LAVALLE:  Mr. President,

         3       I rise to also echo the compliments that -

         4       comments made by my colleagues, but I'm probably

         5       the only one here who knew Manny Kafka in our

         6       prior professional life.

         7                      I was a delegate to the New York

         8       State Teachers Association House of Delegates

         9       and knew Manny Kafka in his role as a person who

        10       was running for the president of that

        11       association from West Hempstead.

        12                      I was a little suspicious because

        13       having graduated from Hempstead High School at

        14       the time when West Hempstead split off, there

        15       was an intense rivalry between Hempstead and

        16       West Hempstead, so I always looked at someone

        17       from West Hempstead with a little bit of

        18       suspicion.

        19                      However, he rose far above any

        20       suspicion that I or anyone could have because he

        21       was a true leader that took the Teachers

        22       Association from a group that was fighting for

        23       legislation into a real professional operation.











                                                             
8763

         1                      I knew him both as the executive

         2       director of the Senate Education Committee and a

         3       member and he was not only true to his word and

         4       represented a point fairly and honestly, but I

         5       think one other point must be made.  He was

         6       affable in dealing with us, and sometimes as we

         7       all know, we get a bit too serious, a bit too

         8       up-tight, and so when you deal with someone who

         9       is affable in representing a point of view, it's

        10       quite refreshing.

        11                      So I rise with the other

        12       colleagues to congratulate him for his

        13       dedication and many years representing the

        14       profession and making it really what it is

        15       today.

        16                      Good luck and congratulations,

        17       Manny Kafka.

        18                      ACTING PRESIDENT KUHL:  Senator

        19       Tully.

        20                      SENATOR TULLY:  Thank you very

        21       much, Mr. President.

        22                      The field of education is an

        23       extremely complex field and serving as a member











                                                             
8764

         1       the Higher Education Committee, I sometimes have

         2       been baffled, but I have always been fortunate

         3       in that I could count on my constituent, Manny

         4       Kafka, as a friend.  He has performed many

         5       mitzvahs in that area for me.  He has made my

         6       life a lot easier and helped me to understand

         7       those complexities and I'm extremely grateful

         8       and I wish you and your family much health and

         9       happiness in your retirement.

        10                      ACTING PRESIDENT KUHL:  Senator

        11       Farley.

        12                      SENATOR FARLEY:  Thank you.

        13                      These two guys on my right and

        14       left are fighting over whose constituent you

        15       are, but I know one thing, I am a colleague of

        16       his.  I think I'm the only one in this chamber

        17       that's a dues paying member of the same union

        18       that he represents, UUP, the United University

        19       Professions, which is part of -- I have known

        20       Manny for 20 years, and let me just say what a

        21       wonderful job he's done here, and I was talking

        22       to Manny and his lovely wife Sheila just prior

        23       to him coming here to the gallery and he's on











                                                             
8765

         1       his way to Washington to solve all the health

         2       care problems now as a consultant, so your work

         3       is cut out for you, Manny, and we wish you -- I

         4       guess they got the wrong mike on -- I don't know

         5       if -- mine is not working.  They shut me up, but

         6       let me just say, Manny, I wish you all the

         7       happiness and success in the world.  You

         8       certainly deserve it.

         9                      I recall a number of years ago

        10       that he and my wife were at the Republican

        11       convention in New Orleans and they gave them

        12       some prime seats and the first day it was right

        13       in front of a blank wall and they were the only

        14       two seated there and I said, "Gee, I think we

        15       better move."  I think they did get you a decent

        16       seat.

        17                      We Republicans do love you,

        18       Manny, we want you to know that, but again, I

        19       wish you well in all that you're doing and a

        20       long and a happy and successful retirement.

        21                      ACTING PRESIDENT KUHL:  Senator

        22       Jones.

        23                      SENATOR JONES:  Thank you, Mr.











                                                             
8766

         1       President.

         2                      I probably had the opportunity to

         3       know Manny for the shortest amount of time of

         4       anybody here, but since I came directly from the

         5       classroom, it was fairly easy to find a new

         6       friend in Manny.  He always had the answers,

         7       always offered wise counsel and he was an

         8       excellent person to deal with.

         9                      He had to overlook in the

        10       beginning the fact that I did have membership in

        11       a different organization, but -- but the fact

        12       that we both shared the love of the teaching

        13       profession was more than enough to make it an

        14       excellent relationship.

        15                      I wish you well, Manny.  You will

        16       certainly be missed by NYSUT but good luck in

        17       your future endeavors.

        18                      ACTING PRESIDENT KUHL:  Senator

        19       Oppenheimer.

        20                      SENATOR OPPENHEIMER:  Well, I

        21       just want to attest to the good that he has done

        22       in imparting knowledge to all of us that we

        23       might not have otherwise had.  He's been a











                                                             
8767

         1       wonderful friend and advocate for children, for

         2       schools, for legislation that responded to the

         3       needs of the education system, and I think

         4       Senator Kenny said -- Senator LaValle said what

         5       I wanted to say, that it was just a pleasure to

         6       know him because he's just a very warm and out

         7       going and friendly human being and on top of all

         8       of these accolades that he's receiving for his

         9       knowledge, he's just a genuine and fine person

        10       and I wish you the best, Manny, and are you

        11       really going to Washington to tackle the health

        12       problems?  I don't know how much fun that's

        13       going to be, but I certainly wish you well in

        14       whatever you do and wish you a lot of health and

        15       happiness in the coming years.

        16                      ACTING PRESIDENT KUHL:  Senator

        17       Hannon.

        18                      SENATOR HANNON:  Yes, Mr.

        19       President.

        20                      As both a wise counselor and

        21       sometimes constituent depending upon which lines

        22       Senator Skelos has drawn, Manny has been

        23       invaluable.











                                                             
8768

         1                      In this business here of us

         2       trying to represent individuals, we come to

         3       information in many different ways.  When it's

         4       in the complicated arena of educating and

         5       financing that education, we oftentimes take a

         6       while to come to the sources of information we

         7       can rely on the most, and over the past decade,

         8       I think that I have relied on Manny in difficult

         9       times on statewide issues and very difficult

        10       times in local issues and questions of local

        11       governance, local representation and local

        12       finance.

        13                      As you move on to the arena of

        14       health -- and I have moved on to the arena of

        15       health -- I look forward to continuing an

        16       ongoing relationship and thank you for much of

        17       the wise counsel in the past.

        18                      Thank you.

        19                      ACTING PRESIDENT KUHL:  Senator

        20       Stafford.

        21                      SENATOR STAFFORD:  Thank you, Mr.

        22       President.

        23                      I, too, want to join in the











                                                             
8769

         1       recognition of our friend, Manny.  We go back

         2       before the time of recorded history, so we have

         3       seen a great deal.

         4                      I remember one time we were in a

         5       meeting together, things had to change, and this

         6       one person said, you know, there's an old

         7       proverb that if you -- sometimes if you don't

         8       change direction, you'll go where you're

         9       headed.  Fortunately, we were together, made the

        10       right decisions.

        11                      Sometimes people say these

        12       various interest groups, but before I go any

        13       further, Mr. President, it took Manny to come in

        14       here and blow the cover of Ken Lavalle and Hugh

        15       Farley.  I had no idea that they had been

        16       involved in these activities, but we sometimes

        17       question the various interests being represented

        18       here in government, and I use the word

        19       "interest" advisedly, but Manny has done it in

        20       a very pleasant way and a very kind way and a

        21       very effective way.

        22                      Like so many, we're always sorry

        23       to see a friend change directions, but that has











                                                             
8770

         1       to be done at times and I'm sure that he will

         2       remain most successful and Albany has been

         3       better for "Manny" Kafka's activities.

         4                      ACTING PRESIDENT KUHL:  The

         5       question is on the resolution.  All those in

         6       favor signify by saying aye.

         7                      (Response of "Aye".)

         8                      Opposed, nay.

         9                      (There was no response.)

        10                      The resolution is unanimously

        11       adopted.

        12                      We're very pleased to have Manny

        13       Kafka and his wife Sheila with us.  Manny,

        14       congratulations.

        15                      (Applause.)

        16                      SENATOR LEVY:  Mr. President, I

        17       would like to open up that resolution to all of

        18       the members of the Senate.  We will -- we would

        19       put everybody on it.

        20                      ACTING PRESIDENT KUHL:  Senator

        21       Marcellino, is it all right with you and the

        22       Minority Leader, Senator Paterson, if we put all

        23       of the members of the chamber on except for











                                                             
8771

         1       those who wish not to go on the resolution?

         2                      SENATOR MARCELLINO:  Mr.

         3       Chairman, I can't deny Senator Levy anything.

         4                      ACTING PRESIDENT KUHL:  We will

         5       put -- Senator Paterson, is that all right with

         6       you?

         7                      SENATOR PATERSON:  Mr. President,

         8       we would all like to.

         9                      ACTING PRESIDENT KUHL:  I'll

        10       direct the Secretary to put all the members on

        11       the resolution as co-sponsors except for those,

        12       if there are any, who wish not to be on the

        13       resolution.

        14                      We'll return to the controversial

        15        -- Senator Larkin, why do you rise?

        16                      SENATOR LARKIN:  Mr. President, I

        17       request unanimous consent to be recorded in the

        18       negative on Calendar 727, Assembly Bill 6516.

        19                      ACTING PRESIDENT KUHL:  Without

        20       objection.  Hearing no objection, Senator Larkin

        21       will be recorded in the negative on Calendar

        22       Number 727.  We'll return -

        23                      Senator Espada.











                                                             
8772

         1                      SENATOR ESPADA:  If I may, Mr.

         2       President, may I be recorded in the negative on

         3       Calendar Numbers 91 and 186, please.

         4                      ACTING PRESIDENT KUHL:  Senator

         5       Espada, the record will reflect that had you

         6       been in the chamber when a roll call was called

         7       on Calendar Number 91 that you would have voted

         8       in the negative.

         9                      SENATOR ESPADA:  Thank you so

        10       much.

        11                      ACTING PRESIDENT KUHL:  Senator

        12       Espada, you want to be recorded in the negative

        13       on Calendar Number 186 also?

        14                      SENATOR ESPADA:  Yes, sir.

        15                      ACTING PRESIDENT KUHL:  Okay.

        16       Without objection and hearing no objection,

        17       Senator Espada will be recorded in the negative

        18       on Calendar Number 186.  Now we'll return to the

        19       controversial calendar.

        20                      I'll ask the Secretary to read

        21       the title to Calendar Number 341 by Senator

        22       LaValle.

        23                      THE SECRETARY:  Calendar Number











                                                             
8773

         1       341, by Senator LaValle, Senate Print 3569-A, an

         2       act to establish the New York State Waste

         3       Reduction and Management Institute.

         4                      SENATOR PATERSON:  Explanation.

         5                      ACTING PRESIDENT KUHL:  Senator

         6       LaValle, an explanation of Calendar Number 341

         7       has been asked for by the Acting Minority

         8       Leader, Senator Paterson.

         9                      SENATOR LAVALLE:  Mr. President,

        10       this legislation would create statutorily a New

        11       York State Waste Reduction and Management

        12       Institute at the Marine Science Research Center

        13       at SUNY-Stony Brook.

        14                      I say "statutorily" because this

        15       institute has existed for many, many years, has

        16       been supported in the budget by an appropriation

        17       each and every year that it has been doing

        18       business.

        19                      This legislation would place the

        20       Stony Brook Waste Management Institute on a

        21       similar footing with the Hazardous Waste

        22       Institute at the State University at Buffalo and

        23       also the Waste Management Institute at Cornell











                                                             
8774

         1       and would give the state three distinct and

         2       separate waste management institutes focusing on

         3       different areas.

         4                      This waste management institute

         5       would have, as a primary focus, those method

         6       ologies to reduce the amount of waste that is

         7       put into the waste stream, whether we incinerate

         8       it, landfill it or other methodologies such as

         9       composting and recycling.

        10                      The idea for the statutory

        11       inclusion of the waste management institute came

        12       about after a study in 1991 by the New York

        13       State Legislative Commission on Science and

        14       Technology, the office of the vice-chairman, and

        15       at that time, I was the vice-chairman of the

        16       Commission of -- on Science and Technology.

        17                      The study that was done showed,

        18       as I have indicated, the creation statutorily of

        19       the Hazardous Waste Institute at University -

        20       State University at Buffalo and also the one at

        21       Cornell, and by creating the institute statutor

        22       ily, it gave it greater recognition, greater

        23       flow of money from outside sources as well as











                                                             
8775

         1       certainly a commitment from the state to

         2       properly see that the activities of the

         3       institute were funded.

         4                      And so this is another example of

         5       how higher education becomes proactive in

         6       helping us solve some of the problems that we -

         7       that we have.

         8                      ACTING PRESIDENT KUHL:  Senator

         9       Paterson.

        10                      SENATOR PATERSON:  Mr. President,

        11       I want to thank Senator LaValle for a thorough

        12       and also clairvoyant explanation because I

        13       wanted to ask a question about the funding

        14       source, Senator LaValle, and you actually

        15       already answered them, so the only question I

        16       will ask you, if you would yield -

        17                      ACTING PRESIDENT KUHL:  Senator

        18       LaValle, do you yield?  The Senator yields.

        19                      SENATOR PATERSON:  -- is that the

        20       reports that come out of the commission, I

        21       understand, are going to be made available to

        22       the Chair, but the Minority does not seem

        23       through the legislation to have any access to











                                                             
8776

         1       the reports.  Is there a mechanism that you

         2       would be able to create that will allow us to

         3       find out about the work of the commission?

         4                      SENATOR LAVALLE:  Senator

         5       Paterson, in the past, I have, as a matter of

         6       practice -- and if for some reason that practice

         7       fell short in the case of the report -- but I

         8       have handed up to the desk each of the reports

         9       that have come from my standing committee or

        10       from the vice-chairman's office of the

        11       Commission on Science and Technology, and in

        12       that way by handing up our reports to the desk,

        13       they then become part of the public record and

        14       allow each and every member and those outside of

        15       this chamber to share in the findings of our

        16       reports.

        17                      SENATOR PATERSON:  Very well.

        18                      Thank you.

        19                      ACTING PRESIDENT KUHL:  The

        20       Secretary will read the last section.

        21                      THE SECRETARY:  Section 6.  This

        22       act shall take effect immediately.

        23                      ACTING PRESIDENT KUHL:  Call the











                                                             
8777

         1       roll.

         2                      (The Secretary called the roll.)

         3                      THE SECRETARY:  Ayes 49.

         4                      ACTING PRESIDENT KUHL:  The bill

         5       is passed.

         6                      SENATOR LEICHTER:  Mr. President.

         7                      ACTING PRESIDENT KUHL:  Senator

         8       Leichter, why do you rise?

         9                      SENATOR LEICHTER:  May I have

        10       unanimous consent to be recorded in the negative

        11       on Calendar 186, is it?  Is that Senator

        12       Marchi's bill?  It's crossed out on my calendar,

        13       so I'm having trouble reading it.  Yes, 186.

        14                      ACTING PRESIDENT KUHL:  Without

        15       objection.  Hearing no objection, Senator

        16       Leichter will be recorded in the negative on

        17       Calendar Number 186.

        18                      Senator Tully, why do you rise?

        19                      SENATOR TULLY:  Yes, Mr.

        20       President.  I would like the calendar to reflect

        21       I was out of the chamber when Calendar 91 was

        22       called and had I been present in the chamber, I

        23       would have voted in the affirmative on that.











                                                             
8778

         1                      ACTING PRESIDENT KUHL:  The

         2       record will reflect, Senator Tully, that you

         3       were out of the chamber when a roll call was

         4       called on Calendar Number 91 but had you been

         5       present, you would have voted in the

         6       affirmative.

         7                      Senator Wright.

         8                      SENATOR WRIGHT:  Mr. President, I

         9       request unanimous consent to be recorded in the

        10       negative on Calendar Number 583, Senate 4146.

        11                      ACTING PRESIDENT KUHL:  Without

        12       objection.  Hearing no objection, Senator Wright

        13       will be recorded in the negative on Calendar

        14       Number 583.

        15                      The Secretary will continue to

        16       call the controversial calendar.

        17                      THE SECRETARY:  On page 34,

        18       Calendar 990, by Senator Leibell, Senate Print

        19       3801-A, an act to amend the Private Housing

        20       Finance Law, in relation to the powers of the

        21       New York State Housing Finance Agency.

        22                      SENATOR PATERSON:  Explanation.

        23                      ACTING PRESIDENT KUHL:  Senator











                                                             
8779

         1       Leibell, an explanation of Calendar Number 990

         2       has been asked for by the Acting Minority

         3       Leader, Senator Paterson.

         4                      SENATOR LEIBELL:  Yes, Mr.

         5       President.

         6                      Mr. President, this bill will

         7       increase the bonding authority for the New York

         8       State Housing Finance Agency.  This will be an

         9       increase of $200 million and is needed for HFA

        10       to continue for the bonding of new projects.

        11                      Currently, bonding authorizations

        12       are going to be utilized by projects that HFA

        13       has already received applications for but are

        14       awaiting construction.  Any new projects to come

        15       in would probably find HFA without the bonding

        16       authorization to fund those new projects.

        17                      HFA will hit its ceiling of

        18       bonding authorization shortly and needs this

        19       authorization in order to continue bonding.

        20                      ACTING PRESIDENT KUHL:  Senator

        21       Paterson.

        22                      SENATOR PATERSON:  Mr. President,

        23       if Senator Leibell would yield.











                                                             
8780

         1                      ACTING PRESIDENT KUHL:  Senator

         2       Leibell, do you yield?  The Senator yields.

         3                      SENATOR PATERSON:  Senator, I

         4       don't know that I quarrel with the specifics of

         5       what you're trying to accomplish, but I would

         6       just like to put on the record some of the

         7       general concerns.

         8                      This is something that Governor

         9       Cuomo was criticized for roundly for a number of

        10       years doing so.  In fact, this whole process

        11       goes back to the period when Governor

        12       Rockefeller and Comptroller Arthur Levitt

        13       existed, and what it really is is financing

        14       without going through the budget process and

        15       financing without going through a public

        16       referendum.

        17                      Now, two years ago some citizens

        18       action groups went to court and there was a

        19       court ruling in April of 1993 that said that

        20       this is really wrong that we're actually doing

        21       this.

        22                      Over the past five years, I

        23       believe we have invested $7.8 billion in this











                                                             
8781

         1       sort of back-door financing and I just want to

         2       know at this time of the fiscal deficit that the

         3       state is in, how we would want to add on any

         4       more of this financing in this -- from this type

         5       of source right after we just passed the New

         6       York State budget.

         7                      SENATOR LEIBELL:  Senator, we had

         8       originally, I believe, a request for a much

         9       larger sum than this.  We put the $200 million

        10       in there after negotiations with the Assembly.

        11       These funds will, as you know, be utilized

        12       fairly quickly and I certainly am not going to

        13       speculate on what Governor Cuomo would have

        14       suggested if he were still governor.

        15                      ACTING PRESIDENT KUHL:  Senator

        16       Paterson.

        17                      SENATOR PATERSON:  Mr. President,

        18       I'm not going to speculate either on what

        19       anybody would have done, and I don't see this

        20       necessarily as a partisan issue.

        21                      What we're really just saying is

        22       that this is just something that -- for the

        23       issue at hand, Senator Leibell is probably











                                                             
8782

         1       addressing a good issue, but it's just something

         2       that we recommend we take a new look at.  We

         3       have a new governor.  He has talked about public

         4       waste.  In some respects, we have actually

         5       started to act on it.  In some respects, we

         6       actually have not started to act on it.  There

         7       is a Constitution that governs us on this

         8       particular issue.  It's my opinion we've found a

         9       way around the Constitution.  It doesn't really

        10       matter to me, Senator Leibell, whether it's the

        11       Assembly or the Senate, Republican or Democrat,

        12       whoever it is, it's something that we, I think,

        13       as a legislature, need to take a closer look

        14       at.

        15                      The goal that is trying to be

        16       achieved through this legislation can be

        17       achieved, but in a way that shows a greater

        18       concern and responsibility to the voters who

        19       elected us.

        20                      ACTING PRESIDENT KUHL:  Secretary

        21       will read the last section.

        22                      THE SECRETARY:  Section 2.  This

        23       act shall take effect immediately.











                                                             
8783

         1                      ACTING PRESIDENT KUHL:  Call the

         2       roll.

         3                      (The Secretary called the roll.)

         4                      ACTING PRESIDENT KUHL:  Senator

         5       Hannon to explain his vote.

         6                      SENATOR HANNON:  Mr. President,

         7       I'm voting in favor of this, and I find the

         8       comments of the Minority totally puzzling.  If

         9       there is any type of borrowing, it will be the

        10       borrowing on projects that are not well

        11       financed, that are fiscal dodges, that are

        12       excuses for finding real revenue or real cuts in

        13       expenditures.

        14                      This is in regard to housing in

        15       the state, in regard to the ownership of

        16       individual owners, and never during the entire

        17       course of Mario Cuomo and Hugh Carey's

        18       administration while these ceilings were being

        19       raised, do I ever find the type of comments that

        20       are now made on this floor, ever voiced or ever

        21       even offered.

        22                      So I think there is a need to

        23       really think through the types of borrowing that











                                                             
8784

         1       you may have questions about and to understand

         2       that sometimes there's good borrowing and

         3       sometimes there's bad borrowing, and certainly

         4       there's causes of -- I think there's places to

         5       reform, but if you have any place to put it,

         6       it's not here.

         7                      Thank you.

         8                      ACTING PRESIDENT KUHL:  Senator

         9       Hannon recorded in the affirmative.

        10                      Senator Paterson to explain his

        11       vote.

        12                      SENATOR PATERSON:  Mr. President,

        13       I'd just like to explain that Senator Hannon

        14       might justifiably differ with me on the content

        15       of this particular legislation, but already

        16       conceded I thought this would cure really a -

        17       would inure to the benefit of New York City

        18       residents to have the legislation.

        19                      My general opposition is what I

        20       expressed on this floor two years ago which at

        21       the time Governor Cuomo was governor, and I just

        22       wanted to point out that I haven't changed my

        23       point of view on this subject at all.











                                                             
8785

         1                      ACTING PRESIDENT KUHL:  How do

         2       you vote, Senator Paterson?

         3                      SENATOR PATERSON:  Well, that's a

         4       point of view, Mr. President, I might change,

         5       but I vote in favor.

         6                      ACTING PRESIDENT KUHL:  Senator

         7       Paterson will be recorded in the affirmative.

         8                      Announce the results.

         9                      THE SECRETARY:  Ayes 50.

        10                      ACTING PRESIDENT KUHL:  The bill

        11       is passed.

        12                      Senator Solomon.

        13                      SENATOR SOLOMON:  I would like

        14       unanimous consent to be recorded in the negative

        15       on Calendar Number 186.

        16                      ACTING PRESIDENT KUHL:  Without

        17       objection, hearing no objection, Senator Solomon

        18       will be recorded in the negative on Calendar

        19       Number 186.

        20                      Senator Maziarz, why do you

        21       rise?

        22                      SENATOR MAZIARZ:  Mr. President,

        23       I would like unanimous consent to be recorded in











                                                             
8786

         1       the negative on Calendar Number 583, please.

         2                      ACTING PRESIDENT KUHL:  Without

         3       objection, hearing no objection, Senator Maziarz

         4       will be recorded in the negative on Calendar

         5       Number 583.

         6                      Secretary will continue to read

         7       the controversial calendar.

         8                      THE SECRETARY:  Calendar Number

         9       994, by Senator Leibell, Senate Print 5019, an

        10       act to amend the Real Property Actions and

        11       Proceedings Law, in relation to landlord and

        12       tenant proceedings.

        13                      SENATOR PATERSON:  Explanation.

        14                      ACTING PRESIDENT KUHL:  Senator

        15       Leibell, an explanation of Calendar Number 994

        16       has been asked for by Senator Paterson.

        17                      SENATOR LEIBELL:  Yes, Mr.

        18       President.  This is an act that will seek to

        19       amend the Real Property Actions and Proceedings

        20       Law.  We have found that court delays have cost

        21       owners of rental property tens of millions of

        22       dollars in rents that are legitimately owed,

        23       plus millions more in legal fees, and also has











                                                             
8787

         1       contributed to the clogging of an already

         2       congested court system.

         3                      The current system that we

         4       presently work under has unfortunately worked to

         5       exacerbate this condition.  Senate 5019 proposes

         6       to require a tenant, upon a second adjournment

         7       by the tenant or the court, to deposit past due

         8       rent with the court as well as future rents as

         9       they become due until the court has decided the

        10       case.  It's hoped that as a result of this

        11       legislation individuals will no longer clog the

        12       courts with unnecessary delays simply trying to

        13       beat the system, and also that owners who

        14       currently lose millions of dollars in legitimate

        15       rents will now have assurance that long delays

        16       will not result in the loss of significant

        17       rental income.

        18                      I might note also that we are

        19       greatly concerned with the viability of marginal

        20       buildings where the loss of even a portion of

        21       the associated rental stream can be significant.

        22       This will hopefully be improved -- will improve

        23       this to the benefit of its occupants as well as











                                                             
8788

         1       to the owner.

         2                      I would also note that there will

         3       be an amendment to this legislation to provide

         4       that where rent is provided through a social

         5       agency that that part of the rent will not be

         6       payable into court.

         7                      ACTING PRESIDENT KUHL:  Senator

         8       Paterson.

         9                      SENATOR PATERSON:  Mr. President,

        10       if Senator Leibell will be kind enough to yield?

        11                      SENATOR LEIBELL:  Yes, Senator.

        12                      ACTING PRESIDENT KUHL:  Senator

        13       yields.

        14                      SENATOR PATERSON:  Senator

        15       Leibell, in 1971 -- actually in 1970, the

        16       Legislature passed a bill that where there were

        17       emergency repairs that needed to be made that

        18       the funds had to be -- had to be delivered to

        19       the court in advance.  In 1971, that case was

        20       found by our Supreme Court, the Court of Appeals

        21       actually, to be unconstitutional.  In this

        22       legislation, aren't we doing the same thing?

        23       Aren't we asking the tenant to pay something in











                                                             
8789

         1       advance of a court decision?

         2                      SENATOR LEIBELL:  What we have

         3       found, Senator, is that many people are using

         4       this system, in effect, to beat the system.

         5       What they are doing is they are deliberately

         6       delaying the process and, in fact, at some point

         7       down the line there will be an adjudication, and

         8       then they will come back in and say, We are

         9       possibly unable to pay it because too much rent

        10       has accumulated or, in fact, that they will just

        11       leave the facility, the housing altogether, and

        12       landlords, maybe many of them marginal

        13       landlords, will be left with nothing.

        14                      That is an attempt to address

        15       that problem and to do it in such a way that

        16       will be fair, because at an early point in the

        17       proceeding rents will be payable into court, and

        18       the judge will then have sufficient assets

        19       available, if necessary, to pay the landlord the

        20       rent.

        21                      SENATOR PATERSON:  Mr. President,

        22       through you to Senator Leibell.

        23                      Senator Leibell, I'm demurring to











                                                             
8790

         1       your complaint.  I'm saying you're right.  That

         2       does happen, but what I'm saying is that this

         3       particular method of trying to ameliorate the

         4       problem seems to me by comparison to be

         5       something that will not be able to withstand

         6       judicial scrutiny.

         7                      SENATOR LEIBELL:  You are making

         8       a constitutional argument.

         9                      SENATOR PATERSON:  Right.  I'm

        10       saying that I don't think that the legislation

        11       would hold up to a constitutional argument, even

        12       though I'm agreeing with you that it would

        13       probably repair the situation where individuals,

        14       when they have lost adjudication, have -- at

        15       that point owe so much money that they are not

        16       paying.

        17                      SENATOR LEIBELL:  The Supreme

        18       Court has upheld the constitutionality of a

        19       positive rent statute which is actually more

        20       stringent than this proposed legislation.  The

        21       court in rejecting the due process challenge to

        22       that law commented that, in quotes, "A

        23       requirement that the tenant pay or provide for











                                                             
8791

         1       the payment of rent during the continuance of an

         2       action for nonpayment of rent is hardly

         3       irrational or oppressive."

         4                      Rather, the court had noted that

         5       if the tenant remained in possession of an

         6       apartment, a landlord might be deprived of due

         7       process of law.

         8                      ACTING PRESIDENT KUHL:  Senator

         9       Paterson.

        10                      SENATOR PATERSON:  Senator

        11       Leibell, to me, that is kind of a different

        12       statute -- correct me if I'm wrong -- because

        13       here we're not taking the money out of the

        14       tenant's hands in advance.  In other words,

        15       that's how I would distinguish the case that you

        16       are bringing up from the case which I brought up

        17       which I thought was very similar to your bill.

        18                      SENATOR LEIBELL:  Well, actually,

        19       I think this is probably on very strong

        20       constitutional ground.  The rents we're talking

        21       about would only be those which would be due

        22       under the contract, the lease to begin with,

        23       and, if, in fact, there would be any defense to











                                                             
8792

         1       that, having paid it into court, the court will

         2       be able to make the proper adjudication and, if

         3       necessary, determine that the rents are not

         4       payable.

         5                      SENATOR PATERSON:  Through you,

         6       Mr. President.  Senator Leibell, would you yield

         7       for -

         8                      ACTING PRESIDENT KUHL:  Senator

         9       Leibell, do you yield?

        10                      SENATOR LEIBELL:  Yes, Mr.

        11       President.

        12                      ACTING PRESIDENT KUHL:  Senator

        13       yields.

        14                      SENATOR PATERSON:  Senator, I

        15       want to give you an example of how it might not

        16       be the case.  How would we determine what the

        17       past rent due is?

        18                      SENATOR LEIBELL:  The same way we

        19       would in any sort of proceeding.  The court

        20       would be able to make a determination as to

        21       whether or not this rent was due; if there was

        22       some mitigating circumstances, why it would not

        23       be due.











                                                             
8793

         1                      SENATOR PATERSON:  But then -

         2       Mr. President, through you.

         3                      ACTING PRESIDENT KUHL:  Senator

         4       Leibell, do you continue to yield?

         5                      SENATOR LEIBELL:  Yes, Mr.

         6       President.

         7                      ACTING PRESIDENT KUHL:  Senator

         8       continues to yield.

         9                      SENATOR PATERSON:  We would have

        10       to make that determination right away, wouldn't

        11       we?

        12                      SENATOR LEIBELL:  You would have

        13       at an appropriate time a hearing, but I would

        14       note the bill provides for this only upon the

        15       second adjournment, which has been requested by

        16       a tenant or by the court.

        17                      SENATOR PATERSON:  Senator

        18       Leibell, if you would yield for another

        19       question?

        20                      ACTING PRESIDENT KUHL:  Senator

        21       Leibell, do you continue to yield?

        22                      SENATOR LEIBELL:  Yes.

        23                      ACTING PRESIDENT KUHL:  Senator











                                                             
8794

         1       continues to yield.

         2                      SENATOR PATERSON:  Suppose the

         3       landlord has added on late charges and other

         4       delinquent amounts, does the tenant have to pay

         5       them in advance even though that hasn't been

         6       litigated as yet?

         7                      SENATOR LEIBELL:  If I understand

         8       your question, Senator, what this bill is

         9       talking about is the rent itself, not additional

        10       charges.  This is talking about paying the rent

        11       into court.

        12                      SENATOR PATERSON:  All right.

        13       That is certainly sufficient answer to that.

        14       Senator Leibell, suppose that the tenant is

        15       charging that the landlord has overcharged in

        16       the first place?

        17                      SENATOR LEIBELL:  Well, prior to

        18       this legislation being activated, there would

        19       have been prior opportunities in court to have

        20       made that allegation.

        21                      Go back again, Senator.  This

        22       only becomes -- this legislation only become

        23       active upon a second adjournment by the tenant











                                                             
8795

         1       or the court.

         2                      SENATOR PATERSON:  Mr.

         3       President.  I was assuming that we would not

         4       have known that because of the adjournments that

         5       actually have existed.

         6                      But if Senator Leibell would

         7       continue to yield?

         8                      ACTING PRESIDENT KUHL:  Senator

         9       Leibell, do you continue to yield?

        10                      The Senator yields.

        11                      SENATOR PATERSON:  Senator

        12       Leibell, once the two adjournments accrue and

        13       now these monies have to be paid in by the

        14       tenant, doesn't the situation reverse itself

        15       now?  In other words, we have met the threshold

        16       for which the tenant is due to pay past rent and

        17       also future rent while the tenant is still

        18       staying on the premises.  Doesn't that, maybe in

        19       some respects, become a constructive eviction?

        20       If you consider the fact that maybe the tenant

        21       is averring that there's been an overcharge in

        22       the first place, and now it's the landlord, not

        23       the tenant, that can delay the proceedings by











                                                             
8796

         1       adjourning over and over, forcing the tenant to

         2       make these payments to the court.

         3                      Now, we have a situation arising

         4       from the tenant's delinquent payments to the

         5       court, but the charge that the tenant is making

         6       directly relates to how much money should be

         7       paid to the court in the first place.  So I'm

         8       saying, are we now tipping the scales too much

         9       on the other side in an attempt to alleviate a

        10       situation that I will concede is addressed by

        11       your bill.

        12                      SENATOR LEIBELL:  I don't see why

        13       we would be concerned with or worried about an

        14       overcharge because the lease is going to state

        15       what the rent is on the face of it, and that's

        16       what the court is going to be considering.  The

        17       argument you are making, I don't see how that

        18       would come into play because it's going to be

        19       spelled out in the papers that will be before

        20       the court what the precise rent was.

        21                      SENATOR PATERSON:  Yes, I

        22       understand that, Senator Leibell.  But you would

        23       concede that the -- it would be very easy to











                                                             
8797

         1       overcharge on the actual lease?  I mean that

         2       could happen; is that not correct?

         3                      SENATOR LEIBELL:  Overcharge in

         4       terms of -- I don't know if I understand exactly

         5       what you are saying, Senator.  Are you talking

         6       about in terms of the value for the lease?

         7                      SENATOR PATERSON:  Right, that

         8       that actually could be an overcharge.

         9                      SENATOR LEIBELL:  Well, that

        10       certainly is something that the court would have

        11       an opportunity to take a look at and to

        12       consider.

        13                      ACTING PRESIDENT KUHL:  Senator

        14       Paterson.

        15                      SENATOR PATERSON:  Thank you,

        16       Senator Leibell.  My final question relates to

        17       the cost aspect.  Your bill seems to indicate

        18       that there isn't any, but research seems to

        19       indicate it that it takes at least 68 minutes to

        20       process one of these types of situations.  You

        21       don't think that there is a cost that's accrued

        22       from that?

        23                      SENATOR LEIBELL:  No, actually,











                                                             
8798

         1       Senator, I looked into that, and there's some

         2       estimates that this could cost in terms of

         3       actual lost rent $130 million a year in New York

         4       City and possibly $70 million in legal fees, and

         5       court costs bringing it up close to a $200

         6       million figure.

         7                      In terms of cost to the court

         8       system itself, I think any time it might take to

         9       administer this in court will be more than made

        10       up for by the reduced amount of litigation that

        11       we hopefully will see in the court as a result

        12       of this bill.

        13                      SENATOR PATERSON:  Thank you very

        14       much, Senator Leibell.

        15                      Mr. President, on the bill.

        16                      ACTING PRESIDENT KUHL:  Senator

        17       Paterson, on the bill.

        18                      SENATOR PATERSON:  I think the

        19       legal fees will go up as a result of this

        20       legislation, because as we learned from our

        21       discussion that we just held that there will be

        22       an additional number of hearings that will be

        23       generated by the determination that the court











                                                             
8799

         1       will have to make as to what it is that the

         2       tenant will have to pay back prior to the actual

         3       litigation of the case.

         4                      SENATOR LEICHTER:  Mr. President.

         5                      ACTING PRESIDENT KUHL:  Chair

         6       recognizes Senator Leichter.

         7                      SENATOR LEICHTER:  Yes, Mr.

         8       President, if Senator Leibell will be so good as

         9       to yield?

        10                      ACTING PRESIDENT KUHL:  Senator

        11       Leibell, do you yield to Senator Leichter?

        12                      SENATOR LEIBELL:  Yes, Mr.

        13       President.

        14                      ACTING PRESIDENT KUHL:  Senator

        15       yields.

        16                      SENATOR LEICHTER:  Senator, I

        17       have some difficulty accepting an answer that

        18       you gave to a question posed by Senator

        19       Paterson.  Senator Paterson asked you the

        20       situation where the landlord has tacked on

        21       additional amounts as rent, attorney's fees or

        22       late fees, and so on.

        23                      Now, the uniform leases in New











                                                             
8800

         1       York City always provide that these amounts are

         2       considered rent.  Your bill states solely that

         3       upon -- refers only -- and I'm looking at line

         4       20, on page 1, refers to "past rent".

         5                      The leases all provide that these

         6       additional amounts are considered rent.  In view

         7       of that, isn't Senator -- wasn't Senator

         8       Paterson correct when he says that, if some

         9       tenant wants to challenge outrageously high late

        10       fees, attorneys' fees, and so on, that tenant

        11       would be required to deposit that money into

        12       court on the second adjournment?

        13                      SENATOR LEIBELL:  This

        14       legislation, Senator, only applies to the actual

        15       rent, and this legislation would control any

        16       lease.

        17                      SENATOR LEICHTER:  Mr. President,

        18       if Senator Leibell would be good enough to

        19       yield?

        20                      ACTING PRESIDENT KUHL:  Senator

        21       Leibell, do you continue to yield?

        22                      SENATOR LEICHTER:  Can you tell

        23       me where -











                                                             
8801

         1                      ACTING PRESIDENT KUHL:  Excuse

         2       me, Senator Leichter.

         3                      Senator Leibell, do you continue

         4       to yield?

         5                      SENATOR LEIBELL:  Yes, sir.

         6                      ACTING PRESIDENT KUHL:  Senator

         7       continues to yield.

         8                      SENATOR LEICHTER:  Senator, where

         9       in your bill do you use the word "actual"?

        10       Don't you just use the word "rent"?  Can you

        11       point out to me where it says "actual"?

        12                      SENATOR LEIBELL:  Line 9 -- we

        13       don't use the word "actual," but line 9 is the

        14       language I would say addresses your concern,

        15       "that tenants post all sums of past rent in

        16       use."

        17                      SENATOR LEICHTER:  Well, Senator

        18       Leibell, I want to point out to you that doesn't

        19       address my concern.  It only heightens my

        20       concern, because it uses the word "rent" -

        21                      SENATOR LEIBELL:  Well,

        22       Senator -

        23                      SENATOR LEICHTER:  If I may just











                                                             
8802

         1       finish my question?

         2                      SENATOR LEIBELL:  Yes.

         3                      SENATOR LEICHTER:  And the word

         4       "rent" is defined in the lease as, "All amounts

         5       due" which include attorneys' fees, late

         6       charges, and so on, and you will see that the

         7       uniform leases that landlords use probably not

         8       only in the city of New York but throughout the

         9       state, the Blumberg forms, and so on, all define

        10       rent.  Rent is all the additional amounts due in

        11       addition to what you refer to as the actual

        12       amount, and having failed to state "actual" but

        13       having just used the word "rent," which is then

        14       defined in the lease, I think you are imposing

        15       on the tenant the obligation to put all that

        16       money in the court.  The tenant may not have

        17       it.

        18                      You know, there's working people

        19       out there, and I know you appreciate it, because

        20       I know you have the concern.  They don't have

        21       money left at the end of the month.  They pay

        22       their rent.  They pay for their food.  They pay

        23       for their utilities.  They pay for what they owe











                                                             
8803

         1       on their car.  Now the landlord comes and says,

         2       "Well, you were late last month, and I'm going

         3       to charge you an additional thousand dollars as

         4       rent."  Your bill requires that tenant to put up

         5       that money.  The tenant may not have it.

         6                      SENATOR LEIBELL:  Senator, this

         7       bill which I'm sponsoring does not provide for

         8       anything other than rent, and I will tell you,

         9       Senator, that that is the legislative intent and

        10       I tell you, as the sponsor, that this will only

        11       apply to rent, and we do not define that for

        12       purposes of this bill as including anything but

        13       the actual rent that will be spelled out in a

        14       lease.

        15                      Certainly, if you have any

        16       concerns on that, I would be happy to consider a

        17       chapter amendment if you wish to put it in, but

        18       that's our legislative intent.

        19                      SENATOR LEICHTER:  Mr. President.

        20                      ACTING PRESIDENT KUHL:  Senator

        21       Leichter.

        22                      SENATOR LEICHTER:  If Senator

        23       Leibell will be good enough to yield?











                                                             
8804

         1                      ACTING PRESIDENT KUHL:  Senator

         2       Leibell, do you continue to yield?

         3                      Senator continues on yield.

         4                      SENATOR LEIBELL:  Yes.

         5                      SENATOR LEICHTER:  Senator, I

         6       appreciate that that is what you "intend," but I

         7       think the bill and, if it becomes law, the

         8       statute is governed by the actual words that you

         9       use and, if you have ever been in court as I

        10       have and argued about intent on legislation that

        11       I have voted on and before a judge, and they can

        12       barely, you know, cover the big smile or the

        13       laugh because they will say, "Well, if you

        14       intend it, you've got to put it into the

        15       statute," and I would really urge you -- don't

        16       ask me to put in a chapter to your bill.  If you

        17       mean "actual," the basic rent -- and "basic" is

        18       the word that you ought to use -- then you ought

        19       to put in a chapter to carry out your intent

        20       because, I respectfully submit, that as your

        21       bill is drafted now it does not carry out that

        22       intent.

        23                      But if you will be good enough to











                                                             
8805

         1       yield to another question?

         2                      ACTING PRESIDENT KUHL:  Senator

         3       Leibell, do you yield?

         4                      SENATOR LEIBELL:  Yes.

         5                      ACTING PRESIDENT KUHL:  The

         6       Senator yields.

         7                      SENATOR LEICHTER:  Senator, I see

         8       that your memo in support says there are no

         9       fiscal implications.  Is that correct?

        10                      SENATOR LEIBELL:  Yes.

        11                      SENATOR LEICHTER:  Have you read

        12       the memorandum that was submitted by -- I

        13       believe it's Judge Silverman, Jackie Silverman,

        14       of the Civil Court?  I think she's the -- she's

        15       the Administrative Judge, and she testified at a

        16       hearing in the City Council on your bill and on

        17       a resolution which supported your bill, or urged

        18       the adoption, and here's what she said.  "In

        19       both" -- and I'm quoting her now, "In both the

        20       deposit situations outlined above, the court

        21       must spend a tremendous amount of time.

        22       Previously, with the use of the trust fund,

        23       there was a continuing bookkeeping.  Currently,











                                                             
8806

         1       in the event we make the deposits to the

         2       Department of Finance, there's substantial

         3       paperwork.  In either case, the potential for

         4       error is very large especially in the numbers

         5       being considered.  The following is an outline

         6       of the time needs," and then she goes on and she

         7       points out, and then she continues, and I'm

         8       quoting again, "Assuming that all persons who

         9       come to court make deposits as required by the

        10       proposal and that the deposits are sent to the

        11       Department of Finance, this will require

        12       citywide approximately 68 minutes times 199,800

        13       deposits.  This equals 13,000 -- I'm sorry -

        14       13,586,400 minutes or 226,440 hours of work.

        15       Each clerk works approximately 257 hours a day,

        16       therefore, each clerk works approximately 1,750

        17       hours per year.  Dividing 226,440 hours by 1,750

        18       and assuming that all of this person's time is

        19       devoted to this task, we will need citywide at

        20       least 130 clerks.  Considering absenteeism,

        21       vacations, et cetera, we need a backup system of

        22       10 percent, which requires an extra 13 clerks.

        23       This is a total of 143 clerks."











                                                             
8807

         1                      How, in view of that, can you say

         2       there's no fiscal implications?

         3                      SENATOR LEIBELL:  Senator,

         4       listening to you recount those figures, it

         5       sounds like bureaucracy at its worst.  I think

         6       that's the statement that was given to the City

         7       Council.  It certainly would indicate that we

         8       need to take a look at some of the proceedings

         9       within that court.

        10                      But, beyond that, I go back to my

        11       original statement, and I think Senator Paterson

        12       acknowledged that we do have a problem in New

        13       York City and elsewhere, but especially in the

        14       City, with the nonpayment of rent and using the

        15       court system itself to take an advantage over

        16       landlords, whether they be large landlords or

        17       small landlords -- and many of them are small

        18       landlords -- and it results in a tremendous

        19       amount of lost income to the economy of the

        20       City.

        21                      What the judge did not factor in

        22       and what is most significant is the amount of

        23       the backlog in that court and the amount of the











                                                             
8808

         1       caseload in that court that would not exist in

         2       the first place if this bill were to become law.

         3                      ACTING PRESIDENT KUHL:  Senator

         4       Leichter.

         5                      SENATOR LEICHTER:  Mr. President,

         6       if Senator Leibell will yield to one or two

         7       other questions?

         8                      ACTING PRESIDENT KUHL:  Do you

         9       yield, Senator Leibell?

        10                      SENATOR LEIBELL:  Yes, Mr.

        11       President.

        12                      ACTING PRESIDENT KUHL:  Senator

        13       yields.

        14                      SENATOR LEICHTER:  Senator, I

        15       will address your answer when I comment on the

        16       bill.

        17                      But let me ask you -- in an

        18       answer, I believe, that you made to Senator

        19       Paterson, you referred to some Supreme Court

        20       decision which upheld the scheme that you are

        21       setting up under this bill.  Was that a U.S.

        22       Supreme Court decision, and could you give me

        23       the name and the citation?











                                                             
8809

         1                      SENATOR LEIBELL:  Lindsay versus

         2       Normet, N-o-r-m-e-t, 405 US 56, 1971.

         3                      SENATOR LEICHTER:  Okay.  Because

         4       I'm -

         5                      ACTING PRESIDENT KUHL:  Senator

         6       Leibell, do you continue to yield?

         7                      SENATOR LEIBELL:  Yes, Mr.

         8       President.

         9                      ACTING PRESIDENT KUHL:  Senator

        10       continues to yield.

        11                      SENATOR LEICHTER:  I'm told that

        12       the decision by the United States in Bode versus

        13       Connecticut, which Judge Silverman in her

        14       testimony referred to as probably making this

        15       requirement that a tenant post the amount that's

        16       at issue before the matter is decided as being

        17       violative of due process and has been condemned

        18       by the U.S. Supreme Court.  Lindsay versus

        19       Normet, which you refer to -- and, actually, as

        20       I take a look at Lindsay versus Normet, I

        21       believe that this was not an issue of rent

        22       deposit prior to the determination of the very

        23       issue which was involved in the case, and I











                                                             
8810

         1       think that's the point that we're making here,

         2       that it's unheard of that in order to have your

         3       right litigated that you've got to put up the

         4       money in advance.

         5                      Mr. President, on the bill,

         6       please.

         7                      ACTING PRESIDENT KUHL:  Senator

         8       Leichter, on the bill.

         9                      SENATOR LEICHTER:  I see a number

        10       of problems with this bill.  I think first of

        11       all, it's inherently unfair.  It's unfair to

        12       single out tenants in the city of New York and

        13       to make them the only litigants in order for

        14       them to have their issues litigated that they

        15       have to go and deposit the amount at issue into

        16       court.

        17                      Now, Senator Leibell says it's

        18       only after a second adjournment.  But, as we

        19       know, these are working people.  Because of the

        20       nature of their job, they may not be able to

        21       respond to a case in the first time and I'm not

        22       even sure, and I have to look at the bill,

        23       whether the adjournment is actually at the











                                                             
8811

         1       application of the tenant.

         2                      Secondly, I think this bill is

         3       unnecessary because there's now a power in the

         4       court, under Section 754 of the Civil Practice

         5       Law and Rules, to require under some

         6       circumstances that have to be established and

         7       where the court has discretion, that the tenant

         8       has to deposit that rent into court.  So where

         9       it's needed, where there's some taking advantage

        10       of the landlord or the court by the tenant, the

        11       court has that power.

        12                      Thirdly, as I am advised and as I

        13       understand the law of equal protection and laws

        14       protecting litigants from being unfairly

        15       deprived of access to the court, I think the

        16       Supreme Court has made it fairly clear that laws

        17       like this which keep people from the courts,

        18       which single out particular litigants, tend to

        19       run afoul of the due process clause and,

        20       certainly, Judge Silverman, who is an extremely

        21       able jurist, feels that this law would be

        22       unconstitutional.

        23                      Finally, I just want to -- well,











                                                             
8812

         1       not finally but next to final, I want to point

         2       out that this bill if it becomes law will

         3       require additional personnel.  I mean to say

         4       under each and every circumstance when the

         5       Republicans come up with bills which require

         6       additional work, whether it's by the Judiciary

         7       or by the Executive branch, "Oh, they can do it;

         8       that's no problem; they've got all the personnel

         9       they need," I think that's unfair.  I say with

        10       all due respect, Senator Leibell, and I

        11       certainly have respect for you and you have a

        12       reputation for fairness, I don't think in this

        13       instance you are being fair when you say, "Well,

        14       this is just an instance of bureaucracy."  It's

        15       clear that if you're going to require millions

        16       of dollars deposited into court then it's going

        17       to require personnel who are going to have to do

        18       this and who are going to have to oversee it,

        19       and I can just tell you, having been frequently

        20       in the Housing Court, it's an extremely over

        21       worked court as it is, and those clerks work as

        22       hard as anybody that I know of in the judicial

        23       system.











                                                             
8813

         1                      Finally, I just want to address

         2       what I find very troublesome, and that is a

         3       pattern of bills that we see being put forward

         4       by the Republicans and I guess are reflective of

         5       the Republican far right wing which seeks to cut

         6       off people's access to courts.  We've had a

         7       number of bills, bills limiting shareholders

         8       from going to court, bills limiting people who

         9       have been injured in going to courts.  Now,

        10       here's a bill which would limit tenants and make

        11       it difficult for them to have their case tried

        12       in court.

        13                      I think one of the great things

        14       about this country is that we have a judicial

        15       system, that we want to give people maximum

        16       access to our courts so that disputes that they

        17       consider are valid are disposed of in courts,

        18       and to impose this barrier, to say, "You want

        19       your case tried in court?  You dig into your

        20       pocket and put up the money, and if you don't

        21       have the money, your case will not be heard.

        22       You will, in effect, not have access to the

        23       court, and you will be required to pay the











                                                             
8814

         1       amount that the landlord, in this case, demands,

         2       no matter how irrational, no matter how

         3       unfounded, no matter how unjust.  Tenant, you

         4       want your case tried, you ante up the money in

         5       advance."  I don't think that's the American way

         6       of doing things.

         7                      ACTING PRESIDENT KUHL:  We will

         8       interrupt the debate just momentarily for an

         9       announcement.

        10                      Senator Larkin.

        11                      SENATOR LARKIN:  Mr. President,

        12       there will be an immediate meeting of the Rules

        13       Committee in Room 332.  Immediate meeting of the

        14       Rules Committee in Room 332.

        15                      Thank you, Mr. President.

        16                      ACTING PRESIDENT KUHL:  There

        17       will be an immediate meeting of the Rules

        18       Committee in the Senate Majority Conference

        19       Room, Room 332.  Rules Committee, Majority

        20       Conference Room, Room 332.

        21                      Senator Johnson, why do you

        22       rise?

        23                      SENATOR JOHNSON:  Mr. President,











                                                             
8815

         1       I would like to ask Senator Leichter if he would

         2       respond to a question.

         3                      ACTING PRESIDENT KUHL:  Senator

         4       Leichter, do you yield to Senator Johnson?

         5                      Senator Johnson, the Senator

         6       yields.

         7                      SENATOR JOHNSON:  Senator

         8       Leichter, you mentioned that the Housing Court

         9       would have to get 143 more clerks.

        10                      SENATOR LEICHTER:  Sorry, I can't

        11       hear you.

        12                      SENATOR JOHNSON:  You mentioned

        13       that they would need 143 more clerks in the

        14       Housing Court if this procedure were to take

        15       place.  Do you know what that would cost?  How

        16       many dollars would that cost?

        17                      SENATOR LEICHTER:  Yes.  Judge

        18       Silverman estimated that the -- even -- her

        19       estimate was, "Okay, I need 143 clerks," but

        20       let's say that I get by with 50 because that's

        21       all that the court system will give me.  The

        22       cost of that would be $1,980,000.

        23                      SENATOR JOHNSON:  Senator, you











                                                             
8816

         1       heard Senator Leibell mention that $130,000 in

         2       rents are not paid each year plus legal costs

         3       amounting to a couple of hundred million

         4       dollars.  Now, do you think a million dollars

         5       spent to save 130 million or 200 million on

         6       behalf of the landlord who will now have that

         7       money available to maintain his property would

         8       be a good trade-off in terms of the housing

         9       stock of New York City?

        10                      SENATOR LEICHTER:  Mr.

        11       President.  There's two answers to the point

        12       that you make, Senator Johnson.  First of all,

        13       it's apples and oranges.  I mean you're not

        14       talking of hundreds of millions of dollars to

        15       government.  This is an expenditure by the

        16       government.

        17                      The fact that landlords may get a

        18       certain amount which you claim and I dispute

        19       they are entitled to in the amounts that you

        20       have stated certainly doesn't make that equal.

        21       You still have to come up with the money for

        22       government, in this instance, the Judiciary.

        23       Secondly, the figures that you come up to, I











                                                             
8817

         1       think, are grossly inflated, exaggerated,

         2       illusory.  Could you show me where you come up

         3       with this hundreds of millions of dollars that

         4       landlords are being denied?

         5                      SENATOR JOHNSON:  Well, I've

         6       accepted your figure at face value, and for the

         7       moment, let's say it's somewhere in the ball

         8       park.  The money which the courts spend comes

         9       from businesses and individuals in this state,

        10       the tax revenues that they spend.

        11                      If a landlord -- and,

        12       cumulatively, landlords are losing $100 million

        13       or $200 million.  That reduces the amount of

        14       revenues collected by government, income tax,

        15       real estate tax.  It even leads to abandonment

        16       of properties, in many cases, because the money

        17       is not there to maintain those buildings.  So it

        18       certainly seems -- and, additionally, the

        19       assessed valuations of these properties or the

        20       selling prices are based upon a rate of return.

        21       If a landlord can't collect 5 or 10 or 20

        22       percent of his rent, that diminishes the value

        23       of his property.  So, Senator, don't you believe











                                                             
8818

         1       that there's a negative effect by us interfering

         2       in this process of people paying their

         3       contractual obligations?

         4                      SENATOR LEICHTER:  Senator, there

         5       is a big difference between your figures and my

         6       figures.  Your figures are taken out of the

         7       air.  They are made up out of whole cloth unless

         8       you can cite to me somebody who's come up with

         9       these figures, and not only cite an authority

        10       for it but show to me with the detail that I

        11       showed to you, quoting the judge who is in part

        12       -- I'm sorry -- who is in charge of that part

        13       of the Civil Court.  She's given you exactly,

        14       very detailed, the minutes it takes, the clerks

        15       it takes, how much they work, how much it

        16       costs.  You come up, and you throw out some wild

        17       figure.

        18                      But, Senator, there's another

        19       answer, and the answer is that this money is not

        20       lost if the landlord -- if the landlord is

        21       entitled to the money, you've got a court.  The

        22       court is going to say the landlord is entitled

        23       to this money.  It's far different for the











                                                             
8819

         1       tenant.  The tenant -- if the tenant can't pay

         2       his way in the court, the tenant isn't in a

         3       position to put up the money, the tenant will

         4       never have an opportunity to have his or her

         5       case tried.  If the tenant is given access to

         6       the court and the landlord is correct as you

         7       claim he is, the landlord will recover.

         8                      I understand in some instances

         9       tenants will leave without paying the rent.

        10       That's happened.  There's deadbeats who are

        11       tenants, there's deadbeats who are landlords,

        12       there's deadbeats in our society, but not

        13       anywhere in the amounts that you have stated.

        14                      SENATOR JOHNSON:  Senator.

        15                      ACTING PRESIDENT KUHL:  Senator

        16       Johnson, are you asking Senator Leichter to

        17       yield again?

        18                      SENATOR JOHNSON:  Yes, I'd like

        19       to ask him a question.

        20                      ACTING PRESIDENT KUHL:  Senator

        21       Leichter, do you yield?

        22                      The Senator yields.

        23                      SENATOR JOHNSON:  Senator











                                                             
8820

         1       Leichter, do you think -- you -- you just

         2       acknowledged that you know some people skip out

         3       on their rent, and we know that that's the

         4       case.  It's an open secret in New York City that

         5       the Housing Court is where the landlords take

         6       you, and that's where you can not pay rent for

         7       six or eight or whatever months by deferring the

         8       day of judgment until you finally skip out and

         9       don't pay.

        10                      I have not only anecdotal

        11       evidence but have read articles, and I'm

        12       surprised you don't know it being you are in the

        13       City.

        14                      But my question is, why would the

        15       tenant have any objection to deposit the rent

        16       with an impartial person, the judge, until it's

        17       adjudicated unless they intend to defraud the

        18       landlord?  Why would they object to the judge

        19       holding their rent, and why would you defend

        20       their right not to put it up?

        21                      SENATOR LEICHTER:  Senator -

        22       Senator, I think your question is very

        23       interesting, and I think it really shows, with











                                                             
8821

         1       all due respect, how out of touch some of you

         2       are with working people.  Why would the tenant

         3       object to paying the rent?  Because the tenant

         4       doesn't have that money.  There aren't that many

         5       people in our society, not tenants in the City

         6       of New York, who have hundreds of thousands of

         7       dollars and who can, "Oh, I've got to pay to

         8       have my case adjudicated?  Fine.  I will put up

         9       the money."

        10                      We're not talking about people

        11       who have Park Avenue co-ops and we're talking

        12       about their carrying charges or who have Fifth

        13       Avenue duplexes and are paying $5,000 or $10,000

        14       a month.  We're talking about working people,

        15       Senator, and at the end of the month, they

        16       probably have nothing left, and now what you are

        17       saying is that they've got to pay their money up

        18       in advance, and I say to you that that's wrong.

        19                      We're not talking a basic rent,

        20       because I think I pointed out very conclusively

        21       that this legislation is flawed because it

        22       includes additional amounts the landlord may

        23       falsely claim.











                                                             
8822

         1                      ACTING PRESIDENT KUHL:  Senator

         2       Leichter -- Senator Johnson, are you asking

         3       Senator Leichter to yield?

         4                      SENATOR JOHNSON:  Yes.  Senator

         5       Leichter, I find your answer very intriguing.

         6       You said you don't think people should be able

         7       to live rent free.  But you say they don't have

         8       the rent; therefore, they can't pay it.

         9                      Now, most of these cases when

        10       they go to Housing Court are already two to

        11       three months behind.  How long shall a landlord

        12       wait for a person who can not pay their rent,

        13       who does not fulfill his contractual obligation,

        14       before he seeks to remove him and put a tenant

        15       in there who can pay the rent so that he can

        16       maintain his property, not only for the benefit

        17       of the landlord's enrichment but so everyone

        18       else can live in a reasonably maintained

        19       building?

        20                      If they can't pay the rent,

        21       Senator, for two or three months, they should

        22       not -- they should -- they have broken their

        23       lease, essentially.  Why should the landlord be











                                                             
8823

         1       held to provide housing for someone who does not

         2       choose or can't pay their rent?  How can you

         3       defend that, Senator?

         4                      SENATOR LEICHTER:  Senator, the

         5       point is -- first of all, tenants put up

         6       deposits.  You don't get an apartment in New

         7       York without having one or two months' deposit.

         8                      Secondly, under the law of

         9       landlord and tenant, a landlord gets rights that

        10       no other litigant has which is, not only does he

        11       get a judgment for the rent that's owed but he

        12       also gets the apartment.  He can evict the

        13       tenant.  It happens in our system of law that

        14       you sue somebody and, by the time you recover,

        15       that person has put the property in his wife's

        16       name and sheltered his money in many different

        17       ways.  In fact, you voted for legislation

        18       earlier this year which allows people to shelter

        19       their income so that a judgment creditor won't

        20       get it.  I was the only one who voted against

        21       it.  It was a bill by Senator Volker.  That

        22       happens to be part of our economic system.

        23                      But landlords are protected in a











                                                             
8824

         1       way that nobody else is because a landlord can

         2       get possession of the building, and the landlord

         3       also has a security deposit which he can apply,

         4       so we're not dealing with a situation where

         5       tenants are going to be able to live rent free

         6       for months and months and months and then the

         7       tenant is going to move out and leave the

         8       landlord with a big bill.

         9                      The fact is that you haven't or

        10       Senator Leibell has not come up with any

        11       figures.  You've come up, as you so often do -

        12       I don't mean you personally -- but as we so

        13       often have, the Republican right, with your

        14       mythology.  Give us facts.  Give us figures,

        15       Senator.  I gave you facts and figures.  You

        16       give me facts and figures, not just a figure, an

        17       amount that you pull out of thin air.

        18                      SENATOR JOHNSON:  Senator

        19       Leichter, would you stand for another question?

        20                      Mr. President?

        21                      ACTING PRESIDENT KUHL:  Senator

        22       Leichter, do you yield?

        23                      Senator yields.











                                                             
8825

         1                      SENATOR JOHNSON:  Senator

         2       Leichter, are you unaware that New York City is

         3       reputed to be the world's largest slumlord, and

         4       the way they got that property is because people

         5       did not pay sufficient rent for the maintenance

         6       of the property?

         7                      Otherwise, why would a landlord

         8       with all these protections which you say are out

         9       there, and all these privileges, why would he

        10       walk away from a property that he paid good

        11       money for?  Because it's uneconomic, because the

        12       combination of rent control and Housing Court

        13       shenanigans preclude him from making a return on

        14       his investment, even maintaining it, and then

        15       the City takes it over and makes a bigger mess.

        16                      Now, why would a landlord abandon

        17       that if he's got all these rights and privileges

        18       and making all this money?  Can you explain

        19       that?

        20                      SENATOR LEICHTER:  Yes, Senator,

        21       there is a very simple explanation.  If you know

        22       New York City and you know the situation that

        23       exists there, and I -- and I say -- again, you











                                                             
8826

         1       represent, you know, areas in Long Island where

         2       you don't deal with these problems.  I'm going

         3       to invite you to New York City as my guest and

         4       take you around and meet some tenants and give

         5       you an understanding of this, Senator, because,

         6       with all due respect, you're working sort of off

         7       an Adam Smith logic.  Well, the landlords paid

         8       good money.

         9                      Do you know what happens?  People

        10       buy buildings on speculation, Senator.  They are

        11       trying to leverage a very, very small amount of

        12       equity.  They then go and milk the buildings,

        13       not all landlords, not every case, but many of

        14       the buildings that have been abandoned, which

        15       the City then has to take over because the

        16       landlord doesn't pay the taxes; and after a

        17       while, the City has to take over the property in

        18       rem.  By that time, the building is in such

        19       deteriorated state that the rent roll doesn't

        20       cover the repair and the maintenance and all the

        21       work that has to be done, and that's why the

        22       building eventually ends up being abandoned,

        23       because conditions are so terrible in there that











                                                             
8827

         1       tenants just have to move out.

         2                      But a lot of that is due because

         3       landlords buy buildings -- do you know what they

         4       pay for it in some instances?  $1,000, $2,000.

         5       They don't pay good money.

         6                      And, again, we're talking a small

         7       proportion of landlords but that exists,

         8       Senator, and that's why you have cases -- I can

         9       cite some to you where landlords end up in jail,

        10       end up in jail because they have milked their

        11       properties, and that's what happens in the

        12       abandonment of buildings.

        13                      SENATOR JOHNSON:  Well, Senator,

        14       I think it's time for us to get rid of the far

        15       right Republican rhetoric which emanates on that

        16       side of the aisle and wake up and see what's

        17       really going on.  Everyone knows what goes on in

        18       the Housing Court.

        19                      They know it's a scandal.  They

        20       know that, when someone tries to collect the

        21       rent, you get adjournment after adjournment

        22       after adjournment until the landlord finally

        23       says, "Just get out and I won't even bother with











                                                             
8828

         1       the rent," and they walk away without paying the

         2       rent.  It's a scheme to defraud the landlords,

         3       and everyone in that building and everyone in

         4       that City loses by this, and I don't know why

         5       you don't recognize it, Senator.

         6                      If the government didn't

         7       interfere in the right of contract, you would

         8       have buildings well maintained, getting proper

         9       market rent which could maintain it.  There

        10       would be growth.  There would be increased tax

        11       revenues, and the city of New York has asked

        12       everyone in the state to help contribute to

        13       their rent control programs and the Housing

        14       Court program.  Everyone is paying for the

        15       losses which you want to permit the tenant to

        16       continue.

        17                      And, Senator, I don't know if you

        18       can answer this or not, but you not only object

        19       to them posting the back due rent but you even

        20       object to them paying the rent to the judge

        21       during the pendency of this case so, ultimately,

        22       there's some money there to recover, because, in

        23       many cases, no money is recovered and the











                                                             
8829

         1       tenants are out anyhow.  Would you object to

         2       them posting the rent due while they have the

         3       three- or four- or five-month adjournment, or do

         4       you think they should live rent free all during

         5       that time?

         6                      SENATOR LEICHTER:  Mr. President,

         7       answering Senator Johnson.

         8                      First of all, the court now has

         9       the power to do this, Senator Johnson.  The

        10       court has the power to do this.

        11                      But, secondly, Senator, the whole

        12       issue is, was the rent due?  I have handled

        13       situations on behalf of my constituents where

        14       the landlord will bring an action for rent due.

        15       Tenant comes to me and says, "Here.  I got a

        16       receipt.  I've got a receipt."  So we go to

        17       court and we say, "There is a receipt."

        18       Landlord says, "Well, my agent didn't have the

        19       authority.  He didn't have the right to issue

        20       that receipt.  I never got the money."

        21                      Now, that's something that's got

        22       to be tried in court.  It has to be disposed

        23       of.  It's an issue of fact, and I must tell you,











                                                             
8830

         1       in those cases, we prevailed.  But if the tenant

         2       had had to put up the money in advance, having

         3       already paid the rent -- the tenant has paid the

         4       rent, but until that's resolved in court, the

         5       landlord maintains, "I'm entitled to it."  What

         6       you are trying to do is, in effect, almost

         7       prejudge the case where the landlord by saying,

         8       "I'm entitled to the rent," can force the

         9       tenant to put up the money.

        10                      SENATOR JOHNSON:  Mr. President,

        11       I would like to ask Senator Leichter if he would

        12       respond to another question -- in fact, answer

        13       the question that I have asked him.

        14                      You think -- I asked you, before,

        15       do you think someone should be able to live rent

        16       free in your building or anyone's building?

        17                      And, number two, do you have any

        18       objection to them paying the rent during the

        19       pendency of this trial for any new occupancy

        20       beyond the date?

        21                      And, number three, we know that

        22       the court has the power to do this now, to

        23       require it, but the court doesn't do it because











                                                             
8831

         1       they are sort of complicitous with the tenants

         2       in this whole scenario, and it's -- it's an open

         3       secret.  I just got two newspaper articles here,

         4       but I mean I'm surprised you haven't read it.

         5       It's your paper, the New York Times, and they

         6       tell about all the scandals and abuse in the New

         7       York City Housing Court, and yet you're totally

         8       oblivious of it, giving us this Marxist rhetoric

         9       about everybody is entitled to live somewhere at

        10       somebody's else's expense.

        11                      I mean, Senator, I just want to

        12       know why a tenant should not pay whatever the

        13       court agrees.  If he's got a receipt he paid it,

        14       the court wouldn't ask.  Why shouldn't he post

        15       the back rent?  Why shouldn't he pay rent during

        16       the pendency so that this doesn't continue month

        17       after month living at the expense of the

        18       landlord and everyone else in that process?

        19                      SENATOR LEICHTER:  Senator

        20       Johnson, you said something which is the key.

        21       You said "the court agrees."  "The court

        22       agrees," which means that there has been a

        23       determination made, an adjudication of the











                                                             
8832

         1       dispute.  For instance, the case that I gave you

         2       which I tried in court on behalf of a

         3       constituent, where the landlord said, "I didn't

         4       get the rent; the receipt you have is invalid,"

         5       and the matter was finally adjudicated by the

         6       court.  So the whole issue is that you -- you

         7       say, "amounts that are due," but they are not

         8       due until the court determines that they are

         9       due.

        10                      Let me ask you a question,

        11       Senator Johnson.  Will you yield?

        12                      SENATOR JOHNSON:  Yes.

        13                      SENATOR LEICHTER:  Have you ever

        14       been to Housing Court -

        15                      SENATOR JOHNSON:  I have -

        16                      SENATOR LEICHTER:  -- in the City

        17       of New York?

        18                      SENATOR JOHNSON:  I have read

        19       about it.  I have seen some scenarios.  I have

        20       talked to a tenant who went through it.  He told

        21       me what a great deal it was in New York City;

        22       that he lived eleven months after he put his

        23       security deposit up without paying a penny rent,











                                                             
8833

         1       and he was going to do it in Suffolk County.  He

         2       found out we have a different law in Suffolk

         3       County, and he only got away with three or four

         4       months, but it was a very interesting discussion

         5       I had with him.

         6                      So he told me it's all right.

         7       They give you the lawyers to represent you.

         8       They give you the whole thing, and you can just

         9       not pay.  You can stretch it out almost as long

        10       as you want.  He said eleven months.  The

        11       average -- I read the statistics -- is only

        12       seven months.

        13                      But whatever it is, I think

        14       government should not interfere in the

        15       contractual arrangements between two parties.

        16       If you got a lease, and he's got to provide a

        17       place for you to live and you got to pay the

        18       rent, both parties should fulfill their

        19       obligations.

        20                      Now, most of these cases are not

        21       filed until two or three months' rent are gone

        22       by.  I mean they've already gotten by with a

        23       substantial amount.  I don't see why you should











                                                             
8834

         1       possibly object to future rents being posted

         2       with the judge during the pendency of this claim

         3       so that the debt does not increase further

         4       beyond the ability of the tenant, ultimately, to

         5       ever pay that rent.

         6                      SENATOR LEICHTER:  Mr. President,

         7       if Senator Johnson will continue to yield?

         8                      Senator, would you be in favor

         9       that where consumers are being sued, let's say,

        10       by an automobile company for not having paid on

        11       a lease of an automobile or having made payments

        12       on the purchase of an automobile or any other

        13       appliance, that the consumer before he or she

        14       can challenge the lawsuit have to put up their

        15       money in advance in court?  Would you be in

        16       favor of this?

        17                      SENATOR JOHNSON:  Senator, I'm

        18       not speculating about what I would do in that

        19       case.  The simple fact is that New York City's

        20       housing stock is deteriorating, continuing to

        21       deteriorate.  The reason is because of the

        22       governmental policies in New York City

        23       concerning rent control and Housing Court, and











                                                             
8835

         1       these problems must be addressed if New York

         2       City is going to have an economic revival,

         3       resurgence, and we have an obligation to see

         4       that that happens, and this type of reform is

         5       vitally necessary to bring about that result.

         6                      SENATOR LEICHTER:  Mr. President,

         7       just in conclusion, and I always enjoy a chance

         8       to have this sort of a dialogue with my good

         9       friend from Long Island; but, Senator, I'm doing

        10       to do something for you, if you are willing.

        11                      Rather than just relying on

        12       reading things -- and you and I know that there

        13       is no substitute for seeing a situation yourself

        14        -- I'm going to invite you to come down to the

        15       Housing Court in New York County or Kings

        16       County, somewhere else, and take a look.  Meet

        17       some of the Housing Court judges, speak to the

        18       lawyers.  Get firsthand experience, and I think

        19       that you will see that what is being proposed

        20       here by Senator Leibell is based in large

        21       measure on myth and is certainly unfair.

        22                      You are singling out tenants in

        23       the city of New York and imposing on them a











                                                             
8836

         1       requirement that no other litigant has, which

         2       is, ante up the money in advance if you want

         3       your case tried in court.

         4                      SENATOR SOLOMON:  Mr. President.

         5                      ACTING PRESIDENT KUHL:  Chair

         6       recognizes Senator Solomon.

         7                      SENATOR SOLOMON:  Thank you, Mr.

         8       President.

         9                      Mr. President, will Senator

        10       Leibell yield?

        11                      ACTING PRESIDENT KUHL:  Senator

        12       Leibell, do you yield to Senator Solomon?

        13                      SENATOR LEIBELL:  Yes.

        14                      ACTING PRESIDENT KUHL:  Senator

        15       yields.

        16                      SENATOR SOLOMON:  Senator, I'm

        17       going to try and relate a number of cases that

        18       I've represented because I have practiced in

        19       Housing Court before; and, first of all, let me

        20       say something.

        21                      Many of the landlords that want

        22       this bill will tell you that they will never use

        23       it, because putting the money into Housing Court











                                                             
8837

         1       is their worst fear because they will never get

         2       it out because of the clerk problem.

         3                      But just a couple of items.

         4       Senator, are you aware of how a large

         5       preponderance of the rent is paid currently by

         6       tenants to many of the landlords in Housing

         7       Court via money order -- not via Housing Court

         8       but rent payments done by money order.

         9                      SENATOR LEIBELL:  In New York

        10       City?

        11                      SENATOR SOLOMON:  Yes.

        12                      SENATOR LEIBELL:  No, I'm not.

        13                      SENATOR SOLOMON:  Senator, during

        14       your investigations in this, did you come across

        15       the point in situations -- we've had many

        16       situations.  What happens in a situation as

        17       Senator Leichter outlined where the money order

        18       has been paid and given to the landlord and, for

        19       whatever reason, that landlord has not cashed

        20       that money order as of yet, and then commences

        21       an action against the tenant?  That is a common

        22       procedure, by the way, in holdover actions.

        23                      SENATOR LEIBELL:  Senator, let me











                                                             
8838

         1       just draw your attention to line 22 of the bill,

         2       which I hope addresses your concern.  "The court

         3       shall dismiss without prejudice the defenses and

         4       counterclaims -- I'm sorry.  "...payment shows

         5       by a preponderance of the evidence that the

         6       amount required to be deposited has previously

         7       been paid to the petitioner."  Do you see the

         8       section I'm referring to?

         9                      SENATOR SOLOMON:  Line 25, "...

        10       presents payment and shows by a preponderance of

        11       the evidence..."

        12                      Well, Senator, let me ask you

        13       another question.  Would presentment of a money

        14       order receipt by the tenant, a carbon copy, be

        15       considered preponderance of evidence in terms of

        16       your legislative intent?

        17                      SENATOR LEIBELL:  It would always

        18       be up to the court, but I would say so.

        19                      SENATOR SOLOMON:  Okay.  Thank

        20       you.  Senator, let me ask you another question.

        21                      ACTING PRESIDENT KUHL:  Senator

        22       Leibell, do you continue to yield?

        23                      SENATOR LEIBELL:  Yes, Mr.











                                                             
8839

         1       President.

         2                      ACTING PRESIDENT KUHL:  Senator

         3       continues to yield.

         4                      SENATOR SOLOMON:  Are you

         5       familiar with a holdover proceeding and how a

         6       holdover proceeding is commenced?

         7                      SENATOR LEIBELL:  I have some

         8       knowledge of it, yes, not in depth.

         9                      SENATOR SOLOMON:  Senator, does

        10       not a holdover proceeding usually commence in

        11       the fact that the tenant pays the rent to the

        12       landlord and the landlord is advised by counsel

        13       not to cash that check and/or money order?

        14                      SENATOR LEIBELL:  Senator, maybe

        15       you can rephrase the question.  I'm not sure how

        16       that relates to the bill.

        17                      SENATOR SOLOMON:  Senator, in a

        18       holdover proceeding, under the laws of this

        19       state in order to commence that proceeding, the

        20       landlord is not to cash that check or advised

        21       not to cash that monthly check.  So if the rent

        22       is paid January 1, Landlord Jones is told by his

        23       attorney you have gotten the rent on January 1











                                                             
8840

         1       by the tenant, do not cash that check because

         2       then the tenant becomes a month-to-month

         3       tenant.  So Landlord Jones has that check or

         4       that money order -- let's say a money order, in

         5       his hands and a holdover proceeding commences,

         6       and February comes -- and February comes, and

         7       the landlord commences the holdover proceeding

         8       30 days afterwards, which would be in February,

         9       and the February rent is paid by money order to

        10       Landlord Jones, so he now has two months; and

        11       now Landlord Jones commences that holdover

        12       proceeding after the February rent is due.  He's

        13       got two months' payment, and he commences a

        14       holdover proceeding against Tenant Smith.

        15       Tenant Smith asked for an adjournment.  Landlord

        16       Jones is then going to say, "Put your money into

        17       escrow"; isn't that correct?

        18                      SENATOR LEIBELL:  That's a

        19       separate action.  Go back to what this bill is

        20       about.  This is a summary proceeding.

        21                      SENATOR SOLOMON:  All right.

        22       Then let me ask you another question.

        23                      ACTING PRESIDENT KUHL:  Senator











                                                             
8841

         1       Leibell, do you continue to yield?

         2                      SENATOR LEIBELL:  Yes.

         3                      SENATOR SOLOMON:  Will you

         4       yield?

         5                      ACTING PRESIDENT KUHL:  The

         6       Senator yields.

         7                      SENATOR SOLOMON:  Senator, in an

         8       actual case, in a case such as this, if the

         9       respondent is represented by an attorney and

        10       that rent is held in an attorney's escrow

        11       account, can these provisions be waived?

        12                      SENATOR LEIBELL:  No.  It has to

        13       be paid into court.

        14                      SENATOR SOLOMON:  It has to be

        15       paid into court?

        16                      SENATOR LEIBELL:  That's -

        17                      SENATOR SOLOMON:  Senator, this

        18       is an actual case where I represented the

        19       tenants.  The good landlord believed that

        20       elevator service wasn't necessary, and I had a

        21       client whose son was disabled in a wheelchair.

        22       Does the court have the power to order monies to

        23       be expended for repairs and/or emergency repairs











                                                             
8842

         1       out of the money that's been deposited in

         2       court?

         3                      SENATOR LEIBELL:  Yes, they

         4       would.

         5                      SENATOR SOLOMON:  Can you show me

         6       where that is in this bill?

         7                      ACTING PRESIDENT KUHL:  Senator

         8       Solomon on the bill.

         9                      SENATOR SOLOMON:  Uh, no.

        10                      ACTING PRESIDENT KUHL:  Senator

        11       Leibell, do you continue to yield?

        12                      SENATOR SOLOMON:  Senator Leibell

        13       is going to respond.

        14                      SENATOR LEIBELL:  That's already

        15       in statute, Senator.

        16                      SENATOR SOLOMON:  Not under this

        17       bill.

        18                      SENATOR LEIBELL:  It's already in

        19       statute in other legislation.

        20                      SENATOR SOLOMON:  I think that if

        21       you look at where the money is supposed to go

        22       for, though, under this legislation, it can only

        23       go to the petitioner.  That's why I'm raising











                                                             
8843

         1       that point, Senator.

         2                      SENATOR LEIBELL:  Senator, if you

         3       could draw your attention to lines 7 through 13

         4       which addresses emergency repairs, and that's

         5       already existing law.

         6                      SENATOR SOLOMON:  Okay, Senator,

         7       so under this legislation, just to make it

         8       perfectly clear, the court has the authority to

         9       say that the following rent money shall be used

        10       for emergency repairs?

        11                      SENATOR LEIBELL:  That's existing

        12       law already, Senator.

        13                      SENATOR SOLOMON:  And it would

        14       continue to exist here?

        15                      SENATOR LEIBELL:  All that we're

        16       looking to do here is to make sure that that

        17       rent will be payable into court.  That's what

        18       this bill before the house today attempts to

        19       address.

        20                      SENATOR SOLOMON:  Senator, lines

        21       28 to 33, it talks about future rents due on the

        22       due date; correct?

        23                      SENATOR LEIBELL:  M-m h-m-m.











                                                             
8844

         1                      SENATOR SOLOMON:  Line 30

         2       actually.  So if we're in court and there have

         3       been two adjournments -- we're in court February

         4       15 and we come up to March 1 and there's a new

         5       rent due, the tenant has to deposit that rent

         6       due on March 1; correct?

         7                      SENATOR LEIBELL:  Yes.

         8                      SENATOR SOLOMON:  Senator, is

         9       there a grace period?

        10                      SENATOR LEIBELL:  None.

        11                      SENATOR SOLOMON:  So, Senator -

        12       if Senator Leibell will yield.

        13                      ACTING PRESIDENT KUHL:  Senator

        14       Leibell, do you continue to yield?

        15                      SENATOR LEIBELL:  Yes, Mr.

        16       President.

        17                      ACTING PRESIDENT KUHL:  Senator

        18       continues to yield.

        19                      SENATOR SOLOMON:  Senator, as I

        20       understand, January 1 is a legal holiday and the

        21       court systems are closed in the State of New

        22       York.  Is that correct?

        23                      SENATOR LEIBELL:  On January 1?











                                                             
8845

         1                      SENATOR SOLOMON:  Yes.

         2                      SENATOR LEIBELL:  I believe

         3       that's correct.

         4                      SENATOR SOLOMON:  So, Senator, if

         5       the rent is due on January 1st and it's not

         6       paid, what are the consequences, since there is

         7       no grace period?

         8                      SENATOR LEIBELL:  I think you

         9       would refer to the General Construction Law

        10       which would control that occurrence.

        11                      SENATOR SOLOMON:  Does Senator

        12       Leibell continue to yield?

        13                      ACTING PRESIDENT KUHL:  Senator

        14       Leibell?  Continues to yield.

        15                      SENATOR SOLOMON:  Senator, have

        16       you examined the general lease forms issued in

        17       the City of New York?  Is not there a grace

        18       period in that lease form or in the General

        19       Construction Law for payment of rent?

        20                      SENATOR LEIBELL:  Not today, I

        21       haven't.

        22                      SENATOR SOLOMON:  Well, last time

        23       you examined it, was there a grace period of any











                                                             
8846

         1       sort?

         2                      SENATOR LEIBELL:  This is a

         3       summary proceeding for payment of rent.  We're

         4       not talking about grace periods.

         5                      SENATOR SOLOMON:  So if Mrs.

         6       Jones is a senior citizen and she's hospitalized

         7       and she's in the hospital and the case was

         8       adjourned twice, Mrs. Jones would have to pay

         9       that rent, then, even though she might be in the

        10       hospital; correct?

        11                      SENATOR LEIBELL:  It would go to

        12       an immediate hearing.

        13                      SENATOR SOLOMON:  But the rent

        14       would be due; correct?

        15                      SENATOR LEIBELL:  The rent would

        16       be due as it would normally.

        17                      SENATOR SOLOMON:  By the

        18       immediate hearing, correct.  There is no

        19       discretion in this bill for the court, is there,

        20       Senator?

        21                      SENATOR LEIBELL:  The rent would

        22       be payable into court.

        23                      SENATOR SOLOMON:  But there is no











                                                             
8847

         1       court discretion on that?

         2                      SENATOR LEIBELL:  (There was no

         3       response.)

         4                      SENATOR SOLOMON:  Technically if

         5       something happened in the court building in and

         6       of itself there is no discretion for the court

         7       to say, "I'm going to say that all these rents

         8       are due two weeks from now."  I'm trying to deal

         9       with the realities of implementing this

        10       legislation.

        11                      SENATOR SKELOS:  Mr. President.

        12                      ACTING PRESIDENT KUHL:  Senator

        13       Skelos.

        14                      SENATOR SKELOS:  If I could just

        15       interrupt for a moment and have the last section

        16       read for the purposes of Senator Trunzo voting.

        17                      ACTING PRESIDENT KUHL:  Ask the

        18       Secretary to read the last section.

        19                      THE SECRETARY:  Section 4.  This

        20       act shall take effect on the 30th day.

        21                      ACTING PRESIDENT KUHL:  Call the

        22       roll.

        23                      (The Secretary called the roll.)











                                                             
8848

         1                      ACTING PRESIDENT KUHL:  Senator

         2       Trunzo, how do you vote?

         3                      SENATOR TRUNZO:  Yes.

         4                      ACTING PRESIDENT KUHL:  Senator

         5       Trunzo will be recorded in the affirmative.  The

         6       roll call will be withdrawn.

         7                      Senator Solomon, you have the

         8       floor.

         9                      SENATOR SOLOMON:  Thank you,

        10       Senator.  I'm waiting for a response from

        11       Senator Leibell.

        12                      SENATOR LEIBELL:  The court would

        13       have its normal discretion.

        14                      SENATOR SOLOMON:  Senator, so if

        15       you could -- you state that the court would have

        16       some discretion to implement parts of this

        17       legislation, as a legislative intent?

        18                      SENATOR LEIBELL:  That's correct.

        19                      SENATOR SOLOMON:  Senator Leibell

        20        -- Mr. President, if Senator Leibell will

        21       continue to yield?

        22                      ACTING PRESIDENT KUHL:  Senator

        23       Leibell, do you continue to yield?











                                                             
8849

         1                      Senator yields.

         2                      SENATOR SOLOMON:  Senator, what

         3       happens if there is a judgment and then there is

         4       a notice of appeal filed, which there is done in

         5       summary proceedings?

         6                      SENATOR LEIBELL:  It would still

         7       be paid in court pending appeal.

         8                      SENATOR SOLOMON:  Into which

         9       court, Senator?

        10                      SENATOR LEIBELL:  Housing Court.

        11                      SENATOR SOLOMON:  Senator, what

        12       happens if there is a judgment you pay for the

        13       tenant and then there is a notice of appeal

        14       filed?

        15                      SENATOR LEIBELL:  They'd get

        16       their money back.  If -

        17                      SENATOR SOLOMON:  I understand in

        18       cases technically continuing.  Is the tenant

        19       going to be required to pay that money into -

        20       is the tenant going to get the money back

        21       immediately or is it going to stay in court?

        22                      SENATOR LEIBELL:  Do you mean

        23       after an appeal is decided?











                                                             
8850

         1                      SENATOR SOLOMON:  No, an appeal

         2       is filed.

         3                      SENATOR LEIBELL:  You are saying

         4       if the -

         5                      SENATOR SOLOMON:  Excuse me.  Mr.

         6       President, if I can rephrase the question?

         7                      SENATOR LEIBELL:  Okay.

         8                      SENATOR SOLOMON:  The landlord

         9       serves Tenant Smith five months back rent.  The

        10       tenant interposes a defense of warranty of

        11       habitability.  The elevator didn't work.  Trial

        12       is held.  The tenant prevails.  The court gives

        13       a decision which in many cases happens in

        14       landlord-tenant court and says, "I find the

        15       elevator equals 50 percent of the rent paid."

        16       The tenant prevails, and an appeal is filed.

        17                      SENATOR LEIBELL:  I have been

        18       advised the court would have to pay the money

        19       back to the tenant immediately.

        20                      SENATOR SOLOMON:  Thank you.

        21                      Mr. President, will Senator

        22       Leibell continue to yield?

        23                      ACTING PRESIDENT KUHL:  Senator











                                                             
8851

         1       Leibell, do you continue to yield?

         2                      SENATOR LEIBELL:  Yes, Mr.

         3       President.

         4                      ACTING PRESIDENT KUHL:  Senator

         5       continues to yield.

         6                      SENATOR SOLOMON:  Senator,

         7       there's one thing that concerns me.  In fact, a

         8       constituent of mine who was a landlord contacted

         9       me two days ago on this type of matter.  He is

        10       coming and taking over a building he purchased

        11       at auction, and there is an issue before DHCR on

        12       back rent, and that issue is being determined.

        13       What happens -- it's a rent overcharge.

        14                      What happens if there is an issue

        15       as of a rent overcharge that is being determined

        16       by DHCR, an administrative agency of the state,

        17       and the landlord sues for the -- sues for an

        18       amount?  How is that -- how is that worked into

        19       this legislation?

        20                      SENATOR LEIBELL:  This is a

        21       summary proceeding -

        22                      SENATOR SOLOMON:  Right.

        23                      SENATOR LEIBELL:  -- for











                                                             
8852

         1       nonpayment.

         2                      SENATOR SOLOMON:  Correct.

         3                      SENATOR LEIBELL:  -- in which the

         4       tenant -- in this case, would be that the tenant

         5       has not paid for a substantial period of time.

         6                      SENATOR SOLOMON:  But, Senator,

         7       let me again try and rephrase it and your

         8       counsel can maybe come up with the proper

         9       answer.  Landlord Jones claims that $1,000 is

        10       due per month on the apartment.  Tenant Smith

        11       had alleged two years ago that there is an

        12       overcharge in that calculation and $1,000 is, in

        13       fact, not the proper rent but $700 is the proper

        14       rent.  That is being decided by DHCR, but

        15       Landlord Jones sues for $1,000.

        16                      What, in fact, is the rent to be

        17       deposited in court?

        18                      And the court is sitting there -

        19       and the court is in a situation saying, "I don't

        20       know what the proper rent is; maybe it's $700;

        21       maybe it's $1,000," and there are cases where

        22       there are substantial differences in the amount

        23       claimed by the landlord and the amount claimed











                                                             
8853

         1       by the tenant which would be subject to

         2       rollback.  I'm just trying to get to the

         3       situation.

         4                      SENATOR LEIBELL:  The rent is

         5       going to be specified in the lease.  That is the

         6       legal rent.  See, distinguish here, Senator -

         7                      SENATOR SOLOMON:  The legal rent

         8       is the rent in the lease?

         9                      SENATOR LEIBELL:  That's correct.

        10                      SENATOR SOLOMON:  Even if DHCR

        11       has already come out with an administrative

        12       ruling?

        13                      SENATOR LEIBELL:  They are two

        14       separate -- these are two separate proceedings.

        15                      SENATOR SOLOMON:  There may -- if

        16       Senator Leibell will yield?

        17                      Senator, what happens if there

        18       has been a DHCR determination and there is an

        19       administrative process at DHCR which has said

        20       that the rent in the lease as $1,000 is not the

        21       correct rent but the correct rent is $823.47?

        22                      SENATOR LEIBELL:  Do you mean

        23       where DHCR has made a ruling?











                                                             
8854

         1                      SENATOR SOLOMON:  Right.

         2                      SENATOR LEIBELL:  Then they would

         3       raise that.  Then the tenant would raise that in

         4       the summary proceeding.

         5                      SENATOR SOLOMON:  But what is the

         6       amount to be paid into court?

         7                      ACTING PRESIDENT KUHL:  Senator

         8       Leibell, do you continue to yield?

         9                      SENATOR LEIBELL:  Yes, Mr.

        10       President.

        11                      ACTING PRESIDENT KUHL:  Senator

        12       continues to yield.

        13                      SENATOR LEIBELL:  If there is a

        14       legitimate legal adjudication that the rent is

        15       different from the lease, then the difference

        16       would be what would be paid in under this

        17       summary proceeding.

        18                      SENATOR SOLOMON:  The difference

        19       between what the landlord is alleging and what

        20       the DHCR has said is due?

        21                      SENATOR LEIBELL:  That's correct.

        22                      SENATOR SOLOMON:  So the tenant

        23       would be required to pay the amount that -- DHCR











                                                             
8855

         1       said there was -- the rent is $825, and the

         2       landlord claims it was $1,000.  The tenant would

         3       be required to pay in the difference?

         4                      SENATOR LEIBELL:  If you have a

         5       finding -- if you had a finding, that's what the

         6       court would take notice of.

         7                      SENATOR SOLOMON:  The DHCR

         8       finding.

         9                      SENATOR LEIBELL:  That is

        10       correct.

        11                      SENATOR SOLOMON:  All right,

        12       Senator.  So I just want to -- I would like to

        13       clarify one last point -

        14                      ACTING PRESIDENT KUHL:  Do you

        15       continue to yield, Senator Leibell?

        16                      SENATOR SOLOMON:  -- if Senator

        17       Leibell will yield?

        18                      SENATOR LEIBELL:  Yes.

        19                      ACTING PRESIDENT KUHL:  Senator

        20       yields.

        21                      SENATOR SOLOMON:  This section of

        22       law is only to apply in summary nonpayment

        23       proceedings -- not holdover proceedings, not











                                                             
8856

         1       tenant-initiated actions, only summary

         2       nonpayment proceedings?

         3                      SENATOR LEIBELL:  That's correct.

         4                      SENATOR SOLOMON:  Senator Leibell

         5       yield for one question?

         6                      ACTING PRESIDENT KUHL:  Senator

         7       Leibell, do you continue to yield?

         8                      SENATOR LEIBELL:  Yes.

         9                      ACTING PRESIDENT KUHL:  The

        10       Senator continues to yield.

        11                      SENATOR SOLOMON:  If the

        12       petitioner adjourns the case three times, what

        13       penalty, if any, does the petitioner have to

        14       pay?

        15                      SENATOR LEIBELL:  There is none.

        16       But I will tell you, it's very unlikely when the

        17       person -- the landlord is not being paid rent,

        18       they have every impetus to go out there and get

        19       the rent in.

        20                      SENATOR SOLOMON:  On the bill.

        21                      ACTING PRESIDENT KUHL:  Senator

        22       Solomon, on the bill.

        23                      SENATOR SOLOMON:  My good friend











                                                             
8857

         1       Senator Leibell is carrying this legislation,

         2       and I have been in Housing Court as Senator

         3       Leichter said, and I would like to inform a

         4       number of my colleagues here that, in fact, in

         5       many instances, the petitioner adjourns the

         6       case, and if you saw the way Housing Court

         7       worked, you would know why the petitioner

         8       adjourned the case.

         9                      In many instances, the

        10       petitioner's attorney does not have the papers.

        11       In many instances, the petitioner's agent is not

        12       in court or the petitioner's agent is running

        13       around to four or five different parts in

        14       Housing Court, and it's not uncommon for them to

        15       adjourn those cases as a matter of course.

        16                      In addition, if you have been in

        17       Housing Court before and you have seen the way

        18       Housing Court works, there are many instances

        19       where there are, in fact, violations, rent

        20       impairing violations, which the laws say that

        21       the rent cannot be paid or collected or sued for

        22       by the landlord as long as those violations

        23       exist.











                                                             
8858

         1                      In effect, this bill really

         2       skirts that issue.  It says you have to pay that

         3       rent into court.  There is a whole list of "C"

         4       violations which are rent impairing violations,

         5       which are issues outside of the warranty of

         6       habitability which, under the laws of the city

         7       of New York, the rent is not to be paid to the

         8       landlord on those "C" violations, where they are

         9       to be repaired within 27 hours and, in fact,

        10       they are not repaired.

        11                      What this bill is doing -- and

        12       you are going to find out, by the way, in fact a

        13       large number of landlords are not going to use

        14       this bill because they know for a fact they'll

        15       never get their money out of court and, if you

        16       talk to attorneys that represent landlords,

        17       they're going to laugh at this.  They're going

        18       to say they don't want to apply this in most

        19       cases because they can't get their money out of

        20       courts.  In fact, they prefer that, if there is

        21       a rent action, that the attorney has the money

        22       in his escrow account or they prefer the fact

        23       that there are money orders made out to the











                                                             
8859

         1       individual tenants which the attorney is

         2       holding.

         3                      This is a bill which is, in fact,

         4       going to cost the courts of the city of New York

         5       huge sums of money and, in reality, is not

         6       applicable to the situations and where you have

         7       due dates where there is no grace period, where

         8       you're saying apply the General Construction

         9       Law, you are going to find a general disaster is

        10       going to occur in that court system.

        11                      You have a piece of legislation

        12       that, as Senator Leichter appropriately said, we

        13       are going to have certain unscrupulous landlords

        14       and their attorneys attempting to use this leg

        15       islation to get tenants out.  We have attorneys,

        16       we have landlords, who, in many cases where they

        17       are attempting to do illegal evictions, will

        18       hold those money orders and not cash those money

        19       orders.  We have landlords, smaller landlords in

        20       many instances, who flagrantly violate the law

        21       and don't give receipts for the cash payments,

        22       because they are such law-abiding citizens that

        23       they don't want to report that cash as their











                                                             
8860

         1       income.

         2                      And I think what you are doing is

         3       telling the judges in Housing Court and/or the

         4       Civil Court judges that hear these cases in many

         5       instances, "We don't trust your discretion.  We

         6       don't trust your discretion to tell somebody

         7       whether or not to pay that rent into court."

         8                      And what you are going to find

         9       out is that, if this becomes law, you are going

        10       to have those small landlords who thought this

        11       was going to be their panacea coming back to you

        12       saying, "You know, Senator, we can't get our

        13       money out of court.  We can't get that rent out

        14       of court.  It's taken us six months."  So you've

        15       got a piece of legislation which takes away

        16       discretion, a piece of legislation which is not

        17       going to help the process, and I think it's a

        18       piece of legislation that's not fair.

        19                      You can draw up a piece of

        20       legislation that has money deposited in court.

        21       You can allow the petitioner to show good cause

        22       why that should be deposited on the court and

        23       can have an immediate hearing to allow the judge











                                                             
8861

         1       to make that decision or even allow the judge to

         2       make a decision to order that money to be held

         3       in an attorney's escrow account, which will

         4       expedite the situation and take it out of the

         5       process of the courts.  But I think this piece

         6       of legislation, the way it's drafted, is going

         7       to cause major problems.  Not only is it unfair

         8       to tenants but it's going to cause major

         9       problems for a lot of the people that have

        10       experience in this court system and are thinking

        11       it's a panacea and, in fact, are going find out

        12       in reality it's not.

        13                      And, yes, there are those

        14       stories, and I can tell you stories about the

        15       landlord who wouldn't provide elevator service

        16       or wouldn't hire an elevator service and the

        17       judge had to come into that building and

        18       actually saw that situation, and the action went

        19       on for a year and a half and there were

        20       structured rebates to the tenants, including the

        21       one -- this woman who had a son in a wheelchair,

        22       six flights of stairs, a landlord who refused to

        23       hire an attorney until she started going on











                                                             
8862

         1       appeals.  The landlord, while she was reading

         2       the financial pages of the New York Times in the

         3       judge's chamber, said she didn't understand the

         4       finances of her building.

         5                      There are horror stories on both

         6       sides.  But the fact of the matter is if you

         7       have been into Housing Court on a regular basis

         8       and gone with some of the attorneys who

         9       practiced both on landlord and tenant side, you

        10       will see a situation that this bill is not going

        11       to solve.  It's going to compound it, and the

        12       small landlords who think they are going to

        13       benefit from this are going to be the ones who

        14       find out that they can't get their money out of

        15       court, just as some of the larger landlords say,

        16       "No, no, no, don't take the tenant's money and

        17       put it into court.  It's the worst thing that's

        18       going to happen to me."

        19                      And I really think this is a bill

        20       where it's been put forward, some people are

        21       carrying this bill, but, in fact, they really

        22       haven't gone in there and spent the week in that

        23       court and taken a look at how the process really











                                                             
8863

         1       works in that court.

         2                      This is a court that's so

         3       strapped for funds, ladies and gentlemen, that

         4       at a point in time a number of years ago when we

         5       had Chief Judge Cooke, I pointed out to him that

         6       the way they called the calendar was an actual

         7       fire hazard, where both tenants and landlords

         8       were shepherded to one part of the building

         9       which had only one entrance and exit, the same

        10       way, and the calendar would be called once.  If

        11       they answered the calendar and said they were

        12       there, they'd have to go to another part.  If

        13       they went to the bathroom and the court officer

        14       said, "It's in Part 15 on the fourth floor, Room

        15       327," they would miss it and be out.  It's

        16       strapped for cash, that part of the court

        17       system, and this is not going to help it.  It's

        18       going to cost more money and result in more

        19       turmoil and an unfair piece of legislation.

        20                      ACTING PRESIDENT KUHL:  Chair

        21       recognizes Senator Abate.

        22                      SENATOR ABATE:  Yes, Mr.

        23       President.  Would Senator Leibell yield?











                                                             
8864

         1                      ACTING PRESIDENT KUHL:  Senator

         2       Leibell, do you yield?

         3                      SENATOR LEIBELL:  Yes.

         4                      ACTING PRESIDENT KUHL:  Senator

         5       yields.

         6                      SENATOR ABATE:  Senator Leibell,

         7       I'm still trying to understand the rationale and

         8       need for this legislation, whether one is a pro

         9       tenant or pro-landlord advocate, neither groups

        10       or advocates condone abuses on either side.

        11                      SENATOR LEIBELL:  Right.

        12                      SENATOR ABATE:  But what I don't

        13       understand is why is there a need to amend and

        14       provide an automatic mandatory provision for the

        15       rent escrow deposits when the judge already has

        16       the discretion?  And now this is the judge who

        17       has before them both litigants, has the

        18       opportunity to evaluate the facts before him or

        19       her.  Why is there a need to take the discretion

        20       away from the judge in order to protect

        21       landlords?

        22                      SENATOR LEIBELL:  Well, as a

        23       practical matter, Senator, my understanding is











                                                             
8865

         1       that when given discretion the court almost

         2       never exercises it.  It was felt that this would

         3       offer a procedure whereby we could attempt to

         4       bring some sense of fairness, and probably

         5       that's the key word here.

         6                      This is not a question of -

         7       certainly not for the sponsor -- of being pro

         8       landlord or pro-tenant.  What we were trying to

         9       do here is to identify a problem, what is a very

        10       severe problem, and there could be some

        11       disagreement as to the magnitude of the problem,

        12       but most people, I think, would concede that

        13       there is a great deal of money that is lost to

        14       landlords because of some tenants, some -- a

        15       substantial number of tenants who use the court

        16       system in order to defeat the landlords and

        17       their right to having a rent.

        18                      Now, the comment was made by my

        19       friend Marty Solomon that this, in fact, would

        20       not be good for New York City.  Well, in fact, I

        21       have here a memorandum in support from New York

        22       City, and the reasons for support -- there's one

        23       sentence that says, "For many owners,











                                                             
8866

         1       particularly those operating on the margin, the

         2       inability to collect these rents can be the

         3       difference between economic survival and

         4       failure."

         5                      One of the things that's

         6       concerned me so greatly, and I hope to have an

         7       opportunity to even spend more time examining

         8       the problem after we recess, is the problem of

         9       housing in New York City, and it certainly is a

        10       very easy thing from a political point of view

        11       to say there are landlords out there and that's

        12       some sort of monster, and it's a horrible thing

        13       to be a landlord.  But, in fact, they provide

        14       countless many thousands of units of housing for

        15       residents of New York City and in so many cases,

        16       we're not talking about some large, monolithic

        17       corporate landlord.  We're talking about smaller

        18       landlords, people who their only source of

        19       income is the rent they generate off that

        20       building, in addition to which their capacity to

        21       maintain those buildings is severely impacted by

        22       those people who do -- for one reason or

        23       another, do not legitimately pay the rent that's











                                                             
8867

         1       owed.

         2                      That's the purpose behind this

         3       bill.

         4                      SENATOR ABATE:  I guess what I'm

         5       very concerned about, what we are saying as a

         6       legislature, that there are judges appointed or

         7       elected to the Housing Court and we do not trust

         8       them to do the right thing to ensure that

         9       landlords are not mistreated or tenants are not

        10       mistreated, and what we're, in fact, doing is

        11       stacking the deck that in all situations, even

        12       if it's not treating an individual case and an

        13       individual tenant fairly, we are saying, "Across

        14       the board in every case, we're mandating the

        15       escrow accounts of rent deposits."  Isn't there

        16       something absolutely unfair about that concept?

        17                      SENATOR LEIBELL:  Not when you

        18       consider -- if you go back to the language that

        19       I originally read, that this bill only becomes

        20       effective, this law, if it becomes law, upon a

        21       second adjournment.  So you could have had -- in

        22       the first place, you could have had a period of

        23        -- a substantial period of months here where











                                                             
8868

         1       there's been no payment of rent, and that is the

         2       problem that we're trying to address by this

         3       bill.

         4                      SENATOR ABATE:  But I would go

         5       back to that second adjournment.  We all could

         6       concede the first adjournment could occur

         7       because the attorney on either side wasn't

         8       prepared or the papers weren't there or the

         9       witnesses or the court may decide because of the

        10       lateness of the hour the case has to be

        11       adjourned, or the tenant comes into court and

        12       says, "I need a counsel.  I barely speak

        13       English.  I don't understand the law."

        14                      Having something as arbitrary

        15       kicking in the second adjournment when there may

        16       be legitimate reasons on the part of either the

        17       court to adjourn it or the tenant to adjourn it,

        18       we're saying automatically now these monies have

        19       to be placed in escrow.  It seems to me that's

        20       very arbitrary, the second adjournment.  Let me

        21       get back -- I'm sure you disagree.

        22                      Let me get back to the issue in

        23       fairness to landlords.  It's my understanding











                                                             
8869

         1       this legislation was either enacted or amended

         2       in 1983 to require the judge to put on the

         3       record why deposits for future rents are not

         4       ordered.  It basically says to the judge, "Look,

         5       the Legislature is saying to you, Judge, we're

         6       looking out for the interest of landlords.  You

         7       can not just arbitrarily without any reason not

         8       deposit these rents in escrows.  We want you to

         9       take that as a precaution in order to protect

        10       landlords, to state it on the record."

        11                      It seems to me this Legislature

        12       has gone -- taken another step.  Again, we don't

        13       want to see landlords with hardships.  Certainly

        14       conditions for certain small landlords who

        15       have -- basically, live in small homes.  They

        16       rent out two or three apartments within their

        17       dwellings.  They are just surviving, too.

        18       Obviously, there are some cases of inequities,

        19       but I don't want to see a piece of legislation

        20       that tips the scales so far in favor of one

        21       group against another.

        22                      I guess what I'm suggesting -

        23       the law already requires or gives the right to a











                                                             
8870

         1       landlord to appeal that decision if a judge does

         2       not order those rent deposits in escrows.  Why

         3       now do we need additional protections beyond

         4       what is in law?

         5                      SENATOR LEIBELL:  Senator, this

         6       is not a situation -- I don't want to mis

         7       characterize how you are stating it, but this is

         8       not a random event where a tenant does not pay

         9       rent.  It is not an infrequent event.  In fact,

        10       as Senator Johnson noted earlier, and I have

        11       noted previously, earlier in the discussion,

        12       there are literally tens of thousands of cases

        13       that are occurring every year, where tenants are

        14       failing to pay rent to the property owners.

        15       There is a failure for the landlord then to have

        16       many tens of millions of dollars in rent coming

        17       in.  We are increasing dramatically the chance

        18       of an already marginal housing supply becoming a

        19       less acceptable housing supply, increasing the

        20       chance of abandonment.

        21                      This legislation is certainly not

        22       frivolous and was not brought here without a

        23       great deal of consideration as to how to try and











                                                             
8871

         1       address this problem.  The discretion you are

         2       talking about from the courts, the Housing

         3       Courts, we still have this problem here, and

         4       this is a problem that is not getting better.

         5       It is getting substantially worse; and in a

         6       different bill at a different time and possibly

         7       in a different forum, without question, you

         8       would probably be saying to me, "My colleague,

         9       what are we going to do to preserve the housing

        10       supply in New York City?  It's deteriorating

        11       rapidly."  That's why New York City gave us this

        12       memorandum, and that's why this bill is before

        13       the house today for consideration.

        14                      SENATOR ABATE:  Would Senator

        15       Leibell continue to yield, Mr. President; would

        16       he continue to yield?

        17                      ACTING PRESIDENT KUHL:  Senator

        18       Leibell, do you continue to yield?

        19                      SENATOR LEIBELL:  Yes, Mr.

        20       President.

        21                      ACTING PRESIDENT KUHL:  The

        22       Senator continues to yield.

        23                      SENATOR ABATE:  I'm trying to











                                                             
8872

         1       understand how this would occur, whether there

         2       be a hearing or whether there would be an

         3       automatic deposit.

         4                      I'm a tenant.  It is now January,

         5       February.  It's very cold.  I've gone to my

         6       landlord along with other tenants asking the

         7       landlord to correct the heating system, and it's

         8       not done, so I, as a tenant, along with other

         9       tenants repair the system, and we're in court.

        10                      We haven't paid rent.  We believe

        11       there should be rent abatement as a result of

        12       the monies that we put in to make these repairs.

        13       As a tenant, would I still be compelled to put

        14       future and past rent into escrow or would there

        15       be a hearing held first on my defense?

        16                      SENATOR LEIBELL:  You would put

        17       your money into the court as this bill provides

        18       for, into the Housing Court.  If, in fact, you

        19       had another proceeding which indicated that and

        20       there had been an adjudication that the rent

        21       should be mitigated, that would impact on this.

        22                      SENATOR ABATE:  See, that is the

        23       very example upon which I think this legislation











                                                             
8873

         1       is patently unfair to tenants, because in that

         2       situation, the landlord did not live up to their

         3       responsibilities.  I as a tenant am forced to

         4       put money out for repairs so that that apartment

         5       could be habitable for me and my children or

         6       whoever else resides, yet then I'm forced to

         7       look elsewhere, to savings, to borrow monies, in

         8       order to remain in my apartment to put those

         9       monies in escrow, while I've put out of another

        10       pocket money for repairs.

        11                      That's a situation I go back to.

        12       We have to rely on the law of the land and our

        13       Judiciary to make sure they correct inequities.

        14       By making this mandatory across the board, we

        15       only produce a system that is unfair.  It may be

        16       unfair to landlords or tenants, and I don't

        17       believe that's the proper way to go.

        18                      SENATOR LEIBELL:  Senator, let me

        19       refer you to the bill again on page 2, line 9

        20       through 13, which addresses the -- which is

        21       existing law, and it's not been changed.

        22                      SENATOR ABATE:  But you would

        23       agree that the question I posed, if I as a











                                                             
8874

         1       tenant put out of my own pocket some monies to

         2       make my apartment habitable, I would still in

         3       that instance have to put money into escrow

         4       while I litigate the second issue for rent

         5       abatement?

         6                      SENATOR LEIBELL:  The court still

         7       has the authority to take notice over that.

         8                      SENATOR ABATE:  But if you said

         9       the court did not have authority in the first

        10       instance, was not acting properly, why are they

        11       going to act properly in this instance?

        12                      SENATOR LEIBELL:  As a

        13       practical -

        14                      SENATOR ABATE:  You either

        15       believe in the court and the powers of the court

        16       and their ability to carry out their discretion

        17       in a fair and equitable manner or we, as

        18       legislators, why don't we go into every court in

        19       every county and make sure the Judiciary

        20       functions properly?

        21                      SENATOR LEIBELL:  We do.

        22                      SENATOR ABATE:  Aren't we over

        23       reaching?











                                                             
8875

         1                      SENATOR LEIBELL:  I don't think

         2       so, otherwise I wouldn't be putting in the

         3       bill.  In response to your question this

         4       afternoon, I still don't think we're in any way

         5       overreaching.  But throughout the course of any

         6       session, we constantly come up with legislation

         7       aimed at improving the court system, making

         8       their lot easier as well as at the same time

         9       protecting parties that will appear before them,

        10       and I think that's what this attempts to

        11       accomplish.  We may have a disagreement on what

        12       the end result will be but that certainly is our

        13       purpose.

        14                      SENATOR ABATE:  On the bill, but

        15       very briefly.

        16                      ACTING PRESIDENT KUHL:  Senator

        17       Abate on the bill.

        18                      SENATOR ABATE:  I think my

        19       colleagues have said just about everything that

        20       I could say on this bill.  I think if judges are

        21       not doing the right thing, I think there are

        22       other ways of making sure judges don't get

        23       reappointed or making sure they don't get











                                                             
8876

         1       reelected in the first place, holding them to

         2       high standards so that a judge on the bench

         3       listens to the concerns of all parties, whether

         4       they be landlords and tenants and not have a

         5       predisposition.

         6                      That's what we should be doing

         7       through education, public opinion, the political

         8       process.  I think it's wrong when we use our

         9       laws to tip the scales in the advantage of one

        10       group or another.

        11                      Housing Court is notorious for

        12       delays.  This will add another layer of

        13       bureaucracy, hearings, further injustices.  We

        14       need to do something meaningful to make Housing

        15       Court more efficient and effective to both

        16       landlords and tenants.  I do not believe this

        17       legislation will move in that direction.

        18                      ACTING PRESIDENT FARLEY:  Senator

        19       Larkin.

        20                      SENATOR LARKIN:  Mr. President.

        21       Suspend the debate for now.  We'd like to open

        22       the rolls for Senator Kuhl to vote.

        23                      ACTING PRESIDENT FARLEY:  Senator











                                                             
8877

         1       Kuhl?  Secretary will call the roll for Senator

         2       Kuhl.

         3                      (The Secretary called the roll.)

         4                      ACTING PRESIDENT FARLEY:  Senator

         5       Kuhl, how do you vote?

         6                      SENATOR KUHL:  Aye.

         7                      ACTING PRESIDENT FARLEY:  Close

         8       the roll.

         9                      Senator Hannon.

        10                      SENATOR HANNON:  Mr. President,

        11       on the bill.

        12                      I found the course of this debate

        13       to be totally fascinating and, at best,

        14       misleading.  I think that the objections to this

        15       meritorious bill are trying to focus on whether

        16       the -- the court system, the procedures in the

        17       court system, and any supposed or presumed

        18       defects in the procedures set forth in the

        19       bill.

        20                      I think, first of all, you have

        21       to look at the problem.  Senator Leibell has

        22       referred to it, but I can't begin to address it

        23       more strongly, that what we're trying to address











                                                             
8878

         1       is the quality of the housing stock in the city

         2       of New York, a housing stock that currently has

         3       to be viewed as under severe attack mainly for

         4       economic reasons.

         5                      Those economic reasons are that

         6       the state and the City government don't have the

         7       cash that they may have had during the '80s to

         8       keep it surviving, the challenges to maintain

         9       the quality of that stock are ever increasing.

        10       We have never resolved the question as to the

        11       ability of many of these units to maintain their

        12       service charges, the ability of many of these

        13       units and buildings to pay their taxes.

        14                      We know that the water charges

        15       are high and threatening the very viability of

        16       many of the buildings; and if the federal

        17       government has its way, those water charges to

        18       each of these buildings will increase.

        19                      We're faced with questions as to

        20       whether or not we will be able to afford any

        21       reduction or abatement in the lead quantities

        22       that are in some of the units in some of these

        23       buildings.











                                                             
8879

         1                      And what this bill attempts to

         2       address is the fact that many of the people who

         3       have lived in these units throughout the city

         4       have gamed the system, and they are gaming the

         5       system sometimes to the detriment of landlords

         6       but I would say, ultimately, to the detriment of

         7       their fellow tenants.

         8                      There are tens of thousands,

         9       almost 50,000, of these proceedings every year

        10       where people are skipping on their rents, and it

        11       does not happen to be for the concern of the

        12       landlord that I would support this bill.  It is

        13       the concern of the system.

        14                      When we last tried to rectify the

        15       overwhelming problem of defaults, it was in the

        16       late '70s, and we said the landlords must be

        17       gaming the system, skipping out on the City in

        18       paying their taxes, so we reduced sharply the

        19       amount of time that you could get away with

        20       without paying your taxes before the City would

        21       step in.  And what happened?  The City was left

        22       with lots of property.

        23                      That property became the units











                                                             
8880

         1       which then Mayor Koch rehabilitated and put back

         2       out in the hands of tenants.  But we don't have

         3       the ability to take over the property again.

         4       The City doesn't have the ability because it's

         5       facing ever mounting deficits.  Until we get

         6       ourselves out of this spiral, we're going to

         7       have to face the fact that HPD in the City is

         8       going to lose more and more money in terms of

         9       its budget.

        10                      So what are we to do?  Are we to

        11       face the fact that we allow a few people to game

        12       the system and to destroy the whole system; or

        13       do we support Senator Leibell's bill, which is a

        14       reasonable obligation?

        15                      And do you know what?  You would

        16       think from the arguments here today that this is

        17       some type of new imposition on the tenants, that

        18       this is some type of penalty on the tenants,

        19       that this is something that's coming out of the

        20       blue.  Guess what?  All it is is saying, "Pay

        21       what you agreed to pay."  Nothing more.  "And if

        22       you want to ask for an adjournment, you got it.

        23       But once you get past the second adjournment,











                                                             
8881

         1       you have the obligation to pay what you agreed

         2       to pay."

         3                      Now, where is that money going to

         4       go?  It's going to pay the water bill.  It's

         5       going to pay the tax bill.  It's going to pay

         6       the electric bill.  It's going to pay steam

         7       heating if it's there.  It's going to pay for

         8       any of the services.  It's going to pay for the

         9       repairs.  It's going to pay for the new boiler,

        10       that's all, before anybody gets to make a,

        11       quote, "profit" if anyone can ever make a profit

        12       these days out of the housing in New York City.

        13                      So who's getting hurt?  It's the

        14       other people who are sharing that electricity,

        15       that water, that heat and, if it's not paid,

        16       they get hurt.

        17                      I can't see why the arguments

        18       would be made.  All you are doing is protecting

        19       the people who are gaming the system.  Each

        20       year, the amount of money that gets deprived

        21       from the housing system is over $100 million.

        22       We know that there are about 300,000 to 400,000

        23       new cases of this type brought every year, and











                                                             
8882

         1       maybe about 10 percent of them will involve the

         2       situation where the rent is skipped.

         3                      It's obvious from the comments of

         4       Senator Abate, citing the 1983 statute, that

         5       that suggested language hasn't worked upon this

         6       Housing Court.  We need to be far more

         7       stringent.  We need to be far more definite, and

         8       what we're doing is not giving advantage to one

         9       side or another.

        10                      What we're doing is -- I think is

        11       making sure a problem doesn't get worse.  We're

        12       making sure that we, as a state, don't have to

        13       go in and bail out a system, and we're allowing

        14       the resources, perhaps, to be directed elsewhere

        15       to people who genuinely have housing problems -

        16       the homeless, the people who are maybe -- who

        17       have defects in terms of mental illness and we

        18       put back in the community the people who have

        19       lost their jobs.  Remember, if you can't make

        20       your rent, you can apply to Social Services, and

        21       we will help you that way.  So if you are truly

        22       needy, if you are truly poor, you can be

        23       assisted.











                                                             
8883

         1                      This statute says the people who

         2       are not truly needy can't game the system any

         3       more, and I fully support it.

         4                      Thank you.

         5                      ACTING PRESIDENT FARLEY:  Read

         6       the last section.

         7                      THE SECRETARY:  Section 4.  This

         8       act shall take effect on the 30th day.

         9                      SENATOR PATERSON:  Slow roll

        10       call.

        11                      ACTING PRESIDENT FARLEY:  A slow

        12       roll call has been called for.  Call the roll

        13       slowly.  Ring the bell.

        14                      THE SECRETARY:  Senator Abate.

        15                      SENATOR ABATE:  No.

        16                      THE SECRETARY:  Senator Babbush.

        17                      (There was no response.)

        18                      Senator Bruno.

        19                      (There was an affirmative

        20       indication.)

        21                      THE SECRETARY:  Aye.  Senator

        22       Connor.

        23                      SENATOR CONNOR:  No.











                                                             
8884

         1                      THE SECRETARY:  Senator Cook.

         2                      (There was no response.)

         3                      Senator DeFrancisco.

         4                      SENATOR DeFRANCISCO:  Yes.

         5                      THE SECRETARY:  Senator DiCarlo.

         6                      (There was no response.)

         7                      Senator Dollinger.

         8                      SENATOR DOLLINGER:  No.

         9                      THE SECRETARY:  Senator Espada.

        10                      SENATOR ESPADA:  No.

        11                      THE SECRETARY:  Senator Farley.

        12                      SENATOR FARLEY:  Aye.

        13                      THE SECRETARY:  Senator Galiber

        14       excused.  Senator Gold.

        15                      SENATOR GOLD:  No.

        16                      THE SECRETARY:  Senator

        17       Gonzalez.

        18                      (There was no response.)

        19                      Senator Goodman.

        20                      SENATOR GOODMAN:  No.

        21                      THE SECRETARY:  Senator Hannon.

        22                      SENATOR HANNON:  Yes.

        23                      THE SECRETARY:  Senator Hoblock.











                                                             
8885

         1                      SENATOR HOBLOCK:  Yes.

         2                      THE SECRETARY:  Senator

         3       Hoffmann.

         4                      (There was no response.)

         5                      Senator Holland.

         6                      SENATOR HOLLAND:  Yes.

         7                      THE SECRETARY:  Senator Johnson.

         8                      SENATOR JOHNSON:  Aye.

         9                      THE SECRETARY:  Senator Jones.

        10                      SENATOR JOHNSON:  Yes.

        11                      THE SECRETARY:  Senator Kruger.

        12                      SENATOR KRUGER:  No.

        13                      THE SECRETARY:  Senator Kuhl

        14       voting in the affirmative earlier today.

        15                      Senator Lack.

        16                      (There was no response.)

        17                      Senator Larkin.

        18                      SENATOR LARKIN:  Aye.

        19                      THE SECRETARY:  Senator LaValle.

        20                      SENATOR LAVALLE:  Aye.

        21                      THE SECRETARY:  Senator Leibell.

        22                      SENATOR LEIBELL:  Mr. President,

        23       to explain my vote.











                                                             
8886

         1                      ACTING PRESIDENT FARLEY:  Senator

         2       Leibell to explain his vote.

         3                      SENATOR LEIBELL:  We have had

         4       certainly a good extensive exchange on this

         5       legislation which is before the Senate today,

         6       and I am pleased that I have had an opportunity

         7       to discuss this with you and with my colleagues.

         8       I noted in my opening comments, and subsequently

         9       throughout the debate, the reason this is before

        10       the house is not to in any way pander to one

        11       group or the other.  This is here today because

        12       it is believed -- and there is certainly a

        13       substantial body of evidence -- that there is a

        14       great problem that confronts New York City with

        15       respect to its housing supply and the failure of

        16       so many to pay the rents that are due on those

        17       units.  That failure can impact heavily on the

        18       quality of housing that remains for everyone

        19       else.

        20                      I think the legislation that's

        21       been put forward attempts to address that

        22       problem.  I believe that it is fair.  I believe

        23       that if given the opportunity, it will go a long











                                                             
8887

         1       way towards relieving the substantial log jam

         2       that we find in the Housing Court in New York

         3       City, and I certainly accept the offer that was

         4       proffered by my colleagues, and I can assure you

         5       that as chairman of Housing that I will be

         6       within the court system this summer and fall, to

         7       look at it, to hopefully work with the people

         8       who participate on a daily basis in that court

         9       system and to craft, in the future, legislation

        10       that will address some of the problems of that

        11       particular court.

        12                      I vote in the affirmative.

        13                      Thank you, Mr. President.

        14                      ACTING PRESIDENT FARLEY:  Senator

        15       Leibell votes in the affirmative.

        16                      Continue the roll call.

        17                      THE SECRETARY:  Senator Leichter.

        18                      SENATOR LEICHTER:  No.

        19                      THE SECRETARY:  Senator Levy.

        20                      SENATOR LEVY:  Aye.

        21                      THE SECRETARY:  Senator Leibell.

        22                      SENATOR LEIBELL:  Aye.

        23                      THE SECRETARY:  Senator Maltese.











                                                             
8888

         1                      (There was no response.)

         2                      Senator Marcellino.

         3                      SENATOR MARCELLINO:  Aye.

         4                      THE SECRETARY:  Senator Marchi.

         5                      SENATOR MARCHI:  Aye.

         6                      THE SECRETARY:  Senator

         7       Markowitz.

         8                      (There was no response.)

         9                      Senator Maziarz.

        10                      SENATOR MAZIARZ:  Yes.

        11                      THE SECRETARY:  Senator Mendez.

        12                      SENATOR MENDEZ:  No.

        13                      THE SECRETARY:  Senator

        14       Montgomery.

        15                      SENATOR MONTGOMERY:  No.

        16                      THE SECRETARY:  Senator Nanula.

        17                      SENATOR NANULA:  No.

        18                      THE SECRETARY:  Senator

        19       Nozzolio.

        20                      SENATOR NOZZOLIO:  Aye.

        21                      THE SECRETARY:  Senator Onorato.

        22                      SENATOR ONORATO:  No.

        23                      THE SECRETARY:  Senator











                                                             
8889

         1       Oppenheimer.

         2                      (There was no response.)

         3                      Senator Padavan.

         4                      (There was no response.)

         5                      Senator Paterson.

         6                      SENATOR PATERSON:  No.

         7                      THE SECRETARY:  Senator Present.

         8                      SENATOR PRESENT:  Aye.

         9                      THE SECRETARY:  Senator Rath.

        10                      SENATOR RATH:  Aye.

        11                      THE SECRETARY:  Senator Saland.

        12                      SENATOR SALAND:  Aye.

        13                      THE SECRETARY:  Senator

        14       Santiago.

        15                      SENATOR SANTIAGO:  No.

        16                      THE SECRETARY:  Senator Sears.

        17                      SENATOR SEARS:  Yes.

        18                      THE SECRETARY:  Senator Seward.

        19                      SENATOR SEWARD:  Yes.

        20                      THE SECRETARY:  Senator Skelos.

        21                      SENATOR SKELOS:  Yes.

        22                      THE SECRETARY:  Senator Smith.

        23                      (There was no response.)











                                                             
8890

         1                      Senator Solomon.

         2                      SENATOR SOLOMON:  No.

         3                      THE SECRETARY:  Senator Spano.

         4                      (There was no response.)

         5                      Senator Stachowski.

         6                      SENATOR STACHOWSKI:  No.

         7                      THE SECRETARY:  Senator

         8       Stafford.

         9                      SENATOR STAFFORD:  Aye.

        10                      THE SECRETARY:  Senator

        11       Stavisky.

        12                      (There was no response.)

        13                      Senator Trunzo voting in the

        14       affirmative earlier today.

        15                      THE SECRETARY:  Senator Tully.

        16                      SENATOR TULLY:  Aye.

        17                      THE SECRETARY:  Senator Velella.

        18                      SENATOR VELELLA:  No.

        19                      THE SECRETARY:  Senator Volker.

        20                      SENATOR VOLKER:  Yes.

        21                      THE SECRETARY:  Senator Waldon.

        22                      (There was no response.)

        23                      Senator Wright.











                                                             
8891

         1                      SENATOR WRIGHT:  Aye.

         2                      ACTING PRESIDENT FARLEY:

         3       Absentees.

         4                      THE SECRETARY:  Senator Babbush.

         5                      (There was no response.)

         6                      Senator Cook.

         7                      SENATOR COOK:  Yes.

         8                      THE SECRETARY:  Senator DiCarlo.

         9                      SENATOR DiCARLO:  Aye.

        10                      THE SECRETARY:  Senator

        11       Gonzalez.

        12                      SENATOR GONZALEZ:  No.

        13                      THE SECRETARY:  Senator

        14       Hoffmann.

        15                      (There was no response.)

        16                      Senator Lack.

        17                      SENATOR LACK:  Aye.

        18                      THE SECRETARY:  Senator Maltese.

        19                      SENATOR MALTESE:  Aye.

        20                      THE SECRETARY:  Senator

        21       Markowitz.

        22                      (There was no response.)

        23                      Senator Oppenheimer.











                                                             
8892

         1                      SENATOR OPPENHEIMER:  No.

         2                      THE SECRETARY:  Senator Padavan.

         3                      (There was no response.)

         4                      Senator Smith.

         5                      SENATOR SMITH:  No.

         6                      THE SECRETARY:  Senator Spano.

         7                      SENATOR SPANO:  No.

         8                      THE SECRETARY:  Senator Stavisky.

         9                      (There was no response.)

        10                      Senator Waldon.

        11                      (There was no response.)

        12                      ACTING PRESIDENT FARLEY:

        13       Results.

        14                      THE SECRETARY:  Ayes 33.  Nays

        15       21.

        16                      ACTING PRESIDENT FARLEY:  The

        17       bill is passed.

        18                      Regular order, Senator Skelos?

        19                      SENATOR SKELOS:  Mr. President.

        20       At this time, if we could return to reports of

        21       standing committees.  I believe there is a

        22       report of the Rules Committee.

        23                      And the reason why we're doing











                                                             
8893

         1       this before finishing this calendar so members

         2       can be aware of what bills will be coming up on

         3       the supplemental calendar, urge their staff to

         4       bring the files over so that we can proceed

         5       expeditiously with the supplemental calendar.

         6                      So if we can have the reading of

         7       the Rules Committee.

         8                      ACTING PRESIDENT FARLEY:

         9       Secretary will read the report of the Rules

        10       Committee.

        11                      THE SECRETARY:  Senator Bruno,

        12       from the Committee on Rules, reports the

        13       following bills:

        14                      Senate Print 1397, by Senator

        15       Spano, an act to amend the State Finance Law, in

        16       relation to payment of emergency financial aid;

        17                      1981, by Senator Connor, an act

        18       authorizing the city of New York to reconvey its

        19       interest in certain real property;

        20                      1982, by Senator DiCarlo, an act

        21       to amend the Executive law, in relation to

        22       testing of certain applicants;

        23                      2138, by Senator Nozzolio, an act











                                                             
8894

         1       to amend the Social Services Law and the

         2       Education Law, in relation to authorizing the

         3       fingerprinting of prospective employees;

         4                      2226, by Senator Velella, an act

         5       to amend the Insurance Law, in relation to

         6       minimum capital investments;

         7                      2400, by Senator Hoffmann, an act

         8       to amend the Judiciary Law, in relation to

         9       appointment of grand jury stenographers;

        10                      2654A, by Senator Goodman, an act

        11       to amend the Multiple Dwelling Law and the

        12       Administrative Code of the City of New York, in

        13       relation to size of cooking spaces;

        14                      2798, by Senator Velella, an act

        15       to amend the State Finance Law, the Tax Law and

        16       the Administrative Code of the City of New York;

        17                      3222A, by Senator Cook, an act to

        18       amend Chapter 565 of the Laws of 1990, amending

        19       the Executive Law;

        20                      3855, by Senator Libous, an act

        21       to amend the Mental Hygiene Law and the

        22       Executive Law, in relation to members of the

        23       Commission on Quality of Care;











                                                             
8895

         1                      3856, by Senator Libous, an act

         2       to amend the Mental Hygiene Law, in relation to

         3       receivership of residential facilities;

         4                      4008, by Senator Saland, an act

         5       to amend the General Business Law, in relation

         6       to making unlawfully installing two-way mirrors

         7       and other viewing devices a violation;

         8                      4417A, by Senator Velella, an act

         9       to amend the Insurance Law, in relation to a

        10       nonemployee chairman of a health service;

        11                      4450A, by Senator Velella, an act

        12       to amend the Insurance Law, in relation to

        13       permitting the use of separate account funds;

        14                      4903A, by Senator Sears, an act

        15       to amend the General Business Law, in relation

        16       to itinerant vendors;

        17                      5027A, by Senator Tully, an act

        18       to amend Chapter 237 of the Laws of 1993,

        19       amending the Environmental Conservation Law;

        20                      5141, by Senator Maltese, an act

        21       to amend the Administrative Code of the City of

        22       New York, in relation to providing tax credits;

        23                      5228A, by Senator Wright, an act











                                                             
8896

         1       to amend Chapter 972 of the Laws of 1972,

         2       relating to creating a Temporary State

         3       Commission to study Tug Hill;

         4                      5276A, by Senator Rath, an act to

         5       amend the Executive Law and others, in relation

         6       to extending the Office of Business Permits and

         7       Regulatory Assistance;

         8                      5300, by Senator DiCarlo, an act

         9       to amend the Tax Law and the Administrative Code

        10       of the City of New York, in relation to

        11       repealing the sales and use taxes imposed by

        12       such city;

        13                      5331, by Senator Farley, an act

        14       to amend the Banking Law, in relation to the

        15       licensing of money transmitters;

        16                      5332, by Senator Farley, an act

        17       to amend the Banking Law, in relation to banking

        18       records; and

        19                      5385, by Senator Maltese, an act

        20       in relation to the election of delegates to a

        21       national party convention.

        22                      All bills ordered directly for

        23       third reading.











                                                             
8897

         1                      ACTING PRESIDENT FARLEY:  All

         2       bills reported directly to third reading.

         3                      Senator Skelos.

         4                      SENATOR SKELOS:  Move to accept

         5       the report of the Rules Committee.

         6                      ACTING PRESIDENT FARLEY:  The

         7       motion has been made to accept the report of the

         8       Rules Committee.

         9                      All in favor, say aye.

        10                      (Response of "Aye.")

        11                      Those opposed, nay.

        12                      (There was no response.)

        13                      The Rules report is accepted.

        14       All bills reported directly to third reading.

        15                      SENATOR SKELOS:  Will you please

        16       recognize Senator Connor, please.

        17                      ACTING PRESIDENT FARLEY:  Senator

        18       Connor.

        19                      SENATOR CONNOR:  Thank you, Mr.

        20       President.

        21                      On behalf of Senator Abate and

        22       myself, I would just like to ask all of my

        23       colleagues to note the presence of and welcome











                                                             
8898

         1       to our chamber the representatives of the

         2       Chinese Language Journalist Association from New

         3       York City, who have joined us here today, and we

         4       encourage them to observe and report on our

         5       activities and perhaps go back to your

         6       publications of which there are a number in New

         7       York and encourage perhaps they send, in the

         8       future, correspondents to Albany on a regular

         9       basis to cover our proceedings, and the China

        10       Press is also represented here.

        11                      ACTING PRESIDENT FARLEY:  The

        12       Senate is pleased to welcome you here to our

        13       chamber, the most beautiful room in America,

        14       according to the Smithsonian, and we're

        15       delighted to have you journalists here.  Come

        16       back and see us again.

        17                      SENATOR WALDON:  Mr. President.

        18                      ACTING PRESIDENT FARLEY:  Senator

        19       Waldon.

        20                      SENATOR WALDON:  Thank you, Mr.

        21       President.  I was not here when calendar -- I

        22       believe it was 994 was voted upon.  I

        23       respectfully request unanimous consent to be











                                                             
8899

         1       recorded in the negative.

         2                      ACTING PRESIDENT FARLEY:

         3       Senator, the record will reflect that had you

         4       been here, you would have voted in the negative.

         5                      SENATOR WALDON:  I appreciate

         6       that, Mr. President.

         7                      ACTING PRESIDENT FARLEY:  Senator

         8       Markowitz.

         9                      SENATOR MARKOWITZ:  Thank you,

        10       Mr. President.

        11                      I would like to first talk to our

        12       Chinese friends.  Niho Ma.

        13                      I would like to be recorded in

        14       the negative on Calendar Number 91, 186, and if

        15       I could have voted during that slow roll call -

        16       and I know, Senator Leibell, I heard very

        17       briefly some of that stimulating debate -- on

        18       994, I would have voted against that bill.

        19                      ACTING PRESIDENT FARLEY:  Senator

        20       Markowitz, they were both slow roll calls, so

        21       you cannot be recorded on 91, but the record

        22       will reflect that had you been in the chamber

        23       you would have voted no.  And 186, that's okay.











                                                             
8900

         1       That was not a slow roll call, so we'll take

         2       care of that.

         3                      SENATOR SKELOS:  Would you

         4       recognize Senator Onorato.

         5                      ACTING PRESIDENT FARLEY:  Senator

         6       Onorato now.  There are a lot of people standing

         7       here.

         8                      SENATOR SKELOS: Senator Onorato.

         9       Would you recognize Senator Onorato.

        10                      ACTING PRESIDENT FARLEY:  Senator

        11       Onorato.

        12                      SENATOR ONORATO:  I would like

        13       unanimous consent to be recorded in the negative

        14       on Calendar 186.

        15                      ACTING PRESIDENT FARLEY:  Without

        16       objection.

        17                      Senator Santiago.

        18                      SENATOR SANTIAGO:  Ask unanimous

        19       consent to be recorded in the negative on

        20       Calendar Number 186.

        21                      ACTING PRESIDENT FARLEY:  Without

        22       objection, Calendar 186, Senator Santiago will

        23       be recorded in the negative.











                                                             
8901

         1                      SENATOR SANTIAGO:  And also 180

         2       had I been here I would have voted in the

         3       negative here.

         4                      ACTING PRESIDENT FARLEY:  The

         5       record will so show.

         6                      Senator Montgomery.

         7                      SENATOR MONTGOMERY:  Mr.

         8       President, I ask unanimous consent to be

         9       recorded in the negative on Calendar Number

        10       186.

        11                      ACTING PRESIDENT FARLEY:  196?

        12                      SENATOR MONTGOMERY:  186.  And

        13       had I been in the chamber when the vote was

        14       taken on Calendar 91, I would have voted

        15       no.

        16                      ACTING PRESIDENT FARLEY:  The

        17       record will so reflect that you would have been

        18       in the negative on Calendar 91 and you will be

        19       recorded in the negative on 186.

        20                      Senator Saland.

        21                      SENATOR SALAND:  Mr. President,

        22       if I could comment on Senator Markowitz'

        23       description of Senator Skelos' debate, I thought











                                                             
8902

         1       it was not only scintillating but captivating

         2       for all of us.  But I would like to to remove

         3       the stars on Calendar 954 and 959, both stars

         4       removed.

         5                      ACTING PRESIDENT FARLEY:  Without

         6       objection, stars are removed also.

         7                      Senator Gold.

         8                      SENATOR GOLD:  Mr. President,

         9       very good to see you.

        10                      ACTING PRESIDENT FARLEY:  Nice to

        11       see you.

        12                      SENATOR GOLD:  Could the record

        13       reflect that had I been in the chamber when

        14       Calendar Number 91 was called, in spite of my

        15       great respect for Senator Holland, I would have

        16       voted in the negative.

        17                      ACTING PRESIDENT FARLEY:  The

        18       record will so reflect.

        19                      Senator Skelos.

        20                      SENATOR SKELOS:  Yes.  Is there

        21       any housekeeping?

        22                      ACTING PRESIDENT FARLEY:  I think

        23       there -- Senator Libous has significant











                                                             
8903

         1       housekeeping.

         2                      SENATOR LIBOUS:  Thank you, Mr.

         3       President.

         4                      On behalf of Senator Velella,

         5       please place a sponsor's star on Calendar Number

         6       1222.

         7                      ACTING PRESIDENT FARLEY:  The

         8       bill is starred.

         9                      SENATOR LIBOUS:  Mr. President,

        10       on behalf of Senator Cook, on page 7, I offer

        11       the following amendments to Calendar Number 247,

        12       Senate Print Number 2271A, and ask that said

        13       bill retain its place on the Third Reading

        14       Calendar.

        15                      ACTING PRESIDENT FARLEY:  Without

        16       objection.

        17                      SENATOR LIBOUS:  On behalf of

        18       Senator Levy, Mr. President, I offer the

        19       following amendments to Calendar Number 876,

        20       Senate Print Number 4986A, and ask that said

        21       bill retain its place on Third Reading

        22       Calendar.

        23                      ACTING PRESIDENT FARLEY:  Without











                                                             
8904

         1       objection.

         2                      SENATOR LIBOUS:  On behalf of

         3       Senator Marcellino, on page 33, I offer the

         4       following amendments to Calendar Number 957,

         5       Senate Print 4951A, and ask that said bill

         6       retain its place on the Third Reading Calendar.

         7                      ACTING PRESIDENT FARLEY:  Without

         8       objection.

         9                      SENATOR LIBOUS:  On behalf of

        10       Senator Farley, on page 37, I offer the

        11       following amendments to Calendar Number 1141,

        12       Senate Print 5120, and ask that said bill retain

        13       its place on the Third Reading Calendar.

        14                      ACTING PRESIDENT FARLEY:  Without

        15       objection.

        16                      SENATOR LIBOUS:  On behalf of

        17       Senate Tully, I offer the following amendments

        18       to Calendar Number 925, Senate Print 3263, and

        19       ask that said bill retain its place on Third

        20       Reading Calendar.

        21                      ACTING PRESIDENT FARLEY:  Without

        22       objection again.

        23                      SENATOR LIBOUS:  Thank you, Mr.











                                                             
8905

         1       President.

         2                      On behalf of Senator LaValle, I

         3       wish to call up his bill, Senate Print Number

         4       2736, recalled from the Assembly which is now at

         5       the desk.

         6                      ACTING PRESIDENT FARLEY:  The

         7       Secretary will read Senator LaValle's bill.

         8                      THE SECRETARY:  Calendar Number

         9       765, Senate Print Number 2736, by Senator

        10       LaValle, in relation to information regarding

        11       the tests to determine the presence of

        12       Thelassemia Trait.

        13                      ACTING PRESIDENT FARLEY:  Senator

        14       Libous.

        15                      SENATOR LIBOUS:  Mr. President, I

        16       now move to reconsider the vote by which this

        17       bill was passed.

        18                      ACTING PRESIDENT FARLEY:  Call

        19       the roll on reconsideration.

        20                      (The Secretary called the roll on

        21       reconsideration.)

        22                      THE SECRETARY:  Ayes 56.

        23                      ACTING PRESIDENT FARLEY:  Bill is











                                                             
8906

         1       before the house.  Senator Libous.

         2                      SENATOR LIBOUS:  Mr. President, I

         3       now offer up the following amendments.

         4                      ACTING PRESIDENT FARLEY:

         5       Amendments received.  Bill will retain its

         6       place.  Senator Libous.

         7                      SENATOR LIBOUS:  On behalf of

         8       Senator Lack, I wish to call up his bill, Senate

         9       Print Number 1465A, recalled from the Assembly

        10       which is now at the desk.

        11                      ACTING PRESIDENT FARLEY:

        12       Secretary will read Senator Lack's bill.

        13                      THE SECRETARY:  Calendar Number

        14       543, by Senator Lack, Senate Print 1465A, an act

        15       in relation to the real property tax assessed by

        16       the town of Smithtown.

        17                      ACTING PRESIDENT FARLEY:  Senator

        18       Libous.

        19                      SENATOR LIBOUS:  Mr. President, I

        20       now move to reconsider the vote by which this

        21       bill was passed.

        22                      ACTING PRESIDENT FARLEY:  Call

        23       the roll on reconsideration.











                                                             
8907

         1                      (The Secretary called the roll on

         2       reconsideration.)

         3                      THE SECRETARY:  Ayes 56.

         4                      ACTING PRESIDENT FARLEY:  The

         5       bill is before the house.  Senator Libous.

         6                      SENATOR LIBOUS: Mr. President, I

         7       now offer up the following amendments.

         8                      ACTING PRESIDENT FARLEY:

         9       Amendments received; bill will retain its

        10       place.

        11                      SENATOR LIBOUS:  Mr. President,

        12       on behalf of Senator Volker, I wish to call up

        13       his bill, Print Number 2767, recalled from the

        14       Assembly which is now at the desk.

        15                      ACTING PRESIDENT FARLEY:

        16       Secretary will read Senator Volker's bill.

        17                      THE SECRETARY:  Calendar Number

        18       554, by Senator Volker, Senate Print 2767, an

        19       act to amend Chapter 207 of the Laws of 1994.

        20                      ACTING PRESIDENT FARLEY:  Senator

        21       Libous.

        22                      SENATOR LIBOUS:  Mr. President, I

        23       now move to reconsider the vote by which this











                                                             
8908

         1       bill was passed.

         2                      ACTING PRESIDENT FARLEY:  Call

         3       the roll on reconsideration.

         4                      (The Secretary called the roll on

         5       reconsideration. )

         6                      THE SECRETARY:  Ayes 56.

         7                      ACTING PRESIDENT FARLEY:  Bill is

         8       before the house.  Senator Libous.

         9                      SENATOR LIBOUS:  Mr. President, I

        10       now offer up the following amendments.

        11                      ACTING PRESIDENT FARLEY:

        12       Amendments are received, bill will retain its

        13       place.

        14                      SENATOR LIBOUS:  Mr. President,

        15       on behalf of Senator Goodman, I wish to call up

        16       his bill, Print Number 3498, recalled from the

        17       Assembly which is now at the desk.

        18                      ACTING PRESIDENT FARLEY:

        19       Secretary will read Senator Goodman's bill.

        20                      THE SECRETARY:  Calendar Number

        21       859, by Senator Goodman, Senate Print 3498, an

        22       act to amend the Transportation Law, in relation

        23       to estimates of transportation charges.











                                                             
8909

         1                      ACTING PRESIDENT FARLEY:  Senator

         2       Libous.

         3                      SENATOR LIBOUS:  Mr. President, I

         4       now move to reconsider the vote by which this

         5       bill was passed.

         6                      ACTING PRESIDENT FARLEY:  Call

         7       the roll on reconsideration.

         8                      (The Secretary called the roll on

         9       reconsideration.)

        10                      THE SECRETARY:  Ayes 56.

        11                      ACTING PRESIDENT FARLEY:  The

        12       bill is before the house.  Senator Libous.

        13                      SENATOR LIBOUS: I offer up the

        14       following amendments.

        15                      ACTING PRESIDENT FARLEY:

        16       Amendments are received and the bill will retain

        17       its place.  Senator Libous.

        18                      SENATOR LIBOUS: Mr. President, on

        19       behalf of Senator Saland, I wish to call up his

        20       bill, Print Number 3918, recalled from the

        21       Assembly which is now at the desk.

        22                      ACTING PRESIDENT FARLEY:

        23       Secretary will read Senator Saland's bill.











                                                             
8910

         1                      THE SECRETARY:  Calendar number

         2       607, by Senator Saland, Senate Print 3918, an

         3       act to amend the Public Housing Law, in relation

         4       to creating the town of Patterson Housing

         5       Authority.

         6                      ACTING PRESIDENT FARLEY:  Senator

         7       Libous.

         8                      SENATOR LIBOUS:  Mr. President, I

         9       now move to reconsider the vote by which this

        10       bill was passed.

        11                      ACTING PRESIDENT FARLEY:  Call

        12       the roll on reconsideration.

        13                      (The Secretary called the roll on

        14       reconsideration.)

        15                      THE SECRETARY:  Ayes 56.

        16                      ACTING PRESIDENT FARLEY:  The

        17       bill is before the house.  Senator Libous.

        18                      SENATOR LIBOUS:  Mr. President, I

        19       offer up the following amendments.

        20                      ACTING PRESIDENT FARLEY:

        21       Amendments will be received; bill will retain

        22       its place.  Senator Libous.

        23                      SENATOR LIBOUS: The last motion.











                                                             
8911

         1                      ACTING PRESIDENT FARLEY:  On the

         2       last motion.

         3                      SENATOR LIBOUS:  On the last

         4       motion, on behalf of Senator Levy, I wish to

         5       call up his bill, Senator Print Number 339,

         6       recalled from the Assembly which is now at the

         7       desk.

         8                      ACTING PRESIDENT FARLEY:

         9       Secretary will read Senator Levy's bill.

        10                      THE SECRETARY:  Calendar number

        11       566, by Senator Levy, Senate Print 339, an act

        12       to amend the Transportation Law, in relation to

        13       expanding the definition of "school".

        14                      ACTING PRESIDENT FARLEY:  Senator

        15       Libous.

        16                      SENATOR LIBOUS: Mr. President, I

        17       now move to reconsider the vote by which this

        18       bill was passed.

        19                      ACTING PRESIDENT FARLEY:  Call

        20       the roll on reconsideration.

        21                      (The Secretary called the roll on

        22       reconsideration.)

        23                      THE SECRETARY:  Ayes 56.











                                                             
8912

         1                      SENATOR LIBOUS:  I offer up the

         2       following amendments.

         3                      ACTING PRESIDENT FARLEY:

         4       Amendments are received and Senator Levy's bill

         5       will retain its place on the Third Reading

         6       Calendar.

         7                      Thank you, Senator Libous.  That

         8       was a fine job.

         9                      Senator Skelos.

        10                      SENATOR SKELOS:  Mr. President,

        11       if we could continue regular order.

        12                      SENATOR SEWARD:  Yes.  Mr.

        13       President.

        14                      ACTING PRESIDENT FARLEY:  Senator

        15       Seward.

        16                      SENATOR SEWARD:  If I could ask

        17       unanimous consent to be recorded in the negative

        18       on Calendar Number 583 which passed earlier

        19       today.

        20                      ACTING PRESIDENT FARLEY:  583,

        21       without objection, you will be in the negative.

        22                      SENATOR SEWARD:  Thank you.

        23                      Senator Skelos, regular order,











                                                             
8913

         1       sir?

         2                      SENATOR SKELOS:  Yes, regular

         3       order, please.

         4                      ACTING PRESIDENT FARLEY:  Regular

         5       order.

         6                      THE SECRETARY:  Calendar Number

         7       1058, by Senator Libous, Senate Print 2959, an

         8       act to amend the General Municipal Law, in

         9       relation to establishing the town of Norwich

        10       Industrial Development Agency.

        11                      ACTING PRESIDENT FARLEY:  There's

        12       a home rule message here at the desk.  You can

        13       read the last section.

        14                      THE SECRETARY:  Section 2.  This

        15       act shall take effect immediately.

        16                      SENATOR PATERSON:  Explanation.

        17                      ACTING PRESIDENT FARLEY:  Senator

        18       Paterson, you want an explanation?

        19                      Senator Libous.

        20                      SENATOR LIBOUS:  Thank you, Mr.

        21       President.

        22                      What this does is renew basically

        23       what they already have in the city of Norwich.











                                                             
8914

         1       Basically the establishment of -- they've

         2       already had the Norwich Industrial Development

         3       Agency and apparently under law, Mr. President,

         4       if you go for a period of time and do not bond,

         5       which they did not, you have to re-establish

         6       yourself, and this bill just re-establishes that

         7       agency.

         8                      ACTING PRESIDENT FARLEY:  Senator

         9       Paterson.

        10                      SENATOR PATERSON:  Mr. President,

        11       I'm just wondering if the sponsor would yield

        12       for a question.

        13                      ACTING PRESIDENT FARLEY:  Would

        14       you yield, Senator Libous?

        15                      SENATOR LIBOUS:  Yes, I would.

        16                      SENATOR PATERSON:  Thank you.  I

        17       just wonder, if the IDA has been so inactive up

        18       to this point, can you explain to us why we're

        19       going to reinstitute it at this time?

        20                      SENATOR LIBOUS:  Mr. President, I

        21       can, and that would be a very good question.  I

        22       would probably if I were on the other side of

        23       the aisle, Senator Paterson, ask the same











                                                             
8915

         1       question.

         2                      Basically the city of Norwich and

         3       the surrounding area has come through some very

         4       difficult times in the past couple of years and

         5       prior to this they did not use the IDA for

         6       bonding for additional projects.  Right now, we

         7       have several projects that are on the horizon in

         8       which we're going to be using the IDA for

         9       bonding, and we need to re-establish it.

        10                      SENATOR PATERSON:  O.K. Thank

        11       you.

        12                      SENATOR STACHOWSKI:  Mr.

        13       President.

        14                      ACTING PRESIDENT FARLEY:  Senator

        15       Larkin?  No, I'm sorry.  Senator Stachowski.

        16                      SENATOR STACHOWSKI:  If Senator

        17       Libous will continue to yield.

        18                      ACTING PRESIDENT FARLEY:  I'm

        19       sure he will.

        20                      SENATOR LIBOUS:  Yes, Mr.

        21       President.

        22                      SENATOR STACHOWSKI:  Does the

        23       county that the town is in, do they have an IDA?











                                                             
8916

         1                      SENATOR LIBOUS:  No, sir, I don't

         2       believe they do.

         3                      SENATOR STACHOWSKI:  O.K. One

         4       more question.  And this would be the only IDA

         5       in that whole area, that currently there isn't

         6       one?

         7                      SENATOR LIBOUS:  For the -- for

         8       the town of Norwich, that's correct.

         9                      SENATOR STACHOWSKI:  O.K. Thank

        10       you.

        11                      ACTING PRESIDENT FARLEY:  Read

        12       the last section.

        13                      THE SECRETARY:  Section 2.  This

        14       act shall take effect immediately.

        15                      ACTING PRESIDENT FARLEY:  Call

        16       the roll.

        17                      (The Secretary called the roll. )

        18                      THE SECRETARY:  Ayes 55, nays

        19       one; Senator Leichter recorded in the negative.

        20                      ACTING PRESIDENT FARLEY:  The

        21       bill is passed.

        22                      THE SECRETARY:  Calendar Number

        23       1107, by Senator Tully, Senate Print 4673A.











                                                             
8917

         1                      SENATOR PATERSON:  Explanation.

         2                      ACTING PRESIDENT FARLEY:

         3       Explanation has been asked for.  Senator Tully.

         4                      SENATOR TULLY:  Thank you, Mr.

         5       President.

         6                      This legislation seeks to exempt

         7       certain bakeries from the state air emission

         8       regulations.  This bill would exempt bakeries

         9       which derive 50 percent or more of their

        10       revenues from on-site retail sales or which use

        11       only batch ovens in their baking process.

        12                      A similar bill was introduced in

        13       March of this year by Assemblyman Brodsky, and

        14       the DEC objected to it because it did not

        15       contain a definition of batch ovens.  Since that

        16       time, there has been three-way agreement on the

        17       bill.  It is now supported by the DEC and the

        18       New York State Food Merchants Association.

        19                      ACTING PRESIDENT FARLEY:  Senator

        20       Paterson.

        21                      SENATOR PATERSON:  Mr. President,

        22       if Senator Tully would yield?

        23                      ACTING PRESIDENT FARLEY:  Would











                                                             
8918

         1       you yield, Senator Tully?

         2                      SENATOR TULLY:  Yes, Mr.

         3       President.

         4                      SENATOR PATERSON:  Senator Tully,

         5       this is really a different bill than we saw last

         6       year.  By the agreement that's now reached, what

         7       we have is a situation that applies only to the

         8       smaller bakeries in the regulated community, and

         9       they would be perceived not to have any real

        10       environmental effect or that they would generate

        11       any pollution that would affect the atmosphere

        12       as opposed to perhaps what the concern may have

        13       been on the part of advocates for the

        14       environment last year, is that correct?

        15                      SENATOR TULLY:  That's correct,

        16       Mr. President.

        17                      SENATOR PATERSON:  Thank you, Mr.

        18       President.

        19                      ACTING PRESIDENT FARLEY:  Read

        20       the last section.

        21                      THE SECRETARY:  Section 2.  This

        22       act shall take effect immediately.

        23                      ACTING PRESIDENT FARLEY:  Call











                                                             
8919

         1       the roll.

         2                      (The Secretary called the roll. )

         3                      THE SECRETARY:  Ayes 56.

         4                      ACTING PRESIDENT FARLEY:  The

         5       bill is passed.

         6                      SENATOR SKELOS:  Mr. President.

         7                      ACTING PRESIDENT FARLEY:  Senator

         8       Skelos.

         9                      SENATOR SKELOS:  On behalf of

        10       Senator Levy, I'd like to move to reconsider the

        11       vote by which Calendar Number 553, Senate 4146,

        12       passed the house.

        13                      ACTING PRESIDENT FARLEY:

        14       Secretary will call the roll on reconsideration

        15       of Senator Levy's bill.

        16                      THE SECRETARY:  Calendar Number

        17       553, by Senator Levy, Senate Print 4146, an act

        18       to amend the Transportation Law.

        19                      ACTING PRESIDENT FARLEY:  Call

        20       the roll on reconsideration.

        21                      (The Secretary called the roll on

        22       reconsideration. )

        23                      THE SECRETARY:  Ayes 56.











                                                             
8920

         1                      SENATOR SKELOS:  Lay the bill

         2       aside for amendment.

         3                      ACTING PRESIDENT FARLEY:  Lay the

         4       bill aside for an amendment.

         5                      SENATOR SKELOS:  Continue with

         6       regular order.

         7                      ACTING PRESIDENT FARLEY:  Regular

         8       order.

         9                      THE SECRETARY:  Calendar 1197, by

        10       Senator Velella, Senate Print 3663B, an act to

        11       amend the Insurance Law, in relation to

        12       provisions regarding motor vehicle insurance

        13       rates.

        14                      SENATOR PATERSON:  Explanation.

        15                      ACTING PRESIDENT FARLEY:

        16       Explanation.  Senator Velella.

        17                      SENATOR VELELLA:  Yes, Senator.

        18       This would extend to motor vehicle insurance for

        19       individuals or non-commercial motor vehicle

        20       insurance a flex rating system that we now have

        21       in effect for commercial insurers.  It allows

        22       companies to adopt a file and use a procedure

        23       which this Legislature had enacted during the











                                                             
8921

         1       liability insurance crisis and which has worked

         2       to stabilize the rates in the commercial area

         3       and the liability area, and we believe and the

         4       Department believes that it would be a good

         5       addition to the Insurance Law of this state if

         6       we could have flex rating in the private

         7       automotive insurance business.

         8                      SENATOR PATERSON:  Mr.

         9       President.

        10                      ACTING PRESIDENT FARLEY:  Senator

        11       Paterson.

        12                      SENATOR PATERSON:  Well, Mr.

        13       President, the flex rating system would allow

        14       the insurance to increase, as I see it, Senator

        15       Velella, so my question to you -- if you would

        16       yield.

        17                      SENATOR VELELLA:  Do I yield?

        18       Yes.

        19                      SENATOR PATERSON:  -- is how does

        20       the consumer benefit by the adoption of a flex

        21       rating system?

        22                      SENATOR VELELLA:  Well, what it

        23       will do is, it will make insurance more











                                                             
8922

         1       available during crisis periods because it

         2       allows for the flexibility of market rates and

         3       it also requires that the companies and,

         4       Senator, I don't know the last time I looked at

         5       an insurance bill and I've been driving and

         6       owning a car for a number of years.  I'm sure

         7       you have owned a car or had some insurance or

         8       know someone who does, but certainly I haven't

         9       seen any reductions in insurance premiums for

        10       car owners in a long, long time.  I can't

        11       remember any, so they have been going up at

        12       about the rate of anywhere from three to eight

        13       percent per year depending on different variety

        14       of circumstances, so this will now allow rather

        15       than a -- rather than the system where we have

        16        -- where there is a pre-approval, this will be

        17       a file and use which works in the marketplace to

        18       reflect trends that change and fluctuate.

        19                      It will also allow the companies

        20       to reduce the amount of paperwork that they have

        21       to do in the system that they have now and allow

        22       the Insurance Department to reduce their man

        23       power on these pre-approval processes which











                                                             
8923

         1       require a lot of time and will result in a

         2       savings for the state, a savings to the

         3       insurance companies.  I doubt very seriously if

         4       the companies will pass that savings on to the

         5       consumer because you and I both know they

         6       promise they will; however, we hope that in

         7       monitoring it, they will at least reduce the

         8       increases that are inevitable to come down the

         9       road.

        10                      SENATOR PATERSON:  Mr. President,

        11       this is kind of a strange circumstance because I

        12       feel that Senator Velella is actually making the

        13       argument that I wanted to make to him, and I

        14       guess -

        15                      SENATOR VELELLA:  Well, then we

        16       agree, Senator.  Let's sit down.

        17                      SENATOR PATERSON:  Let's sit down

        18       and lay this bill aside.

        19                      ACTING PRESIDENT FARLEY:  Senator

        20       Paterson.

        21                      SENATOR PATERSON:  That's exactly

        22       what I'm asking, Senator.  In other words, now

        23       that we've -- it would seem that cutting down on











                                                             
8924

         1       the additional paperwork and allowing the

         2       insurance company to work outside the system

         3       would actually be of benefit to the consumer.

         4       What I'm afraid of, and maybe this is what I

         5       need for you to clean up for me and then maybe

         6       we can sit down, is why the insurance company

         7       now, without pre-approval can just pass the rate

         8       increases along through the flex system and not

         9       really have to waste any time, in a sense

        10       justifying the rate increase.

        11                      I don't -- I don't see how this

        12       is actually going to help.  It will benefit the

        13       insurance company and it will clear up a lot of

        14       red tape, I would say, but inevitably, wouldn't

        15       this accomplish the goal of making the increases

        16       occur faster?

        17                      SENATOR VELELLA:  Well, Senator,

        18       the best example I could give you trying to

        19       respond to that problem as you outline it is a

        20       problem that this Legislature had to face and

        21       probably will have to face again probably in the

        22       two-year future, is the problem we had with

        23       Empire Blue Cross/Blue Shield.











                                                             
8925

         1                      If you know -- if you remember

         2       the increases that they had been applying for

         3       were delayed and delayed by the Department and

         4       further delayed, and then this Legislature had

         5       to take a very firm step and pass some

         6       legislation which resulted in a piling up of all

         7       those increases hitting the consumer in one

         8       solid shot that really hurt a lot of people, but

         9       there was no alternative.

        10                      This flex rating system which the

        11       Legislature came up with, I don't know if you

        12       were here, but it was before I was here, I

        13       believe Senator Bruno was the chairman of the

        14       Insurance Committee, was a tool that was used to

        15       stabilize rates in the commercial area and in

        16       the commercial liability area, and it has worked

        17       very, very well.

        18                      These companies are accountable

        19       within a band for the maximum amount of increase

        20       that they can make which will be determined by

        21       the Superintendent, so in essence it's not just

        22       a free hand to say you can raise your premiums

        23       whatever you want.  A band is established where,











                                                             
8926

         1       if they wish to go beyond that band and increase

         2       the premiums, that they would be charging the

         3       public more than what the Superintendent says is

         4       fair and reasonable, based upon his analysis of

         5       the insurance market, then they would have to go

         6       into a prior approval system where the

         7       Superintendent would hold the formalized

         8       procedures and hold, I believe, a public hearing

         9       in most cases for the people to have this

        10       increase -- for the companies to have this

        11       increase if they violate that band.

        12                      That band at best would be

        13       somewhere between that two and eight percent

        14       that we talked about before.

        15                      SENATOR PATERSON:  Mr.

        16       President.

        17                      ACTING PRESIDENT FARLEY:  Senator

        18       Paterson.

        19                      SENATOR PATERSON:  Senator

        20       Velella, you're right on the Blue Cross/Blue

        21       Shield issue.  That happened before I came

        22       here.  I actually came here one Senator before

        23       you came here.  I came directly before you,











                                                             
8927

         1       which was three months before you and the -- but

         2       what I thought happened in that situation,

         3       Senator, is that we went from the situation

         4       where we had no prior approval to the flex

         5       system.

         6                      Here, as I see it, we're going in

         7       the reverse.  We're going in a situation where

         8       we have a strict regulation and prior approval

         9       to the flex system which is a reduced sense, am

        10       I not correct, in that assumption?

        11                      SENATOR VELELLA:  You're correct

        12       in that, and one of the -- one of the things

        13       that we're trying to address here is to allow

        14       the companies to reflect the market conditions,

        15       not to try to overly anticipate and go in for an

        16       increase to be approved for greater than -

        17       yeah, when you have somebody saying what you can

        18       give in terms of an increase, the tendency is to

        19       go in for the most you can get and that's what I

        20       believe some companies have been doing in order

        21       to insure themselves against the possibility of

        22       low-balling the estimate of what they would need

        23       to make their portfolio profitable.











                                                             
8928

         1                      With the flex rating system,

         2       they're given the opportunity to amend their

         3       rates, to go in and use them as need be and the

         4       competitive marketplace does put a barometer on

         5       it.  You can't just go in and price yourself out

         6       of the market, so in most cases that fair

         7       competition out there, the price of a premium of

         8       an insurance policy will be also a monitoring

         9       factor in the marketplace.

        10                      SENATOR PATERSON:  Thank you very

        11       much, Senator.

        12                      Mr. President, on the bill.

        13                      ACTING PRESIDENT FARLEY:  On the

        14       bill, Senator Paterson.

        15                      SENATOR PATERSON:  I think there

        16       is perhaps agreement.  I think Senator Velella

        17       makes a lot of sense.  I guess I would just say

        18       that there is between he and myself, an

        19       individual interpretation on what the insurance

        20       company's assessment will be, rather a test of

        21       faith in the actual insurance companies, but I

        22       appreciate the fact that he did understand that

        23       this system that we would be creating should











                                                             
8929

         1       actually inure to the benefit of the consumer,

         2       but I don't think it will, and I'm happy to see

         3       that Senator Velella seems to recognize that as

         4       well.

         5                      ACTING PRESIDENT FARLEY:  Read

         6       the last section.

         7                      THE SECRETARY:  Section 8.  This

         8       act shall take effect June 30th.

         9                      ACTING PRESIDENT FARLEY:  Call

        10       the roll.

        11                      (The Secretary called the roll. )

        12                      THE SECRETARY:  Ayes 56.

        13                      ACTING PRESIDENT FARLEY:  The

        14       bill is passed.

        15                      THE SECRETARY:  Calendar Number

        16       1220, by Senator Seward, Senate Print 4649, an

        17       act to amend the Alcoholic Beverage Control Law,

        18       in relation to authorizing liquor stores to

        19       operate on Christmas Eve and New Year's Eve.

        20                      SENATOR PATERSON:  Explanation.

        21                      ACTING PRESIDENT FARLEY:

        22       Explanation has been asked for.  Senator

        23       Seward.











                                                             
8930

         1                      SENATOR SEWARD:  Yes, Mr.

         2       President.

         3                      This bill before us which is

         4       sponsored in the other house by member of the

         5       Assembly Eileen Dugan and amends the ABC Law to

         6       authorize liquor stores to conduct business on

         7       December 24th and December twenty... excuse me,

         8       December 31st, when those dates fall on a

         9       Sunday, and the bill specifically only

        10       authorizes the hours of between 12:00 and 6:00

        11       p.m.

        12                      Now, currently the law prohibits

        13       such stores from operating on Sundays, and the

        14       calendar indicates that every seven years, of

        15       course, Christmas Eve and New Year's Eve fall on

        16       Sunday, including this year, 1995, and these

        17       days are traditionally the two busiest days for

        18       these retailers as customers shop for last

        19       minute Christmas gifts or stop by on their way

        20       to a family dinner.

        21                      This bill is not any sweeping

        22       change in the existing law.  It involves six

        23       hours of operation of these stores every seven











                                                             
8931

         1       years and seeks to do this for the convenience

         2       of the retailers and the customers alike.

         3                      ACTING PRESIDENT FARLEY:  Senator

         4       Solomon.

         5                      SENATOR SOLOMON:  Yes, Mr.

         6       President.  Will Senator Seward yield?

         7                      ACTING PRESIDENT FARLEY:  I think

         8       he will.  Senator Seward?

         9                      SENATOR SEWARD: Yes.

        10                      SENATOR SOLOMON:  I'm trying to

        11       phrase this as delicately as I can.  Senator, in

        12       terms of Christmas Eve, why would there be an

        13       exception on Sunday in terms of Christmas Eve?

        14       Can you tell me why, what significance that has?

        15                      SENATOR SEWARD:  I'm not sure I

        16       understand your question.

        17                      SENATOR SOLOMON: Well, Senator,

        18       you're -- let me ask you another question.

        19       Senator, why are liquor stores currently closed

        20       on Sunday?

        21                      SENATOR SEWARD:  That was done

        22       long before I came on the scene, that they are a

        23       relic, I believe, of some of the "blue laws"











                                                             
8932

         1       which, of course, were very prevalent in this

         2       state for many years.  This -- this is covered

         3       specifically in the -- of course, in the ABC

         4       Law.

         5                      SENATOR SOLOMON:  Senator Seward

         6       yield, please?

         7                      SENATOR SEWARD:  Certainly.

         8                      ACTING PRESIDENT FARLEY:  Senator

         9       Seward.

        10                      SENATOR SOLOMON:  Senator,

        11       there's certain parts of my district in which

        12       liquor stores are closed every Saturday, and

        13       would you have an objection if those liquor

        14       stores that were closed on Saturday would be

        15       open on Sunday?

        16                      SENATOR SEWARD:  This bill

        17       doesn't address that particular issue.  I -- if

        18       you would care to introduce such a bill, I

        19       obviously would take a look at it.  I haven't

        20       really thought about that.  I'd want to take a

        21       look at the particular bill.

        22                      SENATOR SOLOMON:  O.K.

        23                      SENATOR SEWARD:  In any event, I











                                                             
8933

         1       would just further point out, Senator, that this

         2       doesn't require a store to remain open or to

         3       close.  It just, of course, authorizes, gives

         4       the opportunity for such a store to be open on

         5       those two days which roll around every seven

         6       years.

         7                      SENATOR SOLOMON:  Senator yield?

         8                      ACTING PRESIDENT FARLEY:  Senator

         9       Seward?

        10                      SENATOR SOLOMON:  Senator, those

        11       will be Sundays, though, correct? Those are

        12       Sundays?

        13                      SENATOR SEWARD:  That is

        14       correct.

        15                      SENATOR SOLOMON:  On the bill,

        16       Mr. President.

        17                      ACTING PRESIDENT FARLEY:  On the

        18       bill, Senator Solomon.

        19                      SENATOR SOLOMON:  Senator, I

        20       would be inclined to vote for this bill but what

        21       concerns me is a problem that's been brought up

        22       in my Senate District for a number of years,

        23       particularly dealing with the Orthodox Jewish











                                                             
8934

         1       community which observes Saturday as its day of

         2       rest, and what concerns me is that we have never

         3       been able to get our liquor stores to be allowed

         4       to be open on Sundays, even though they are

         5       closed on Saturdays, and that causes particular

         6       problems on certain holidays when days of

         7       observance fall as a result of the calendar

         8       where wine is required to be used in certain

         9       ceremonies in the Jewish holidays where, in

        10       fact, the stores would be closed on Saturday and

        11       as a result of the law that liquor stores are

        12       closed on Sunday and the holiday starts on

        13       Sunday night, that people are put at a distinct

        14       disadvantage as are the owners of the liquor

        15       stores, and what also concerns me is, in fact,

        16       that the "blue laws" originated out of -

        17       historically out of a religious aspect of this

        18       country as you were talking about Christmas,

        19       because in parts of my Senate District, December

        20       25th is December 25th and there is no

        21       significance attached to that day, and in parts

        22       of my district January 1st is January 1st, and

        23       there is no significance attached to that day,











                                                             
8935

         1       because both holidays have a religious

         2       connotation, and I respect that, and, in fact,

         3       this bill will aid those liquor stores in my

         4       Senate District that are indeed closed on

         5       Saturday and they will now be able to be open

         6       for two days on Sunday, but I believe it should

         7       be stated for the record here that there are no

         8       objections to liquor stores being opened on

         9       Sundays.  In fact, I believe that's what this

        10       bill does, and I think this Legislature should

        11       be cognizant of the fact that a large growing

        12       part of our state, because the Orthodox commun

        13       ity is one of the fastest growing populations

        14       within the state of New York, does have a

        15       particular problem with the ABC Laws as they

        16       currently exist, because those laws discriminate

        17       against people that follow that faith and/or

        18       people that own liquor stores.

        19                      I'd have no problem requiring a

        20       liquor store to be closed either Saturday or

        21       Sunday or one day of the week, and I just hope

        22       the other members of this body realize that, in

        23       fact, this bill has religious connotations that











                                                             
8936

         1       affect a large part of this state but does not

         2       affect another part of the community within this

         3       state which has a severe problem with them not

         4       being allowed to open on Sundays currently.

         5                      In fact, I'd like to suggest to

         6       you maybe we should amend this bill to allow

         7       liquor stores to be open on Sundays as long as

         8       they are closed on a Saturday in terms of

         9       religious observance.

        10                      Thank you.

        11                      ACTING PRESIDENT FARLEY:  Senator

        12       Jones.

        13                      SENATOR JONES:  On the bill.

        14       Usually most pieces of legislation that come

        15       before us, we have memos in support and memos in

        16       opposition.  Well, I don't see any on this, so

        17       I'm going to take this one as just a "feel good"

        18       vote and that's how I'm going to vote.

        19                      Ladies and gentlemen, we spend

        20       millions of dollars every year on treating

        21       alcohol abuse.  We spend another millions

        22       educating our youth on the dangers of alcohol,

        23       to say nothing of let's talk about the money we











                                                             
8937

         1       spend in our courts on prosecuting DWIs or the

         2       horrors that are left in this country over

         3       people injured by drunken driving, and we stand

         4       here today worrying that people aren't going to

         5       be able to stock up enough alcohol to get

         6       through two holidays of the year, and heaven

         7       forbid they got to shop a day early.

         8                      I think it's the silliest thing

         9       that I've heard since I've been here.  I feel

        10       very good about voting no.

        11                      SENATOR PATERSON:  Mr.

        12       President.

        13                      ACTING PRESIDENT FARLEY:  Senator

        14       Paterson.

        15                      SENATOR PATERSON:  Mr. President,

        16       would Senator Wright yield for a question?

        17                      ACTING PRESIDENT FARLEY:  Senator

        18       Wright or Senator Seward?

        19                      SENATOR PATERSON:  I'm sorry.

        20       Senator Seward.

        21                      ACTING PRESIDENT FARLEY:  Senator

        22       Seward I thought.  I'm sure he will.

        23                      SENATOR SEWARD:  Yes, Mr.











                                                             
8938

         1       President.

         2                      SENATOR PATERSON:  My apologies,

         3       Senator Seward.

         4                      Many times in this Legislature I

         5       think many of the questions are a little

         6       technical and a little nebulous, and after this

         7       question, I'm hoping, Senator Seward, that you

         8       will nominate me for the all-time nebulous

         9       question award or at least the one for 1995.

        10                      Senator Seward, do you know the

        11       last time that this bill would have been applied

        12       when it -- if it had already been in existence?

        13                      SENATOR SEWARD:  It would have

        14       been six years ago if my -

        15                      SENATOR PATERSON:  So really this

        16       doesn't really happen every seven years; it

        17       actually happens every six years because of Leap

        18       Year.

        19                      SENATOR SEWARD:  I stand

        20       corrected.

        21                      SENATOR PATERSON:  In addition to

        22       that, Senator Seward, I want you to be relieved

        23       to know that the next time that the Sunday











                                                             
8939

         1       before Christmas and the Sunday before New

         2       Year's will occur will be in the year 2000

         3       because there are two Leap Years that will

         4       intervene between now and that time.

         5                      ACTING PRESIDENT FARLEY:  Senator

         6       Seward.

         7                      SENATOR SEWARD:  I -- on the

         8       question of Leap Years, I'll gladly defer to

         9       Senator Paterson.

        10                      SENATOR PATERSON:  If Senator

        11       Seward is satisfied with my recitation of the

        12       calendar, I consider this to be the greatest

        13       waste of time that we have indulged ourselves in

        14       during this session but it only took one

        15       minute.

        16                      ACTING PRESIDENT FARLEY:  Senator

        17       Dollinger.

        18                      SENATOR DOLLINGER:  One question

        19       on the bill for Senator Seward, if he'd yield.

        20                      ACTING PRESIDENT FARLEY:  I think

        21       he will.

        22                      SENATOR DOLLINGER:  The Memorial

        23       Day holiday is always on a Monday, the Labor Day











                                                             
8940

         1       Holiday is always on a Monday, the Columbus Day

         2       holiday is usually on a Monday, and the 4th of

         3       July is often a Monday.  Do the retailers who

         4       have liquor stores show that they somehow lose

         5       sales because they're closed the day before

         6       these national holidays which have no religious

         7       significance?

         8                      SENATOR SEWARD:  Well, Mr.

         9       President, I -- I have no indication in terms of

        10       the other holidays.  These two particular

        11       holidays have been brought to my attention as

        12       ones that -- the day prior to them are the

        13       busiest days and so that's -- that's why this

        14       bill addresses those particular dates.  If you

        15        -- if the retailers in your district or others

        16       feel that there are additional days, where there

        17       is a similar problem, then feel free to

        18       introduce a bill.

        19                      SENATOR DOLLINGER:  I'm probably

        20       going to join my colleague, Senator Jones, in

        21       voting against this measure.  I agree with her,

        22       I mean on our national holidays we seem to have

        23       plenty of alcohol in circulation even though











                                                             
8941

         1       package stores, liquor stores, are closed the

         2       day before a national holiday.

         3                      I don't know why we have to make

         4       them more available on two religious holidays.

         5       I'm not so sure that we should be encouraging

         6       people to drink on religious holidays, but

         7       giving them a disincentive to drink on their

         8       national holidays.  I don't understand how that

         9       works on a matter of state policy.  I'll be

        10       voting in the negative.  Let's keep the stores

        11       closed on Sunday.

        12                      ACTING PRESIDENT FARLEY:  Senator

        13       Marchi.

        14                      SENATOR MARCHI:  Mr. President, I

        15       think that we're really straining at gnats

        16       here.  Both Christmas and New Year's are days of

        17       observance to tens of millions of people across

        18       the nation, and alcoholic beverages are not

        19       necessarily evil.  I have to preface this with

        20       my profession of the fact that, even though I

        21       don't drink, I'm not a prohibitionist, and I

        22       don't -- I don't have too much sympathy for

        23       prohibitionism as such.











                                                             
8942

         1                      The founder of my religion, Mr.

         2       President, performed his first miracle at the

         3       marriage feast of Cana, so I don't know whether

         4       they dispensed Coca-Cola at the event or whether

         5       they dispensed wine.  Historians would suggest

         6       that the miracle that occurred was the avail

         7       ability of wine for those special circumstances.

         8                      So I -- I think that the

         9       Senator's bill makes eminent sense.  It's in

        10       tune with our mores and our practices, our

        11       familial support in millions and millions of

        12       homes.  I see no -- nothing wrong.  If there are

        13       circumstances, as one of the Senators pointed

        14       out, maybe Senator Solomon, perhaps that are

        15       analogous in their circumstances, I believe the

        16       same accommodation should be met, and I would

        17       have no problem co-sponsoring with someone for

        18       the periodic, not -- this is not a usual event.

        19       I mean it doesn't occur usually.  It's just once

        20       in a while to further a practice that follows

        21       existing mores and usage.

        22                      Now, I certainly would be

        23       delighted to support anyone who has -- who has











                                                             
8943

         1       analogous circumstances in other settings and

         2       other spiritual backgrounds for festive

         3       occasions and make the same arrangements.

         4                      It's a very fine bill.  I -- he's

         5       got my complete support on this one.

         6                      ACTING PRESIDENT FARLEY:  Read

         7       the last section.

         8                      THE SECRETARY:  Section 2.  This

         9       act shall take effect immediately.

        10                      ACTING PRESIDENT FARLEY:  Call

        11       the roll.

        12                      (The Secretary called the roll. )

        13                      ACTING PRESIDENT FARLEY:  Senator

        14       Montgomery to explain her vote.

        15                      SENATOR MONTGOMERY:  Yes, Mr.

        16       President, just briefly to explain my vote.

        17       This bill calls for the liquor stores to be open

        18       on Christmas Eve and that is a high holy day for

        19       Christians in this state, and I'm one, and I

        20       certainly don't know why we chose Christmas Eve

        21       as opposed to, as Senator Dollinger has raised,

        22       some of the other national holidays where

        23       festive celebration is more appropriate.











                                                             
8944

         1                      So I'm voting against this bill

         2       because I think symbolically we just should not

         3       be looking to encourage the consumption of

         4       liquor around a religious holiday.  So I vote

         5       no.

         6                      ACTING PRESIDENT FARLEY:

         7       Results.

         8                      THE SECRETARY:  Those recorded in

         9       the negative on Calendar Number 1220 are

        10       Senators Dollinger, Jones, Kruger, Montgomery,

        11       Gold.  Ayes 52, nays 5.

        12                      ACTING PRESIDENT FARLEY:  The

        13       bill is passed.

        14                      Senator Nanula.

        15                      SENATOR NANULA:  Mr. President, I

        16       would like to request unanimous consent to be

        17       recorded in the negative on Calendar Number

        18       186.

        19                      ACTING PRESIDENT FARLEY:  Without

        20       objection, you'll be in the negative.

        21                      SENATOR NANULA:  Thank you.

        22                      ACTING PRESIDENT FARLEY:  Senator

        23       Hoblock.











                                                             
8945

         1                      SENATOR HOBLOCK:  Mr. President,

         2       earlier today I was not in the chamber when

         3       there was a slow roll call on Calendar Number

         4       91, Senate Bill 2046B. I was at a meeting with

         5       the Commissioner of General Services, and had I

         6       been in the chamber during that slow roll call,

         7       I would have voted in the affirmative.

         8                      ACTING PRESIDENT FARLEY:  All

         9       right.  Before I do that, we were in the middle

        10       of a roll call.  The bill was passed, and the

        11       vote was announced.

        12                      The record will so indicate your

        13       concern with being out of the chamber, Senator

        14       Hoblock.

        15                      Senator Skelos.

        16                      SENATOR SKELOS:  Mr. President, I

        17        -- I couldn't hear, but was Calendar Number

        18       1220 passed?

        19                      ACTING PRESIDENT FARLEY:  Yes, it

        20       was.

        21                      SENATOR SKELOS:  It was.  Thank

        22       you.

        23                      ACTING PRESIDENT FARLEY:  Senator











                                                             
8946

         1       Maltese.

         2                      SENATOR MALTESE:  Mr. President,

         3       I would ask unanimous consent to be recorded in

         4       the negative on Calendar Number 1220.

         5                      ACTING PRESIDENT FARLEY:  1220,

         6       without objection, you'll be in the negative.

         7                      Senator Maziarz.

         8                      SENATOR MAZIARZ:  Yes, Mr.

         9       President, without objection, I would also like

        10       to be recorded in the negative on Calendar

        11       Number 1220.

        12                      ACTING PRESIDENT FARLEY:  Without

        13       objection, you'll be in the negative on 1220.

        14                      Senator Bruno.

        15                      SENATOR BRUNO:  Mr. President,

        16       can we at this time go to the Supplemental

        17       Calendar Number 1 take up the non-controversial

        18       calendar.

        19                      ACTING PRESIDENT FARLEY:

        20       Supplemental Calendar.  Secretary will read.

        21                      THE SECRETARY:  Calendar Number

        22       1223, by Senator Spano, Senate Print 1397, an

        23       act to amend the State Finance Law, in relation











                                                             
8947

         1       to payment of emergency financial aid.

         2                      ACTING PRESIDENT FARLEY:  Read

         3       the last section.

         4                      THE SECRETARY:  Section 3.  This

         5       act shall take effect immediately.

         6                      ACTING PRESIDENT FARLEY:  Call

         7       the roll.

         8                      (The Secretary called the roll. )

         9                      THE SECRETARY:  Ayes 37.

        10                      ACTING PRESIDENT FARLEY:  The

        11       bill is passed.

        12                      THE SECRETARY:  Calendar -

        13       Senator Connor moves to discharge from the

        14       Committee on Rules Assembly Bill Number 2827,

        15       and substitute it for the identical Calendar

        16       Number 1224.

        17                      ACTING PRESIDENT FARLEY:

        18       Substitution is ordered.

        19                      THE SECRETARY:  Calendar number

        20       1224, by member of the Assembly Ortiz, Assembly

        21       Print Number 2827, an act authorizing the city

        22       of New York to reconvey its interest in certain

        23       real property.











                                                             
8948

         1                      ACTING PRESIDENT FARLEY:  There's

         2       a home rule message here at the desk.  You can

         3       read the last section.

         4                      THE SECRETARY:  Section 2.  This

         5       act shall take effect immediately.

         6                      ACTING PRESIDENT FARLEY:  Call

         7       the roll.

         8                      (The Secretary called the roll. )

         9                      THE SECRETARY:  Ayes 57.

        10                      ACTING PRESIDENT FARLEY:  The

        11       bill is passed.

        12                      THE SECRETARY:  Calendar Number

        13       1225, by Senator DiCarlo, Senate Print Number

        14       1982, an act to amend the Executive Law, in

        15       relation to testing of certain applicants for

        16       employment with the Division for Youth.

        17                      ACTING PRESIDENT FARLEY:  Read

        18       the last section.

        19                      THE SECRETARY:  Section 2.  This

        20       act shall take effect immediately.

        21                      ACTING PRESIDENT FARLEY:  Call

        22       the roll.

        23                      (The Secretary called the roll. )











                                                             
8949

         1                      THE SECRETARY:  Ayes 57.

         2                      ACTING PRESIDENT FARLEY:  The

         3       bill is passed.

         4                      THE SECRETARY:  Calendar Number

         5       1226, by Senator Nozzolio, Senate Print Number

         6       2138.

         7                      SENATOR NOZZOLIO:  Lay aside,

         8       please.

         9                      ACTING PRESIDENT FARLEY:  Lay it

        10       aside.

        11                      THE SECRETARY:  Senator Velella

        12       moves to discharge from the Committee on

        13       Insurance Assembly Bill Number 3470, and

        14       substitute it for the identical Calendar Number

        15       1227.

        16                      ACTING PRESIDENT FARLEY:

        17       Substitution is ordered.  Read the last

        18       section.

        19                      THE SECRETARY:  Calendar Number

        20       1227, by member of the Assembly Pordum, Assembly

        21       Print Number 3470, an act to amend the Insurance

        22       Law, in relation to minimum capital investments

        23       of financial guarantee insurers.











                                                             
8950

         1                      ACTING PRESIDENT FARLEY:  Call

         2       the roll.  Oh, read the last section.  I'm

         3       sorry.

         4                      THE SECRETARY:  Section 2.  This

         5       act shall take effect on the 30th day.

         6                      ACTING PRESIDENT FARLEY:  Call

         7       the roll.

         8                      (The Secretary called the roll. )

         9                      THE SECRETARY:  Ayes 57.

        10                      ACTING PRESIDENT FARLEY:  That

        11       bill is passed.

        12                      THE SECRETARY:  Senator Hoffmann

        13       moves to discharge from the Committee on Rules

        14       Assembly Bill Number 3881, and substitute it for

        15       the identical Calendar Number 1228.

        16                      ACTING PRESIDENT FARLEY:

        17       Substitution is ordered.  Read the last

        18       section.

        19                      THE SECRETARY:  Calendar Number

        20       1228, by member of the Assembly McGee, Assembly

        21       Print 3881, an act to amend the Judiciary Law,

        22       in relation to appointment of grand jury

        23       stenographers.











                                                             
8951

         1                      ACTING PRESIDENT FARLEY:  Read

         2       the last section.

         3                      THE SECRETARY:  Section 2.  This

         4       act shall take effect immediately.

         5                      ACTING PRESIDENT FARLEY:  Call

         6       the roll.

         7                      (The Secretary called the roll. )

         8                      THE SECRETARY:  Ayes 57.

         9                      ACTING PRESIDENT FARLEY:  The

        10       bill is passed.

        11                      THE SECRETARY:  Calendar Number

        12       1229, by Senator Goodman, Senate Print 2654A, an

        13       act to amend the Multiple Dwelling Law and the

        14       Administrative Code of the city of New York, in

        15       relation to the size of cooking spaces.

        16                      ACTING PRESIDENT FARLEY:  Read

        17       the last section.

        18                      THE SECRETARY:  Section 2.  This

        19       act shall take effect January 1st.

        20                      ACTING PRESIDENT FARLEY:  Call

        21       the roll.

        22                      (The Secretary called the roll. )

        23                      THE SECRETARY:  Ayes 57.











                                                             
8952

         1                      ACTING PRESIDENT FARLEY:  The

         2       bill is passed.

         3                      THE SECRETARY:  Calendar Number

         4       1230, by Senator Velella, Senate Print 2798, an

         5       act to amend the State Finance Law, the Tax Law

         6       and the Administrative Code of the city of New

         7       York.

         8                      ACTING PRESIDENT FARLEY:  There's

         9       a home rule message here at the desk.

        10                      SENATOR PATERSON:  Lay aside.

        11                      ACTING PRESIDENT FARLEY:  Laid

        12       aside.

        13                      THE SECRETARY:  Calendar Number

        14       1231, by Senator Cook, Senate Print Number

        15       3222A, an act to amend Chapter 565 of the Laws

        16       of 1990, amending the Executive Law.

        17                      ACTING PRESIDENT FARLEY:  Read

        18       the last section.

        19                      THE SECRETARY:  Section 2. This

        20       act shall take effect immediately.

        21                      ACTING PRESIDENT FARLEY:  Call

        22       the roll.

        23                      (The Secretary called the roll. )











                                                             
8953

         1                      THE SECRETARY:  Ayes 57.

         2                      ACTING PRESIDENT FARLEY:  The

         3       bill is passed.

         4                      THE SECRETARY:  Calendar Number

         5       1232, by Senator Libous, Senate Print 3855, an

         6       act to amend the Mental Hygiene Law and the

         7       Executive Law, in relation to members of the

         8       Commission on Quality of Care.

         9                      ACTING PRESIDENT FARLEY:  Read

        10       the last section.

        11                      THE SECRETARY:  Section 3.  This

        12       act shall take effect immediately.

        13                      ACTING PRESIDENT FARLEY:  Call

        14       the roll.

        15                      (The Secretary called the roll. )

        16                      THE SECRETARY:  Ayes 57.

        17                      ACTING PRESIDENT FARLEY:  That

        18       bill is passed.

        19                      THE SECRETARY:  Calendar Number

        20       1233, by Senator Libous, Senate Print 3856, an

        21       act to amend the Mental Hygiene Law.

        22                      SENATOR BRUNO:  Lay it aside for

        23       the day.











                                                             
8954

         1                      ACTING PRESIDENT FARLEY:  Lay it

         2       aside for today.

         3                      THE SECRETARY:  Senator Saland

         4       moves to discharge from the Committee on Rules

         5       Assembly Bill Number 888 and substitute it for

         6       the identical Calendar Number 1234.

         7                      ACTING PRESIDENT FARLEY:

         8       Substitution is ordered.

         9                      THE SECRETARY:  Calendar Number

        10       1234, by member of the Assembly Brodsky,

        11       Assembly Print Number 888, an act to amend the

        12       General Business Law, in relation to making

        13       unlawfully installing two-way mirrors or other

        14       viewing devices.

        15                      ACTING PRESIDENT FARLEY:  Read

        16       the last section.

        17                      THE SECRETARY:  Section 2.  This

        18       act shall take effect on the 1st day of

        19       November.

        20                      ACTING PRESIDENT FARLEY:  Call

        21       the roll.

        22                      (The Secretary called the roll. )

        23                      THE SECRETARY:  Ayes 57.











                                                             
8955

         1                      ACTING PRESIDENT FARLEY:  The

         2       bill is passed.

         3                      THE SECRETARY:  Calendar Number

         4       1235, by Senator Velella, Senate Print 4417A, an

         5       act to amend the Insurance Law, in relation to a

         6       non-employee chairman.

         7                      ACTING PRESIDENT FARLEY:  Read

         8       the last section.

         9                      THE SECRETARY:  Section 2.  This

        10       act shall take effect immediately.

        11                      ACTING PRESIDENT FARLEY:  Call

        12       the roll.

        13                      (The Secretary called the roll. )

        14                      THE SECRETARY:  Ayes 57.

        15                      ACTING PRESIDENT FARLEY:  That

        16       bill is passed.

        17                      THE SECRETARY:  Calendar Number

        18       1236, by Senator Velella, Senate Print 4450A, an

        19       act to amend the Insurance Law in relation to

        20       permitting the use of separate account funds.

        21                      ACTING PRESIDENT FARLEY:  Read

        22       the last section.

        23                      THE SECRETARY:  Section 2.  This











                                                             
8956

         1       act shall take effect immediately.

         2                      ACTING PRESIDENT FARLEY:  Call

         3       the roll.

         4                      (The Secretary called the roll. )

         5                      THE SECRETARY:  Ayes 57.

         6                      ACTING PRESIDENT FARLEY:  The

         7       bill is passed.

         8                      THE SECRETARY:  Calendar Number

         9       1238, by Senator Sears, Senate Print 4903A, an

        10       act to amend the -

        11                      SENATOR PATERSON:  Lay aside.

        12                      ACTING PRESIDENT FARLEY:  Laid

        13       aside.

        14                      THE SECRETARY:  Calendar Number

        15       1239, by Senator Tully, Senate Print 5027A, an

        16       act to amend Chapter 237 of the Laws of 1993.

        17                      SENATOR PATERSON:  Lay aside.

        18                      ACTING PRESIDENT FARLEY:  Laid

        19       aside.

        20                      THE SECRETARY:  Calendar Number

        21       1240, by Senator Maltese.

        22                      SENATOR PATERSON:  Lay aside.

        23                      ACTING PRESIDENT FARLEY:  Lay











                                                             
8957

         1       that bill aside.

         2                      THE SECRETARY:  Calendar Number

         3       1241, by Senator Wright, Senate Print 5228A, an

         4       act to amend Chapter 972 of the Laws of 1972,

         5       relating to creating a temporary state

         6       commission.

         7                      ACTING PRESIDENT FARLEY:  Read

         8       the last section.

         9                      THE SECRETARY:  Section 2.  This

        10       act shall take effect immediately.

        11                      ACTING PRESIDENT FARLEY:  Call

        12       the roll.

        13                      (The Secretary called the roll. )

        14                      THE SECRETARY:  Ayes 57.

        15                      ACTING PRESIDENT FARLEY:  The

        16       bill is passed.

        17                      THE SECRETARY:  Calendar Number

        18       1242, by Senator Rath, Senate Print 5276A, an

        19       act to amend the Executive Law and others, in

        20       relation to extending the Office of Business

        21       Permits.

        22                      SENATOR PATERSON:  Lay aside,

        23       please.











                                                             
8958

         1                      ACTING PRESIDENT FARLEY:  Lay

         2       aside.

         3                      THE SECRETARY:  Calendar Number

         4       1243, by Senator DiCarlo, Senate Print 5300, an

         5       act to amend the Tax Law and the Administrative

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

         7       repealing the sales and use taxes.

         8                      SENATOR PATERSON:  Lay aside.

         9                      ACTING PRESIDENT FARLEY:  Laid

        10       aside.

        11                      THE SECRETARY:  Calendar Number

        12       1244, by Senator Farley, Senate Print 5331, an

        13       act to amend the Banking Law.

        14                      SENATOR FARLEY:  Lay that bill

        15       aside; it's high.  So is the next one.

        16                      THE SECRETARY:  1245, by Senator

        17       Farley.

        18                      SENATOR FARLEY:  It's high.  Lay

        19       it aside.

        20                      THE SECRETARY:  Calendar Number

        21       1246, by Senator Maltese, Senate Print 5385.

        22                      SENATOR PATERSON:  Lay aside.

        23                      ACTING PRESIDENT FARLEY:  Lay











                                                             
8959

         1       that bill aside.

         2                      Senator Bruno, that's the first

         3       time through.

         4                      SENATOR BRUNO:  Mr. President,

         5       can we now take up the controversial calendar.

         6                      ACTING PRESIDENT FARLEY:

         7       Controversial, Secretary will read.

         8                      THE SECRETARY:  Calendar Number

         9       1226, by Senator Nozzolio, Senate Print 2138, an

        10       act to amend the Social Services Law and the

        11       Education Law.

        12                      SENATOR PATERSON:  Explanation,

        13       please.

        14                      ACTING PRESIDENT FARLEY:

        15       Explanation has been asked for.  If we'll wait

        16       just a moment, we'll get an explanation.

        17                      SENATOR SKELOS:  Mr. President.

        18       Lay the bill aside.

        19                      ACTING PRESIDENT FARLEY:  Lay the

        20       bill aside; we'll come back to it.

        21                      Senator Velella's bill, if you'll

        22       read that, please.

        23                      THE SECRETARY:  Calendar Number











                                                             
8960

         1       1230, by Senator Velella, Senate Print 2798, an

         2       act to amend the State Finance Law, the Tax Law,

         3       and the Administrative Code of the city of New

         4       York.

         5                      ACTING PRESIDENT FARLEY:  There's

         6       a home rule message here at the desk.  You can

         7       read the last -

         8                      SENATOR PATERSON: Explanation.

         9                      ACTING PRESIDENT FARLEY:

        10       Explanation.  Senator Velella.

        11                      SENATOR VELELLA:  Yeah.  This

        12       bill would allow a check-off for the purposes of

        13       funds to be appropriated through the parks

        14       purposes of the city of New York on -- for urban

        15       forestry. I'm looking for my folder, Senator.

        16                      ACTING PRESIDENT FARLEY:  Senator

        17       Paterson.

        18                      SENATOR PATERSON:  Excuse me, Mr.

        19       President.  Would the sponsor -- I'm just not

        20       clear on -- this would establish a fund for

        21       urban forestry?

        22                      SENATOR VELELLA:  Yes, a fund for

        23       parks, trees and urban forestry.











                                                             
8961

         1                      SENATOR PATERSON:  If the sponsor

         2       would yield, I'm just trying to find out what

         3       this would actually be used for, Senator.

         4                      SENATOR VELELLA:  Yeah.  The

         5       monies will be made available to the Commission

         6       er of the Department of Parks and Recreation of

         7       the city of New York for the purposes of

         8       planting trees, developing vest-pocket park

         9       shrubberies, that type of thing, and people

        10       would have the opportunity to check off on their

        11       returns if they wish to contribute to that fund

        12       within the city of New York and there's a home

        13       rule message.  It was requested by the City.

        14                      SENATOR PATERSON:  Senator, would

        15       any of the funds go to general maintenance?

        16                      SENATOR VELELLA:  Not to my

        17       knowledge.

        18                      SENATOR PATERSON:  No, just for

        19       the planting of trees.

        20                      SENATOR VELELLA: No, just for

        21       that purpose.

        22                      SENATOR PATERSON:  That's an

        23       excellent idea.  Let's sit down, Senator.











                                                             
8962

         1                      ACTING PRESIDENT FARLEY:  Read

         2       the last section.

         3                      THE SECRETARY:  Section 5.  This

         4       act shall take effect immediately.

         5                      ACTING PRESIDENT FARLEY:  Call

         6       the roll.

         7                      (The Secretary called the roll. )

         8                      THE SECRETARY:  Ayes 57.

         9                      ACTING PRESIDENT FARLEY:  The

        10       bill is passed.

        11                      Senator Skelos.

        12                      SENATOR SKELOS:  Mr. President,

        13       would you call up Senator Nozzolio's bill,

        14       Calendar Number 1226.

        15                      ACTING PRESIDENT FARLEY:  1226,

        16       Senator Nozzolio's bill, the Secretary will read

        17       it.

        18                      THE SECRETARY:  Calendar Number

        19       1226, by Senator Nozzolio, Senate Print 2138, an

        20       act to amend the Social Services Law and the

        21       Education Law, in relation to authorizing the

        22       fingerprinting of prospective employees.

        23                      ACTING PRESIDENT FARLEY:  Read -











                                                             
8963

         1                      SENATOR PATERSON:  Explanation.

         2                      ACTING PRESIDENT FARLEY:

         3       Explanation.  Senator Nozzolio.

         4                      SENATOR NOZZOLIO:  Thank you, Mr.

         5       President.

         6                      My colleagues, the purpose of

         7       this bill is to provide school districts across

         8       New York State outside of New York City, that

         9       already has access to this information, to

        10       provide other school districts outside the City

        11       access to the state's central registry of child

        12       abuse treatment and the records of the F.B.I.

        13       for the purpose of screening certain types of

        14       employees such as substitute teachers,

        15       consultants, artists in residence and others of

        16       those who may be temporarily or permanently

        17       connected with the school district who have the

        18       most potential to be in regular involvement with

        19       the children of our state.

        20                      This bill provides the authority

        21       for the administrators who may be hiring

        22       teachers and other school personnel access to

        23       those records in order to ensure that the only











                                                             
8964

         1       people who are hired for these positions are

         2       honorable and do not have a track record or,

         3       more importantly, a criminal record of dealing

         4       with children.

         5                      ACTING PRESIDENT FARLEY:  Senator

         6       Paterson.

         7                      SENATOR PATERSON:  Mr. President,

         8       I'm trying to determine whether or not this is

         9       an elective for the school district, if Senator

        10       Nozzolio would yield and be willing to answer

        11       that question.

        12                      SENATOR NOZZOLIO:  I'd be happy

        13       to yield to Senator Paterson, Mr. President.

        14                      SENATOR PATERSON:  That's my

        15       question, Senator, is this an elective to the

        16       school districts?

        17                      SENATOR NOZZOLIO:  School

        18       districts, they have would have an option to, at

        19       their discretion, seek these records, yes.

        20                      SENATOR PATERSON:  Thank you,

        21       Senator.  They would.  Would you, Senator, be

        22       willing to yield again?

        23                      SENATOR NOZZOLIO:  Certainly.











                                                             
8965

         1                      SENATOR PATERSON:  Thank you.

         2       Can you give us a delineation because I'm just

         3       not clear, based on what the bill says, as to

         4       which employees, are they temporary employees,

         5       temporary and some permanent employees or what

         6       are the criteria that would determine which

         7       employees would be fingerprinted and would be

         8       traced through the child abuse registry?

         9                      SENATOR NOZZOLIO:  Yes.  In

        10       response to that, Mr. President, Section 9 of

        11       the bill, page 2, line 54 beginning -- indicates

        12       that the board of education may, upon its

        13       discretion, require the screening of all

        14       personnel to be employed by the school district

        15       against those criminal records that DCJS may

        16       maintain, also the registry of child abuse, et

        17       cetera.

        18                      Those inquiries may be made on

        19       behalf of any personnel who are being sought for

        20       employment at the school district.  I should

        21       hasten to add, this is the same type of access

        22       that the city of New York has had for at least

        23       30 years.  It's also the same type of access











                                                             
8966

         1       that the Legislature has deemed appropriate for

         2       school bus drivers and that we're now saying

         3       that that access should be provided so those who

         4       are seeking other positions in school that deal

         5       with children, particularly in most cases deal

         6       more closely with children, have this type of

         7       access upon their application for employment.

         8                      SENATOR PATERSON:  Thank you,

         9       Senator.

        10                      Mr. President, on the bill.  I

        11       certainly hope that, in this legislation and

        12       even in what may already exist in some school

        13       districts in the state, that we are scrupulously

        14       careful that we not allow the information that

        15       is being sought to get into the wrong hands.

        16       Certainly for the benefit of children, it would

        17       be manifestly important that we have access to

        18       past wrongdoing on the part of employees who

        19       have records of child abuse who would be in the

        20       position to have contact with children.

        21                      At the same time, we would want

        22       individuals whose past performance might be

        23       requested as a matter of precaution not to have











                                                             
8967

         1       their records exposed in other ways that might

         2       harm them as they seek employment in our school

         3       system.

         4                      ACTING PRESIDENT FARLEY:  You can

         5       read -- Senator Montgomery, why do you rise?

         6                      SENATOR MONTGOMERY:  I rise -- I

         7       would like to ask if the sponsor would yield.

         8                      ACTING PRESIDENT FARLEY:  I'm

         9       sure he will.  Senator Nozzolio, would you yield

        10       to a question from Senator Montgomery?

        11                      SENATOR NOZZOLIO:  Yes, Mr.

        12       President.

        13                      SENATOR MONTGOMERY:  Yes, Mr.

        14       President.

        15                      Senator Nozzolio, your bill

        16       requires that a second set of fingerprints be

        17       forwarded to the F.B.I., is that not correct?

        18                      SENATOR NOZZOLIO:  A second set?

        19                      SENATOR MONTGOMERY:  Of

        20       fingerprints be forwarded to the F.B.I.

        21                      SENATOR NOZZOLIO:  Every set of

        22       fingerprints taken, right now there is no,

        23       Senator, fingerprinting requirement for those











                                                             
8968

         1       school districts outside the city of New York.

         2       We're not saying that a second set be required

         3       for New York.  We're saying the first set be

         4       required for those employees seeking employment

         5       in school districts outside the city of New York

         6       which already does it.

         7                      SENATOR MONTGOMERY:  Mr.

         8       President, if Senator Nozzolio would continue to

         9       yield.

        10                      ACTING PRESIDENT FARLEY:  I'm

        11       sure he will.

        12                      SENATOR NOZZOLIO:  Yes, Mr.

        13       President.

        14                      SENATOR MONTGOMERY:  On page 3,

        15       line 7 -- line 9, "the Division of Criminal

        16       Justice Services shall forward a set of such

        17       fingerprints to the Federal Bureau of

        18       Investigation."  So does that mean that all

        19       personnel who are fingerprinted under your bill

        20       will have one set forwarded to DCJS and a second

        21       set forwarded to the F.B.I.?

        22                      SENATOR NOZZOLIO:  Every set of

        23       fingerprints, once -- we're saying that this











                                                             
8969

         1       bill requires fingerprinting of those personnel,

         2       at the discretion of school employee -- school

         3       employment, that when those fingerprints are

         4       taken pursuant to this chapter they then will be

         5       submitted to DCJS for screening, that that

         6       report is then sent to each school district upon

         7       the review of those fingerprints.  Then the

         8       F.B.I. will then be asked to search their files

         9       to see if there is a greater -- in effect, a

        10       wider scrutiny to take place; so yes, Senator,

        11       we're calling in the Federal Bureau of

        12       Investigation to aid in the review where

        13       appropriate.

        14                      SENATOR MONTGOMERY:  O.K. Senator

        15       Nozzolio, if you would continue to yield.

        16                      SENATOR NOZZOLIO:  Surely,

        17       Senator.

        18                      SENATOR MONTGOMERY:  The -- we

        19       know that the child abuse registry has a number

        20       of problems and very often people are in the

        21       registry without their knowledge.  They are

        22       reported for various reasons and it does not

        23       require proof in order for you to appear -- for











                                                             
8970

         1       your name to appear in the registry, so does

         2       your legislation protect people who may be in

         3       the registry even though they're not guilty or

         4       should, in fact, not have their names in such a

         5       registry?  Is there any -- any safety valve for

         6       such a situation?

         7                      SENATOR NOZZOLIO:  Senator, when

         8       an applicant applies for a position, they are in

         9       sum putting their entire record up for

        10       scrutiny.  What this bill is doing is trying to

        11       get to particular aspects of an individual's

        12       record.  Now, if those aspects have a flag to

        13       them relative to the registry, that certainly

        14       raises a question that needs to be dealt with.

        15                      Does it preclude someone from

        16       employment?  No.  In fact, it doesn't.  It sends

        17       a signal to the school district that there is a

        18       person with these fingerprints, with this

        19       background, this person has, in fact, been

        20       subjected to contact with the child abuse

        21       registry and, as such, that certainly in and of

        22       itself, doesn't preclude someone from continuing

        23       the employment process.  It only sends a signal











                                                             
8971

         1       to those employers that they should be cautious

         2       here that there may be some problem with the

         3       applicant and that their notice is the notice

         4       that we're trying to get to, to give employers

         5       better notice that there may be some problem

         6       here.

         7                      It doesn't certainly -- there are

         8       problems with all types of reporting whether it

         9       be credit bureau reporting or other reporting,

        10       but that has to be worked through, but it

        11       certainly sends up a red flag to an employer

        12       that they need to proceed with caution here on

        13       this prospective applicant, and that's the

        14       intent of the legislation clearly.

        15                      SENATOR MONTGOMERY:  O.K. Thank

        16       you.

        17                      Mr. President, briefly on the

        18       bill.

        19                      I would just like to respond to

        20       my colleague that I think we should take

        21       precaution with this legislation because, as I

        22       read it with a non-legal eye, it occurs to me

        23       that any person, a young person who is











                                                             
8972

         1       graduating from college and looking to be

         2       employed with the Board of Ed' in the city of

         3       New York or in any city in this state or in any

         4       district in this state, or even a person who

         5       wants to do some special project in a school

         6       district, an artist who wants to come into a

         7       classroom or come into a school district and

         8       work with young people, or a person who wants to

         9       do something who has spent their life in another

        10       field and they want to do something in a school

        11       district which we want to encourage -- police

        12       officers, firemen and women, people who have

        13       done work in other fields and have a tremendous

        14       contribution to make.  However, if they're going

        15       to come and be involved with children in a

        16       school district we are now requiring them not

        17       only to be fingerprinted and go through the DCJS

        18       of the state, but those fingerprints will be

        19       forwarded to the F.B.I. so that every young

        20       person who comes into -- young or old or in

        21       between, who comes into a school district to

        22       work and to work as a professional, to make a

        23       contribution within their profession or to make











                                                             
8973

         1       a contribution after they've spent a lifetime in

         2       another area, we're now saying to them that they

         3       must have their fingerprints registered with the

         4       F.B.I., and I think that is over -- that is

         5       over-stepping our need to ensure that people

         6       don't have criminal records.

         7                      I certainly would not like for my

         8       son's fingerprints to be forwarded to the F.B.I.

         9       just because he wanted to become a teacher with

        10       the Board of Ed' in the city of New York.  So I

        11       view this as really over-stepping.  I don't

        12       think it's necessary to do that, and I don't

        13       think that my colleagues in this room -

        14       certainly I hope not -- are looking to have

        15       people in the state of New York be subjected to

        16       that kind of strenuous personal inspection just

        17       because they want to work with children in a

        18       school district; and as far as the registry for

        19       child abuse is concerned, I would not oppose the

        20       bill only because of that, but I certainly want

        21       to caution you also that this is a very big

        22       problem.  The registry for child abuse is a very

        23       imperfect system.  People get their names in.











                                                             
8974

         1       They're not aware of their names being in there

         2       and once you're in it, it's nearly impossible to

         3       get out of it, to remove your name, even though

         4       you may be found absolutely not guilty.  So I

         5       think that these -- we should really proceed

         6       very cautiously on this -- this legislation.

         7                      I will be voting no, and I am an

         8       early childhood person.  I care a lot about

         9       children.  I understand the need to protect them

        10       from individuals who may have some aspect of

        11       their past that we would not want them to be

        12       near children, but I certainly don't think, by

        13       the same token, we need to go this far in

        14       ensuring their safety.

        15                      So, Mr. President, I will be

        16       voting no on this bill.

        17                      ACTING PRESIDENT FARLEY:  You

        18       want to speak?  Senator Dollinger.

        19                      SENATOR DOLLINGER:  Mr.

        20       President, will the sponsor yield to just two

        21       quick questions, and they'll be short and

        22       quick?

        23                      ACTING PRESIDENT FARLEY:











                                                             
8975

         1       Senator, will you yield?

         2                      SENATOR NOZZOLIO:  Yes, Mr.

         3       President.

         4                      ACTING PRESIDENT FARLEY:  He

         5       will.

         6                      SENATOR DOLLINGER:  First my

         7       understanding is this is not a mandate, this is

         8       a choice for local school districts to

         9       participate.

        10                      SENATOR NOZZOLIO:  That's

        11       correct, Senator.

        12                      SENATOR DOLLINGER:  Secondly,

        13       what is the effect of this choice on the

        14       collective bargaining responsibilities between a

        15       school district and its labor unions?

        16                      SENATOR NOZZOLIO:  Mr. President,

        17       I believe that there's no effect.  It's done as

        18       an option that local school personnel can engage

        19       in as a predicate to gaining employment with the

        20       district, and there's already precedent

        21       established for school bus drivers for the same

        22       type of review and, as I mentioned earlier,

        23       Senator, the city of New York already has this











                                                             
8976

         1       type of access available.

         2                      SENATOR DOLLINGER:  Just through

         3       you, Mr. President, one clarification question

         4       then so I can clarify that answer.

         5                      SENATOR NOZZOLIO:  Yes,

         6       clarification.

         7                      SENATOR DOLLINGER:  Is it in the

         8       city of New York's experience, is it a mandatory

         9       or a non-mandatory subject of bargaining with

        10       respect to the relationship between the

        11       teachers' union, for example, and the school

        12       district?

        13                      SENATOR NOZZOLIO:  Senator, I'm

        14       not sure if it is even a subject of bargaining,

        15       may be a part of local statute, but I can't

        16       answer that question for you.

        17                      SENATOR DOLLINGER:  O.K. Thank

        18       you, Mr. President.

        19                      ACTING PRESIDENT FARLEY:  Read

        20       the last section.

        21                      THE SECRETARY:  Section 8.  This

        22       act shall take effect September 1st.

        23                      ACTING PRESIDENT FARLEY:  Senator











                                                             
8977

         1        -- call the roll.

         2                      (The Secretary called the roll. )

         3                      ACTING PRESIDENT FARLEY:  Senator

         4       Nozzolio to explain his vote.

         5                      SENATOR NOZZOLIO:  Thank you, Mr.

         6       President.  I rise to explain my vote.

         7                      Mr. President, my colleagues, two

         8       years ago, a small community in my district was

         9       absolutely devastated by the disclosure and

        10       subsequent arrest of a sixth grade teacher, a

        11       coach, who was trafficking in child pornography.

        12       That teacher certainly breached a very

        13       significant trust he had with the community, and

        14       what made this tragedy even worse was the fact

        15       that this particular individual had a prior

        16       criminal record dealing in the same type of

        17       activity.

        18                      Mr. President, my colleagues,

        19       what we're trying to do here is ensure that

        20       those most important individuals we have in this

        21       state, and that's our children, have all the

        22       protections possible when they go to school.

        23       What we see across this state is a protection











                                                             
8978

         1       that's being breached every day and we need to

         2       do more to ensure that those personnel who are

         3       entrusted with this important -- very important

         4       responsibility are the most trustworthy people

         5       we can absolutely find.

         6                      I believe school personnel should

         7       have the ability to seek these records of

         8       criminal conduct, of other prior history when a

         9       teacher applies or other school personnel

        10       applies for employment.  We already provide this

        11       for school bus drivers.  The city of New York

        12       provides it for other school personnel including

        13       teachers.  We're asking that, in the rest of the

        14       state, this protection be afforded.

        15                      Thank you, Mr. President.  I'm

        16       voting in the affirmative on this bill and urge

        17       my colleagues to do likewise.

        18                      ACTING PRESIDENT FARLEY:

        19       Results.

        20                      THE SECRETARY:  Those recorded in

        21       the negative on Calendar Number 1226 are

        22       Senators Montgomery and Paterson.  Ayes 56, nays

        23       2.











                                                             
8979

         1                      ACTING PRESIDENT FARLEY:  The

         2       bill is passed.

         3                      THE SECRETARY:  Calendar

         4       Number -

         5                      ACTING PRESIDENT FARLEY:  Hold it

         6       up.

         7                      SENATOR HOLLAND:  Mr. President.

         8                      ACTING PRESIDENT FARLEY:  Senator

         9       Holland.

        10                      SENATOR HOLLAND:  With unanimous

        11       consent, I'd like to be recorded in the negative

        12       on Calendar Number 1220.

        13                      ACTING PRESIDENT FARLEY:  1220?

        14                      SENATOR HOLLAND:  Yes, sir.

        15                      ACTING PRESIDENT FARLEY:  Without

        16       objection.  Senator Bruno.

        17                      SENATOR BRUNO:  Mr. President, I

        18       would like at this time to make an important

        19       announcement in that one of our most

        20       distinguished members was born on this day 59

        21       years ago:  Senator Holland, and we wish him a

        22       very happy birthday.

        23                      (Applause)











                                                             
8980

         1                      ACTING PRESIDENT FARLEY:  Happy

         2       birthday, Senator Holland, on behalf of all of

         3       your colleagues and the world-at-large.

         4                      Senator Bruno.

         5                      SENATOR BRUNO:  Mr. President,

         6       can we at this time return to motions and

         7       resolutions.  I believe that there is a

         8       privileged resolution at the desk.  I would ask

         9       that it be read in its entirety, and then we

        10       move its adoption.

        11                      ACTING PRESIDENT FARLEY:  There's

        12       a privileged resolution at the desk by Senator

        13       Bruno.  The Secretary will read it in its

        14       entirety.

        15                      THE SECRETARY:  By Senator Bruno,

        16       Legislative Resolution memorializing the

        17       Honorable George E. Pataki, Governor of the

        18       state of New York, to proclaim the week of June

        19       12 through 18, 1995 as New York City Fire

        20       fighters' week in the state of New York.

        21                      WHEREAS, this is a week to

        22       commend the contributions to the state of New

        23       York that the New York City firefighters provide











                                                             
8981

         1       us by responding to our needs with extreme

         2       bravery at moments in our lives when we are

         3       faced with injury or possible death; and

         4                      WHEREAS, in commemorating June 12

         5       through 18, 1995 as New York City Firefighters

         6       Week in the state of New York, this assembled

         7       body honors those who put their life on the line

         8       in the performance of their service to the

         9       community and recognize the performance of

        10       service by the New York City firefighters which

        11       enables us to live and work with the security

        12       that if endangered, they will be there to

        13       protect us; and

        14                      WHEREAS, these brave individuals

        15       often have a thankless job and people often do

        16       not recognize that such individuals risk their

        17       lives every day that they go to work; these

        18       individuals who choose such work should be

        19       commended and recognized for their efforts; and

        20                      WHEREAS while we show an

        21       appreciation for New York City firefighters, we

        22       should also take a moment to remember those

        23       firefighters who have lost their lives in











                                                             
8982

         1       service to their communities and to remember

         2       their families and their sacrifice.

         3                      NOW, THEREFORE, BE IT RESOLVED

         4       that this legislative body pause in its

         5       deliberations to memorialize the Honorable

         6       George E. Pataki to proclaim the week of June 12

         7       through 18, 1995 as New York City Firefighters

         8       Week in the state of New York; and

         9                      BE IT FURTHER RESOLVED that

        10       copies of this resolution, suitably engrossed,

        11       be transmitted to the Honorable George E.

        12       Pataki, Governor of the state of New York, and

        13       to the Uniformed Firefighters Association of New

        14       York City.

        15                      ACTING PRESIDENT FARLEY:  Senator

        16       Bruno, on the resolution.

        17                      SENATOR BRUNO:  Mr. President,

        18       it's really an honor on and a privilege for me

        19       to stand in recognition of the firefighters of

        20       New York City, many of whom are here in the

        21       chamber with us.

        22                      These people, every day of their

        23       lives, devote themselves to protecting the











                                                             
8983

         1       property and lives of others.  They put

         2       literally their lives on the line, and this

         3       resolution does set aside and asks the Governor

         4       to set aside June 12th in a very appropriate way

         5       and the resolution speaks for itself, but I

         6       wanted to just take a minute and add my voice in

         7       recognition and thank the gentlemen and lady

         8       that I see here in the chamber on behalf of all

         9       of your colleagues for the good things that you

        10       do for others who can't look after themselves in

        11       the way that you look after them, and we know

        12       that it takes a lot of time, a lot of training,

        13       a lot of effort to do the kinds of things that

        14       you do so well, and when you are willing to

        15       literally lay your lives on the line to protect

        16       others, that speaks for each and every one of

        17       you in the best words that anyone could

        18       express.

        19                      So, on behalf of my colleagues in

        20       the Senate, we thank you for the good work that

        21       you do and for joining us here this afternoon.

        22                      (Applause)

        23                      Mr. President, can we open up











                                                             
8984

         1       this resolution to all of our colleagues in the

         2       chamber, and I would suggest that anyone that

         3       would not want to be on it please indicate so,

         4       but I would think that this would be a unanimous

         5       resolution.

         6                      ACTING PRESIDENT FARLEY:  The

         7       resolution is opened and will be sponsored by

         8       every member of the Senate unless you object.

         9                      Senator Maltese, I think you

        10       wished to speak on this.

        11                      SENATOR MALTESE:  Yes.  I can add

        12       very little to the words of our distinguished

        13       Majority Leader.  I think that many members of

        14       this house know that my family, in the early

        15       days of the 1900s, suffered a tragic loss on

        16       March 24th, 1911, where the Triangle Shirtwaist

        17       factory fire tragedy occurred, and 127 people

        18       perished in that fire.  The firefighters of the

        19       City at that time had to face very poor

        20       equipment, ladders that did not reach the

        21       persons who were trapped in the burning building

        22       and who were forced to jump to their deaths.

        23                      The firefighters are aptly called











                                                             
8985

         1       the bravest.  The firefighters of the city of

         2       New York daily face occurrences that would

         3       frighten any of us.  They face a battle that

         4       many men in the armed forces had to face in the

         5       past or face only from time to time.  They face

         6       these every day and each morning when they leave

         7       their homes do not know that they will be able

         8       to return.

         9                      So, Mr. President, I proudly join

        10       in the co-sponsorship of this resolution to the

        11       brave men and women of the firefighters of the

        12       city of New York.

        13                      ACTING PRESIDENT FARLEY:  Senator

        14       Montgomery, on the resolution.

        15                      SENATOR MONTGOMERY:  Yes, Mr.

        16       President.

        17                      I would like to also thank the

        18       Majority Leader for opening up the resolution.

        19       I think it's important for us to, each one of us

        20       in this chamber, to say how much we appreciate

        21       the firemen and women who serve us in our

        22       districts, and let me just say that one special

        23       thank you to the fire department for how open it











                                                             
8986

         1       is to young people, that I've never had a

         2       company refuse a group of young people, of

         3       students to come in, and the firemen and women

         4       take time and help them understand what the fire

         5       department does, what firemen and women do, what

         6       the ladders do, how they work and that sort of

         7       thing and, in addition to that, there is a

         8       wonderful group -- I don't know if it's here

         9       today in the chamber with us -- but there is a

        10       wonderful group that comes out into the

        11       community and does skits and they have songs and

        12       they have a whole presentation for very young

        13       children to help them understand how to protect

        14       themselves and how to keep from having -

        15       endangering their lives by -- by engaging in

        16       behaviors that would cause fires.

        17                      So I think this is really not

        18       only does the fire department protect us and

        19       save our lives, but it also is engaged in

        20       educating young people, and I want to say a

        21       special thank you for that.  So I want to also

        22       be on the resolution.  Thank you.

        23                      ACTING PRESIDENT FARLEY:  Senator











                                                             
8987

         1       DiCarlo, on the resolution.

         2                      SENATOR DiCARLO:  Thank you, Mr.

         3       President.

         4                      It is indeed a pleasure to rise

         5       in support of this resolution.  I'm very proud

         6       to be a co-sponsor, and I rise to thank the

         7       firefighters of New York City not on my behalf

         8       only but on behalf of my constituents in

         9       Brooklyn and Staten Island.  We're proud of the

        10       work that you do and keep up the good work.

        11                      I'm very proud to co-sponsor this

        12       legislation.  Thank you.

        13                      ACTING PRESIDENT FARLEY:  Senator

        14       Connor, on the resolution.

        15                      SENATOR CONNOR:  Thank you, Mr.

        16       President.

        17                      As the leader of the Democrats in

        18       this house, I did want to particularly speak to

        19       this resolution and, of course, as a citizen of

        20       New York City and a resident of Brooklyn, I feel

        21       a very personal debt of gratitude to New York

        22       City's firefighters.

        23                      I know all of my colleagues join











                                                             
8988

         1       me in thanking them for their day in and day out

         2       efforts.  Our constituents depend so very, very

         3       much on the extraordinary efforts and dedication

         4       of New York's bravest.

         5                      The firefighters are in all of

         6       our neighborhoods, you know.  We see their

         7       efforts all of the time.  The day in and day out

         8       dedication and courage which they display are

         9       indeed remarkable and a city such as New York

        10       City, such as a densely populated urban area

        11       simply couldn't exist, it couldn't function, its

        12       residents couldn't aspire to any degree of

        13       safety, were it not for the professionalism and

        14       dedication of New York City's firefighters.

        15                      Thank you, Mr. President.

        16                      ACTING PRESIDENT FARLEY:  Senator

        17       Leibell, on the resolution.

        18                      SENATOR LEIBELL:  Mr. President,

        19       if I could just echo the comments that have been

        20       made already by my colleagues to compliment the

        21       fine men and women who all 365 days and nights

        22       of the year risk their lives and their health

        23       and their entire existence so that our citizens











                                                             
8989

         1       can be safe.

         2                      I'm pleased to have so many who

         3       live in my district who have chosen this

         4       calling.  Many of them are my friends socially

         5       and friends of my family.  I'm pleased that they

         6       could join with us here today.  They perform one

         7       of the most hazardous and dangerous tasks that

         8       could be performed in our state today, and they

         9       do it with great pride.

        10                      Thank you, sir.

        11                      ACTING PRESIDENT FARLEY:  On the

        12       resolution, all those in favor please say aye.

        13                      (Response of "Aye.")

        14                      Those opposed, nay.

        15                      (There was no response. )

        16                      The resolution is unanimously

        17       adopted.

        18                      (Applause)

        19                      I think it is evident from the

        20       applause and from the unanimous passage, the

        21       esteem with which the firefighters -

        22       professional firefighters are held by this

        23       chamber.  We wish you well.  Congratulations on











                                                             
8990

         1       the fine job that you do.  We're delighted to

         2       have you come visit us here today and come back

         3       and see us again.

         4                      Senator Bruno.

         5                      SENATOR BRUNO:  Mr. President,

         6       there will be an immediate meeting of the Rules

         7       Committee in Room 332.

         8                      ACTING PRESIDENT FARLEY:  There

         9       will be an immediate meeting of the Rules

        10       Committee in Room 332.  Senator Hoffmann.

        11                      SENATOR HOFFMANN:  Mr. President,

        12       I was out of the chamber at the time a vote was

        13       recorded on Calendar Number 91 and Calendar

        14       Number 994.  Had I been present, I would have

        15       been recorded in the affirmative on both those

        16       items.  Could the record so reflect?

        17                      ACTING PRESIDENT FARLEY:  The

        18       record will so state.

        19                      Senator Nozzolio, could you spell

        20       me while I go to Rules.

        21                      Senator Bruno.

        22                      SENATOR BRUNO:  Mr. President,

        23       can we at this time return to the controversial











                                                             
8991

         1       calendar.

         2                      ACTING PRESIDENT FARLEY:

         3       Controversial calendar.  Secretary will read.

         4                      THE SECRETARY:  Calendar Number

         5       1238, by Senator Sears, Senate Print 4903A, an

         6       act to amend the General Business Law, in

         7       relation to itinerant vendors.

         8                      SENATOR PATERSON:  Explanation.

         9                      ACTING PRESIDENT NOZZOLIO:

        10       Explanation is asked for.  Senator Sears.

        11                      SENATOR SEARS:  Thank you, Mr.

        12       President.

        13                      This bill adds a new section to

        14       the General Business Law to define the term

        15       "itinerant vendors" and prohibit the sale of

        16       drugs and food manufactured and packaged for

        17       children under age two by such persons.

        18                      Itinerant vendors are those

        19       vendors who sell their goods at a flea market

        20       type operation.  Many of the drug store products

        21       sold by itinerant vendors, such as baby food and

        22       non-prescription drugs, are frequently stolen by

        23       professional shoplifters.











                                                             
8992

         1                      The handling and storage of this

         2       merchandise, once outside the controlled

         3       environment of a pharmacy, is highly suspect.

         4       As a result, the stability of the product can

         5       not be guaranteed.  In addition, many of the

         6       products sold by itinerant vendors are

         7       non-prescription medication that may be subject

         8       to product recalls.  These recalls will vary

         9       from serious mislabeling to serious

        10       life-threatening contamination.

        11                      Once this merchandise is outside

        12       the normal distribution channels, these product

        13       recalls become meaningless.

        14                      ACTING PRESIDENT NOZZOLIO:

        15       Senator Paterson.

        16                      SENATOR PATERSON:  Mr. President,

        17       if the sponsor would yield?

        18                      SENATOR SEARS: Yes.

        19                      ACTING PRESIDENT NOZZOLIO:

        20       Sponsor yields.

        21                      SENATOR PATERSON:  Senator, I

        22       gather you were trying to actually define what

        23       is meant by the itinerant vendor under the law











                                                             
8993

         1       and I see that you've exempted farmers' markets

         2       and you have exempted certain itinerant vendors.

         3       You have not exempted flea markets, but that's,

         4       I guess, specifically what you were trying to

         5       do.  Can you explain to us why that's the case?

         6                      SENATOR SEARS:  Why we didn't

         7       include farmers' markets under the legislation?

         8                      SENATOR PATERSON:  Well, we did.

         9       We exempted them, is that correct?

        10                      SENATOR SEARS:  Oh, I see.  I

        11       don't know whether we exempted farmers' markets

        12       or not.

        13                      SENATOR PATERSON: Well, under the

        14       bill, Senator, it says that farmers' markets are

        15       exempted and licensed peddlers are exempted and

        16       what I'm asking, is there a difference between

        17       them and the regular flea market?  And I guess

        18       that would relate to why you chose to draft the

        19       legislation, and that is what I'm trying to

        20       determine.

        21                      SENATOR SEARS:  Let me -- let me

        22       temporarily lay the bill aside until I can get

        23       you the answer to that question.











                                                             
8994

         1                      SENATOR PATERSON:  All right.

         2       Thank you very much, Senator.

         3                      SENATOR SEARS: Yes, sir.

         4                      ACTING PRESIDENT NOZZOLIO:  Bill

         5       is temporarily laid aside.

         6                      THE SECRETARY:  Calendar Number

         7       1239, by Senator Tully, Senate Print 5027A, an

         8       act to amend Chapter 2....

         9                      SENATOR VELELLA:  Lay it aside

        10       for the day, please.

        11                      ACTING PRESIDENT NOZZOLIO:  Bill

        12       is laid aside for the day.

        13                      THE SECRETARY:  Calendar Number

        14       1240, by Senator Maltese, Senate Print 5141, an

        15       act to amend the Administrative Code of the city

        16       of New York.

        17                      SENATOR PATERSON:  Explanation.

        18                      ACTING PRESIDENT NOZZOLIO:

        19       Explanation is asked for.  Senator Maltese.

        20                      SENATOR MALTESE:  Mr. President,

        21       this bill is at the request of the city of New

        22       York.  It creates a new subdivision to allow for

        23       a tax credit against New York City general cor











                                                             
8995

         1       poration tax for the amount of sales and use

         2       taxes paid after January 1st, 1995 with respect

         3       to the services of installing, repairing,

         4       maintaining or servicing machinery, equipment,

         5       parts, tools and supplies used or consumed in

         6       production.  The -- among the industries who

         7       will benefit is the film industry.

         8                      This was intended as an economic

         9       development initiative to provide relief to

        10       businesses that purchase or use services in

        11       connection with the production of tangible

        12       personal property.  It would bring the city

        13       sales tax into conformity with the state sales

        14       tax with respect to such services and eliminate

        15       taxpayer confusion in this area of sales tax

        16       law.

        17                      ACTING PRESIDENT NOZZOLIO:  A

        18       local fiscal impact not is at the desk.

        19                      Senator Paterson.

        20                      SENATOR PATERSON:  Mr. President,

        21       for purposes of sales and use tax, if the

        22       sponsor would yield for a question.

        23                      ACTING PRESIDENT NOZZOLIO:











                                                             
8996

         1       Sponsor yield?

         2                      SENATOR MALTESE:  Yes.

         3                      ACTING PRESIDENT NOZZOLIO:

         4       Sponsor yields.

         5                      SENATOR PATERSON:  Senator

         6       Maltese, you said that among the industries that

         7       would benefit from the legislation would be the

         8       film industry.  What I'd like to know is what

         9       other industry other than the film industry

        10       would benefit.

        11                      SENATOR MALTESE: From my

        12       understanding, the reason I mentioned, Mr.

        13       President -- the reason I mentioned the film

        14       industry is that the film industry was active in

        15       soliciting with the city of New York and with

        16       state officials as well as myself, the passage

        17       of this, but my understanding is that it is not

        18       an -- within the confines of the law that they

        19       would not be the only industry, that any

        20       industry that would be able to fit within the

        21       definition would be able to -- whether they were

        22       incorporated or unincorporated, would still be

        23       able to avail themselves of this tax credit.  It











                                                             
8997

         1       would be any industry that -

         2                      SENATOR PATERSON:  I understand.

         3       Mr. President.

         4                      SENATOR MALTESE:  -- that is

         5       operating within the city of New York.

         6                      SENATOR PATERSON:  If Senator

         7       Maltese would continue to yield.

         8                      SENATOR MALTESE:  Yes.

         9                      ACTING PRESIDENT NOZZOLIO:

        10       Senator Maltese continues to yield.

        11                      SENATOR PATERSON:  My question

        12       is, are you aware of any industry through your

        13       research, as the prerequisite to writing the

        14       legislation, are you aware of any other industry

        15       that would -- that would benefit from the

        16       legislation and, in addition to that, I'm just

        17       wondering what the cost to New York City would

        18       be to provide this tax credit?

        19                      SENATOR MALTESE:  Mr. President,

        20       referring first to the subsequent question, the

        21       city of New York has indicated that they felt

        22       their costs would be negligible and, in

        23       addition, as is also evidenced by the fiscal











                                                             
8998

         1       impact note, and also have indicated that they

         2       felt whatever costs would be far negated by the

         3       economic development aspects of it.

         4                      As far as other industries, it

         5       would seem to me that any industry that deals in

         6       services rather than tangible property as far as

         7       purchasing goes for use in their ultimate

         8       product, whether it is tangible or intangible,

         9       would be able to avail themselves of this

        10       benefit.  So it would seem that if the bill is

        11       passed, it is presently also in the Assembly, we

        12       would hope that all businesses would also be

        13       able to avail themselves of this opportunity.

        14                      SENATOR PATERSON:  Well, Mr.

        15       President, I guess you can have the Secretary

        16       read the last section.

        17                      ACTING PRESIDENT NOZZOLIO:  Read

        18       the last section.

        19                      THE SECRETARY:  Section 7.  This

        20       act shall take effect immediately.

        21                      ACTING PRESIDENT NOZZOLIO:  Call

        22       the roll.

        23                      (The Secretary called the roll. )











                                                             
8999

         1                      THE SECRETARY:  Ayes 58.

         2                      ACTING PRESIDENT NOZZOLIO:  The

         3       bill is passed.

         4                      THE SECRETARY:  Calendar Number

         5       1242, by Senator Rath, Senate Print 5276A, an

         6       act to amend the Executive Law and others, in

         7       relation to extending the Office of Business

         8       Permits.

         9                      ACTING PRESIDENT NOZZOLIO:  Read

        10       the last section.

        11                      THE SECRETARY:  Section 14.  This

        12       act shall take effect immediately.

        13                      ACTING PRESIDENT NOZZOLIO:  Call

        14       the roll.

        15                      (The Secretary called the roll. )

        16                      THE SECRETARY:  Ayes 58.

        17                      ACTING PRESIDENT NOZZOLIO:  The

        18       bill is passed.

        19                      THE SECRETARY:  Calendar Number

        20       1243, by Senator DiCarlo, Senate Print 5300, an

        21       act to amend the Tax Law and the Administrative

        22       Code of the city of New York, in relation to

        23       repealing the sales and use taxes.











                                                             
9000

         1                      SENATOR PATERSON:  Explanation.

         2                      ACTING PRESIDENT NOZZOLIO:  A

         3       local fiscal impact note is at the desk.

         4                      Explanation is asked for.

         5       Senator DiCarlo.

         6                      SENATOR DiCARLO:  Mr. President,

         7       this bill would repeal the New York City sales

         8       tax imposed on interior design services.  The

         9       tax is anti-competitive.  It drives business out

        10       of New York, which is the only major city and

        11       the only city on the east coast which imposes

        12       such a tax.

        13                      ACTING PRESIDENT NOZZOLIO:  Read

        14       the last section.

        15                      THE SECRETARY:  Section 7.  This

        16       act shall take effect December 1st.

        17                      ACTING PRESIDENT NOZZOLIO:  Call

        18       the roll.

        19                      (The Secretary called the roll. )

        20                      THE SECRETARY:  Ayes 58.

        21                      ACTING PRESIDENT NOZZOLIO:  The

        22       bill is passed.

        23                      THE SECRETARY:  Calendar Number











                                                             
9001

         1       1246, by Senator Maltese, Senate Print 5385, an

         2       act in relation to the election of delegates to

         3       a national party convention.

         4                      SENATOR DOLLINGER:  Explanation.

         5                      ACTING PRESIDENT NOZZOLIO:

         6       Explanation is asked for.  Senator Maltese.

         7                      SENATOR MALTESE:  Mr. President,

         8       as in past years, this bill is before the house

         9       and before both the Assembly and the Senate.  It

        10       is an agreed-upon bill and as has been the norm

        11       in prior Presidential years, each of the two

        12       major political parties has made up their own

        13       rules and regulations in conformity with the

        14       rules and regulations of their respective state

        15       committees, and this bill is that product of

        16       many long hours and much work.

        17                      Basically it is in relation to

        18       the election of delegates to the Presidential

        19       nominating convention, and the Republican part

        20       first.  The bill -- and, by the way, the bill

        21       is -- has incorporated within it very much of

        22       the wording and provisions of the prior bill,

        23       the 1991 Presidential delegate bill.











                                                             
9002

         1                      It -- it incorporates all changes

         2       that would provide election not only for the

         3       Presidential delegates and the Presidential

         4       candidates but also provides that any state,

         5       county committee members, district leaders,

         6       would be elected at the fall primary rather than

         7       the spring primary.

         8                      The purpose for this was to

         9       separate and keep apart the elections for the

        10       Presidential delegates and the Presidential

        11       candidates, so thus we have a calendar which

        12       would apply only to the Presidential delegates

        13       which would -- is set forth in the bill so that

        14       the last day to file the party call would be

        15       November 14th and if sets forth certain dates so

        16       that Presidential candidates can authorize their

        17       own delegates, and so that you do not have a

        18       situation where unauthorized delegates are

        19       competing against authorized delegates without

        20       the consent of the Presidential candidate.

        21                      In addition, if the Presidential

        22       candidate does not authorize a certain delegate,

        23       those delegates would have the option to then











                                                             
9003

         1       run as uncommitted delegates, thus enabling

         2       persons' constituents in the district or party

         3       members to vote for delegates, as well as

         4       Presidential candidates.

         5                      The qualifications of the -- for

         6       the Republican plan and Democratic plan alike

         7       are for the delegates to reside within the

         8       district and be an enrolled party member of that

         9       party in order to run.  The Republican plan

        10       basically is, and I'll read, Delegates will be

        11       continued to be elected at the primary for each

        12       Congressional District, and you would have thus

        13       three delegates, three alternates from each

        14       Congressional District, plus at-large

        15       delegates.  The at-large delegates would not be

        16        -- would not be an excessive number but they

        17       would be selected at -- by the state committee

        18       at a state committee meeting for that purpose.

        19                      The Democratic plan is somewhat

        20       more complex, but there would be 159 pledged

        21       delegates to be elected from 31 Congressional

        22       Districts allocated by a formula based 50

        23       percent on population and 50 percent on average











                                                             
9004

         1       of Democratic votes for President in the last

         2       two elections.  Each district would have not

         3       less than four, not more than six delegates and

         4       the rules would be the same as far as being

         5       residents of the district.  The party also has

         6       indicated that they would permit optional

         7       allocations of delegate positions by gender.

         8                      The -- the rules for signature in

         9       the Democratic petition, they could appear,

        10       Presidential candidates could appear on the

        11       ballot by filing petitions with the signature

        12       requirements of one-third of that for other

        13       statewide petitions would be 5,000, and those

        14       5,000 valid signatures would have no geographic

        15       requirement; thus, for instance, all of them

        16       could be gathered in one county if that were

        17       feasible.

        18                      The -- in addition, the

        19       Democratic rules provide that candidates for

        20       district delegates must file certificates of

        21       candidacy with their state committee not earlier

        22       than November 28th, thus resulting in the fact

        23       that, if a candidate does not -- I'm sorry, not











                                                             
9005

         1       earlier than November 28th and not later than

         2       January 8th.  Thus, if a candidate for delegate

         3       in the Democratic Presidential primary does not

         4       file by January 8th, even if a proper petition

         5       were filed, he would not be able to run for the

         6       office.

         7                      Again, the rules are the same.  A

         8       Presidential candidate would have the right to

         9       veto a proposed delegate slate.  Let's see,

        10       individual delegates.

        11                      Basically that's it, Mr.

        12       President.  The signature, the rules for

        13       gathering signatures, would remain the same as

        14       for Congressional candidates.  The requirement

        15       for Congressional candidates would be the same,

        16       1250 in each Congressional District or 5 percent

        17       if the 5 percent of the enrolled members in that

        18       Congressional District were less than 1250.

        19                      ACTING PRESIDENT NOZZOLIO:

        20       Thanks you, Senator Maltese.

        21                      Senator Dollinger.

        22                      SENATOR DOLLINGER:  Sponsor yield

        23       for a question?











                                                             
9006

         1                      SENATOR MALTESE:  Yes.

         2                      ACTING PRESIDENT NOZZOLIO:

         3       Senator Maltese, will you yield?  Senator

         4       yields.

         5                      SENATOR DOLLINGER:  Senator,

         6       there's a prospect that in 1996 there may be

         7       other than major party candidates running for

         8       president.  What and how -- what, if at all or

         9       how, if at all, does this bill affect the

        10       prospect of a third-party candidate who would be

        11       a member of a recognized, or who would be

        12       nominated by a recognized, quote, party here in

        13       New York State?  There are now six recognized

        14       parties which met the 50,000-vote requirement

        15       under the last election.

        16                      My question is, how do they

        17       handle their nomination for President?

        18                      SENATOR MALTESE:  Yes.  Mr.

        19       President, this only affects the two major

        20       parties, the Republican and Democrat.  It does

        21       not affect the remainder of the organized

        22       political parties within the state of New York.

        23       Their party rules would provide for their own











                                                             
9007

         1       method of selection and, for instance, I'm most

         2       familiar with the Conservative Party rules.

         3       They would select their Presidential candidate

         4       by meetings of the state committee but, if the

         5       political parties, especially the newly

         6       organized ones with less members, would choose,

         7       for instance, to have it with whatever meeting

         8       they chose, whatever method they chose, they

         9       would then be free to meet and choose their

        10       Presidential candidates by that method.  It

        11       would not even require the circulation of

        12       petitions for their Presidential candidates if

        13       they chose to do it by meetings of -- by giving

        14       that responsibility to pre-elected members,

        15       members, for instance, who might be previously

        16       elected to a county office or state office in

        17       that political party.

        18                      SENATOR DOLLINGER:  Again through

        19       you, Mr. President.

        20                      ACTING PRESIDENT NOZZOLIO:

        21       Senator Dollinger.

        22                      SENATOR DOLLINGER:  Just explain

        23       to me, Senator, how then a minor party, for











                                                             
9008

         1       example, the Independent Party or Independence

         2       Party, whatever they're called, how could they

         3       conduct a primary for their nomination for

         4       President in this state, for example, if they

         5       decided to do it?

         6                      SENATOR MALTESE:  Mr. President.

         7                      ACTING PRESIDENT NOZZOLIO:

         8       Senator Maltese.

         9                      SENATOR MALTESE:  It would depend

        10       on their party rules.  There are many instances

        11       where it is either extremely difficult or impos

        12       sible especially in so-called minor parties, for

        13       parties to conduct primaries.  We have, for

        14       instance, rules relating to judicial conventions

        15       where party rules apply and make it almost

        16       impossible for so-called insurgents to secure

        17       party nominations.

        18                      They always have the option of

        19       pursuing an independent candidacy.  In this

        20       case, especially for the minor parties, they

        21       would have to comply with party rules.  That

        22       doesn't mean it's impossible.  They would, for

        23       instance, in various of the so-called minor











                                                             
9009

         1       parties, be able to solicit those minor parties

         2       for their Presidential endorsement and be able

         3       to be on the ballot simply because that -

         4       so-called minor party has already secured an

         5       official position on the ballot by securing the

         6       necessary 50,000 votes in the last gubernatorial

         7       election.

         8                      SENATOR DOLLINGER:  Again through

         9       you, Mr. President.

        10                      ACTING PRESIDENT NOZZOLIO:

        11       Senator Dollinger.

        12                      SENATOR DOLLINGER:  Let me focus

        13       on the Conservative Party, the one that you're

        14       most familiar with.

        15                      There is a prospect that there

        16       will be several Republican Presidential

        17       contenders who would, in eyeing New York State,

        18       think that they might be an appropriate

        19       candidate for the New York State Conservative

        20       Party to endorse for the office of President.

        21                      How, under the current rules, and

        22       again I'm assuming this is germane to this bill,

        23       how under the current rules would that candidate











                                                             
9010

         1       trigger a primary?  Is there a capability that

         2       they can under current rules and current?

         3                      SENATOR MALTESE: Mr. President.

         4       Mr. President.

         5                      ACTING PRESIDENT NOZZOLIO:

         6       Senator Maltese.

         7                      SENATOR MALTESE:  Mr. President,

         8       I can't speak for the rules currently in effect

         9       because they can be amended from time to time

        10       and may very well be amended prior to the

        11       Presidential primary in 1996, but if they had

        12       been -- if there had been more than one

        13       candidate, as there has been in the past, the

        14       method would be to convince the present members

        15       of the state committee and the present members

        16       of the executive committee of the Conservative

        17       Party so that a Presidential candidate -- and I

        18       have no doubt there probably will be a -

        19       although I do not presume to speak for the

        20       Conservative Party, there probably will be a

        21       Presidential candidates' forum at which

        22       candidates would be interviewed, their views

        23       solicited, and then they would pursue the votes











                                                             
9011

         1       of the individual state committeemen.

         2                      Of course, we have the

         3       Wilson-Pakula which is in existence in New York

         4       State and named after former Governor Wilson and

         5       State Senator Irwin Pakula, which would make it

         6       a prerequisite that a Presidential candidate

         7       just like any other candidate would have to, in

         8       addition, secure the authorization of the state

         9       executive committee in order to run as a

        10       Presidential candidate.

        11                      SENATOR DOLLINGER:  Through you,

        12       Mr. President.

        13                      ACTING PRESIDENT NOZZOLIO:

        14       Senator Dollinger.  Does Senator Maltese

        15       continue to yield?

        16                      SENATOR MALTESE:  Yes.

        17                      SENATOR DOLLINGER:  Yes, if you

        18       would.

        19                      Continue my education, if you

        20       would, for a moment, Senator.  Why in the state

        21       of New York do we put the party rules for

        22       Presidential primaries into law for the two

        23       major parties and yet we don't require any legal











                                                             
9012

         1       enactment into law for the same rules for the

         2       minor parties which may run from Conservative to

         3       Independent to Right to Life to I guess the Tax

         4       Cut Now is now a recognized party.

         5                      SENATOR MALTESE: Well, Mr.

         6       President -

         7                      SENATOR DOLLINGER:  Why do we do

         8       one and not the other?

         9                      SENATOR MALTESE:  Well, Mr.

        10       President, to my knowledge, and I've only been

        11       chairman of the Election Committee since January

        12       of this year, no other party has approached me

        13       or any other member and there is no present bill

        14       that has been submitted to me or, so far as I

        15       know, to the Senate to codify or legislate party

        16       rules.  It seems to me that in this democratic

        17       process and in the state of New York, we are

        18       better served by, in certain instances, keeping

        19       our nose out of the business of some of these

        20       political parties who choose to run their own

        21       party affairs and, in the absence of complaints

        22       that these parties are undemocratic, with a

        23       small "d", I think we should continue that wise











                                                             
9013

         1       course.

         2                      SENATOR DOLLINGER:  Again through

         3       you, Mr. President, if the sponsor will continue

         4       to yield.

         5                      ACTING PRESIDENT NOZZOLIO:  Does

         6       Senator Maltese continue to yield?  Senator

         7       continues to yields.

         8                      Senator Dollinger.

         9                      SENATOR DOLLINGER:  This bill,

        10       Senator, is a reflection of a general rule in

        11       New York that we like primaries, that we want

        12       the political parties to be involved, that we

        13       want to give people the opportunity to have

        14       their voice heard at the ballot box, at least as

        15       far as the nomination for President of the

        16       United States goes.

        17                      My question is, why doesn't that

        18       same logic drive our consideration of minor

        19       parties, and why don't they conform to the same

        20       general rules that are permitted here, which is

        21       circulate nominating petitions, have the ability

        22       to go to the ballot box?  Why the difference in

        23       philosophy between the way we treat the major











                                                             
9014

         1       parties and the minor parties?

         2                      SENATOR MALTESE:  Mr. President,

         3       I thought for a moment my ears deceived me, that

         4       Senator Dollinger would look to encumber the

         5       process and make the democratic process more

         6       difficult for the minor parties.

         7                      I'm advised that the major -- two

         8       so-called major parties, they are, of course,

         9       national parties.  That is the difference

        10       between them and the state parties that are

        11       presently organized under our legislation in New

        12       York State.  Thus, in order to nominate a

        13       national candidate in the 50 states, there are

        14       certain rules and regulations promulgated by the

        15       national committees of those two parties in

        16       order to have some uniformity so that, for

        17       instance, Hawaii and Alaska don't come in with

        18       500 delegates and perhaps New York and

        19       California come in with 125.  So there are

        20       certain rules that are universal for all 50

        21       states, and New York State thus is required by

        22       the national committees to codify certain -

        23       certain rules and regulations to be consistent











                                                             
9015

         1       with those national rules.

         2                      The state parties and all the

         3       other state parties that we have in New York,

         4       Conservative, Liberal, Right to Life, and so on,

         5       are state parties only, and while they are

         6       somewhat identified and loosely connected with

         7       perhaps some national organizations, they are

         8       run totally within New York State with their

         9       offices and members elected by New York State

        10       voters who are -- who have chosen to identify

        11       with those political parties.

        12                      SENATOR DOLLINGER:  Again through

        13       you, Mr. President.

        14                      ACTING PRESIDENT NOZZOLIO:

        15       Senator Dollinger.

        16                      SENATOR DOLLINGER:  I apologize.

        17       I don't mean this to be redundant.  I just want

        18       to make sure I've got a clear answer.  What is

        19       the rationale for having the major parties do

        20       primaries at the ballot to nominate their

        21       candidate versus the small parties being able to

        22       do it by party rule in convention?  What's the

        23       difference between those two?











                                                             
9016

         1                      SENATOR MALTESE:  I think, Mr.

         2       President, if the minor parties chose to do it

         3       by primaries, they could do so and we would, I

         4       would at any rate, be responsive to their wishes

         5       and put in legislation, but I think especially

         6       considering the smaller number of enrollees,

         7       that we would have an obligation on the state

         8       level to -- to look to the fiscal impact of

         9       codifying and legislating where relatively few

        10       people are involved.

        11                      I don't think at this time that

        12       is a factor.  Right now, we are simply

        13       responding to the obligation of legislating

        14       because that makes us consistent with the

        15       national rules and regulations, and the

        16       rationale as far as the smaller political

        17       parties are concerned, I hope is that wherever

        18       possible let's keep our noses out of their

        19       business.

        20                      SENATOR DOLLINGER:  Just on the

        21       bill, Mr. President.

        22                      ACTING PRESIDENT NOZZOLIO:

        23       Senator Dollinger, on the bill.











                                                             
9017

         1                      SENATOR DOLLINGER:  This is the

         2       first time I've had a chance to really think

         3       about the philosophy underlying this and, while

         4       I guess as a member of a major party, I'm

         5       cognizant of our obligations to protect major

         6       parties and to do what major parties want, I

         7       can't understand why we do it for major parties

         8       or set up a series of rules for major parties

         9       that we don't enforce for minor parties as

        10       well.

        11                      Minor parties in this state, as

        12       everybody in this room knows, has had a major

        13       impact on the future of this state.  There's

        14       someone that lives working on the second floor

        15       who, at least to the best of my recount,

        16       wouldn't be here but for a minor party, and I

        17       think that in recognition of the rising status

        18       of minor parties, be they Independent or Tax Cut

        19       Now, or whatever they want to call themselves, I

        20       think we ought to set up a uniform series of

        21       rules and have everybody comply with those and

        22       get away from the notion that parties can

        23       function or mandate what government should do.











                                                             
9018

         1                      My understanding is it should go

         2       the other way around and, for that reason, Mr.

         3       President, although I ask -- I hope it's not

         4       interpreted as any comment on the contents of

         5       this bill or the work that the chairman has had

         6       with the major parties it seems to me

         7       philosophically I'm opposed to this bill.

         8                      ACTING PRESIDENT NOZZOLIO:  Read

         9       the last section.

        10                      THE SECRETARY:  Section 5.  This

        11       act shall take effect immediately.

        12                      ACTING PRESIDENT NOZZOLIO:

        13       Senator Montgomery, why do you rise?

        14                      SENATOR MONTGOMERY:  I -- just a

        15       brief clarification question for the sponsor?

        16                      ACTING PRESIDENT NOZZOLIO:

        17       Senator Maltese, do you yield?  Senator yields.

        18                      SENATOR MALTESE:  Yes.

        19                      SENATOR MONTGOMERY:  Senator

        20       Maltese, this is an agreed upon legislation.  If

        21       we vote on this today it goes, it's between the

        22       two houses?

        23                      SENATOR MALTESE:  Yes Mr. -











                                                             
9019

         1       yes.

         2                      SENATOR MONTGOMERY:  O.K. Thank

         3       you.

         4                      SENATOR MALTESE:  One -- oh, I'll

         5       explain my vote.

         6                      ACTING PRESIDENT NOZZOLIO:  Read

         7       the last section.

         8                      THE SECRETARY:  Section 5.  This

         9       act shall take effect immediately.

        10                      ACTING PRESIDENT NOZZOLIO:  Call

        11       the roll.

        12                      (The Secretary called the roll. )

        13                      ACTING PRESIDENT NOZZOLIO:

        14       Senator Maltese to explain his vote.

        15                      SENATOR MALTESE: Just very

        16       briefly and in partial response to Senator

        17       Dollinger, I think the difference is that on the

        18       national conventions, there is a national

        19       convention and that with the smaller state

        20       parties, their state convention amounts in their

        21       cases to a national convention because those

        22       delegates have no national convention to go to.

        23                      With respect vis-a-vis the











                                                             
9020

         1       Conservative Party, for instance, in the

         2       ordinary sense since the early nominations of

         3       Presidential candidates in the Republican Party,

         4       they've chosen to go to the Republican

         5       nominating conventions because their candidates

         6       were the same, were one and the same.

         7                      I vote aye, Mr. Chairman -- Mr.

         8       President.

         9                      ACTING PRESIDENT NOZZOLIO:

        10       Senator Maltese votes aye.  Announce the

        11       results.

        12                      THE SECRETARY:  Ayes 57, nays

        13       one, Senator Dollinger recorded in the

        14       negative.

        15                      ACTING PRESIDENT NOZZOLIO:  The

        16       bill is passed.

        17                      SENATOR VELELLA:  At this time,

        18       Mr. President, I recognize Senator Mendez -- ask

        19       the Chair to recognize Senator Mendez.

        20                      ACTING PRESIDENT NOZZOLIO:

        21       Senator Mendez.

        22                      SENATOR MENDEZ:  Thank you, Mr.

        23       President.











                                                             
9021

         1                      Mr. President, I have the honor

         2       of presenting to my colleagues here in the

         3       Senate today some Senators from -- from -- from

         4       Ascuncion, from Paraguay.  They have been

         5       visiting with Christopher Zimmerman in a study

         6       group of the National State Legislature

         7       Conference, and so, visiting and sitting over

         8       there we have Dr. Diego Abente Brun, Dr. Armando

         9       Vicente Espinola, Senator Fernando Martinez.  We

        10       have also the Director of the budget of

        11       Paraguay, Honorable Ruben Minarro, and Dr.

        12       Dionisio Borda, Director of the Economics

        13       Division of the government.

        14                      So that it is my privilege to

        15       introduce them.  They have been visiting other

        16       state legislatures throughout the country, and

        17       we're very appreciative of the fact that they're

        18       here in New York in this great chamber of ours

        19       visiting and trading impressions with us.

        20                      ACTING PRESIDENT NOZZOLIO:  Thank

        21       you, Senator Mendez.

        22                      On behalf of Senator Mendez, our

        23       Majority Leader, Senator Bruno, and all of the











                                                             
9022

         1       Senate, we welcome these distinguished officials

         2       from Paraguay.  Welcome to New York.

         3                      (Applause)

         4                      Senator Velella.

         5                      SENATOR VELELLA:  Can we just see

         6       if there's any housekeeping?

         7                      ACTING PRESIDENT NOZZOLIO:

         8       Senator DiCarlo.

         9                      SENATOR DiCARLO:  Mr. President,

        10       on behalf of Senator Goodman, I wish to call up

        11       his bill, Print Number 917, recalled from the

        12       Assembly which is now at the desk.

        13                      ACTING PRESIDENT NOZZOLIO:

        14       Secretary will read.

        15                      THE SECRETARY:  Calendar Number

        16       1051, by Senator Goodman, Senate Print 917, an

        17       act to amend the Civil Rights Law, in relation

        18       to prohibiting the non-consentual use of a

        19       person's voice.

        20                      SENATOR DiCARLO:  Mr. President,

        21       I now move to reconsider the vote by which this

        22       bill was passed.

        23                      ACTING PRESIDENT NOZZOLIO:  Call











                                                             
9023

         1       the roll on reconsideration.

         2                      (The Secretary called the roll on

         3       reconsideration. )

         4                      THE SECRETARY:  Ayes 58.

         5                      ACTING PRESIDENT NOZZOLIO:

         6       Senator DiCarlo.

         7                      SENATOR DiCARLO:  I offer up the

         8       following amendments.

         9                      ACTING PRESIDENT NOZZOLIO:

        10       Amendments received and adopted.

        11                      Senator DiCarlo.

        12                      SENATOR DiCARLO:  Mr. President,

        13       on behalf of Senator Saland, I wish to call up

        14       bill Print Number 2113A, recalled from the

        15       Assembly which is now at the desk.

        16                      ACTING PRESIDENT NOZZOLIO:

        17       Secretary will read.

        18                      THE SECRETARY:  Calendar Number

        19       425, by Senator Saland, Senate Print 2113A, an

        20       act to amend the Family Court Act, in relation

        21       to authorizing the court to permit a

        22       petitioner.

        23                      SENATOR DiCARLO:  Mr. President,











                                                             
9024

         1       I now move to reconsider the vote by which this

         2       bill was passed.

         3                      ACTING PRESIDENT NOZZOLIO:  Call

         4       the roll.

         5                      (The Secretary called the roll on

         6       reconsideration. )

         7                      THE SECRETARY:  Ayes 58.

         8                      SENATOR DiCARLO:  Mr. President,

         9       I now offer the following amendments.

        10                      ACTING PRESIDENT NOZZOLIO:

        11       Amendments received and adopted.

        12                      Senator DiCarlo.

        13                      SENATOR DiCARLO:  Mr. President,

        14       on page 38, I offer the following amendments to

        15       Calendar 1198, Senate Print 3817A, and ask that

        16       said bill retain its place on Third Reading

        17       Calendar.

        18                      ACTING PRESIDENT NOZZOLIO:

        19       Amendments received and adopted.

        20                      SENATOR DiCARLO:  Mr. President,

        21       on behalf of Senator LaValle, on page 8, I offer

        22       the following amendments to Calendar 271, Senate

        23       Print 3292, and ask that said bill retain its











                                                             
9025

         1       place on Third Reading Calendar.

         2                      ACTING PRESIDENT NOZZOLIO:

         3       Amendments received and adopted.

         4                      Senator Marcellino.

         5                      SENATOR MARCELLINO: Mr.

         6       President, on behalf of Senator Cook, on page

         7       number 13, I offer the following amendments to

         8       Calendar Number 511, Senate Print number 4246,

         9       and ask that said bill retain its place on the

        10       Third Reading Calendar.

        11                      ACTING PRESIDENT NOZZOLIO:

        12       Amendments received and adopted.

        13                      SENATOR MARCELLINO:  Mr.

        14       President, also on behalf of Senator Cook, on

        15       page number 13, I offer the following amendments

        16       to Calendar Number 512, Senate Print 4247, and

        17       ask that said bill retain its place on the Third

        18       Reading Calendar.

        19                      ACTING PRESIDENT NOZZOLIO:

        20       Amendments received and adopted.

        21                      SENATOR MARCELLINO:  Mr.

        22       President, also on behalf of Senator Cook, on

        23       page number 13, I offer the following amendments











                                                             
9026

         1       to Calendar Number 513, Senate Print 4238, and

         2       ask that said bill retain its place on the Third

         3       Reading Calendar.

         4                      ACTING PRESIDENT NOZZOLIO:

         5       Amendments received and adopted.

         6                      SENATOR MARCELLINO:  Mr.

         7       President, on behalf of Senator Tully, on page

         8       number 36, I offer the following amendments to

         9       Calendar Number 1239, Senate Print number 5027

        10       A, and ask that said bill retain its place on

        11       the Third Reading Calendar.

        12                      ACTING PRESIDENT NOZZOLIO:

        13       Amendments received and adopted.

        14                      SENATOR MARCELLINO:  Mr.

        15       President, I wish to call up Senator Kuhl's

        16       bill, Print Number 3667, recalled from the

        17       Assembly which is now at the desk.

        18                      ACTING PRESIDENT NOZZOLIO:

        19       Secretary will read.

        20                      THE SECRETARY:  Calendar Number

        21       335, by Senator Kuhl, Senate Print 3667, an act

        22       to amend the Agriculture and Markets Law.

        23                      SENATOR MARCELLINO:  Mr.











                                                             
9027

         1       President, I now move to reconsider the vote by

         2       which this bill was passed.

         3                      ACTING PRESIDENT NOZZOLIO:  Call

         4       the roll.

         5                      (The Secretary called the roll on

         6       reconsideration. )

         7                      THE SECRETARY:  Ayes 58.

         8                      ACTING PRESIDENT NOZZOLIO:

         9       Senator Marcellino.

        10                      SENATOR MARCELLINO:  Mr.

        11       President, I now offer the following

        12       amendments.

        13                      ACTING PRESIDENT NOZZOLIO:

        14       Amendments received and adopted.

        15                      SENATOR MARCELLINO:  Thank you,

        16       sir.

        17                      SENATOR WRIGHT: Mr. President.

        18                      ACTING PRESIDENT NOZZOLIO:

        19       Senator Wright.

        20                      SENATOR WRIGHT:  Mr. President, I

        21       request unanimous consent to be recorded in the

        22       negative on Calendar Number 1219, Senate 3891.

        23                      SENATOR VELELLA:  Mr. President,











                                                             
9028

         1       could we return to the reports of standing

         2       committees?

         3                      ACTING PRESIDENT NOZZOLIO:

         4       Secretary will read it.

         5                      THE SECRETARY:  Senator Bruno,

         6       from the Committee on Rules, reports the

         7       following bills:

         8                      Senate Print 138A, by Senator

         9       Holland, an act to amend the Social Services Law

        10       and the Executive Law, in relation to providing

        11       an automobile as essential personal property;

        12                      637A, by Senator DiCarlo, an act

        13       to amend the Penal Law, in relation to unlawful

        14       possession of a box cutter;

        15                      991, by Senator Present, an act

        16       to amend the Insurance Law, in relation to

        17       coverage for mammography screening;

        18                      1281, by Senator Rath, an act to

        19       amend the State Finance Law, in relation to

        20       requiring a regulatory budget;

        21                      1468, by Senator Holland, an act

        22       to amend the Social Services Law, in relation to

        23       requiring an address;.











                                                             
9029

         1                      1619B, by Senator Goodman, an act

         2       to amend the Vehicle and Traffic Law, in

         3       relation to mandatory suspensions;

         4                      2278, by Senator Hoblock, an act

         5       to amend the Labor Law, in relation to excluding

         6       from an employer's experience rating charge;

         7                      2761A, by Senator Skelos, an act

         8       in relation to the duration of the eligible

         9       lists for police officer;

        10                      3078, by Senator Babbush, an act

        11       to amend the Vehicle and Traffic Law, in

        12       relation to changing the color of certain police

        13       vehicles offered for sale;

        14                      Senate Print 3586A, by Senator

        15       Goodman, an act to amend the Tax Law, in

        16       relation to the delivery of wage reporting

        17       information;

        18                      3692A, by Senator Velella, an act

        19       to amend the Insurance Law, in relation to

        20       requiring Certified Public Accountant reports of

        21       Article 34 corporations;

        22                      3950B, by Senator Tully, an act

        23       to amend the Public Health Law and the Executive











                                                             
9030

         1       Law, in relation to residential hospices;

         2                      4455, by Senator Hoblock, an act

         3       to amend the Executive Law, in relation to

         4       display of the prisoner of war and missing in

         5       action flag and making an appropriation

         6       therefor;

         7                      4746A, by Senator Saland, an act

         8       in relation to authorizing the city of Beacon,

         9       county of Dutchess, to opt out of the provisions

        10       of Chapter 602;

        11                      4807A, by Senator Maziarz, an act

        12       to provide benefit options to surviving spouses

        13       of certain deceased members of the New York

        14       State Teachers' Retirement System;

        15                      5087A, by Senator Kuhl, an act to

        16       amend the Retirement and Social Security Law, in

        17       relation to authorizing the Keuka Lake Watershed

        18       Improvement Cooperative;

        19                      5174, by Senator Espada, an act

        20       authorizing the city of New York to reconvey its

        21       interest in certain real property required by in

        22       rem tax foreclosure;

        23                      5210, by Senator Mendez, an act











                                                             
9031

         1       to authorize the Commissioner of General

         2       Services to sell certain state lands in the city

         3       of New York;

         4                      5293, by Senator Kuhl, an act to

         5       amend the Vehicle and Traffic Law, in relation

         6       to permitting the use of certain racks for

         7       carrying hay, straw or unthrashed grain;.

         8                      5372, by Senator LaValle, an act

         9       to amend Chapter 311 of the Laws of 1920,

        10       relating to the assessment and collection of

        11       taxes in Suffolk County;.

        12                      3873A, by Senator Marchi, an act

        13       to amend the Real Property Law, in relation to

        14       establishing a New York State real estate board;

        15                      4142, by Senator Kruger, an act

        16       to allow Jack Walfish, a retired member of the

        17       New York State Teachers Retirement System, to

        18       purchase military credit.

        19                      All bills ordered directly for

        20       third reading.

        21                      ACTING PRESIDENT NOZZOLIO:

        22       Senator Velella.

        23                      SENATOR VELELLA:  Can we proceed











                                                             
9032

         1       to calendar -- Supplemental Calendar 2, non

         2       controversial reading of the calendar.

         3                      ACTING PRESIDENT NOZZOLIO:

         4       Without objection, all bills reported to third

         5       reading.

         6                      There's a substitution at the

         7       desk.

         8                      SENATOR SKELOS:  Please make the

         9       substitution.

        10                      THE SECRETARY:  On page 5,

        11       Senator Lack moves to discharge from the

        12       Committee on Judiciary, Assembly Bill Number

        13       3222-A and substitute it for the identical

        14       Calendar Number 110.

        15                      ACTING PRESIDENT NOZZOLIO:  The

        16       substitution -

        17                      SENATOR SKELOS:  Mr. President.

        18                      ACTING PRESIDENT NOZZOLIO:

        19       Senator Skelos.

        20                      SENATOR SKELOS:  If we at this

        21       time could take up Senate Supplemental Calendar

        22       Number 2, non-controversial.

        23                      ACTING PRESIDENT NOZZOLIO:  The











                                                             
9033

         1       clerk will read the non-controversial calendar.

         2                      THE SECRETARY:  Calendar Number

         3       1237, by Senator Holland, Senate Print 138-A, an

         4       act to amend the Social Services Law and the

         5       Executive Law, in relation to providing an

         6       automobile as essential personal property.

         7                      SENATOR PATERSON:  Lay it aside.

         8                      ACTING PRESIDENT NOZZOLIO:  The

         9       bill is laid aside.

        10                      THE SECRETARY:  Calendar Number

        11       1247, by Senator DiCarlo, Senate Print 637-A, an

        12       act to amend the Penal Law, in relation to

        13       unlawful possession of a box cutter.

        14                      ACTING PRESIDENT NOZZOLIO:  Last

        15       section.

        16                      THE SECRETARY:  Section 5.  This

        17       act shall take effect on the first day of

        18       November.

        19                      ACTING PRESIDENT NOZZOLIO:  Call

        20       the roll.

        21                      (The Secretary called the roll.)

        22                      THE SECRETARY:  Ayes 58.

        23                      ACTING PRESIDENT NOZZOLIO:  The











                                                             
9034

         1       bill is passed.

         2                      THE SECRETARY:  Calendar Number

         3       1248, by Senator Present, Senate Print 991, an

         4       act to amend the Insurance Law, in relation to

         5       coverage for mammography screening.

         6                      ACTING PRESIDENT NOZZOLIO:  Last

         7       section.

         8                      SENATOR PATERSON:  Lay it aside.

         9                      ACTING PRESIDENT NOZZOLIO:  Lay

        10       it aside.

        11                      THE SECRETARY:  Calendar Number

        12       1249, by Senator Rath, Senate Print 1281, an act

        13       to amend the State Finance Law, in relation to

        14       requiring a regulatory budget.

        15                      SENATOR PATERSON:  Lay it aside.

        16                      ACTING PRESIDENT NOZZOLIO:  The

        17       bill is laid aside.

        18                      THE SECRETARY:  Calendar Number

        19       1250, by Senator Holland, Senate Print 1468, an

        20       act to amend the Social Services Law, in

        21       relation to requiring an address as a condition

        22       of receiving assistance.

        23                      SENATOR PATERSON:  Lay it aside.











                                                             
9035

         1                      ACTING PRESIDENT NOZZOLIO:  The

         2       bill is laid aside.

         3                      THE SECRETARY:  Calendar Number

         4       1251, by Senator Goodman, Senate Print 1619-B,

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

         6       relation to mandatory suspensions.

         7                      ACTING PRESIDENT NOZZOLIO:  Last

         8       section.

         9                      THE SECRETARY:  Section 2.  This

        10       act shall take effect 30 days.

        11                      ACTING PRESIDENT NOZZOLIO:

        12       Announce the results.

        13                      (The Secretary called the roll.)

        14                      THE SECRETARY:  Ayes 58.

        15                      ACTING PRESIDENT NOZZOLIO:  The

        16       bill is passed.

        17                      THE SECRETARY:  Calendar Number

        18       1252, by Senator Hoblock, Senate Print 2278, an

        19       act to amend the Labor Law, in relation to

        20       excluding from an employer's experience rating

        21       charge the voluntary separation from last

        22       employment.

        23                      ACTING PRESIDENT NOZZOLIO:  Last











                                                             
9036

         1       section.

         2                      THE SECRETARY:  Section 2.  This

         3       act shall take effect immediately.

         4                      ACTING PRESIDENT NOZZOLIO:  Call

         5       the roll.

         6                      (The Secretary called the roll.)

         7                      THE SECRETARY:  Ayes 58.

         8                      ACTING PRESIDENT NOZZOLIO:  The

         9       bill is passed.

        10                      THE SECRETARY:  Calendar Number

        11       1253, by Senator Skelos, Senate Print 2761-A, an

        12       act in relation to the duration of the eligible

        13       list for police officer in the county of Nassau.

        14                      ACTING PRESIDENT NOZZOLIO:  Home

        15       rule message at the desk.

        16                      SENATOR PATERSON:  Lay it aside.

        17                      ACTING PRESIDENT NOZZOLIO:  The

        18       bill is laid aside.

        19                      THE SECRETARY:  Calendar Number

        20       1254, by Senator Babbush, Senate Print 3078, an

        21       act to amend the Vehicle and Traffic Law, in

        22       relation to changing the color of certain police

        23       vehicles offered for resale.











                                                             
9037

         1                      ACTING PRESIDENT NOZZOLIO:  Last

         2       section.

         3                      THE SECRETARY:  Section 2.  This

         4       act shall take effect immediately.

         5                      ACTING PRESIDENT NOZZOLIO:  Call

         6       the roll.

         7                      (The Secretary called the roll.)

         8                      THE SECRETARY:  Ayes 58.

         9                      ACTING PRESIDENT NOZZOLIO:  The

        10       bill is passed.

        11                      THE SECRETARY:  Calendar Number

        12       1255, by Senator Goodman, Senate Print 3586-A,

        13       an act to amend the Tax Law, in relation to the

        14       delivery of wage reporting information.

        15                      ACTING PRESIDENT NOZZOLIO:  Last

        16       section.

        17                      SENATOR PATERSON:  Lay it aside.

        18                      ACTING PRESIDENT NOZZOLIO:  The

        19       bill is laid aside.

        20                      THE SECRETARY:  Calendar Number

        21       1256, by Senator Velella, Senate Print 3692-A,

        22       an act to amend the Insurance Law, in relation

        23       to requiring the certified public accountant











                                                             
9038

         1       reports.

         2                      ACTING PRESIDENT NOZZOLIO:  The

         3       bill is high.  Lay it aside.

         4                      THE SECRETARY:  Senator Tully

         5       moves to discharge from the Committee on Rules,

         6       Assembly Bill Number 5864-B and substitute it

         7       for the identical Calendar Number 1257.

         8                      ACTING PRESIDENT NOZZOLIO:  The

         9       substitution -

        10                      THE SECRETARY:  Calendar Number

        11       1257, by Member of the Assembly Luster, Assembly

        12       Print 5864-B, an act to amend the Public Health

        13       Law and the Executive Law, in relation to

        14       residential hospices.

        15                      ACTING PRESIDENT NOZZOLIO:  Last

        16       section.

        17                      THE SECRETARY:  Section 2.  This

        18       act shall take effect immediately.

        19                      ACTING PRESIDENT NOZZOLIO:  Call

        20       the roll.

        21                      (The Secretary called the roll.)

        22                      THE SECRETARY:  Ayes 58.

        23                      ACTING PRESIDENT NOZZOLIO:  The











                                                             
9039

         1       bill is passed.

         2                      THE SECRETARY:  Calendar Number

         3       1258, by Senator Hoblock, Senate Print 4455, an

         4       act to amend the Executive Law, in relation to

         5       display of the prisoner of war and missing in

         6       action flag and making an appropriation

         7       therefor.

         8                      ACTING PRESIDENT NOZZOLIO:  Read

         9       the last section.

        10                      THE SECRETARY:  Section 3.  This

        11       act shall take effect on the 120th day.

        12                      ACTING PRESIDENT NOZZOLIO:  Call

        13       the roll.

        14                      (The Secretary called the roll.)

        15                      THE SECRETARY:  Ayes 58.

        16                      ACTING PRESIDENT NOZZOLIO:  The

        17       bill is passed.

        18                      THE SECRETARY:  Calendar Number

        19       1259, by Senator Saland -

        20                      SENATOR SALAND:  Lay it aside for

        21       the day.

        22                      ACTING PRESIDENT NOZZOLIO:  The

        23       bill is laid aside for the day.











                                                             
9040

         1                      THE SECRETARY:  Calendar Number

         2       1260, by Senator Maziarz, Senate Print 4807-A -

         3                      ACTING PRESIDENT NOZZOLIO:  The

         4       bill is laid aside.

         5                      THE SECRETARY:  Calendar Number

         6       1262, by Senator Kuhl, Senate Print 5087-A -

         7                      SENATOR SKELOS:  Lay it aside for

         8       the day.

         9                      THE SECRETARY:  -- an act to

        10       amend the Retirement and Social Security Law.

        11                      SENATOR SKELOS:  Lay it aside for

        12       the day.

        13                      ACTING PRESIDENT NOZZOLIO:  The

        14       bill is laid aside for the day.

        15                      THE SECRETARY:  Calendar Number

        16       1263, by Senator Espada, Senate Print 5174, an

        17       act authorizing the city of New York to reconvey

        18       its interest in certain real property.

        19                      ACTING PRESIDENT NOZZOLIO:  There

        20       is no home rule message at the desk.  Lay the

        21       bill aside.

        22                      THE SECRETARY:  Calendar Number

        23       1264, by Senator Mendez, Senate Print 5210, an











                                                             
9041

         1       act to authorize the Commissioner of General

         2       Services to sell certain state lands in the city

         3       of New York.

         4                      ACTING PRESIDENT NOZZOLIO:  Last

         5       section.

         6                      THE SECRETARY:  Section 5.  This

         7       act shall take effect immediately.

         8                      ACTING PRESIDENT NOZZOLIO:  Call

         9       the roll.

        10                      (The Secretary called the roll.)

        11                      THE SECRETARY:  Ayes 58.

        12                      ACTING PRESIDENT NOZZOLIO:  The

        13       bill is passed.

        14                      THE SECRETARY:  Calendar Number

        15       1265, by Senator Kuhl -

        16                      SENATOR SKELOS:  Lay it aside for

        17       the day.

        18                      ACTING PRESIDENT NOZZOLIO:  The

        19       bill is laid aside for the day.

        20                      THE SECRETARY:  Calendar Number

        21       1266, by Senator LaValle, Senate Print 5372, an

        22       act to amend Chapter 311 of the Laws of 1920,

        23       relating to the assessment and collection of











                                                             
9042

         1       taxes in Suffolk County.

         2                      ACTING PRESIDENT NOZZOLIO:  Last

         3       section.

         4                      SENATOR PATERSON:  Lay it aside.

         5                      ACTING PRESIDENT NOZZOLIO:  The

         6       bill is laid aside by Senator Paterson.

         7                      THE SECRETARY:  Calendar Number

         8       1267, by Senator Marchi, Senate Print 3873-A, an

         9       act to amend the Real Property Law, in relation

        10       to establishing a New York State Real Estate

        11       Board.

        12                      ACTING PRESIDENT NOZZOLIO:  The

        13       bill is high.  Lay it aside.

        14                      THE SECRETARY:  Calendar Number

        15       1268, by Senator Kruger, an act to -- Senate

        16       Print 4142, an act to allow Jack Walfish, a

        17       retired member of the New York State Teachers

        18       Requirement System to purchase military credit

        19       for service as a Merchant Marine during World

        20       War II.

        21                      ACTING PRESIDENT NOZZOLIO:  Last

        22        -- Senator Sears.

        23                      SENATOR SEARS:  Wait until you're











                                                             
9043

         1       done.

         2                      ACTING PRESIDENT NOZZOLIO:  Last

         3       section.

         4                      THE SECRETARY:  Section 2.  This

         5       act shall take effect immediately.

         6                      ACTING PRESIDENT NOZZOLIO:  Call

         7       the roll.

         8                      (The Secretary called the roll.)

         9                      THE SECRETARY:  Ayes 58.

        10                      ACTING PRESIDENT NOZZOLIO:  The

        11       bill is passed.

        12                      Senator Sears.

        13                      SENATOR SEARS:  Supplemental

        14       Calendar 1, page 3, Calendar Number 1238, would

        15       you star the bill.

        16                      ACTING PRESIDENT NOZZOLIO:

        17       Calendar Number 1238, the bill is starred.

        18                      Senator Skelos.

        19                      SENATOR SKELOS:  Take up

        20       Supplemental Calendar Number 2, controversial.

        21                      ACTING PRESIDENT NOZZOLIO:  The

        22       Secretary will read.

        23                      THE SECRETARY:  Calendar Number











                                                             
9044

         1       1237, by Senator Holland, Senate Print 138-A, an

         2       act to amend the Social Services Law and the

         3       Executive Law, in relation to providing an

         4       automobile as essential personal property.

         5                      SENATOR PATERSON:  Explanation.

         6                      ACTING PRESIDENT NOZZOLIO:

         7       Explanation is asked for.

         8                      Senator Holland.

         9                      SENATOR HOLLAND:  This bill

        10       basically does two things:  It passes on to the

        11       Commissioner of -- Commissioners of Social

        12       Services the right to set a reasonable value for

        13       an automobile that a client may have and

        14       secondly, it clarifies and expands the

        15       prosecutorial powers of the welfare inspector

        16       general.

        17                      ACTING PRESIDENT NOZZOLIO:

        18       Senator Paterson.

        19                      SENATOR PATERSON:  While I

        20       understand, Mr. President, that it might seem

        21       absurd to have an automobile while being

        22       eligible for this type of assistance, but what

        23       confuses me as -- is what we would define as











                                                             
9045

         1       "reasonable", and I was wondering if the

         2       sponsor would yield and provide us with an

         3       explanation.

         4                      ACTING PRESIDENT NOZZOLIO:

         5       Senator Holland, do you yield?

         6                      SENATOR HOLLAND:  Yes.

         7                      ACTING PRESIDENT NOZZOLIO:  The

         8       Senator yields.

         9                      SENATOR HOLLAND:  I'll tell you,

        10       Senator, many times you'll -- many people have

        11       told you stories and told me stories about a

        12       client who comes into a welfare office or with

        13       food stamps and is driving a Rolls-Royce or new

        14       Cadillac, that type of thing.  What happened

        15       many times was since there was no value put on

        16       their -- they could have a car of any value,

        17       they would dump some of their money that they

        18       may have into the car and then qualify for

        19       welfare and Medicaid.

        20                      This would send to the

        21       commissioners the authority to set a reasonable

        22       limit on a car.  We want them to have a car.

        23       They need to have a car, but they shouldn't have











                                                             
9046

         1       a car that cost 25- or $30,000.  That's the

         2       point of the bill.

         3                      SENATOR PATERSON:  Mr. President,

         4       if Senator Holland would continue to yield.

         5                      ACTING PRESIDENT NOZZOLIO:

         6       Senator Holland.

         7                      SENATOR HOLLAND:  Yes.

         8                      ACTING PRESIDENT NOZZOLIO:

         9       Senator Holland continues to yield.

        10                      SENATOR PATERSON:  Senator,

        11       actually, it sounds like a good idea and -

        12                      SENATOR HOLLAND:  It's not

        13       everybody.

        14                      SENATOR PATERSON:  Yeah, I see

        15       that.  You had this bill before the house last

        16       year, Senator.  One change that we did note was

        17       that previously there was a deputized attorney

        18       general who would supervise Medicaid fraud, I

        19       guess kind of a special prosecutor in a way and

        20       I was wondering why you removed that from the

        21       bill.

        22                      SENATOR HOLLAND:  This is the

        23       welfare inspector general that we are trying to











                                                             
9047

         1       put his authority into statute and it does a

         2       number of things.  It provides that such

         3       authority shall be included but not limited to

         4       appear -- appearing before and presenting all

         5       matters to the grand jury and all other

         6       appropriate actions authorized in the Criminal

         7       Procedure Law, basically.  It gives him

         8       authority in statute that he didn't have

         9       before.

        10                      SENATOR PATERSON:  Why do we need

        11       him, Senator?

        12                      SENATOR HOLLAND:  I'm sorry.  Go

        13       ahead, Senator.

        14                      ACTING PRESIDENT NOZZOLIO:

        15       Senator Paterson.

        16                      SENATOR PATERSON:  That's all

        17       right.  Actually, I like this bill, Senator, and

        18       Happy Birthday, by the way.

        19                      ACTING PRESIDENT NOZZOLIO:  Read

        20       the last section.

        21                      SENATOR LEICHTER:  Mr. President.

        22                      SENATOR DOLLINGER:  Mr.

        23       President.











                                                             
9048

         1                      ACTING PRESIDENT NOZZOLIO:

         2       Senator Leichter, why do you rise?

         3                      SENATOR LEICHTER:  Certainly to

         4       wish Senator Holland a Happy Birthday but also

         5       to ask him a question.

         6                      ACTING PRESIDENT NOZZOLIO:

         7       Senator Holland, will you answer a question on

         8       your happy birthday?

         9                      SENATOR HOLLAND:  Certainly try.

        10                      ACTING PRESIDENT NOZZOLIO:  The

        11       Senator yields.

        12                      SENATOR LEICHTER:  Senator, we

        13       were having some problem in the Rules Committee

        14       fully understanding the bill, but I think you

        15       made it clear.  You're now giving enforcement

        16       powers to the welfare inspector general.  What

        17       was confusing is that your memo, as I recollect

        18        -- and I don't seem to have it here -- talked

        19       about the deputy attorney general for Medicaid

        20       fraud.

        21                      SENATOR HOLLAND:  Senator, that's

        22       wrong.  That's wrong.  It's the welfare

        23       inspector general.











                                                             
9049

         1                      SENATOR LEICHTER:  Okay.  Now I

         2       understand.  But my question to you then is if

         3       we have the deputy attorney general for Medicaid

         4       fraud and he's charged with prosecuting these

         5       instances of fraud and that office is -- has

         6       existed for a number of years and I think it's

         7       done a good job, why now do we want to establish

         8       concurrent jurisdiction with the welfare

         9       inspector general?

        10                      SENATOR HOLLAND:  Mr. Kuriansky's

        11       office basically does providers and the welfare

        12       inspector general's Office basically does

        13       clients.  That's the difference.

        14                      SENATOR LEICHTER:  Well, let me

        15        -- let me see if I understand that, if you

        16       would be so good as to continue to yield.  Isn't

        17       it a fact that the deputy attorney general for

        18       Medicaid fraud has not only the authority but is

        19       charged to go not only after providers but also

        20       after recipients who commit fraud?

        21                      SENATOR HOLLAND:  I suppose he

        22       could, Senator, under the law, but historically

        23       that has not been the case.  He has basically











                                                             
9050

         1       gone after providers.

         2                      SENATOR LEICHTER:  Well, isn't it

         3       a fact that the reason he's gone after providers

         4       is that's where the big money is?

         5                      SENATOR HOLLAND:  There's more

         6       money on that side, yes, sir, but there's fraud

         7       on both sides.

         8                      SENATOR LEICHTER:  Well, if you

         9        -- if we want him to go after the fraud of

        10       individuals, the recipients, the beneficiaries,

        11       if you will, and he hasn't done so, why don't we

        12       just direct him to do so or give him the stamp

        13       that he needs to do so?  I'm somewhat concerned

        14       any time when you have two law enforcement

        15       officials and they have concurrent

        16       jurisdiction.

        17                      SENATOR HOLLAND:  I'm told that

        18       Kuriansky does not have a problem with this.

        19       Both offices work together, but they have

        20       separate responsibilities, basically, Senator.

        21       That wasn't happening.  That's why we -- this

        22       bill has been in -- the welfare inspector

        23       general bill has -- I brought over from the











                                                             
9051

         1       Assembly and it was not happening.  The client

         2       fraud was not being prosecuted and that's why we

         3       implemented this about three years ago under

         4       Governor Cuomo.

         5                      SENATOR LEICHTER:  Well, Senator,

         6       if, as you say, the office of the deputy

         7       attorney general doesn't have a problem with

         8       that and it seems to be efficient to proceed in

         9       this way, I'll accept your word.  Certainly, I

        10       agree, instances of fraud should be -- should be

        11       prosecuted.

        12                      Let me just ask you in that

        13       connection because I seem to remember hearing

        14       district attorneys going after individuals who

        15       committed fraud.  The attorney -- the various

        16       district attorneys do also now have the

        17       authority to prosecute fraud, do they not?

        18                      SENATOR HOLLAND:  I missed some

        19       of it, Senator, but I think you're asking me if

        20       district attorneys prosecute fraud.  Yes, they

        21       do, and some of the research has been done by

        22       the welfare inspector general and passed on to

        23       the district attorneys.  We are concerned that











                                                             
9052

         1       because the -- for a number of reasons, but one

         2       of the reasons we're concerned is because of the

         3       tremendous work load that some of the district

         4       attorneys' offices have had, they have not

         5       prosecuted some of these cases and we're passing

         6       it on to the welfare inspector general.

         7                      SENATOR LEICHTER:  Does the

         8       welfare inspector general have the trained

         9       personnel to do these prosecutions?

        10                      SENATOR HOLLAND:  Sometimes.

        11                      SENATOR LEICHTER:  And sometimes

        12       not?

        13                      SENATOR HOLLAND:  That's

        14       correct.  Depending upon what we do with the

        15       budget, Senator.

        16                      SENATOR LEICHTER:  And did the

        17       budget provide for those instances where he does

        18       not have the sufficient staff?

        19                      SENATOR HOLLAND:  No, but now we

        20       can use -- if this bill passes both houses and

        21       the Governor signs it, we can use it to squeeze

        22       out a little more assistance on his behalf for

        23       his office.











                                                             
9053

         1                      SENATOR LEICHTER:  So if I

         2       understand it, while we have at least two

         3       authorities now that can prosecute welfare

         4       fraud, and that's the deputy attorney general

         5       for Medicaid fraud and our district attorneys,

         6       you want to establish personnel to do it,

         7       instill another office all with the idea that

         8       you're going to save money?

         9                      SENATOR HOLLAND:  No, sir.  It is

        10       already established and they have turned over a

        11       number of cases that you have read about

        12       recently, fraud cases by clients in -- in the

        13       government, outside of the government.  A lot of

        14       fraud was stolen from the -- your taxpayers, so

        15       they have been beneficial and saved us money.

        16                      SENATOR LEICHTER:  Mr. President,

        17       just briefly on the bill.

        18                      Senator Holland, I'm going to

        19       support the bill because I agree, as you do, and

        20       as everybody here does, that people who commit

        21       fraud ought to be prosecuted.  No question about

        22       it.

        23                      The only disagreement I have with











                                                             
9054

         1       you is I think you see this enormous pot of

         2       money.  You believe there's massive fraud here

         3       by the recipients.  I believe that's not the

         4       case.  In fact, as you conceded, most of the

         5       fraud, at least dollarwise is by the providers.

         6       I think that you will find that you may very

         7       well be spending more money on this than you

         8       will ever be recovering.  Nevertheless, there's

         9       a benefit, I think, in the public knowing that

        10       we take fraud very seriously, and so I will

        11       support this bill.

        12                      ACTING PRESIDENT NOZZOLIO:

        13       Senator Dollinger.

        14                      SENATOR DOLLINGER:  Will the

        15       sponsor yield to a couple of questions, Mr.

        16       President?

        17                      ACTING PRESIDENT NOZZOLIO:  Will

        18       the sponsor yield?  Senator Holland yields.

        19                      SENATOR DOLLINGER:  First of all,

        20       as I understand this bill, it has two aspects to

        21       it; it has the automobile aspect and then it has

        22       a section that deals with the scope of investi

        23       gations, is that correct?











                                                             
9055

         1                      SENATOR HOLLAND:  With the

         2       authority of the welfare inspector general, yes.

         3                      SENATOR DOLLINGER:  Okay.  With

         4       respect to the second part of that, it says that

         5       they can investigate criminal acts or alleged

         6       illegal acts or criminal acts, but there's

         7       nothing in there that requires the grand jury or

         8       allows the Deputy Attorney General to conduct

         9       just basically an inquiry to determine -

        10                      SENATOR HOLLAND:  To what?

        11                      SENATOR DOLLINGER:  An inquiry

        12       just to determine there are certain practices

        13       which may not be illegal but are nonetheless

        14       inefficient, costly, wasteful and don't serve

        15       the public interest.  In constructing this bill,

        16       did you consider giving them that ability to

        17       make that kind of a report as well?

        18                      SENATOR HOLLAND:  No, I'm sorry,

        19       we did not do that.  It's a good idea, though.

        20                      SENATOR DOLLINGER:  Well, I'd

        21       just point out that in other countries, for

        22       example, in Canada in the Province of Ontario,

        23       their grand jury as well as their inspector











                                                             
9056

         1       general can conduct a detailed investigation

         2       that not only reviews punitively illegal acts

         3       but can also look at things that definitely need

         4       to be redressed, whether they're malfeasance,

         5       albeit not criminal but -- or inefficiency or

         6       waste or poor practices, pose suggested

         7       legislative changes.  I think that's the kind of

         8       thing you ought to look at and try to tuck into

         9       this bill, sort of the broad inquiry so that we

        10       get that input back and it isn't simply one of

        11       those reports that says it wasn't very good

        12       practices but it didn't break the law and we put

        13       the -- it up on the shelf and we never see it

        14       again.

        15                      SENATOR HOLLAND:  I think it

        16       sounds reasonable to me, but I think it is

        17       actually happening anyway.  I know personally

        18       the welfare inspector general comes to me with

        19       recommendations for ways to improve the system

        20       where he sees fraud and abuse, where the

        21       potential for fraud and abuse is, and I think

        22       actually without putting it into law, everybody

        23       who is in that business should be responsible











                                                             
9057

         1       for reviewing procedures suggesting what can be

         2       improved.  I definitely think the Department of

         3       Social Services and the Commissioner should be,

         4       both Mr. Kuriansky's office and the welfare

         5       inspector general's office, I think without

         6       putting it into a law, should be responsible for

         7       that anyway and would do that reasonably.

         8                      SENATOR DOLLINGER:  Let me ask

         9       you about the second part as well, again, if the

        10       sponsor would continue to yield.

        11                      ACTING PRESIDENT NOZZOLIO:  The

        12       sponsor yields.

        13                      SENATOR DOLLINGER:  The bill

        14       provides that the failure to comply with the

        15       subpoena, provide evidence, testimony, whatever,

        16       anyone who fails to do that shall be guilty of a

        17       misdemeanor.

        18                      SENATOR HOLLAND:  Yes.

        19                      SENATOR DOLLINGER:  That a

        20       sufficient penalty to actually get them to do

        21       what you want them them to do, especially if

        22       they're a material witness?

        23                      SENATOR HOLLAND:  I can't answer











                                                             
9058

         1       that question.  It may not be -- what would you

         2       like me to put in there?

         3                      SENATOR DOLLINGER:  Well, I'm not

         4       so sure.  I'm trying to find out from the

         5       sponsor whether he's evaluated with the Attorney

         6       General or with the Deputy Attorney General

         7       whether the misdemeanor is only a year -- up to

         8       a year in prison.  My guess is that that would

         9       probably be much less time.  My question is, is

        10       it a sufficient deterrent?

        11                      SENATOR HOLLAND:  I'm sorry.

        12                      SENATOR DOLLINGER:  My other

        13       question is do you intend that that be an

        14       exclusive remedy?

        15                      SENATOR HOLLAND:  No, I don't

        16       think that this is the end-all.  I would think

        17       that my thought here was let's try a

        18       misdemeanor.  If it doesn't work, we can raise

        19       it in the future.  I would rather not if this

        20       functions well.

        21                      SENATOR DOLLINGER:  But -- again

        22       through you, Mr. President, if the sponsor would

        23       continue to yield.











                                                             
9059

         1                      SENATOR HOLLAND:  Yes, yes.

         2                      ACTING PRESIDENT NOZZOLIO:  Does

         3       Senator Holland continue to yield?  The Senator

         4       yields.

         5                      SENATOR DOLLINGER:  By making a

         6       comment about exclusivity, under the CPLR -- the

         7       Criminal Procedure Law, if someone fails to

         8       testify under a grand jury, they actually could

         9       be in prison for contempt.  Is your intent that

        10       that power of contempt be waived here and that

        11       the only penalty be that of a misdemeanor?

        12                      SENATOR HOLLAND:  I imagine the

        13       CPLR would take precedence there, Senator.

        14                      SENATOR DOLLINGER:  Okay.  Mr.

        15       President, on the bill.

        16                      ACTING PRESIDENT NOZZOLIO:

        17       Senator Dollinger, on the bill.

        18                      SENATOR DOLLINGER:  I'm going to

        19       vote for this bill, but I think that the penalty

        20       may not be severe enough to accomplish the goal

        21       that the sponsor intends and that is the threat

        22       of a misdemeanor prosecution won't be enough of

        23       a deterrent to get them to fully comply with the











                                                             
9060

         1       subpoena; and my other fear, quite frankly, is

         2       by putting in that as a excessive remedy, you

         3       may obviate the fact that, under the CPL and

         4       other procedures, we have the ability, if people

         5       don't testify in response to subpoenas, they can

         6       be held in contempt of court.  They can be

         7       jailed until they agree to testify.  Those are

         8       some pretty severe penalties but, nonetheless,

         9       they recognize that government needs informa

        10       tion, it has to get information and that people

        11       can't decline to provide it, but through their

        12       own choice without paying the heavy penalty.

        13                      So I don't think that you may get

        14       the benefit of this statute by putting in that

        15       misdemeanor provision.  I don't think the

        16       penalty may be severe enough and, in addition, I

        17       would hate to have a court interpret that as an

        18       exclusive remedy and say to the prosecutor that

        19       you're foreclosed from those broader remedies

        20       available in the CPL.

        21                      I'll vote in favor of it, but I

        22       think it needs a little bit of work.

        23                      ACTING PRESIDENT NOZZOLIO:  Last











                                                             
9061

         1       section.

         2                      THE SECRETARY:  Section 3.  This

         3       act shall take effect on the 30th day.

         4                      ACTING PRESIDENT NOZZOLIO:  Call

         5       the roll.

         6                      (The Secretary called the roll.)

         7                      THE SECRETARY:  Ayes 58.

         8                      ACTING PRESIDENT NOZZOLIO:  The

         9       bill is passed.

        10                      THE SECRETARY:  Calendar Number

        11       1248, by Senator Present, Senate Print 991, an

        12       act to amend the Insurance Law, in relation to

        13       coverage for mammography screening.

        14                      SENATOR PATERSON:  Explanation.

        15                      ACTING PRESIDENT NOZZOLIO:

        16       Explanation has been asked for.

        17                      Senator Present.

        18                      SENATOR PRESENT:  Mr. President,

        19       I believe back in 1989, New York State passed a

        20       law to require mammography screening in New York

        21       State by all insurance carriers, health

        22       insurance carriers.

        23                      It was brought to my attention by











                                                             
9062

         1       a female employee in my area that the health

         2       insurance provided by her employer did not cover

         3       that, so in checking I find that the law

         4       exempted certain policies under the New York

         5       State law.  This is to correct those exemptions

         6       to provide that coverage for more needy female

         7       employees in New York State.

         8                      ACTING PRESIDENT NOZZOLIO:

         9       Senator Montgomery, why do you rise?

        10                      SENATOR MONTGOMERY:  Yes.  Mr.

        11       President, would the sponsor yield for a

        12       question?

        13                      ACTING PRESIDENT NOZZOLIO:

        14       Senator Present, do you yield for a question?

        15                      SENATOR PRESENT:  Yes.

        16                      ACTING PRESIDENT NOZZOLIO:

        17       Senator Present yields.

        18                      SENATOR MONTGOMERY:  Yes, Senator

        19       Present.  I see that you -- your bill would

        20       require every health insurance policy -- I'm

        21       sorry, I don't have the bill in front of me

        22       right at this moment, but what -- how does that

        23       affect HMOs and managed care organizations -











                                                             
9063

         1       any other other managed care organizations; are

         2       they included in this legislation?

         3                      SENATOR PRESENT:  This just

         4       covers health insurance coverage.

         5                      SENATOR MONTGOMERY:  Is there any

         6       reason why you did not extend to -- since we're

         7       moving most -- we're attempting in the state to

         8       move a large majority of the population into

         9       managed care organizations as our primary health

        10       care delivery system, would you be -- you know,

        11       would it be possible to include that?  I mean, I

        12       think this is a good bill.  I just think we need

        13       to -

        14                      SENATOR PRESENT:  I think that

        15       they'll be covered too, ma'am.  They'll be

        16       covered under this.

        17                      SENATOR MONTGOMERY:  Excuse me?

        18                      SENATOR PRESENT:  They will be

        19       covered.

        20                      SENATOR MONTGOMERY:  They will be

        21       covered.

        22                      SENATOR PRESENT:  And are covered

        23       now under -- with exceptions.











                                                             
9064

         1                      SENATOR MONTGOMERY:  All right.

         2       My colleagues seem to say that it's already

         3       covered.  So my question is answered in the

         4       affirmative.

         5                      SENATOR PRESENT:  Right.

         6                      ACTING PRESIDENT NOZZOLIO:  Thank

         7       you.

         8                      ACTING PRESIDENT NOZZOLIO:

         9       Senator Solomon.

        10                      SENATOR SOLOMON:  Yes.  Senator

        11       Present, will you yield, please?

        12                      ACTING PRESIDENT NOZZOLIO:

        13       Senator Present, do you yield?

        14                      SENATOR PRESENT:  Yes.

        15                      ACTING PRESIDENT NOZZOLIO:  The

        16       Senator yields.

        17                      SENATOR SOLOMON:  Senator, as you

        18       eliminate Section 3221 which is the exception

        19       under the Insurance Law which says, "except this

        20       provision shall not apply to a policy which

        21       covered persons employed in more than one state

        22       or the benefit structure which was subject to

        23       collective bargaining affecting persons employed











                                                             
9065

         1       in more than one state."

         2                      I think I've asked you this

         3       question for the past two years and this is the

         4       third year.  I would like you to explain to me

         5       how this law, if it's passed by both houses and

         6       signed by the Governor, would be able to last

         7       even 24 hours under ERISA attack.

         8                      SENATOR PRESENT:  I don't know as

         9       you have ever asked that question, and I don't

        10       know as I could have answered had you, so I

        11       won't attempt to answer it now.

        12                      SENATOR SOLOMON:  Senator, the

        13       Employment Retirement Income and Security Act

        14       specifically prohibits -- which is federal law

        15       and preempts state law, exclusively prohibits

        16       New York State or any other state from placing a

        17       mandate on insurance policies for companies that

        18       are multi-state coverage.  In other words, they

        19       are -- or self-insured, and that's what I'm

        20       trying to get at.

        21                      I agree with the intent of what

        22       you're doing but, in reality, it's passing a law

        23       that will be illegal and against federal law and











                                                             
9066

         1       it will be struck down by the courts the day

         2       after it's signed.

         3                      SENATOR TULLY:  Mr. President.

         4                      ACTING PRESIDENT NOZZOLIO:

         5       Senator Tully.

         6                      SENATOR TULLY:  If I may, Senator

         7       Solomon, try to respond.

         8                      SENATOR SOLOMON:  Sure.

         9                      SENATOR TULLY:  Just in looking

        10       at the bill itself, it specifically says "except

        11       that this provision shall not apply to a policy

        12       which covers persons employed in more than one

        13       state or the benefit structure which was the

        14       subject of collective bargaining affecting

        15       persons employed in more than one state", so it

        16       specifically exempts the question that you've

        17       asked.

        18                      SENATOR SOLOMON:  Mr. President.

        19                      ACTING PRESIDENT NOZZOLIO:

        20       Senator Solomon.

        21                      SENATOR SOLOMON:  I'm reading the

        22       current law and the current law under Section

        23       3221 of the Insurance Law mandates this











                                                             
9067

         1       coverage.  "Every insurer delivering a group or

         2       blanket policy or issuing a group or blanket

         3       policy for delivery in this state which provides

         4       for coverage, hospital, surgical, medical care

         5       shall provide for the following coverage for

         6       mammography screening, for occult breast cancer"

         7       and the exception in the law says "except that

         8       this provision shall not apply to a policy which

         9       covers persons employed in more than one state

        10       or the benefit structure of which was subject to

        11       the collective bargaining affecting persons

        12       employed in more than one state."  That's the

        13       exception which currently exists.

        14                      We currently cover mammography

        15       exams, and what I'm saying is by striking this

        16       exception out, it's just going to result in a

        17       lawsuit and the courts are going to strike it.

        18       I agree with the intent, but we cannot mandate

        19       this coverage.  It's outside of our purview.

        20                      ACTING PRESIDENT NOZZOLIO:

        21       Senator Tully.

        22                      SENATOR TULLY:  Yes, Mr.

        23       President.











                                                             
9068

         1                      I think there may be some

         2       misinterpretation by Senator Solomon because I

         3       think what this is specifically saying is except

         4        -- this will not apply in those cases that

         5       you're concerned about.  They're conforming to

         6       the law the way this bill is written.

         7                      SENATOR SOLOMON:  But it's

         8       bracketed.  That's the part that's coming out.

         9       It's bracketed in two places, Senator Tully, and

        10       if you'll take a look at the last set of

        11       brackets, the brackets take that part out,

        12       except that this provision shall not apply.

        13       That's where the bracket starts on line 7, page

        14       1.  After the word "cancelled", the brackets

        15       commence.

        16                      SENATOR TULLY:  Yes, you're

        17       exactly correct, Senator Solomon.  I stand

        18       corrected.

        19                      Thank you, Senator Solomon.

        20                      ACTING PRESIDENT NOZZOLIO:

        21       Senator Solomon.

        22                      SENATOR SOLOMON:  On the bill.

        23                      ACTING PRESIDENT NOZZOLIO:  On











                                                             
9069

         1       the bill.

         2                      SENATOR SOLOMON:  I voted against

         3       this bill last year.  It's a bill that you have

         4       to vote -- it's a bill that's extremely worthy

         5       of consideration.  Unfortunately, it's the same

         6       as if we were passing a law on defense policy.

         7       It's out of our purview to regulate self-insured

         8       companies which are the ones that basically deal

         9       with multi-state insurance policies.  We cannot

        10       tell a -- General Electric, if it issues a

        11       policy -- and it's self-insured, that they must

        12       produce this coverage.

        13                      Senator, they should provide this

        14       coverage.  An example of why they should provide

        15       this coverage, it's in their economic self

        16       interest.  Coors Brewery, five years ago, did

        17       volun... offered mammography exams to every

        18       employer -- every employee and every dependent

        19       of an employee.  They caught four early

        20       malignancies.  It cost them $60,000 for the

        21       exams.  Their savings, because they were

        22       self-insured, was $250,000, not counting the

        23       psychiatric savings on the families and the











                                                             
9070

         1       trauma that was saved.  It's in their economic

         2       self-interests, but legislatively we can't pass

         3       this law.

         4                      We can pass it.  If it passes the

         5       Assembly and gets signed by the Governor, it's

         6       going to get struck down.  I'm just trying to

         7       point that out.  We're violating ERISA, which is

         8       the Employee Retirement Income and Security Act.

         9                      ACTING PRESIDENT NOZZOLIO:

        10       Senator Mendez, why do you rise?

        11                      SENATOR MENDEZ:  Will Senator

        12       Solomon yield for a question?

        13                      SENATOR SOLOMON:  Yes, Senator.

        14                      ACTING PRESIDENT NOZZOLIO:

        15       Senator Solomon yields.

        16                      SENATOR MENDEZ:  Thank you.

        17                      Senator Solomon, how long has

        18       that federal statute been in place?

        19                      SENATOR SOLOMON:  21 years.

        20                      SENATOR MENDEZ:  21 years ago,

        21       don't you think, Senator Solomon, there are

        22       cases of breast cancer were not even reported

        23       anywhere, practically reported.  The situation











                                                             
9071

         1       has changed immediately.

         2                      So I suggest -- do you think that

         3       this is a bad suggestion -- I suggest that in

         4       the case in which this bill passes and it's

         5       taken to court, won't that bring greater

         6       awareness to all of those guys and dolls in

         7       Washington about the need to change that

         8       existing federal legislation that does not give

         9       an opportunity to women to have policies to

        10       those that do not have any monies to pay for

        11       it?  Don't you think that would be faster for

        12       those guys and those in Washington to realize

        13       that they have to change that statute because 21

        14       years ago the threat of breast cancer wasn't

        15       anywhere in the United States.  Now it's very

        16       out in the open and there is great need for

        17       women to go for early detection so their lives

        18       will be saved.  Don't you think that would help

        19       the courts?

        20                      SENATOR SOLOMON:  Can I respond?

        21                      SENATOR MENDEZ:  Yes.

        22                      ACTING PRESIDENT NOZZOLIO:

        23       Senator Solomon.











                                                             
9072

         1                      SENATOR SOLOMON:  Senator,

         2       Congress in Washington has been aware of ERISA

         3       and the laws regarding impacts and mandates of

         4       ERISA. There's files on it.  There have been Law

         5       Review articles on it.  It's been litigated for

         6       years and years and years, not only involving

         7       New York State.  We just had a case go to the

         8       United States Supreme Court which was decided

         9       favorably, so I don't think it would make the

        10       people in Washington any more aware of this

        11       because I can guarantee you that -- without even

        12       looking, I can guarantee you that these mandates

        13       have attempted to be passed by other states.  It

        14       was a state mandate.  This was mandated in New

        15       York State law, and it's been mandated in other

        16       state laws along with numerous other mandates,

        17       but the federal government, when ERISA was

        18       passed in 1974, one of the impacts of ERISA

        19       which dealt with retirement was on insurance and

        20       these specific mandate requirements.  I'm not

        21       disagreeing with you.  I'm agreeing with you.

        22                      What I'm saying now is passing

        23       this law and having it signed is futility in











                                                             
9073

         1       terms of New York State because it's been done

         2       before, it's been struck down by the courts

         3       before, because the whole intent of the large

         4       self-insureds are to have a uniform policy that

         5       they can give you in New York, in California, in

         6       Iowa, in Alaska, et cetera.  They don't want to

         7       have to have a policy that contains different

         8       coverages as mandated by New York, New Jersey,

         9       Pennsylvania, Iowa, Alaska, et cetera.

        10                      ACTING PRESIDENT NOZZOLIO:

        11       Senator Mendez.

        12                      SENATOR MENDEZ:  Are you saying

        13       to me that the reason why -

        14                      ACTING PRESIDENT NOZZOLIO:

        15       Senator Mendez, do you ask Senator Solomon to

        16       continue to yield?

        17                      SENATOR MENDEZ:  Thank you,

        18       Mr. -

        19                      ACTING PRESIDENT NOZZOLIO:

        20       Senator Solomon, do you yield?  The Senator

        21       yields.

        22                      SENATOR MENDEZ:  Thank you, Mr.

        23       President.











                                                             
9074

         1                      I am saying to -- are you saying

         2       to me that the reason why we have that -- that

         3       kind of mandate throughout the state is because

         4       it is very convenient for the insurance

         5       companies who have a standard policy everywhere

         6       in the -- within the United States?

         7                      SENATOR SOLOMON:  Mr. President,

         8       may I yield?

         9                      Senator, these are not insurance

        10       company policies.  In many instances, these are

        11       what we called self-insureds.  They do not

        12       purchase insurance from the ABC insurance

        13       company.

        14                      SENATOR MENDEZ:  Okay.

        15                      SENATOR SOLOMON:  They provide

        16       their own insurance.  They're self-insured.

        17       They take their own pool of money and they

        18       provide that.  They give you a booklet which

        19       tells you your coverages, but they're not

        20       purchasing insurance.

        21                      SENATOR MENDEZ:  Mr. President,

        22       will he yield for another question?

        23                      SENATOR SOLOMON:  Yes, Mr.











                                                             
9075

         1       President.

         2                      ACTING PRESIDENT NOZZOLIO:

         3       Senator Solomon, do you continue to yield?

         4                      SENATOR SOLOMON:  Yes, Mr.

         5       President.

         6                      ACTING PRESIDENT NOZZOLIO:  The

         7       Senator continues to yield.

         8                      Senator Mendez.

         9                      SENATOR MENDEZ:  The Senator is

        10       an expert in insurance, I am not, so I would

        11       like to benefit from his knowledge.

        12                      SENATOR SOLOMON:  It's very

        13       little knowledge.

        14                      SENATOR MENDEZ:  So -- so the

        15       situation is that because of that mandate, then

        16       we cannot pass a law here in New York State that

        17       would benefit the women.  Don't you think that

        18       there must be a way to change that mandate so

        19       that the women in the state of New York who do

        20       not have any economic means to go through the -

        21       any insurance, they could, in fact, go for such

        22       an examination that is so vital for their own

        23       physical well-being?











                                                             
9076

         1                      SENATOR SOLOMON:  Senator, in

         2       regard -- let me go -- in response to your

         3       question, what I'm saying is New York State,

         4       just like any other state, cannot pass a law

         5       that impacts policies for those companies that

         6       are self-insured.  We do pass laws saying that

         7       if you purchase a policy in New York State and

         8       you are a New York State company, you must have

         9       mammography.  That's in the current law now, as

        10       I said.

        11                      What I also said is I agree with

        12       you in terms of mammography testing 100 percent,

        13       and the example I alluded to a few minutes ago

        14       regarding Coors Brewery showed that when these

        15        -- I can almost tell you now that most large

        16       companies do cover mammography exams because

        17       it's in their economic self-interest.  The

        18       companies that we have problems with is where a

        19       50-employee company will self-insure -- say "I'm

        20       self-insured.  I'm protected under ERISA", and

        21       they will offer a policy that, in effect, has no

        22       insurance coverage and, yes, that policy will

        23       discriminate against women.  It will discrimi











                                                             
9077

         1       nate against children.  It will discriminate

         2       against men because, in fact, that insurance

         3       policy is meant not to provide certain services

         4       and you can't even file a complaint with your

         5       state Insurance Department, but that is a

         6       problem we can't deal with.

         7                      That's a problem -- I have

         8       represented or helped craft some complaints to

         9       solve these problems against -- a woman that

        10       delivered twins and had an ERISA policy that, in

        11       fact, provided no coverage at all or they

        12       changed it after she gave birth saying you're

        13       not covered after she got cancer, and to show

        14       you the crimes committed under this, if you want

        15       to call it that, this same company called

        16       someone after they had a heart attack and they

        17       were in a hospital and said, "You know what?

        18       You're terminated because you didn't come in to

        19       work so you don't have your health insurance

        20       anymore."  That, our Insurance Department

        21       couldn't deal with, but this has nothing to do

        22       with covering women.  It's just the statute

        23       which is in front of us.  If it was a statute to











                                                             
9078

         1       provide -- mandate hairpieces because of cancer

         2       treatment on multi-state policies, I would say

         3       the same thing.  It violates ERISA.  That's all

         4       I'm saying.

         5                      I agree with you 100 percent.

         6       Any company that was self-insured, it's in their

         7       interests to do mammography exams because it

         8       saves them money, because it costs less money

         9       for early detection than it does to detect a

        10       cancer after it's progressed, so I'm agreeing

        11       with your position.  I'm just telling you under

        12       the law, the net result is going to be the fact

        13       that it will be struck down immediately.  That's

        14       the problem with this bill.

        15                      SENATOR MENDEZ:  Thank you.

        16                      ACTING PRESIDENT NOZZOLIO:

        17       Senator Mendez.

        18                      SENATOR MENDEZ:  On the bill.

        19                      ACTING PRESIDENT NOZZOLIO:  On

        20       the bill.

        21                      SENATOR MENDEZ:  Mr. President, I

        22       think that we should vote for this bill.  It

        23       will make -- let these self-insured companies











                                                             
9079

         1       fight it out again in the courts.  This will

         2       bring greater awareness in Washington about the

         3       need to go over that existing statute that is

         4       already 21 years old and we must start looking

         5       at it to see how relevant it is to today's

         6       situation.

         7                      Thank you, Mr. President.

         8                      ACTING PRESIDENT NOZZOLIO:  Thank

         9       you, Senator Mendez.

        10                      Read the last section.

        11                      THE SECRETARY:  Section 3.  This

        12       act shall take effect on the first day of

        13       January.

        14                      ACTING PRESIDENT NOZZOLIO:  Call

        15       the roll.

        16                      (The Secretary called the roll.)

        17                      THE SECRETARY:  Ayes 59.

        18                      ACTING PRESIDENT NOZZOLIO:  The

        19       bill is passed.

        20                      SENATOR STAVISKY:  Mr. President.

        21                      ACTING PRESIDENT NOZZOLIO:

        22       Senator Stavisky.

        23                      SENATOR STAVISKY:  Mr. President,











                                                             
9080

         1       without objection, I should like the record to

         2       reflect a no vote on Calendar 186, and if I had

         3       been in the chamber during the slow roll call, I

         4       would have voted in the negative on 91 and 994.

         5                      Thank you.

         6                      ACTING PRESIDENT NOZZOLIO:

         7       Without objection.

         8                      The clerk -

         9                      THE SECRETARY:  Calendar Number

        10       1249, by Senator Rath, Senate Print 1281, an act

        11       to amend the State Finance Law, in relation to

        12       requiring a regulatory budget.

        13                      SENATOR LEICHTER:  Mr. President.

        14                      ACTING PRESIDENT NOZZOLIO:

        15       Senator Leichter.

        16                      SENATOR LEICHTER:  Yes.  Would

        17       Senator Rath yield on this bill, please?

        18                      ACTING PRESIDENT NOZZOLIO:

        19       Senator Rath, do you yield?  Senator Rath

        20       yields.

        21                      SENATOR LEICHTER:  Senator, I

        22       want to ask just a couple of questions about

        23       this bill, but if you would find it easier to











                                                             
9081

         1       first explain it in however way you want to, I'd

         2       certainly yield to that.

         3                      SENATOR RATH:  Why don't you just

         4       go ahead with your question, Senator.  I think

         5       it's fairly straightforward.

         6                      SENATOR LEICHTER:  If I

         7       understand this bill, it requires that each

         8       agency identify in detail the amount of the

         9       appropriations the agency gets which are being

        10       spent on regulatory work; is that a correct

        11       statement?

        12                      SENATOR RATH:  Yeah.  Let me

        13       answer the "in detail" phrase.  If you're -- if

        14       you're looking through this document and you see

        15       the words "in detail", you'd probably be as

        16       surprised as I was to see it because we had no

        17       intention of micro-managing anything.

        18                      If you go to the bill itself, the

        19       bill is fairly -- fairly open asking that the

        20       agencies that do a lot of regulation -- and we

        21       don't spell out which agencies, but we say the

        22       agencies that do regulation to give us some sort

        23       of a view as to how much money they spend











                                                             
9082

         1       regulating, and I would say that it came to me

         2        -- probably just about the first thoughts that

         3       I had as I recognized the responsibility of a -

         4       a chairman of an Administration Regulation

         5       Review Commission, I found myself hearing that

         6       we almost had a Catch-22 here.  Do we have more

         7       regulators writing more regulations or do we

         8       need -- do we need more regulators to write more

         9       regulations?  And which came first, the chicken

        10       or the egg kind of theory.

        11                      So what we're attempting to get

        12       at here is a look at what an agency thinks it

        13       might cost them to regulate.  It's the old

        14       performance budgeting kind of thing that we were

        15       all doing 15 years ago and which I don't know

        16       that we see people doing much anymore on a broad

        17       base, but this particular bill is looking for

        18       the agencies in good faith to come forward with

        19       this kind of information.

        20                      SENATOR LEICHTER:  Thank you very

        21       much, Senator Rath.

        22                      If you would be so good as to

        23       continue to yield.











                                                             
9083

         1                      ACTING PRESIDENT NOZZOLIO:

         2       Senator Rath, do you continue to yield?

         3                      SENATOR RATH:  Surely.

         4                      ACTING PRESIDENT NOZZOLIO:  The

         5       Senator yields.

         6                      SENATOR LEICHTER:  I'm glad you

         7       make it clear that you're not asking for details

         8       because I think those would be really very

         9       difficult to achieve, but what I'm concerned

        10       about and what I want to ask you is right now we

        11       have what we call a detailed executive budget,

        12       do we not?

        13                      SENATOR RATH:  That's right.

        14                      SENATOR LEICHTER:  And that sets

        15       forth the number of personnel and the

        16       commissioners and other than personal services.

        17       Doesn't that give us a fairly clear picture of

        18       where the personnel within the agency are?

        19                      SENATOR RATH:  I would say,

        20       Senator, that through the years, different

        21       aspects of state finances have been focused on.

        22       There was -- there was a summary of financial

        23       plans showing each of the government fund types,











                                                             
9084

         1       current and projected employment levels for each

         2       State Department, three-year financial

         3       projection.  I think this is asking the agencies

         4       to take a look at things, maybe not the way

         5       they're looking right now, but shift it.  Take a

         6       look at what it costs you to write regulations,

         7       and let's say an agency hadn't thought about

         8       that before, but they found themselves making

         9       personnel requests the following year for two

        10       more people to write regulations when we're,

        11       indeed, in an era where an attitude adjustment

        12       that we've all pretty much agreed is very

        13       important in New York State, whereby we attempt

        14       to not diminish regulations but regulate smarter

        15       and hopefully regulate a little less.

        16                      Let me point out a memorandum

        17       sent in by the Business Council which commented

        18       and I thought that their issue was well taken.

        19       They said, quote -- the Business Council.  "It

        20       is clearly not the intent of the bill, although

        21       it may result in some agencies, that they would

        22       spend an -- inordinate amounts of time deciding

        23       which staff and other expenditures are











                                                             
9085

         1       regulatory in nature.  The Budget Division and

         2       the Office of Regulatory Reform may need to give

         3       agencies clearer guidelines to avoid such

         4       potential problems."

         5                      Even with these concerns, the

         6       Business Council believes this legislation

         7       provides a useful tool in the state's regulatory

         8       reform measures and earlier they said they

         9       recognized that it might be that there would be

        10       increased activity and increased spending by an

        11       agency when they found themselves reaching out

        12       to the community that is regulated and reaching

        13       out in order to regulate smarter.  It might cost

        14       them more than it cost in the past, and so we're

        15       not necessarily looking at them saying, "We

        16       spent this much this year.  We're going to spend

        17       less next year.  We're going to spend less the

        18       next year."  We're looking at them to regulate

        19       smarter.

        20                      SENATOR LEICHTER:  If you would

        21       please continue to yield.

        22                      ACTING PRESIDENT NOZZOLIO:

        23       Senator Rath.











                                                             
9086

         1                      SENATOR RATH:  Surely.

         2                      ACTING PRESIDENT NOZZOLIO:

         3       Senator Leichter.

         4                      SENATOR LEICHTER:  Senator, I'm

         5       glad you read this critique by the Business

         6       Council because they expressed some of the

         7       concerns I had that this is very difficult to

         8       do, and you sort of, as I understand it, backed

         9       away a bit from requiring a detailed statement.

        10       In fact, if I recollect, I saw another bill of

        11       yours on this; am I correct?  Was there another

        12       bill of yours -

        13                      SENATOR RATH:  On the agenda

        14       today?

        15                      SENATOR LEICHTER:  -- that dealt

        16       with the same subject matter?

        17                      SENATOR RATH:  Senator, there are

        18       so many pieces that allude to various aspects of

        19       regulatory reform that, if there's a little

        20       overlap, you'll have to excuse us.

        21                      SENATOR LEICHTER:  Well, let me

        22       just ask you if you would be so good -- if you

        23       would look at line 17, you say that "...











                                                             
9087

         1       disbursements proposed to be made pursuant to

         2       this paragraph."  What are you referring to when

         3       you say "disbursments to be made"?  Does this

         4       particular bill call for any disbursments?

         5                      SENATOR RATH:  You know, I asked

         6       the same question and I was advised by counsel

         7       that this is boilerplate language that shows up

         8       in these particular kinds of bills in order to

         9       implement them.

        10                      SENATOR LEICHTER:  Well, I'm not

        11       sure I understand it, and while you and I, we do

        12       rely to a large extent on counsel, you know, I'm

        13       not -- I'm not sure that they always have the

        14       right answer.  I'm not sure I understand it.

        15                      Now, where is this, if you will,

        16       identification of rulemaking, adjudicatory and

        17       licensing expenditures; where is that going to

        18       be shown?  It says on line 19 that "... the

        19       separate and distinct parts prepared in

        20       accordance with this provision -- with the

        21       provisions of paragraph 5 of this subdivision."

        22       I don't have that before me, and I just wonder

        23       where that is or what it is.











                                                             
9088

         1                      SENATOR RATH:  One second,

         2       Senator.

         3                      I think that in the over-arching

         4       look at this piece of legislation, it points out

         5       where the government regulations and mandates

         6       are falling and we've seen so much effort put in

         7       this year as in previous years to uncovering

         8       where some of these hidden costs are, and the

         9       points that you're pointing to below sections -

        10       lines 18, 19, 20, again, are implementing

        11       legislation for what -- above and I highlight

        12       lines 14 through 17 -- the beginning of 17 -- as

        13       the real intent of the legislation.

        14                      SENATOR LEICHTER:  Senator, I

        15       appreciate what you're saying, but if we could

        16       just focus on the specific -- my specific

        17       question is you're trying to get the agencies to

        18       identify how much they're spending on certain

        19       rulemaking and adjudicatory functions.  I just

        20       want to know where is that going to be stated?

        21       Is that going to be part of the budget bills?

        22       Where do we get this information?  How do they

        23       disseminate it?  To whom do they make it











                                                             
9089

         1       available?

         2                      SENATOR RATH:  Well, that's why

         3       we have left that unsaid, because I would

         4       imagine the agencies and the Governor, in his

         5       wisdom with, again, having a Director of

         6       Regulatory Reform, would work into some sort of

         7       directive that they would use for their agencies

         8       in order to be able to bring that information

         9       back.  We have not intentionally tried to

        10       micro-manage because that's been a lot of the

        11       difficulties I think that we've seen government

        12       get into through the years.  The micro-managing

        13       does not allow flexibility.

        14                      As one agency may do regulations,

        15       that would be very easily identified as these

        16       people are writing regulations.  DEC has a whole

        17       department that writes regulations.  Other

        18       agencies may only write a dozen regulations a

        19       year because they just simply aren't impacted

        20       heavily.  So I think that should be under the -

        21       some of the direction of the administration.

        22                      SENATOR LEICHTER:  If you would

        23       yield just for one final question, Senator











                                                             
9090

         1       Rath.

         2                      SENATOR RATH:  Sure.

         3                      SENATOR LEICHTER:  In other

         4       words, the agency together with the Governor can

         5       decide whether they're going to put this in a

         6       budget bill, whether they're going to have it in

         7       their annual brochure or pamphlet, report that

         8       they put out, maybe in a letter to the chairs of

         9       the Finance Committees, maybe to you as chair of

        10       the regulatory -- many -

        11                      SENATOR RATH:  Well, Senator,

        12       again I come back to some earlier comments that

        13       you and I exchanged this year regarding common

        14       sense as to where it's very important for us to

        15       see this, and I think that we have to believe

        16       that without micro-managing, that the intent is

        17       well intended and that we will see these -- I

        18       certainly don't expect they're going to appear

        19       in some brochure that's going to be mailed out

        20       to constituents that are asking questions of an

        21       agency.  I expect that they will be returned to

        22       the Governor and returned to us if we were to

        23       ask for that information.











                                                             
9091

         1                      Remember, Senator, that there -

         2       at the beginning of this year, we had a gate, if

         3       you will, as to regulations that were -- that

         4       were going to be proposed and there were some

         5       350 regulations sitting on our doorstep January

         6       1st that did not go through because we had a

         7       regulatory -- what we knew about those 350

         8       because we had a regulatory agenda bill that

         9       passed here last year and was signed by Governor

        10       Cuomo that identified 350 regulations out of, I

        11       believe it was just five agencies -- it was

        12       either four or five agencies and those sat

        13       because there was some effort being made to know

        14       what the agencies are doing.

        15                      Now, I believe that this is the

        16       same kind of legislation.  It's well-intended

        17       legislation attempting to ask well-intended

        18       people to help us work through some very

        19       difficult circumstances in New York State.

        20                      SENATOR LEICHTER:  Thank you very

        21       much, Senator Rath.

        22                      ACTING PRESIDENT NOZZOLIO:

        23       Senator Leichter on the bill.











                                                             
9092

         1                      SENATOR LEICHTER:  On the bill.

         2       Let me just say I don't share Senator Rath's

         3       belief, you know, that government is going to

         4       work very well on good intentions and the good

         5       intention of the legislation, the good intention

         6       of the executive and the good intention of the

         7       agencies and we're going to get what she seeks,

         8       but that's really not my main objection to the

         9       bill.

        10                      I mean, even if the bill was

        11       drafted with some precision -- I don't mean to

        12       say this critically.  I understand that you

        13       purposely didn't want to do this in some detail,

        14       but it seems to me, first of all, that the bill

        15       is drafted in such a way that I don't know what

        16       it accomplishes, but my other problem is that,

        17       it seems to me, Senator Rath, that you and

        18       Senator Wright, in your zeal to cut down on the

        19       administrative function and burdens on agencies,

        20       sometimes add to those functions and burdens;

        21       and now you're going to require every agency to

        22       try to figure out how much time a particular

        23       employee spends in a -- in adjudicatory and











                                                             
9093

         1       rulemaking and licensing, and so on, a secretary

         2       may have to say, "Well, I take 15 phone calls a

         3       day and three are on this and four are on

         4       that."

         5                      I know you said that you're not

         6       trying to micro-manage, whatever that means, and

         7       I know that you said we're not requiring this in

         8       detail, but I don't know what you're requiring

         9       then, and if you are requiring this precise

        10       information, it just seems to be an enormous

        11       burden on the agencies.

        12                      I don't know whether you rise to

        13       ask me a question, in which case, I yield.  If

        14       not, I'll -- or you just want to be heard on the

        15       bill -- let me just finish my comments on the

        16       bill.

        17                      I mean, in part -- Senator Rath,

        18       if I can put this in a broader context, what I

        19       hear from you and Senator Wright and some other

        20       people is you wish this were a less complex

        21       world, that we didn't have environmental

        22       problems and we didn't have some of the social

        23       needs and some of the social problems we have











                                                             
9094

         1       and we didn't have the interaction between

         2       various forms of government and businesses and

         3       consumers, and so on.  It happens to be a pretty

         4       complex world.  It's not what it was in 1920 or

         5       1820, and so on, and we have a need for more

         6       regulations than we have ever had before.

         7                      That's not to say that we

         8       shouldn't have a good process, that we shouldn't

         9       try to weed out unnecessary regulations, but I

        10       think that how you seem to proceed is on the

        11       basis that so many of these regulations are

        12       unnecessary.  They're harmful.  They can be

        13       gotten rid of and the agencies are creating

        14       regulatory work where none is needed, and if we

        15       just put a lot of pressure on them, then we're

        16       going to, in some ways, get these agencies no

        17       longer to interfere so much in the affairs of

        18       the people of the state of New York, and I

        19       submit to you that's really very illusory and

        20       that what you end up with is that you're going

        21       to end up with a state that functions far less

        22       well and you're going to end up with problems in

        23       the health of the people of the state of New











                                                             
9095

         1       York as you've emasculated environmental

         2       regulations, and so on.

         3                      So I must say while this bill is

         4       written in sort of a benign way, in fact, so

         5       benign that I don't know what it does, but it -

         6       the underlying theory is regulations are bad.

         7       That's why I differ with you.  Some regulations

         8       maybe we can do without but, unfortunately, in

         9       the world that we lead, you need to have

        10       government to be involved and try to create that

        11       level and fair playing field to protect people

        12       and you need regulations.

        13                      ACTING PRESIDENT NOZZOLIO:  Read

        14       the last section.

        15                      THE SECRETARY:  Section 2 -

        16                      SENATOR STACHOWSKI:  Mr.

        17       President.

        18                      ACTING PRESIDENT NOZZOLIO:

        19       Senator Stachowski.

        20                      SENATOR STACHOWSKI:  If Senator

        21       Rath would yield to just a question.

        22                      ACTING PRESIDENT NOZZOLIO:

        23       Senator Rath, will you yield for a question?











                                                             
9096

         1                      SENATOR RATH:  Surely.

         2                      SENATOR STACHOWSKI:  I listened

         3       to the exchange between you and Senator Leichter

         4       and I read the memo and read the bill, and I'm

         5       more confused than when I saw this in Rules for

         6       the first time, and basically I'm just going to

         7       ask you two questions, and the first being, this

         8       bill says that it's an act to amend the State

         9       Finance Law, in relation to requiring a

        10       regulatory budget.  This document is going to be

        11       prepared in time for next year's budget

        12       process.  Is this document going to go to the

        13       Legislature as part of the budget proposal or

        14       does it go to the executive department as part

        15       of the departmental budget for each agency?

        16                      SENATOR RATH:  Let me check with

        17       my -- it is our intention that that would come

        18       to the Legislature so that we will be able to

        19       get a full view of what we are spending -- or

        20       let me just say not a full view, some sort of an

        21       initial view as to what we see that we're

        22       spending on regulation.

        23                      SENATOR STACHOWSKI:  Mr.











                                                             
9097

         1       President, if Senator Rath would yield.

         2                      ACTING PRESIDENT NOZZOLIO:

         3       Senator Rath, do you continue to yield?

         4                      SENATOR RATH:  Surely.

         5                      ACTING PRESIDENT NOZZOLIO:  The

         6       Senator yields.

         7                      SENATOR STACHOWSKI:  The other

         8       question I had is the fiscal implication of the

         9       bill, it says "costs involved in regulatory

        10       budget preparation" which I would feel all of us

        11       know that, but what we expect to see in fiscal

        12       implication would be roughly what it's going to

        13       cost each of these departments to ascertain this

        14        -- this information, and that seems to be left

        15       out and there has to be some expense.  Every

        16       department has "X" amount of jobs currently and

        17       the employees are requested to do "X" amount of

        18       things when they're preparing this year's

        19       budget.

        20                      Now, this year's budget has

        21       passed and along comes this bill which will now

        22       add additional responsibilities to practically

        23       everybody in the department if they have any way











                                                             
9098

         1       to report it or if they report at all, and to

         2       what part of their job deals with the cost of

         3       regulations that they either have to put

         4       together or they are answering to.

         5                      So this is an added expense to

         6       the department and we're just trying -- I'm just

         7       trying to find out so I can understand whether

         8       it's doing a -- if this is, in fact, an

         9       expensive mandate on these departmental people

        10        -- because one of the questions asked to me

        11       when I was going back and forth with some of the

        12       appointees to the new Governor was that they

        13       would be able to carry out their jobs under the

        14       restricted budget that the Governor had

        15       presented at the time they were looking for

        16       appointment, but they would have a great

        17       difficult time doing that if they got a whole

        18       new series of jobs from the Legislature in

        19       different bills, and my question is how much is

        20       this going to cost because that is exactly what

        21       this bill does.

        22                      ACTING PRESIDENT NOZZOLIO:

        23       Senator Rath.











                                                             
9099

         1                      SENATOR RATH:  I think we all

         2       share your concerns, Senator Stachowski, and I

         3       believe that all of us are very comfortable when

         4       we have a job description and I'm sure in the

         5       various departments, the people who do the

         6       regulating and are expected to serve that

         7       function have their -- their job description

         8       indicates that part of their time is allocated

         9       to writing regulations, and I don't know,

        10       Senator Stachowski, if you have ever held a job

        11       that was an hourly kind of work that was a free

        12       lance kind of work.  I did that at one time and

        13       found it very difficult at first to -- to chalk

        14       up anything more than an hour's work because I

        15       knew how much I earned by the hour.  If I worked

        16       for three or four hours, I was comfortable in

        17       putting down the three or four hours and that

        18       was billable time.

        19                      Well, as I came to know attorneys

        20       and other people who have worked with billable

        21       time, I don't think it's a real problem.  I

        22       think people see if they spent a period of time

        23       on something or made a couple phone calls, put a











                                                             
9100

         1       couple checks in a column on a paper that's on

         2       your desk and once a month you take a half an

         3       hour and look at it and say, "Yeah, I spent 25

         4       hours this month on working on regulations" and

         5       you walk away from it.  The next month you did

         6       the same thing and eight or ten or twelve months

         7       later, however long we would be into this at

         8       this point, we would have some sort of a bird's

         9       eye view for each department as how much time

        10       they spent.  That's basically what we're looking

        11       for.

        12                      SENATOR STACHOWSKI:  Excuse me,

        13       Mr. President.  I said it would only be two

        14       questions, but I really have to ask one more.

        15                      ACTING PRESIDENT NOZZOLIO:  Will

        16       Senator Rath yield to one more question?

        17                      SENATOR RATH:  Surely.

        18                      ACTING PRESIDENT NOZZOLIO:  The

        19       Senator yields.

        20                      SENATOR STACHOWSKI:  Senator, I

        21       can understand that there's free lance jobs and

        22       other jobs, and I'm not being specific in saying

        23       what people should be doing.











                                                             
9101

         1                      My problem is that when there's a

         2       fiscal implication on a bill and it says the

         3       cost of doing -- preparing this budget, that's

         4       not a fiscal implication.  The implication is a

         5       number.  How much does it cost; and if you want

         6       to say it has no fiscal impact, which is what

         7       you inferred when you said you can either free

         8       lance or you have an hourly wage type of job

         9       with a specific -- specific goal to accomplish,

        10       that's one thing, but if it's either no fiscal

        11       implication or there is a cost, and I'm just

        12       trying to find out if it's no fiscal

        13       implication, then that's what it should say or

        14       if there's a dollar amount involved in it, then

        15       that's what it should say, but to say that it's

        16       the cost involved in regulatory budget

        17       preparation, then I would imagine every bill we

        18       ever bring here, that, if we don't want to say

        19       the number, we'll say it's the cost to do the

        20       job that this bill calls for, and that would be

        21       the same as this fiscal implication on this bill

        22       and that's the problem I have.

        23                      I don't mean to be overbearing on











                                                             
9102

         1       this particular issue, but I know that in other

         2       instances when somebody's asked for a fiscal

         3       implication, oftentimes their bill won't even be

         4       considered if it doesn't have a number

         5       attached.  So if it's none, then let's not say

         6       none, and if it's some, let's get a number on

         7       it.  Senator, if you could possibly give a

         8       number, I'd appreciate it.

         9                      SENATOR RATH:  Senator, I would

        10       be glad to say that I don't see any costs at

        11       this point and that I would expect that the

        12       Division for Budget or the Office of Regulatory

        13       Reform may have to give the agencies some

        14       guidelines in these areas, but right now I don't

        15       see that there are going to be a lot of

        16       potential problems.

        17                      ACTING PRESIDENT NOZZOLIO:  Read

        18       the last section.

        19                      THE SECRETARY:  Section 2.  This

        20       act shall take effect immediately.

        21                      ACTING PRESIDENT NOZZOLIO:  Call

        22       the roll.

        23                      (The Secretary called the roll.)











                                                             
9103

         1                      THE SECRETARY:  Ayes -- those

         2       recorded in the negative on Calendar 1249 are

         3       Senators Abate, Connor, Leichter, Onorato,

         4       Paterson and Stavisky.  Also, Senator

         5       Montgomery.  Ayes 52, nays 7.

         6                      ACTING PRESIDENT NOZZOLIO:  The

         7       bill is passed.

         8                      THE SECRETARY:  Calendar Number

         9       1250, by Senator Holland, Senate Print -

        10                      SENATOR SKELOS:  Lay it aside

        11       temporarily.

        12                      THE SECRETARY:  Calendar Number

        13       1253, by Senator Skelos, Senate Print 2761-A, an

        14       act in relation to the duration of the eligible

        15       list for police officer in the county of Nassau.

        16                      ACTING PRESIDENT NOZZOLIO:  Home

        17       rule message at the desk.

        18                      SENATOR PATERSON:  Explanation.

        19                      ACTING PRESIDENT NOZZOLIO:

        20       Explanation is asked for.

        21                      Senator Skelos.

        22                      SENATOR SKELOS:  Currently, there

        23       is no valid list which exists in the county of











                                                             
9104

         1       Nassau so the villages can hire police

         2       officers.

         3                      What this legislation would do

         4       would extend a list that expired on May 4th,

         5       1994 until May 4th, 1996 unless a new list is

         6       validated that police officers can be selected

         7       from for villages within the county of Nassau.

         8                      ACTING PRESIDENT NOZZOLIO:

         9       Senator Paterson.

        10                      SENATOR PATERSON:  Mr. President,

        11       if Senator Skelos would yield for a question.

        12                      ACTING PRESIDENT NOZZOLIO:  Does

        13       Senator Skelos yield?  The Senator yields.

        14                      SENATOR PATERSON:  Senator, this

        15       list that we're working from right now is

        16       already a year old, and the whole purpose of

        17       civil service lists is for them to be up to

        18       date.  What you seem to be asking us to do is to

        19       extend this list, so that at one point it might

        20       be three years old and we still don't have a

        21       replacement list.

        22                      So I can understand you extending

        23       the legislation, but why would you extend it two











                                                             
9105

         1       years as opposed to one, because in that second

         2       year, I would hope that we would have a

         3       replacement list.

         4                      SENATOR SKELOS:  I would

         5       certainly -- the legislation says that if a new

         6       list is established, then this one would expire.

         7                      SENATOR PATERSON:  Thank you, Mr.

         8       President.

         9                      Again, through you, Mr.

        10       President.  Senator Skelos, I understand that,

        11       but what that accomplishes is building into the

        12       legislation what would in a sense be protection

        13       that since there hasn't been any activity in the

        14       first place, let's just say that this

        15       legislation is not going to stimulate any

        16       activity at this point.

        17                      SENATOR SKELOS:  The problem -

        18       the problem -- we're going to hopefully

        19       stimulate the county to establish this list.

        20       The problem right now is that villages who use

        21       the county list to select new recruits for their

        22       departments have not been able to do so because

        23       a new list has not been established, and when











                                                             
9106

         1       I'm talking about villages in our county, we're

         2       talking about police forces with maybe 20

         3       policemen and when they lose one or two, it's a

         4       real technical problem for them to continue to

         5       service the people within their community.  It's

         6       not the county -- it's really to protect the

         7       villages.

         8                      SENATOR PATERSON:  I understand.

         9                      Thank you, Senator Skelos.  If

        10       you would yield for just one other question.

        11                      I understand the problem when

        12       we're losing officers.  Can you explain to me

        13       the problem that is causing us to be unable to

        14       establish the list?

        15                      SENATOR SKELOS:  No.

        16                      SENATOR PATERSON:  Okay.  Well,

        17       if the problem doesn't cure itself -- in other

        18       words, since we don't know what the problem is,

        19       it's very likely that we could be right back

        20       here in 1996 extending the list again, couldn't

        21       we?

        22                      SENATOR SKELOS:  There's always a

        23       possibility, but not a probability.











                                                             
9107

         1                      SENATOR PATERSON:  I understand.

         2       What I'm saying, Senator, is because that's the

         3       case, in this legislation, it seems to me that

         4       we are addressing an issue, but it's not even

         5       correlative.  It's more ancillary to the actual

         6       issue that's creating the problem, and in

         7       addressing it through this form of legislation,

         8       what I think we are very likely to accomplish is

         9       a situation where we've got individuals who

        10       would like to become police officers who, but

        11       for the fact that they are not on a current list

        12       which was established somewhere in 1994, would

        13       be denied.  What we're now also implementing is

        14       a list that, in many respects, has aged.

        15                      So I'm just suggesting to you

        16       that -- yeah, I can vote for this piece of

        17       legislation.  I don't have a problem with it per

        18       se, but I think that this is an issue that needs

        19       to be looked into to figure out why we are

        20       forced as a Legislature to act on this

        21       particular -- in this situation.

        22                      SENATOR SKELOS:  Thank you very

        23       much.











                                                             
9108

         1                      SENATOR PATERSON:  You're

         2       welcome, Senator.

         3                      Mr. President, on the bill.

         4                      ACTING PRESIDENT NOZZOLIO:  On

         5       the bill, Senator Paterson.

         6                      SENATOR PATERSON:  As I said to

         7       Senator Skelos, there's really nothing wrong

         8       with this legislation, but there is something

         9       wrong somewhere that we are unable to determine

        10       either through the legislation or even the

        11       discussion, and what I would hope is that -

        12       that the sponsors would look into trying to

        13       determine why the list hasn't been established

        14       because, in many respects, it is prolonging an

        15       opportunity for some and denying employment for

        16       others.

        17                      ACTING PRESIDENT NOZZOLIO:  Read

        18       the last section.

        19                      THE SECRETARY:  Section 2.  This

        20       act shall take effect on the first day of

        21       September.

        22                      ACTING PRESIDENT NOZZOLIO:  Call

        23       the roll.











                                                             
9109

         1                      (The Secretary called the roll.)

         2                      THE SECRETARY:  Ayes 59.

         3                      ACTING PRESIDENT NOZZOLIO:  The

         4       bill is passed.

         5                      THE SECRETARY:  Calendar Number

         6       1255, by Senator Goodman, Senate Print 3586-A,

         7       an act to amend the Tax Law, in relation to the

         8       delivery of wage reporting information.

         9                      SENATOR STACHOWSKI:  Explanation.

        10                      ACTING PRESIDENT NOZZOLIO:

        11       Explanation is asked for.

        12                      SENATOR GOODMAN:  Who asked for

        13       the explanation, please?

        14                      ACTING PRESIDENT NOZZOLIO:

        15       Senator Stachowski.

        16                      Senator Goodman.

        17                      SENATOR GOODMAN:  Senator

        18       Stachowski, this bill is a technical correction

        19       from the Department of Taxation and Finance to a

        20       bill that was passed last year and is now

        21       Chapter 630 of the Laws of 1994.  Its purpose is

        22       to allow the expansion of the delivery of wage

        23       reporting information by the Department of











                                                             
9110

         1       Taxation and Finance to the Department of Social

         2       Services for the evaluation of employment or

         3       training programs authorized pursuant to the

         4       Social Services Law.

         5                      ACTING PRESIDENT NOZZOLIO:  Read

         6       the last section.

         7                      THE SECRETARY:  Section 2.  This

         8       act shall take effect immediately.

         9                      ACTING PRESIDENT NOZZOLIO:  Call

        10       the roll.

        11                      (The Secretary called the roll.)

        12                      THE SECRETARY:  Ayes 59.

        13                      ACTING PRESIDENT NOZZOLIO:  The

        14       bill is passed.

        15                      THE SECRETARY:  Calendar Number

        16       1260, by Senator Maziarz, Senate Print 4807-A,

        17       an act to provide benefit options to surviving

        18       spouses of certain deceased members of the New

        19       York State Teachers Retirement System.

        20                      SENATOR STACHOWSKI:  Explanation.

        21                      ACTING PRESIDENT NOZZOLIO:

        22       Explanation asked for.

        23                      Senator Maziarz.











                                                             
9111

         1                      SENATOR MAZIARZ:  Mr. President,

         2       who asked for the explanation?

         3                      ACTING PRESIDENT NOZZOLIO:

         4       Senator Stachowski.

         5                      SENATOR MAZIARZ:  Thank you.

         6                      Senator, Terry Taylor was a great

         7       educator and was well respected by his

         8       colleagues in the Spencerport School System, as

         9       well as educators across New York State.  His

        10       untimely death at the age of 47 in February of

        11       1994 was especially disturbing because he did

        12       not satisfy the 30-day waiting period required

        13       to receive disability retirement benefits from

        14       the New York State Teachers Retirement System.

        15       As a result, the benefits his wife and two

        16       children received from the retirement system

        17       were considerably less than he would have had he

        18       lived for just another seven days.

        19                      ACTING PRESIDENT NOZZOLIO:

        20       Senator Stachowski.

        21                      SENATOR STACHOWSKI:  Senator

        22       Maziarz, would you yield for a couple of

        23       questions?











                                                             
9112

         1                      ACTING PRESIDENT NOZZOLIO:

         2       Senator Maziarz, do you yield?

         3                      SENATOR MAZIARZ:  Yes.

         4                      ACTING PRESIDENT NOZZOLIO:  The

         5       Senator yields.

         6                      SENATOR STACHOWSKI:  Senator,

         7       isn't it true that unfortunately people in the

         8       various retirement systems, whether Teachers' or

         9       the New York State retirement system, have the

        10       wrong benefits or miss a date and they die and

        11       they're either in the wrong system or they

        12       didn't fill out some papers or some papers

        13       weren't aged and this happens pretty regularly?

        14       What -- what makes this particular person any

        15       different than all those other people that

        16       unfortunately found themselves in the same

        17       position and didn't get the benefits that will

        18       be provided by this legislation?

        19                      SENATOR MAZIARZ:  I don't think,

        20       Senator, it makes this person any different at

        21       all.

        22                      SENATOR STACHOWSKI:  I'm sorry?

        23                      SENATOR MAZIARZ:  I don't think











                                                             
9113

         1       it makes this situation any different at all.  I

         2       mean, if this happened to one of the other

         3       Senators' constituents and they wanted to bring

         4       up this bill, I would certainly support it.  I

         5       don't think there's any large difference here at

         6       all.

         7                      SENATOR STACHOWSKI:  Let me ask

         8        -- if the Senator would still yield.

         9                      ACTING PRESIDENT NOZZOLIO:  Does

        10       the Senator continue to yield?

        11                      SENATOR MAZIARZ:  Yes.

        12                      ACTING PRESIDENT NOZZOLIO:  The

        13       Senator yields.

        14                      SENATOR STACHOWSKI:  The cost of

        15       doing this bill, that will be incurred by the

        16       retirement system and not by the school

        17       district?

        18                      SENATOR MAZIARZ:  Yes.

        19                      SENATOR STACHOWSKI:  Thank you,

        20       Senator.

        21                      ACTING PRESIDENT NOZZOLIO:  Last

        22       section.

        23                      THE SECRETARY:  Section 2.  This











                                                             
9114

         1       act shall take effect immediately.

         2                      ACTING PRESIDENT NOZZOLIO:  Call

         3       the roll.

         4                      (The Secretary called the roll.)

         5                      THE SECRETARY:  Ayes 59.

         6                      ACTING PRESIDENT NOZZOLIO:  The

         7       bill is passed.

         8                      THE SECRETARY:  Calendar Number

         9       1266, by Senator LaValle, Senate Print 5372, an

        10       act to amend Chapter 311 of the Laws of 1920,

        11       relating to the assessment and collection of

        12       taxes in Suffolk County.

        13                      SENATOR STACHOWSKI:  Explanation.

        14                      ACTING PRESIDENT NOZZOLIO:

        15       Explanation asked for.

        16                      SENATOR SKELOS:  Lay it aside for

        17       the day.

        18                      ACTING PRESIDENT NOZZOLIO:  The

        19       bill is laid aside for the day.

        20                      SENATOR SKELOS:  Mr. President,

        21       would you stand at ease for a minute.

        22                      ACTING PRESIDENT NOZZOLIO:  The

        23       house will stand at ease.











                                                             
9115

         1                      SENATOR GOLD:  Mr. President.

         2                      ACTING PRESIDENT NOZZOLIO:

         3       Senator Gold.

         4                      SENATOR GOLD:  Yeah, before we do

         5       that, I had to step out of the chamber when we

         6       considered Senator Rath's bill, I think it's

         7       1249, and I ask unanimous consent to be recorded

         8       in the negative.

         9                      ACTING PRESIDENT NOZZOLIO:

        10       Without objection.

        11                      SENATOR SKELOS:  Mr. President,

        12       is there housekeeping at the desk?

        13                      ACTING PRESIDENT NOZZOLIO:

        14       Housekeeping?

        15                      Senator Maziarz.

        16                      SENATOR MAZIARZ:  Thank you, Mr.

        17       President.

        18                      On behalf of Senator Sears, on

        19       page 21, I offer the following amendments to

        20       Calendar Number 752, Senate Print 1536 and ask

        21       that said bill retain its place on the Third

        22       Reading Calendar.

        23                      ACTING PRESIDENT NOZZOLIO:  The











                                                             
9116

         1       amendments are received and adopted.

         2                      Senator Maziarz.

         3                      SENATOR MAZIARZ:  Mr. President,

         4       on behalf of Senator Levy, on page number 15, I

         5       offer the following amendments to Calendar

         6       Number 583, Senate Print Number 4146, and ask

         7       that said bill retain its place on the Third

         8       Reading Calendar.

         9                      ACTING PRESIDENT NOZZOLIO:  The

        10       amendments are received and adopted.

        11                      Senator Maziarz.

        12                      SENATOR MAZIARZ:  Mr. President,

        13       on behalf of Senator DiCarlo, on page number 26,

        14       I offer the following amendments to Calendar

        15       Number 864, Senate Print Number 4358 and ask

        16       that said bill retain its place on the Third

        17       Reading Calendar.

        18                      ACTING PRESIDENT NOZZOLIO:

        19       Amendments received and adopted.

        20                      Senator Maziarz.

        21                      SENATOR MAZIARZ:  Mr. President,

        22       on behalf of Senator Saland, I ask that the

        23       sponsor's star be removed, on page 46 and I











                                                             
9117

         1       offer the following amendments to Calendar

         2       Number 959, Senate Print Number 4988 and ask

         3       that said bill retain its place on the Third

         4       Reading Calendar.

         5                      ACTING PRESIDENT NOZZOLIO:  The

         6       amendments are received.

         7                      Senator Skelos.

         8                      SENATOR SKELOS:

         9                      SENATOR SKELOS:  Mr. President,

        10       could we call up Calendar Number 1250 by Senator

        11       Holland.

        12                      ACTING PRESIDENT NOZZOLIO:

        13       Calendar Number 1250, the clerk will read.

        14                      THE SECRETARY:  Calendar Number

        15       1250, by Senator Holland, Senate Print 1468, an

        16       act to amend the Social Services Law, in

        17       relation to requiring an address as a condition

        18       of receiving assistance.

        19                      SENATOR PATERSON:  Explanation.

        20                      ACTING PRESIDENT NOZZOLIO:

        21       Explanation asked for.

        22                      Senator Holland.

        23                      SENATOR HOLLAND:  This basically











                                                             
9118

         1       requires an address when somebody applies for

         2       assistance.

         3                      Presently, the section reads at

         4       the time he or she applies for public assistance

         5       and care, the applicant shall, as a condition of

         6       receiving such aid, present proof of his or her

         7       identity to the Social Services official as the

         8       department may require -- may by regulation

         9       require, and we are adding this, "and an address

        10       which shall be a residence, a public shelter or

        11       such site as the district commissioner shall

        12       deem appropriate for this subdivision" and this

        13       is required because many people were ripping off

        14       the system by getting post office boxes.

        15                      SENATOR PATERSON:  Mr. President.

        16                      ACTING PRESIDENT NOZZOLIO:

        17       Senator Paterson.

        18                      SENATOR PATERSON:  We're down to

        19       about the last bill, Senator Holland.  I really

        20       don't want to spoil your birthday, but I have a

        21       few questions.

        22                      ACTING PRESIDENT NOZZOLIO:  Does

        23       Senator Holland yield?











                                                             
9119

         1                      SENATOR HOLLAND:  Yes, sir.

         2                      ACTING PRESIDENT NOZZOLIO:  The

         3       Senator yields.

         4                      SENATOR PATERSON:  Good.  Senator

         5       Holland, last week we passed a New York State

         6       budget that provided for fingerprinting

         7       enrollment that would prevent and detect what

         8       would be fraud on the part of welfare

         9       recipients.  So with that legislation in place,

        10       do you think that this bill is necessary?

        11                      SENATOR HOLLAND:  I believe if we

        12       have finger-imaging totally statewide -- first

        13       of all, if we get the waiver -- we need a waiver

        14       for the AFDC.  If we receive the waiver and we

        15       implement it statewide, this would not be

        16       necessary, but right now it is necessary.  We

        17       lost $1 million last year on people who are

        18       double dipping, living in New Jersey and other

        19       states and collecting from their state and also

        20       from the state of New York.  So this is just an

        21       interim measure until we get the waiver and

        22       finger-imaging statewide.

        23                      SENATOR PATERSON:  Well, Senator,











                                                             
9120

         1       then we agree that if we get the fing... for

         2       statewide, you know, multiple enrollment fraud,

         3       the finger-imaging would probably cure that.

         4                      Now, let's go to the issue that

         5       you raised in your answer that -- of multi-state

         6       fraud.  I think that's an issue where we weren't

         7       really investigating.  Up until very recently

         8       when we started investigating, what we found was

         9       that the comparison of Social Security numbers

        10       is a protection along with the cross-listings

        11       that they can actually protect us from what

        12       would be multi-state fraud, so I'm contending

        13       that with the combination of these two avenues

        14       that we can take, that we should be able to

        15       alleviate the problem without necessarily having

        16       to enact this bill.

        17                      SENATOR HOLLAND:  The checking of

        18       the computer list -- the cross-checking of the

        19       computer list which is being done with a number

        20       of states, including Washington -- sounding

        21       states, including Washington, D.C. and Puerto

        22       Rico, I believe.

        23                      The problem is, Senator, the only











                                                             
9121

         1       ones we're catching are the ones that are not

         2       smart enough to change their name or change

         3       their Social Security number.  We're only

         4       catching those who use the same name in the two

         5       or three states and the same Social Security

         6       number.  If they are a little more intelligent

         7       and use a different name or a different Social

         8       Security number or ID, then we can't -- we have

         9       no chance of catching them at this -- and the

        10       post office box, we have no chance of catching

        11       them at this point.

        12                      SENATOR PATERSON:  Senator, if

        13       you would continue to yield.

        14                      SENATOR HOLLAND:  Yes, sir.

        15                      ACTING PRESIDENT NOZZOLIO:  The

        16       Senator continues to yield.

        17                      SENATOR PATERSON:  Can the same

        18       manipulative behavior be applied to giving false

        19       addresses?

        20                      SENATOR HOLLAND:  Can the same

        21       manipulative behavior be -

        22                      SENATOR PATERSON:  In other

        23       words, you were talking about people that give











                                                             
9122

         1       the wrong Social Security number and that way

         2       they give the wrong name and that's the way they

         3       avoid the cross-listing.  So I'm just following

         4       that out to the degree that applies to this bill

         5       in saying can they do the same thing with the

         6       addresses?

         7                      SENATOR HOLLAND:  I brought that

         8       up because you brought that up, Senator, but,

         9       yes, you could use a different post office box

        10       and that's all that's required, the regulations

        11       today.

        12                      SENATOR PATERSON:  But, Senator,

        13       can you also use a different street address?

        14                      SENATOR HOLLAND:  Yes, you could

        15       and, hopefully, the commissioner or his or her

        16       representative will know or check if there is a

        17       house there and if you live there or it's not a

        18       vacant lot or -- et cetera.

        19                      SENATOR PATERSON:  Senator, you

        20       just addressed the authority of the

        21       Commissioner.  Now, for purposes of election

        22       law, for voting purposes around this country, we

        23       have found that places such as a park bench or a











                                                             
9123

         1       shelter are valid.  They are actually legal

         2       addresses for the purposes of voting.  The

         3       question that I have for you arising out of that

         4       information is that the commissioner in your

         5       legislation seems to have the discretionary

         6       power to determine whether or not the address is

         7       apt.  Do you think that's inherently illegal as

         8       the legislation is drafted to give the

         9       commissioner that authority to supersede what

        10       has actually been an interpretation that courts

        11       have made of our Constitution?

        12                      SENATOR HOLLAND:  I think we may

        13       pay our commissioners and state managers a great

        14       deal of money in many events and that they

        15       should have the intelligence and responsibility

        16       to check whether the individual lives there or

        17       not, and I don't know if you're talking about

        18       the Election Law, whether that crosses this or

        19       not.  I doubt it, Senator.

        20                      SENATOR PATERSON:  Well, Senator,

        21       I think that there are a number of intelligent

        22       people -

        23                      SENATOR HOLLAND:  I hope so.











                                                             
9124

         1                      SENATOR PATERSON:  -- and a

         2       number of responsible people, and what I'm

         3       really asking you is often among people of that

         4       achievement there are -- there is a disagreement

         5       as to what is and what is not constitutional,

         6       and since we have this discretionary power

         7       vested in the commissioner, what I'm suggesting

         8       is that we're going to have an independent and

         9       in many ways, individual interpretation

        10       depending on where you are as to what a

        11       residence is, when, in fact, we have codified or

        12       at least interpreted that we know that that

        13       residence can be a shelter or a park bench.  I'm

        14       just saying that what the legislation may

        15       produce as it's drafted is confusion among

        16       commissioners even if they are well paid and

        17       intelligent.

        18                      SENATOR HOLLAND:  I don't think I

        19       agree with the park bench unless the

        20       commissioner or some individual went and

        21       approved that, Senator.

        22                      SENATOR PATERSON:  Well, Senator,

        23       we're assuming that this is not a barrier











                                                             
9125

         1       against homeless people receiving assistance,

         2       but let's take the individual who is not trying

         3       to, in any way be multi-enrolled in different

         4       places.  Let's just take an individual who is

         5       following the rules.  If they're staying at a

         6       shelter and then they change shelters, how do

         7       they address that in terms of their address that

         8       they are filing?  In other words, now they have

         9       the wrong address and if the commissioner so

        10       deems, they will become ineligible.

        11                      In other words, we're talking

        12       about often an inertia, a transient group of

        13       people who, though there may be fraud committed

        14       among some, we would not interpret all of them

        15       or certainly the majority of them to be that

        16       way; the records have never shown that, but what

        17       we're creating is a -- an imposition relating to

        18       the actual reason that they are seeking Social

        19       Services assistance in the first place which is

        20       that they are indigent which goes with it a

        21       number of characteristics, and one of them being

        22       the failure often to establish a consistent

        23       residence.











                                                             
9126

         1                      SENATOR HOLLAND:  I think you're

         2       assuming that we're trying to take these people

         3       out of the system and we're really not trying to

         4       do that.  All we're trying to take out is the

         5       people who are trying to steal from the system,

         6       and if it is a park bench and the commissioner

         7       says, "Fine.  I know you're there all the time.

         8       People tell me you're there all the time.  We'll

         9       allow that for you", and he says that or she

        10       says that, that's a different story than just

        11       allowing a post office box with no investigation

        12       at all; to me, it is, anyway.

        13                      SENATOR PATERSON:  Mr. President,

        14       to Senator Holland, I think sometimes this is

        15       the point that we have gotten into discussion

        16       before, Senator.  I hope that you're not

        17       assuming that I am accusing you of having an

        18       intent because what I'm really discussing with

        19       you has nothing to do with intent.  I would,

        20       therefore, be assured that we're not intending

        21       to exclude anyone from the system.  What I'm

        22       saying is that it is a consequence of the rules

        23       that we would be promulgating through this











                                                             
9127

         1       legislation that these individuals, many of whom

         2       are alcoholics, they have severe substance abuse

         3       problems, they are mentally ill and these

         4       individuals would be affected in such a way as

         5       if there was an attempt and -- but we're not

         6       saying that there is, Senator.

         7                      What we're saying is the results

         8       are what we are contesting and the results are

         9       that it's going to be very difficult for them to

        10       maintain a consistent address when they are

        11       shuttling from one shelter and another, when

        12       they're often sleeping in places that can't even

        13       be defined necessarily, but they are in need of

        14       Social Services and the fact that they have this

        15       problem does not relate to what may be a valid

        16       concern that you are addressing in this

        17       legislation which is to cut down on those who

        18       dishonestly commit a fraud against the system

        19       and need to be -- we need to have that problem

        20       curtailed.

        21                      But what I'm saying to you,

        22       Senator, is there are some people who are

        23       perfectly legitimate in their problem of











                                                             
9128

         1       establishing an address and, in my opinion,

         2       they're being penalized when I have cited

         3       through you other ways, particularly the finger

         4       imaging -- and I won't be disingenuous about

         5       this.  I disagreed with it, but we do have it

         6       now and the fact that we do, as far as I'm

         7       concerned, would ameliorate the problem best in

         8       this situation, because to go further and to

         9       establish the address as a necessary factor, in

        10       my opinion, would create a greater position -

        11       imposition to the many in an attempt to catch

        12       the few.

        13                      SENATOR HOLLAND:  I think we

        14       agree.  We're trying to take out the bad guys.

        15       That's exactly right.  We're not trying to take

        16       out anybody else. That's exactly right.  Finger

        17       imaging is the better solution; that's exactly

        18       right, but in the meantime, I think we should

        19       make every effort to take out the people who are

        20       stealing from the system and just giving a post

        21       office box, and I really can't say it any other

        22       way than that, Senator.

        23                      We're not trying to take out











                                                             
9129

         1       people who should be taken care of, and the

         2       local commissioner is certainly more

         3       knowledgeable than you or I about the people on

         4       his roles and who needs assistance and who

         5       wanders around and doesn't continue an address,

         6       and he will know those people or his people will

         7       know those people and he can make arrangements

         8       for them, he or she.

         9                      SENATOR PATERSON:  Thank you very

        10       much.

        11                      I'm going to finish right here,

        12       Senator.

        13                      Mr. President, on the bill.

        14                      ACTING PRESIDENT NOZZOLIO:  On

        15       the bill, Senator Paterson.

        16                      SENATOR PATERSON:  The finger

        17       imaging alternative is probably the most

        18       accurate, and I think that it will be very

        19       difficult for those who specialize in fraud to

        20       work around finger-imaging, which is why it

        21       would be the best solution, even though there

        22       are problems inherent with its adoption, but we

        23       have it and it's going to be the law and it's











                                                             
9130

         1       something that we will accept and respond to.

         2                      But what I'm saying on this

         3       particular piece of legislation is that those

         4       who specialize in committing frauds, those who

         5       already use phony names and those who already

         6       use phony Social Security numbers moving down

         7       the line to now coming up with a fabricated

         8       address will really be an easy thing for them,

         9       for those who engage in it, but for the

        10       individuals who would have been best served by

        11       being able to use a shelter or a park bench,

        12       which is something that's legal, as their actual

        13       address, they would be harmed unconditionally by

        14       the passage of this legislation for the

        15       following two reasons:

        16                      One, because their transient

        17       behavior and life-style almost compels an

        18       automatic problem and then, secondly, we have

        19       the added issue of the fact that it is hard for

        20       them to refile and keep up with an agency on

        21       their own activities when, unfortunately, they

        22       have trouble doing that on their own.

        23                      And so this is really a











                                                             
9131

         1       comparison.  I think Senator Holland and I agree

         2       on what the objective is, but this is really a

         3       balancing of the values of trying to curtail and

         4       to detect welfare fraud and at the same time,

         5       trying to establish the opportunity for indigent

         6       individuals, many of them homeless, to receive

         7       that -- that kind of service.

         8                      It is my opinion that the finger

         9       imaging is one that is really a protection but

        10       that the address is really one that is actually

        11       going to cause more problems for the many in

        12       order to catch very few who even Senator Holland

        13       concedes would have to really not be thinking

        14       very much to go through the process of fabri

        15       cating their names and their Social Security

        16       numbers and not bothering to additionally use a

        17       false address.

        18                      ACTING PRESIDENT NOZZOLIO:  Read

        19       the last section.

        20                      Senator Larkin.

        21                      SENATOR LARKIN:  Mr. President,

        22       there will be an immediate meeting of Rules

        23       Committee in Room 332.











                                                             
9132

         1                      ACTING PRESIDENT NOZZOLIO:

         2       Immediate meeting of the Rules Committee in Room

         3       332.  Read the last section.

         4                      THE SECRETARY:  Section 2.  This

         5       act shall take effect on the 30th day.

         6                      ACTING PRESIDENT NOZZOLIO:  Call

         7       the roll.

         8                      (The Secretary called the roll.)

         9                      ACTING PRESIDENT NOZZOLIO:

        10       Results.

        11                      THE SECRETARY:  Those recorded in

        12       the negative on Calendar 1250 are Senators

        13       Abate, Connor, Espada, Mendez, Montgomery,

        14       Paterson, Smith; also Senator Gold; also Senator

        15       Stavisky.  Ayes 50, nays 9.

        16                      ACTING PRESIDENT NOZZOLIO:  The

        17       bill is passed.

        18                      Senator Larkin.

        19                      SENATOR LARKIN:  Mr. President, I

        20       believe we have a resolution at the desk by

        21       Senator Paterson.  Please read it.

        22                      ACTING PRESIDENT NOZZOLIO:  The

        23       Secretary -- the Secretary should read the











                                                             
9133

         1       title.

         2                      THE SECRETARY:  By Senator

         3       Paterson, Legislative Resolution commending

         4       Minnie L. Goka upon the occasion of her

         5       retirement after 32 distinguished years as a

         6       teacher, administrator, volunteer and church lay

         7       leader in New York City.

         8                      ACTING PRESIDENT NOZZOLIO:  The

         9       question is on the resolution.  All those in

        10       favor.

        11                      (Response of "Aye".)

        12                      All those opposed.

        13                      (There was no response.)

        14                      It appears the ayes have it.

        15                      The resolution is adopted.

        16                      Senator Larkin.

        17                      SENATOR LARKIN:  Is there any

        18       more housekeeping?

        19                      ACTING PRESIDENT NOZZOLIO:  No,

        20       Senator.

        21                      SENATOR LARKIN:  Stand at ease

        22       awaiting a report from the Rules Committee, Mr.

        23       President.











                                                             
9134

         1                      ACTING PRESIDENT NOZZOLIO:  The

         2       house shall stand at ease waiting for a report

         3       from the Rules Committee.

         4                      (Whereupon, the Senate stood at

         5       ease from 5:39 p.m. until 5:49 p.m.)

         6                      SENATOR SKELOS:  Mr. President,

         7       if we could return to reports of standing

         8       committees, I believe there's a report of the

         9       Rules Committee at the desk.  I ask that it be

        10       read.

        11                      ACTING PRESIDENT LARKIN:  The

        12       clerk will read.

        13                      THE SECRETARY:  Senator Bruno,

        14       from the Committee on Rules, reports the

        15       following bills:

        16                      Senate Print 932, by Senator

        17       Holland, an act to amend the Mental Hygiene Law,

        18       in relation to the placement of state-owned

        19       community residences;

        20                      2044, by Senator Holland, an act

        21       to amend the Social Services Law, in relation to

        22       recovery of certain medical assistance expenses;

        23                      2586, by Senator Velella, an act











                                                             
9135

         1       to amend Chapter 576 of the Laws of 1975;

         2                      3306, by Senator Santiago, an act

         3       authorizing the city of New York to reconvey its

         4       interest in certain real property;

         5                      3486-A, by Senator DiCarlo, an

         6       act to amend the Public Authorities Law, in

         7       relation to the powers of the Dormitory

         8       Authority;

         9                      3831, by Senator Kuhl, an act

        10       providing to Thomas A. Cassidy credit for past

        11       service time;

        12                      SENATOR SKELOS:  Can we just wait

        13       a minute so Senator Waldon could record a vote

        14       and then we can continue.

        15                      ACTING PRESIDENT LARKIN:  Senator

        16       Waldon, why do you rise?

        17                      SENATOR WALDON:  I respectfully

        18       request unanimous consent to be recorded in the

        19       negative on Senate 1468.

        20                      ACTING PRESIDENT LARKIN:  Without

        21       objection, so ordered.

        22                      SENATOR WALDON:  Thank you very

        23       much.  Thank you, Senator.











                                                             
9136

         1                      THE SECRETARY:  Senate Print

         2       3866, by Senator Hannon, an act to amend the

         3       Education Law, in relation to experimental

         4       alternative institutional support programs;

         5                      3868, by Senator Kuhl, an act to

         6       require the New York State and Local Employees

         7       Requirement System to accept requirement

         8       applications;

         9                      3869-A, by Senator Larkin, an act

        10       to amend the Agriculture and Markets Law, in

        11       relation to penalties for mistreated animals;

        12                      3910, by Senator Maltese, an act

        13       to amend the Tax Law, in relation to exempting

        14       certain parts, tools, supplies and services;

        15                      4389, by Senator Stachowski, an

        16       act authorizing the city of Buffalo to

        17       discontinue as parklands certain lands;

        18                      4568, by Senator Seward, an act

        19       to amend the Civil Service Law, in relation to

        20       granting residence of the city of Ithaca and the

        21       town of Ithaca a preference in appointment;

        22                      4630, by Senator Libous, an act

        23       to amend the Mental Hygiene Law, in relation to











                                                             
9137

         1       limiting the use of state funds;

         2                      4738, by Senator Jones, an act to

         3       authorize the city of Rochester to discontinue

         4       the use of certain lands as parklands;

         5                      4822, by Senator Libous, an act

         6       to amend the Mental Hygiene Law, in relation to

         7       employees of the Mental Hygiene Legal Service;

         8                      4864, by Senator Cook, an act to

         9       amend the Education Law and the Public Officers

        10       Law, in relation to the defense and

        11       indemnification of a member;

        12                      4968, by Senator Velella, an act

        13       to amend the Mental Hygiene Law, in relation to

        14       service as president of boards of visitors;

        15                      5026-A, by Senator Hannon, an act

        16       to amend the Executive Law, in relation to

        17       enacting the Engineers and Architects Good

        18       Samaritan Act;

        19                      5106-A, by Senator Saland, an act

        20       to amend the Social Services Law and the

        21       Education Law, in relation to the protection of

        22       pupils;

        23                      5238, by Senator Hannon, an act











                                                             
9138

         1       to amend the Public Health Law, in relation to

         2       the quality assurance of managed care plans;

         3                      5273, by Senator Maltese, an act

         4       to amend the Vehicle and Traffic Law, in

         5       relation to parking violations;

         6                      5282, by Senator Cook, an act to

         7       provide for retirement service credit in the New

         8       York state and local police and fire retirement

         9       system for Richard C. Paolino;

        10                      5359, by Senator Rath, an act to

        11       amend the Civil Practice Law and Rules and the

        12       Executive Law, in relation to extending the

        13       statute of limitations; and

        14                      3585, by Senator Gonzalez, an act

        15       authorizing the city of New York to reconvey its

        16       interest in certain real property.

        17                      All bills ordered directly for

        18       third reading.

        19                      SENATOR SKELOS:  I move we accept

        20       the report of the Rules Committee.

        21                      ACTING PRESIDENT LARKIN:  All

        22       those in favor of accepting the Rules Committee

        23       report signify by saying aye.











                                                             
9139

         1                      (Response of "Aye".)

         2                      Opposed, nay.

         3                      (There was no response.)

         4                      The report is accepted.

         5                      Senator Rath, why do you rise?

         6                      SENATOR RATH:  Mr. President, I'd

         7       like to offer the following amendments to

         8       Calendar Number 1276, Senate Print Number

         9       3869-A, and ask that said bill retain its place

        10       on the Third Reading Calendar.  It's on behalf

        11       of Senator Larkin.

        12                      Additionally, Mr. President, on

        13       behalf of Senator Nozzolio, I'd like to call up

        14       his bill, Print Number 580 recalled from the

        15       Assembly which is at the desk.

        16                      ACTING PRESIDENT LARKIN:  The

        17       Secretary will read.

        18                      THE SECRETARY:  Calendar Number

        19       42, by Senator Nozzolio, Senate Print 580, an

        20       act to amend the Public Authorities Law, in

        21       relation to creating the Cayuga County Water and

        22       Sewer Authority.

        23                      SENATOR RATH:  Mr. President, I











                                                             
9140

         1       now move to reconsider the vote by which this

         2       bill was passed.

         3                      ACTING PRESIDENT LARKIN:  Call

         4       the roll on reconsideration.

         5                      (The Secretary called the roll on

         6       reconsideration.)

         7                      THE SECRETARY:  Ayes 59.

         8                      ACTING PRESIDENT LARKIN:  Senator

         9       Rath.

        10                      SENATOR RATH:  Mr. President, I

        11       now offer the following amendments.

        12                      ACTING PRESIDENT LARKIN:  The

        13       amendments are received and adopted.

        14                      SENATOR SKELOS:  Mr. President,

        15       is there any other housekeeping at the desk?

        16                      ACTING PRESIDENT LARKIN:  There

        17       is no other housekeeping.

        18                      SENATOR SKELOS:  Without

        19       objection, the Senate stands adjourned until

        20       Tuesday, June 13th, at 10:00 a.m. sharp.

        21                      ACTING PRESIDENT LARKIN:  The

        22       Senate stands adjourned until Tuesday, June the

        23       13th, at 10:00 a.m.  At the request of the











                                                             
9141

         1       Majority Leader, those of you in your offices,

         2       please understand he desires everybody to be in

         3       this chamber at 10:00 a.m., Tuesday, June the

         4       13th.

         5                      (Whereupon, at 5:57 p.m., the

         6       Senate adjourned.)

         7

         8

         9

        10

        11