Regular Session - February 27, 1996

                                                                 
1439

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         9                       ALBANY, NEW YORK

        10                       February 27, 1996

        11                           3:00 p.m.

        12

        13

        14                       REGULAR SESSION

        15

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

        19       STEPHEN F. SLOAN, Secretary

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        21

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        23











                                                             
1440

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

         2                      ACTING PRESIDENT KUHL:  The

         3       Senate will come to order.

         4                      Ask the visitors to find their

         5       seats, members to find their seats.  Ask

         6       everybody to rise and join with me in saying the

         7       Pledge of Allegiance to the Flag.

         8                      (The assemblage repeated the

         9       Pledge of Allegiance to the Flag. )

        10                      In the absence of clergy, may we

        11       bow our heads in a moment of silence.

        12                      (A moment of silence was

        13       observed. )

        14                      Reading of the Journal.

        15                      THE SECRETARY:  In Senate,

        16       Monday, February 26th.  The Senate met pursuant

        17       to adjournment.  Prayer by the Reverend Dr.

        18       Evelyn John, Pastor, New Life Center of Truth,

        19       Brooklyn.  The Journal of Friday, February 23rd,

        20       was read and approved.  On motion, Senate

        21       adjourned.

        22                      ACTING PRESIDENT KUHL:  Hearing

        23       no objection, the Journal stands approved as











                                                             
1441

         1       read.

         2                      Presentation of petitions.

         3                      Messages from the Assembly.

         4                      Messages from the Governor.

         5                      Reports of standing committees.

         6       The Secretary will read.

         7                      THE SECRETARY:  Senator Leibell,

         8       from the Committee on Housing and Community

         9       Development reports:

        10                      Senate Print 5927A, by Senator

        11       Leibell, an act to amend the Private Housing

        12       Finance Law, in relation to loans.

        13                      Senator Wright, from the

        14       Committee on Alcoholism and Drug Abuse reports:

        15                      Senate Print 328B, by Senator

        16       Levy, an act to amend the Public Authorities Law

        17       and the Railroad Law, in relation to operating a

        18       self-propelled rail passenger car;

        19                      2259, by Senator Wright, an act

        20       to amend the Vehicle and Traffic Law, in

        21       relation to creating the crime of aggravated

        22       driving while intoxicated;

        23                      4211, by Senator Hoblock, an act











                                                             
1442

         1       to amend the Alcoholic Beverage Alcohol Law, and

         2       others, in relation to compensatory service;

         3                      5960, by Senator Levy, an act to

         4       amend the Vehicle and Traffic Law, in relation

         5       to the suspension or revocation of a driver's

         6       license.

         7                      Senator Lack, from the Committee

         8       on Judiciary reports:

         9                      Senate Print 499A, by Senator

        10       DiCarlo, an act to amend the General Obligations

        11       Law, in relation to exoneration of certain

        12       police officers;

        13                      546A, by Senator Marchi, an act

        14       to amend the Judiciary Law, in relation to

        15       creating the 13th Judicial District;

        16                      617, by Senator Stafford, an act

        17       to amend the Real Property Law, in relation to

        18       authorizing a voluntary administration;

        19                      1298, by Senator Lack, an act to

        20       amend the Real Property Law, in relation to

        21       allowing an assignment of mortgage;

        22                      2145, by Senator Trunzo, an act

        23       to amend the Eminent Domain Procedure Law, in











                                                             
1443

         1       relation to acquisition of land;

         2                      2314, by Senator Kuhl, an act to

         3       amend the General Obligations Law, in relation

         4       to the liability for negligence;

         5                      3775A, by Senator Lack, an act to

         6       amend the Family Court Act, in relation to the

         7       duty to support recipients of public assistance;

         8                      4614A, by Senator Lack, an act to

         9       amend the Surrogate's Court Procedure Act, in

        10       relation to witnesses;

        11                      4615, by Senator Lack, an act to

        12       amend the Surrogate's Court Procedure Act, in

        13       relation to requirement of filing a bond;

        14                      6008, by Senator Lack, an act to

        15       amend the Judiciary Law and Chapter 397 of the

        16       Laws of 1988.

        17                      Senator DiCarlo, from the

        18       Committee on Aging, reports:

        19                      Senate Print 1413, by Senator

        20       Levy, an act to amend the Transportation Law, in

        21       relation to establishing the New York State

        22       Inter-agency Task Force;

        23                      3420, by Senator Johnson, an act











                                                             
1444

         1       to amend the Real Property Tax Law, in relation

         2       to a senior citizen rent exemption;

         3                      3502A, by Senator Saland, an act

         4       to amend the Real Property Tax Law, in relation

         5       to excluding certain expenditures;

         6                      6149, by Senator DiCarlo, an act

         7       to amend the Real Property Tax Law, the

         8       Administrative Code of the city of New York and

         9       Local Law Number 1 of the city of New York.

        10                      Senator Volker, from the

        11       Committee on Codes, reports:

        12                      Senate Print 213, by Senator

        13       Holland, an act to amend the Penal Law, in

        14       relation to the validity of license to carry or

        15       possess a pistol;

        16                      1189, by Senator Sears, an act to

        17       amend the Penal Law, in relation to including

        18       the use of a firearm;

        19                      1321, by Senator Sears, an act to

        20       amend the Penal Law, in relation to unauthorized

        21       use of an emergency vehicle;

        22                      1378, by Senator Farley, an act

        23       to amend the Penal Law, in relation to











                                                             
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         1       restitution and reparation;

         2                      1417, by Senator Saland, an act

         3       to amend the Criminal Procedure Law and the

         4       Family Court Act, in relation to access to

         5       records;

         6                      1618A, by Senator Goodman, an act

         7       to amend the Penal Law, in relation to

         8       consecutive terms of imprisonment;

         9                      1966A, by Senator DeFrancisco, an

        10       act to amend the Criminal Procedure Law, in

        11       relation to application for recognizance or

        12       bail;

        13                      1971, by Senator DeFrancisco, an

        14       act to amend the Criminal Procedure Law, in

        15       relation to compliance with orders fixing bail;

        16                      2335A, by Senator Saland, an act

        17       to amend the Criminal Procedure Law, in relation

        18       to expanding the limited list of offenses;

        19                      2957B, by Senator Volker, an act

        20       to amend the Civil Rights Law, in relation to

        21       providing for limited immunity;

        22                      3132, by Senator Volker, an act

        23       to amend the Criminal Procedure Law, in relation











                                                             
1446

         1       to peace officers;

         2                      3180A, by Senator Volker, an act

         3       to amend the Civil Practice Law and Rules and

         4       the Public Authorities Law, in relation to

         5       personal service;

         6                      3327, by Senator Johnson, an act

         7       to amend the Criminal Procedure Law, in relation

         8       to requiring certain persons committed to the

         9       custody of the sheriff;

        10                      3494, by Senator Volker, an act

        11       to amend the Criminal Procedure Law, the Family

        12       Court Act and the Penal Law, in relation to

        13       crimes involving firearms;

        14                      3521, by Senator DeFrancisco, an

        15       act to amend the Criminal Procedure Law, in

        16       relation to attendance of defendants;

        17                      4293B, by Senator LaValle, an act

        18       to amend the Civil Rights Law and the Public

        19       Health Law, in relation to genetic tests;

        20                      4297, by Senator Volker, an act

        21       to amend the Civil Rights Law, in relation to

        22       access to personnel files;

        23                      4588, by Senator Volker, an act











                                                             
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         1       to amend the Penal Law, in relation to issuance

         2       of license to carry and have pistols;

         3                      5170, by Senator Gold, an act to

         4       amend the Criminal Procedure Law, in relation to

         5       designating officers;

         6                      6041, by Senator Volker, an act

         7       to amend the Criminal Procedure Law, in relation

         8       to the authority of police officers.

         9                      Senator Rath, from the Committee

        10       on Local Government, reports:

        11                      Senate Print 258, by Senator

        12       Cook, an act to amend the Real Property Tax Law,

        13       in relation to making certain state lands

        14       subject to taxation;

        15                      636, by Senator Cook, an act to

        16       amend the Town Law, in relation to the terms of

        17       office of elective officers;

        18                      1546, by Senator Kuhl, an act to

        19       amend the Real Property Tax Law, in relation to

        20       appointments made to the state board;

        21                      1652, by Senator LaValle, an act

        22       to amend the Town Law, in relation to initiation

        23       of a criminal history check;











                                                             
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         1                      3032, by Senator Volker, an act

         2       to amend the Town Law, in relation to providing

         3       for absentee ballots;

         4                      4119, by Senator Present, an act

         5       to amend the General Municipal Law, in relation

         6       to giving municipalities the power to prefer

         7       businesses;

         8                      5762, by Senator Farley, an act

         9       in relation to the dissolution of Fire District

        10       Number 1;

        11                      5991, by Senator Lack, an act to

        12       amend the County Law, in relation to permitting

        13       district attorneys;

        14                      6010, by Senator Johnson, an act

        15       to amend Chapter 492 of the Laws of 1993

        16       amending the Local Finance Law;

        17                      6035, by Senator Rath, an act to

        18       amend the General Municipal Law, in relation to

        19       permitting the New York State Town Clerks

        20       Association, Incorporated to make purchases;

        21                      6072, by Senator Skelos, an act

        22       to amend the County Law and the General

        23       Municipal Law, in relation to authorizing











                                                             
1449

         1       counties to provide for a crime case status hot

         2       line.

         3                      Senator Levy, from the Committee

         4       on Transportation, reports:

         5                      Senate Print 178, by Senator

         6       Tully, an act to amend the Vehicle and Traffic

         7       Law, in relation to authorizing towns and

         8       villages;

         9                      562, by Senator Cook, an act to

        10       amend the Highway Law, in relation to the

        11       definition of the Southern Tier Expressway;

        12                      1414, by Senator Present, an act

        13       to amend the Vehicle and Traffic Law, the Parks,

        14       Recreation and Historic Preservation Law, in

        15       relation to the registration of snowmobiles;

        16                      1695A, by Senator Goodman, an act

        17       to amend the Transportation Law, in relation to

        18       increasing penalties;

        19                      2670, by Senator Levy, an act to

        20       amend the Vehicle and Traffic Law, in relation

        21       to leaving the scene of injury;

        22                      2883, by Senator Levy, an act to

        23       amend the Vehicle and Traffic Law, in relation











                                                             
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         1       to increasing penalties for leaving the scene of

         2       an accident;

         3                      3861, by Senator Nozzolio, an act

         4       to amend the Vehicle and Traffic Law, the Parks,

         5       Recreation and Historic Preservation Law and the

         6       State Finance Law;

         7                      4432, by Senator DiCarlo, an act

         8       to amend the Vehicle and Traffic Law, in

         9       relation to proof of notice of suspension;

        10                      4578, by Senator Tully, an act to

        11       amend the Vehicle and Traffic Law, in relation

        12       to providing the issuance of a driver's license;

        13                      5976, by Senator Levy, an act to

        14       amend the Transportation Law, in relation to

        15       establishing a demonstration program, reported

        16       with amendments;

        17                      6038, by Senator Lack, an act to

        18       amend the Railroad Law, in relation to police

        19       officers of a commuter railroad.

        20                      Senator Present, from the

        21       Committee on Commerce, Economic Development and

        22       Small Business, reports:

        23                      Senate Print 1929, by Senator











                                                             
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         1       Present, an act to amend the State Adminis

         2       trative Procedure Act;

         3                      1930, by Senator Present, an act

         4       to amend the State Administrative Procedure Act

         5       and the Executive Law;

         6                      1931, by Senator Present, an act

         7       to amend the State Administrative Procedure Act,

         8       in relation to regulatory relief;

         9                      3073, by Senator Wright, an act

        10       to amend the State Administrative Procedure Act,

        11       in relation to requiring that agencies conduct

        12       and include a formal cost;

        13                      3137, by Senator Wright, an act

        14       to amend the State Administrative Procedure Act,

        15       in relation to requiring that the state rules

        16       not impose standards.

        17                      All bills reported directly for

        18       third reading.

        19                      ACTING PRESIDENT KUHL:  Without

        20       objection, all bills are reported directly to

        21       third reading.

        22                      Reports of select committees.

        23                      Communications and reports from











                                                             
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         1       state officers.

         2                      Motions and resolutions.  The

         3       Chair recognizes Senator Libous.

         4                      SENATOR LIBOUS:  Thank you, Mr.

         5       President.

         6                      I move the following bills be

         7       discharged from their respective committees and

         8       be recommitted with instructions to strike the

         9       enacting clause: Senate Numbers 4824.

        10                      ACTING PRESIDENT KUHL:  Said bill

        11       will be recommitted, the enacting clause will be

        12       stricken.

        13                      Senator Libous.

        14                      SENATOR LIBOUS:  And on behalf of

        15       Senator Volker, on page 10, I offer the

        16       following amendments to Calendar Number 228,

        17       Senate Print 5209, and ask that said bill retain

        18       its place on the Third Reading Calendar.

        19                      ACTING PRESIDENT KUHL:

        20       Amendments to Calendar Number 228 are received,

        21       adopted; the bill will retain its place on the

        22       Third Reading Calendar.

        23                      The Chair recognizes Senator











                                                             
1453

         1       Seward.

         2                      SENATOR SEWARD:  Yes, Mr.

         3       President.  On behalf of Senator Sears, on page

         4       12, I offer the following amendments to Calendar

         5       Number 248, Senate Print Number 3921, and ask

         6       that the said bill retain its place on the Third

         7       Reading Calendar.

         8                      ACTING PRESIDENT KUHL:

         9       Amendments to Calendar Number 248 are received

        10       and adopted; the bill will retain its place on

        11       the Third Reading Calendar.

        12                      Senator Seward.

        13                      SENATOR SEWARD:  Yes.  On behalf

        14       of Senator Johnson, on page number 6, I offer

        15       the following amendments to Calendar Number 129,

        16       Senate Print Number 1847, and ask that that bill

        17       retain its place on the Third Reading Calendar.

        18                      ACTING PRESIDENT KUHL:

        19       Amendments to Calendar 128 are received and

        20       adopted; bill will retain its place on the Third

        21       Reading Calendar.

        22                      Senator Skelos, we have a

        23       substitution at the desk we'd like to read at











                                                             
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         1       this time if that's permissible.

         2                      SENATOR SKELOS:  Do the

         3       substitutions.

         4                      ACTING PRESIDENT KUHL:  Secretary

         5       will read the substitution.

         6                      THE SECRETARY:  On page 4,

         7       Senator Wright moves to discharge from the

         8       Committee on Transportation, Assembly Bill 1900B

         9       and substitute it for the identical Calendar

        10       Number 46.

        11                      ACTING PRESIDENT KUHL:

        12       Substitution is ordered.

        13                      Senator Skelos.

        14                      SENATOR SKELOS:  Mr. President,

        15       if we could adopt the Resolution Calendar in its

        16       entirety except for Resolution Number 2531 which

        17       I would ask be read in its entirety after we

        18       adopt the Resolution Calendar.

        19                      ACTING PRESIDENT KUHL:  The

        20       motion is to adopt the Resolution Calendar with

        21       the exception of Resolution Number 2531.

        22                      All those in favor signify by

        23       saying aye.











                                                             
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         1                      (Response of "Aye.")

         2                      Opposed nay.

         3                      (There was no response. )

         4                      The Resolution Calendar is

         5       adopted.

         6                      SENATOR SKELOS:  If we could

         7       recognize Senator Maltese.

         8                      ACTING PRESIDENT KUHL: Senator

         9       Maltese.

        10                      SENATOR MALTESE:  Mr. President,

        11       with reference to Resolution J.L. 2467, honoring

        12       Consul General Franco Mistretta, and J.L. 2468,

        13       proclaiming the month of October as Italian

        14       American History Month, that is open to all

        15       co-sponsors, Mr. President.

        16                      ACTING PRESIDENT KUHL:  Senator

        17       Skelos, do you want to have all of the members

        18       placed on those resolutions?  Are there members

        19       who -

        20                      SENATOR SKELOS:  Mr. President,

        21       on Senator Maltese's resolutions, why don't we

        22       let the members notify the desk if they wish to

        23       be on it, and I believe also Senator Paterson is











                                                             
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         1       going to make a similar request.

         2                      ACTING PRESIDENT KUHL:  All

         3       right.

         4                      Senator Paterson.

         5                      SENATOR PATERSON:  Mr. President,

         6       on behalf of Senator Connor, we would like to

         7       open up Resolution Number 2507 and, if you would

         8       please recognize Senator Oppenheimer, she has a

         9       resolution she would like to bring before the

        10       Senate.

        11                      ACTING PRESIDENT KUHL:  Senator

        12       Oppenheimer.

        13                      SENATOR OPPENHEIMER:  I'm here.

        14       This is Resolution 2536.  I think you have it at

        15       the desk, right?  Yes, please.  Did it arrive at

        16       the desk?  O.K. Well, I'd like to make a -

        17                      ACTING PRESIDENT KUHL:  Senator

        18       Oppenheimer, we have adopted Resolution Number

        19       2536.  It was on the Resolution Calendar.  Are

        20       you wishing to open it up for co-sponsorship?

        21                      SENATOR OPPENHEIMER:  I would

        22       like -- there you go.  I would like to speak on

        23       it for one moment and then open it to the entire











                                                             
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         1       body for co-sponsorship.

         2                      This resolution relates to the

         3       Women's History Month and every year in New York

         4       we set aside time to recognize the unique

         5       contributions that women make, have made and are

         6       making to New York State, and in -- in our

         7       history though we have not been necessarily

         8       recognized throughout our history, the fact is

         9       that we have made mighty contributions to most

        10       areas -- government, politics, business, the

        11       arts, social change, science, literature,

        12       religion, philanthropy -- and this opportunity

        13       that comes this month is one that we should not

        14       miss to -- to inform the general public about

        15       what women have done in the past, to talk about

        16       suffrage, to talk about the fight of 70 years

        17       until we finally did get that in effect, to talk

        18       about the strength of women supporting not only

        19       themselves but their families, their communi

        20       ties, working toward economic independence,

        21       working towards personal security, civil

        22       rights.

        23                      These are all things that it's an











                                                             
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         1       important thing that we discuss and this year in

         2       particular, we have something that is unique to

         3       this year and that is in 1996 the women in the

         4       state wish to join with women throughout the

         5       world to advance and implement in our own

         6       communities, our towns, our villages, our cities

         7       the Beijing plan of action for equality which

         8       was endorsed by the United States at the Fourth

         9       World Conference on Women which was held this

        10       late summer-early fall in Beijing, and we want

        11       to reaffirm our commitment not only to the women

        12       of this country but to securing a full role, a

        13       full place in society for women across the

        14       world, around the world.

        15                      And so I would like this up

        16       lifting message to be supported, if they're

        17       interested, by all members of the New York State

        18       Senate.

        19                      Thank you.

        20                      ACTING PRESIDENT KUHL:  Senator

        21       Oppenheimer, for that message trying to request

        22       sponsorship.  For the benefit of the members,

        23       there have been four resolutions which have been











                                                             
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         1       opened to sponsorship that have been adopted.

         2       There are two by Senator Maltese.  Those are

         3       2-4-6-7, 2467, 2-4-6-8, 2468; Senator Connor has

         4       opened up sponsorship to 2507 and Senator

         5       Oppenheimer is opening up sponsorship to 2536.

         6       If you would so indicate to the desk that you

         7       wish to co-sponsorship those members, they would

         8       appreciate it.

         9                      The Chair recognizes Senator

        10       Skelos.

        11                      SENATOR SKELOS:  Mr. President,

        12       at this time, I believe Senator Connor has a

        13       resolution at the desk.  If we could have it

        14       read in its entirety.

        15                      ACTING PRESIDENT KUHL:  Ask the

        16       Secretary to read, I believe it's Resolution

        17       Number 2531, in its entirety.

        18                      THE SECRETARY:  By Senator

        19       Connor, Legislative Resolution Number 2531,

        20       paying tribute to the Honorable Barbara Jordan

        21       and Dr. Carter Woodson, upon the occasion of the

        22       70 Anniversary of the Founding of Negro History

        23       Week and the 20th Anniversary of Black History











                                                             
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         1       Month.

         2                      WHEREAS, as the month of February

         3       draws to a close, let us pause for a moment in

         4       our daily lives to commemorate the 70th Anniver

         5       sary of the founding of Negro History Week, the

         6       20th Anniversary of Black History Month and two

         7       people whose immeasurable contributions deserve

         8       recognition; and

         9                      WHEREAS, the son of former

        10       slaves, Carter G. Woodson earned his doctorate

        11       from Harvard University in 1912, where his

        12       concern culminated that the contributions of

        13       African-Americans would be forgotten without a

        14       recorded history.  Dr. Carter G. Woodson,

        15       historian and scholar, established the

        16       Association for the Study of Afro-American Life

        17       and History and the Journal of Negro History;

        18       and

        19                      WHEREAS, it was his profound

        20       devotion to African-American history and his

        21       work with the Amsterdam Action Association that

        22       led Dr. Woodson 70 years ago to establish Negro

        23       History Week in order to promote and encourage











                                                             
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         1       the study of African-American history, choosing

         2       February because it coincided with the births of

         3       Abraham Lincoln and Frederick Douglass; and

         4                      WHEREAS, with this observance it

         5       was Dr. Woodson's hope that all Americans would

         6       be reminded of their own heritage while

         7       developing a mutual respect for the ethnic roots

         8       this country was founded upon.  "It's great to

         9       know your heritage and your past because it has

        10       a bearing on your present and your future.  It's

        11       important these days to have at least one month

        12       out of the year for that;" and

        13                      WHEREAS, 20 years ago, in honor

        14       of Dr. Woodson and his celebrated work,

        15       President Gerald Ford declared the entire month

        16       of February as Black History Month; and

        17                      WHEREAS, this year Black History

        18       Month would not be complete without a proper

        19       tribute to the Honorable Barbara Jordan, another

        20       child of February's dawning, and a resonant

        21       voice for the Constitution, leaving us this

        22       January 17, 1996 without our being able to say

        23       goodbye and thank you; and











                                                             
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         1                      WHEREAS, a woman who made history

         2       herself, Barbara Charline Jordan was born into

         3       poverty in 1936, received her law degree from

         4       Boston University in 1959, was elected the first

         5       African-American State Senator in Texas history

         6       and then went on to become the first woman

         7       elected to Congress, the first African-American

         8       from Texas; and

         9                      WHEREAS, an outspoken woman with

        10       undying strength, State Senator Jordan ascended

        11       to the post of Speaker Pro Tem six years after

        12       she won her first state election with the

        13       support of President Lyndon B. Johnson.

        14       Congresswoman Jordan was bestowed with a seat on

        15       the House Judiciary Committee, her Freshman year

        16       in Washington; and

        17                      WHEREAS, during the political

        18       turmoil of 1974, as the nation questioned

        19       government and its leadership, Congresswoman

        20       Jordan urged the graduates of Howard University

        21       not to surrender but to "Reaffirm what ought to

        22       be, to get back to the truth.  Get back to

        23       what's honest; tell government to do that.











                                                             
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         1       Affirm the civil liberties of the people of this

         2       country;" and

         3                      WHEREAS, in 1976, Congresswoman

         4       Barbara Jordan once again created history when

         5       she delivered the keynote address at the

         6       Democratic National Convention, riveting her

         7       audience on national television.  "Many fear the

         8       future.  Many believe that their voices are

         9       never heard, that we will cease to be one nation

        10       and become instead a collection of interest

        11       groups, each seeking to satisfy private wants.

        12       More is required of public officials than

        13       slogans and handshakes and press releases.  More

        14       is required.  We must hold ourselves strictly

        15       accountable.  We must provide the people with a

        16       vision of the future."  A fine vision

        17       Congresswoman Barbara Jordan has given us.

        18                      NOW, THEREFORE, BE IT RESOLVED

        19       that this legislative body pause in its

        20       deliberations to pay tribute to the Honorable

        21       Barbara Charline Jordan and Dr. Carter G.

        22       Woodson for their lifelong contributions and to

        23       commemorate the 70th Anniversary of the founding











                                                             
1464

         1       of Negro History Week and the 20th Anniversary

         2       of Black History Month; and

         3                      BE IT FURTHER RESOLVED that

         4       copies of this resolution, suitably engrossed,

         5       be transmitted to the Honorable George E.

         6       Pataki, to Mrs. Arylenne Jordan, with our

         7       deepest respect, and to the Association for the

         8       Study of Afro-American Life and History,

         9       acknowledging that we have not forgotten.

        10                      ACTING PRESIDENT KUHL:  The Chair

        11       recognizes Senator Connor on the resolution.

        12                      SENATOR CONNOR:  Thank you, Mr.

        13       President.

        14                      As Senator Skelos noted, this

        15       resolution, of course, is open to sponsorship by

        16       the entire Senate.

        17                      I don't know about my colleagues,

        18       but I think one of the things that I've enjoyed

        19       in these past years has been an increasing focus

        20       on Black History Month and you see on television

        21       the public service vignettes pointing out some

        22       of the most notable accomplishments that our

        23       African-American fellow citizens have made to











                                                             
1465

         1       this country.

         2                      I've certainly found it

         3       edifying.  Whether -- and it's certainly been a

         4       vehicle, and I'm sure when Dr. Woodson first

         5       proposed it some 70 years ago, given the climate

         6       of the times, he aspired to a week to commemor

         7       ate African-American history.  We certainly

         8       realize as more and more of our fellow Americans

         9       became aware of historic contributions and

        10       became aware that our pantheon of heroes in this

        11       country included many, many people of African

        12       American ancestry, that a week was woefully

        13       inadequate to cover the heroics and

        14       contributions from Crispus Attics to notable

        15       Americans who achieved in science, education,

        16       through the heroes that have been now recognized

        17       in the war between the states and indeed in

        18       every conflict from the very beginning, from the

        19       Revolution through our most recent conflicts and

        20       indeed contributions in the arts, music,

        21       academia, all of which for many, many decades

        22       because of the sad history of racism in this

        23       country's earlier history were ignored in the











                                                             
1466

         1       textbooks, were ignored in the textbooks many of

         2       us who are as old as me were given to study in

         3       school.

         4                      And now we know so much more

         5       about not just African-Americans, we know so

         6       much more about American history because of the

         7       efforts that have gone forth to commemorate this

         8       wonderful Black History Month, and I think all

         9       of us, I dare say there's no one of either party

        10       who doesn't recognize that in Barbara Jordan we

        11       have a unique American.

        12                      I remember reading years ago her

        13       constant companion was a dog-eared copy of the

        14       Constitution that she always carried in her

        15       pocket or in her bag.  She was certainly a woman

        16       of remarkable accomplishment, compassion,

        17       certainly one of the most articulate speakers I

        18       think any of us have heard in the political

        19       forum.

        20                      She defied stereotypes about

        21       women, about African-Americans, about

        22       Democrats.  I remember some issues I dare say

        23       she wouldn't be characterized as liberal on.











                                                             
1467

         1       She had many conservative principles as part of

         2       the mix of what made up her political

         3       philosophy.  But the one thing that she had that

         4       I think we all share is a devotion -- I hope we

         5       could all emulate is a devotion to the

         6       Constitution and to due process and to the finer

         7       instincts that all Americans have always given

         8       at least acceptance to striving toward, and so

         9       her passing certainly was a loss for her

        10       country, for the entire country.

        11                      I think it's remarkable, if you

        12       recall, that probably at the height of her

        13       influence in Congress, she hadn't really been

        14       there really that very long, but she was one of

        15       the most respected members, she decided to

        16       retire and pursue an academic career and still

        17       maintained her involvement in public affairs

        18       from that perspective.

        19                      So again, as we pause in this

        20       month of February to commemorate the enormous

        21       contributions that African-Americans have made

        22       to American history, we also remember a recently

        23       departed American hero, Barbara Jordan.











                                                             
1468

         1                      ACTING PRESIDENT KUHL:  I

         2       understand, Senator Onorato, you were looking

         3       for the floor for an introduction.

         4                      SENATOR ONORATO:  Yes, Mr.

         5       President.

         6                      I know it's not the usual custom

         7       to introduce people in the chamber, but today we

         8       have a group, the Jewish War Veterans of the

         9       state of New York came up to Albany to address

        10       the joint session of the Assembly and the Senate

        11       regarding their legislative program and joining

        12       with us today in the gallery is the chairman and

        13       the president of the Jewish War Veterans, Mr.

        14       William Melnick and William Weinstein.

        15                      I'd appreciate your recognizing

        16       them, Mr. President, and welcoming them to our

        17       chamber.

        18                      ACTING PRESIDENT KUHL:

        19       Gentlemen, we welcome you to the chamber, hope

        20       you're enjoying the proceedings, hope you're

        21       enjoying your time if Albany.  Thank you for

        22       coming and sharing some time with us today.

        23                      Senator Gold, why do you rise?











                                                             
1469

         1                      SENATOR GOLD:  Can we go on

         2       Senator Connor's resolution.

         3                      ACTING PRESIDENT KUHL:  That's

         4       correct.  Senator Paterson has the floor ahead

         5       of you, Senator Gold.

         6                      SENATOR GOLD:  Yeah. I wanted to

         7       make sure that that happened.

         8                      ACTING PRESIDENT KUHL:  I knew

         9       that you did.

        10                      The Chair recognizes Senator

        11       Paterson.

        12                      SENATOR PATERSON:  Yielding to

        13       Senator Gold, Mr. President, but he told me to

        14       keep speaking.

        15                      Mr. President, I want to thank

        16       Senator Connor for his presentation and just to

        17        -- looking at the other resolutions that we

        18       have adopted here today, Senator Velella and I

        19       agree that if we had an African-American woman

        20       of Italian descent, then we would fully

        21       appreciate all of the history and culture that

        22       we have celebrated and adopted this afternoon.

        23                      The African-American History











                                                             
1470

         1       Month was founded actually -- was actually

         2       started as Negro History Week 70 years ago, and

         3       I wanted to dispel the feelings that some

         4       African-Americans have that, among the other

         5       slights that have occurred in American history

         6       that the month of February which has fewer days,

         7       was actually chosen to be Black History Month.

         8       It was not.  The reason that February was chosen

         9       was because a particular week in February marks

        10       the time of the birth of Frederick Douglass in

        11       1811 and his death in 1895.

        12                      What we wish to do is to

        13       celebrate those African-American leaders, both

        14       the living and the dead, who struggled

        15       courageously and unremittingly throughout the

        16       past few centuries to build a viable national

        17       movement that was directed in the area of

        18       creating economic, political and social

        19       justice.  But what Senator Connor talked about

        20       was actually not African-American history when

        21       he talked about what he read in the history

        22       books and what he now is able to read because of

        23       our affirmation and our study of African











                                                             
1471

         1       Americans in this country.

         2                      When we celebrate African

         3       American history, Mr. President, we are really

         4       celebrating American history because we are

         5       celebrating that part of our livelihood and our

         6       lives throughout the past few centuries that

         7       have heretofore been deleted from the actual

         8       presentation.

         9                      The founding Constitution in 1777

        10       which included Article I, Section 2, Clause 3

        11       which was the provision that provided for

        12       slavery and also allowed for the Africans that

        13       were in this country at that time to be counted

        14       as three-fifths of an individual; also Article

        15       IV, Section 2, Clause 3 which allows for the

        16       recovery of runaway slaves, although in my

        17       edition of the Constitution it says in a rather

        18       scholarly way that this section probably has no

        19       meaning after the passage of the Thirteenth,

        20       Fourteenth and Fifteenth Amendment, but it gives

        21       us an idea of what actually existed in our

        22       country in its inception to such an extent that

        23       in the year 1820, writing in the Edinburgh











                                                             
1472

         1       Review, the great British wit, Sidney Smith,

         2       once advised that "which of the tyrranies of

         3       Europe systematically tortured and enslaved

         4       one-sixth of its population."  Also Thomas

         5       Jefferson, writing in 1820 in response to Sidney

         6       Smith, wrote, never did he imagine so much

         7       travail from this source.

         8                      In the original draft of the

         9       Declaration of Independence, slavery was

        10       described as the greatest woe to human beings,

        11       but because of a coalition between New England

        12       slave traders and southern planters, that

        13       version didn't make the final cut, and so the

        14       first hundred years of American history was

        15       really dedicated to a resolution of what to do

        16       about African-Americans from the Louisiana

        17       Purchase in 1803 to the Missouri Compromise in

        18       1820, which allowed for slavery north of the

        19       36th parallel in this country, what to do about

        20       the African-American was the founding and

        21       continuing theme until the compromise 1850 when

        22       California was entered as a free state, Texas as

        23       a slave state, Utah and New Mexico as neutral











                                                             
1473

         1       territories, and slavery was abolished in the

         2       District of Columbia.

         3                      Finally in 1854, there was a

         4       tremendous controversy over that compromise

         5       which really allowed for slavery north of the

         6       36th parallel, but that was then affirmed in the

         7       famous Supreme Court case of Dred Scott.  Many

         8       people believe that the Dred Scott case ruled

         9       that slavery would now be allowed north of the

        10       36th parallel.  That had actually already been

        11       decided five years before in a case called

        12       Slater -- Strater v. Graham.

        13                      What was said in 1857 in the Dred

        14       Scott case that since Dred Scott was not

        15       considered a human but rather three-fifths of

        16       one, that he did not have a right to sue in a

        17       federal court any more than a desk or a

        18       microphone or a memorandum would, and so it is

        19       this historical celebration that gives us an

        20       idea of how far we've come in our society but

        21       also how far we have yet to go.

        22                      Some years ago I learned about a

        23       burial ground that is approximately at the











                                                             
1474

         1       confluence of Broadway and Duane and Reade and

         2       Elk Street in lower Manhattan.  It houses those

         3       individuals who lived and were buried in New

         4       York City of African descent from approximately

         5       1710 to 1795; it is the oldest African burial

         6       grounds every noted in this country.  It is also

         7       the only burial grounds that houses the remains

         8       of individuals who were indigenous to the

         9       African continent, and so by the study of that

        10       burial grounds, we were able to learn what of

        11       the actual West African countries that African

        12       Americans are indigenous.  Previously it was

        13       just thought, but through the archaeological

        14       study from that burial grounds, we now know that

        15       Ghana and Angola -- what is now Angola, Nigeria,

        16       and also Mozambique were the original homes of

        17       the Africans who were then transported, 40

        18       million of them of which only 23 million

        19       survived, to what is the United States and then

        20       were buried in lower New York.

        21                      We also learned one other thing

        22       about Africans that came to this country through

        23       their burial grounds, that although we'd always











                                                             
1475

         1       learned about the slave trade 72 percent of the

         2       remains found in that burial grounds are those

         3       of children, so what they were actually doing to

         4       conserve space was putting the smallest people

         5       they could in those ships so it even adds to the

         6       tremendous torture that we knew that those who

         7       were brought to this country endured.

         8                      And so the concept of African

         9       American History Month, which is not only the

        10       celebration of great African-Americans in this

        11       country who have contributed to our society, but

        12       it is also the affirmation of real history in

        13       this country for all Americans.  It's something

        14       that not only gives us an idea of what our

        15       history was, but really compels us to go forward

        16       to build that national movement, both men and

        17       women of all ethnicities, so that we will fully

        18       be able to say the Pledge of Allegiance and know

        19       that it is the land of the free and the home of

        20       the brave.

        21                      Thank you, Mr. President.

        22                      ACTING PRESIDENT KUHL:  The Chair

        23       recognizes Senator Gold on the resolution.











                                                             
1476

         1                      SENATOR GOLD:  Thank you, Mr.

         2       President.

         3                      Mr. President, as everybody in

         4       this chamber, I know, knows, freedom of speech

         5       has a price.  It's not easy, and that means that

         6       if you believe in a freedom of speech, it's not

         7       acceptable speech and that people can be out

         8       there ranting and raving.  They can lie.  We

         9       have racists out there and it can be getting

        10       into your gut, and they've got to talk, but our

        11       only defense is to talk back, tell the truth and

        12       to educate.

        13                      Now, having said that, I want to

        14       really thank the New York Times for something

        15       that was in the paper this last Sunday.  If you

        16       read the Magazine Section of the New York Times

        17       Sunday, there was an article that had to, in my

        18       opinion, just send shivers up the spine of

        19       everybody.

        20                      It was an article about some of

        21       the racist organizations in America and their

        22       attempt to spread the white supremacy

        23       philosophies and how they have, many of them











                                                             
1477

         1       have gotten away from the camps with the rifles

         2       and the guns and the military which has

         3       obviously gotten them some "skinheads", et

         4       cetera, over the years, but how they have

         5       decided that the way to really encourage and

         6       increase their numbers was to stay up with

         7       modern times, and they said, Well, what are the

         8       youth of America doing today?  The youth of

         9       America getting excited, like everybody else,

        10       about the Internet and computers, and one of

        11       these jerks now has a place on the Internet, a

        12       page.  He plays in a rock group and that music

        13       is white supremist, and the article pointed out

        14       that, in the last four months, some of these

        15       groups have made greater inroads with our youth

        16       than they've done in the last four years.

        17                      I think that one of the

        18       importances of Black History Month is that it

        19       gets us talking.  It gets us talking about the

        20       truth, and that's the only defense we have in a

        21       country where we cherish free speech.  You can

        22       not stop these morons from talking.  You cannot

        23       stop the revisionists from talking about the











                                                             
1478

         1       Holocaust as if it didn't happen.  You can not

         2       stop white supremists from the nonsense that

         3       they say about our African-American brothers and

         4       sisters; but we have to wake up to the fact that

         5       these scientific advances are for us also, and I

         6       think that the parents in our state and

         7       throughout America have to understand that just

         8       as you don't want your sons and daughters

         9       walking around at two, three in the morning,

        10       hangin' out in bad places, you'd better watch

        11       what's goin' on on that Internet and what is

        12       coming into your home.

        13                      Now, we have had legislation,

        14       people talk about pornography, and it depends

        15       upon how you define "pornography".  To me

        16       someone who preaches hatred against another

        17       individual because of race, creed, color,

        18       national origin, et cetera, is pornographic, and

        19       you -- you've got to understand that it's coming

        20       into the homes.  It's out there on the Internet

        21       and as part of Black History Month, which I

        22       think is important and I'm proud that my leader

        23       is carrying this resolution, I think one of the











                                                             
1479

         1       things we ought to be doing as we go around and

         2       talk to our constituents, is to alert them that

         3       whatever the computer was doing five years ago,

         4       whatever it was doing six months ago, is old

         5       news today.

         6                      There was -- I think it was Bill

         7       Gates, but I'm not sure, said that "whatever I

         8       said an hour ago is old hat already."  That's

         9       how quickly this computer age is moving, and the

        10        -- and the communities have to be alerted to

        11       the fact that those who spew evil and racial

        12       hatred and religious hatred are getting their

        13       hands on the Internet.  They're getting their

        14       hands in on these computers, and it's coming

        15       into our homes, and just as you would be careful

        16       in terms of who your children would deal with in

        17       the street and the kind of evils that are out

        18       there for your children, you must -- we must

        19       preach and tell our people that this is now

        20       coming into our homes.

        21                      So I think that's something

        22       affirmative we can do.  Very often we pass

        23       resolutions and we pay respect to those who are











                                                             
1480

         1       out there working.  I think this is something

         2       that we ourselves can be a part of too and

         3       during Black History Month, as we make our

         4       rounds to our political clubs, to our

         5       communities, I think that it's a message that we

         6       can help to carry.

         7                      ACTING PRESIDENT KUHL:  The Chair

         8       recognizes Senator Marchi on the resolution.

         9                      SENATOR MARCHI:  I had just two

        10       points, one historical in reference to what

        11       happened in those early years of the republic.

        12       Jefferson abided the -- something that he

        13       personally deeply resented.  Evidence of that, I

        14       think is the Northwest Ordinance where he -

        15       that he formulated.  It was basically a

        16       Jefferson document, and this addressed the

        17       question of the development of the Northwest

        18       Ordinance in all those states north of the Ohio

        19       River right out to Minnesota, and he forbade

        20       slavery in that document.

        21                      And the second thing, I was going

        22       to address the point that Senator Gold made

        23       except he did it more completely and more











                                                             
1481

         1       effectively.  He -- you couldn't have said it

         2       better.  It couldn't have been stated better.

         3                      ACTING PRESIDENT KUHL:  If you

         4       want to talk, Senator Waldon we're still on the

         5       resolution.

         6                      SENATOR WALDON:  Appreciate that,

         7       Mr. President.

         8                      ACTING PRESIDENT KUHL:  Senator

         9       Waldon, on the resolution.

        10                      SENATOR WALDON:  Thank you, Mr.

        11       President, my colleagues.  I ran outside to get

        12       some information from Barbara Waldon who, all of

        13       you who know me, is the smartest person in my

        14       family, and I felt that some of the things said

        15       today were great in terms of the history of this

        16       country and how we have disparately treated

        17       those who arrived here in the holds of ships,

        18       who suffocated from the stench of their

        19       excrement and were physically challenged by the

        20       fact that they were stacked like cordwood in the

        21       holds of these slave ships; but I hope you will

        22       recognize the beauty of what I'm about to say

        23       because what I'm about to share with you are











                                                             
1482

         1       some accomplishments of our people, despite the

         2       manner in which we arrived on these shores and

         3       despite the deprivation that we suffered in the

         4       earlier hundreds of years that we were here when

         5       we had no right to our religion, no right to our

         6       language, no right to our freedom, no right to

         7       marry, no right to own anything, no right to

         8       even be called by the names that were our names

         9       in the country from which we originated.

        10                      Despite all of that, these

        11       people, these African-Americans, those from the

        12       "darkest continent", without language, without

        13       religion, without even clothes sometimes on

        14       their backs, birthed and gave inspiration to

        15       children who did things like this:

        16                      The shoes that you have on your

        17       feet are the result of black genius, a guy named

        18       Jan Meisliger, who created the shoe lace.

        19                      The automatic transmission in the

        20       car that you drove here today was the result of

        21       the genius of Richard Spikes.  He -- and has the

        22       patent or had the patent for the transmission in

        23       your car and automatic gear shift.











                                                             
1483

         1                      Everyone has heard of the real

         2       McCoy.  He revolutionized the train industry in

         3       this nation because at one time trains could go

         4       so far they had to stop and, by hand, oil the

         5       mechanisms of the train until this brother

         6       invented the lubrication cup.

         7                      When you drove here this morning,

         8       I'm sure you have had to stop at a red light or

         9       go through a green light.  That was invented by

        10       a black man.

        11                      If you're like me and you can

        12       look at me and tell that I have eaten too much

        13       in my life -- I used to be skinny -- potato

        14       chips were invented by a black man.  Ice cream

        15       was the result of the genius of a black man.

        16       The entire industry of whaling was made greater

        17       by the toggle harpoon which was created by a

        18       black man.

        19                      If you eat the ice cream, you

        20       have to put in in a refrigerator these days.

        21       Refrigeration was the result of the genius of a

        22       black man.

        23                      Would we be able to go to











                                                             
1484

         1       Washington D.C., and enjoy the way it is laid

         2       out if it had not been for Benjamin Baniker, a

         3       young man who had a photographic memory and

         4       memorized the plans of L'Enfant when he decided

         5       to leave this country in a fit of pique.

         6                      The lemon squeezer, the folding

         7       bed, the fountain pen for you, those of you who

         8       still use Mont Blanc, the fountain pen was

         9       created by a black man.  The rotary engine, and

        10       it goes on and on and on.  The gas mask which

        11       saved thousands upon thousands of lives despite

        12       color, in the first World War, was the result of

        13       Garrett Morgan's genius, and then there are

        14       things like blood plasma and a whole host of

        15       other things.

        16                      So it ain't just about being able

        17       to be like Mike and jump higher than everybody

        18       else.  It ain't just about being to be like

        19       James Brown and to sing and dance in a way that

        20       no one else can.  It's not just about being like

        21       Charlie Parker and, as my colleague, Senator

        22       Seabrook who plays that act, the saxophone, in

        23       terms of our musicality.  It's not in terms of











                                                             
1485

         1       being like James Earl Jones, who is just a great

         2       actor.  It's not even about people who sit in

         3       chambers like ours across this country.

         4                      The way we are able to live today

         5       in these United States is the direct result of a

         6       people who were deprived but despite that

         7       deprivation rose up and made our lives better.

         8                      I thank you, Mr. President.  I

         9       thank you, my colleagues, for listening to me.

        10                      ACTING PRESIDENT KUHL:  The

        11       question is on the resolution.  All those in

        12       favor signify by saying aye.

        13                      (Response of "Aye.")

        14                      Opposed nay.

        15                      (There was no response. )

        16                      The resolution is unanimously

        17       adopted.

        18                      Senator Skelos, that brings us to

        19       the calendar.

        20                      SENATOR SKELOS:  Yes, Mr.

        21       President, if we could take up the

        22       non-controversial calendar.

        23                      ACTING PRESIDENT KUHL:  Secretary











                                                             
1486

         1       will read the non-controversial calendar.

         2                      THE SECRETARY:  Calendar Number

         3       46, substituted earlier today, by member of the

         4       Assembly Bragman, Assembly Print 1900B.

         5                      SENATOR SKELOS:  Lay aside for

         6       the day.

         7                      ACTING PRESIDENT KUHL:  Lay the

         8       bill aside for the day.

         9                      THE SECRETARY:  Calendar Number

        10       214, by Senator Leibell, Senate Print 3480A, an

        11       act to amend the Administrative Code of the city

        12       of New York and the Emergency Tenant Protection

        13       Act of 1974.

        14                      SENATOR SKELOS:  Lay aside.

        15                      ACTING PRESIDENT KUHL:  Lay the

        16       bill aside.

        17                      THE SECRETARY:  Calendar Number

        18       216, by Senator Hannon, Senate Print 3540, an

        19       act to amend the Emergency Tenant Protection

        20       Act.

        21                      SENATOR PATERSON: Lay aside.

        22                      ACTING PRESIDENT KUHL:  Lay the

        23       bill aside.











                                                             
1487

         1                      THE SECRETARY:  Calendar Number

         2       220, by Senator Skelos, Senate Print 425, an act

         3       to amend the Business Corporation Law, in

         4       relation to corporate finance, proxies, powers

         5       of directory and mergers.

         6                      SENATOR LEICHTER: Lay aside.

         7                      ACTING PRESIDENT KUHL:  Lay the

         8       bill aside.

         9                      THE SECRETARY:  Calendar Number

        10       225, by Senator Saland, Senate Print 4746B, an

        11       act in relation to authorizing the city of

        12       Beacon, county of Dutchess, to opt out of the

        13       provisions of Chapter 602 of the laws of 1993.

        14                      ACTING PRESIDENT KUHL:  Secretary

        15       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 58.

        22                      ACTING PRESIDENT KUHL:  The bill

        23       is passed.











                                                             
1488

         1                      THE SECRETARY:  Calendar Number

         2       230, by Senator Levy, Senate Print 5967, an act

         3       to amend Chapter 145 -

         4                      ACTING PRESIDENT KUHL:  Lay the

         5       bill aside.

         6                      THE SECRETARY:  Calendar Number

         7       231, by Senator Hoblock, Senate Print 5994, an

         8       act to amend the Education Law and the Public

         9       Authorities Law, in relation to Dormitory

        10       Authority financing of certain school

        11       facilities.

        12                      ACTING PRESIDENT KUHL:  Secretary

        13       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 called the roll. )

        19                      THE SECRETARY:  Ayes 58.

        20                      ACTING PRESIDENT KUHL:  The bill

        21       is passed.

        22                      THE SECRETARY:  Calendar Number

        23       241, by Senator Saland, Senate Print Number











                                                             
1489

         1       2111, an act to amend the Executive Law and the

         2       Family Court Act, in relation to support of

         3       children in the Division for Youth.

         4                      ACTING PRESIDENT KUHL:  Secretary

         5       will read the last section.

         6                      THE SECRETARY:  Section 4.  This

         7       act shall take effect on the 120th day.

         8                      ACTING PRESIDENT KUHL:  Call the

         9       roll.

        10                      (The Secretary called the roll. )

        11                      THE SECRETARY:  Ayes 58.

        12                      ACTING PRESIDENT KUHL:  The bill

        13       is passed.

        14                      THE SECRETARY:  Calendar Number

        15       247, by Senator Sears, Senate Print 1355C, an

        16       act to amend the Environmental Conservation Law,

        17       in relation to prohibiting the feeding of deer

        18       within 300 feet of a public highway.

        19                      ACTING PRESIDENT KUHL:  Secretary

        20       will read the last section.

        21                      THE SECRETARY:  Section 3.  This

        22       act shall take effect on the 60th day.

        23                      ACTING PRESIDENT KUHL:  Call the











                                                             
1490

         1       roll.

         2                      (The Secretary called the roll. )

         3                      THE SECRETARY:  Ayes 58.

         4                      ACTING PRESIDENT KUHL:  The bill

         5       is passed.

         6                      THE SECRETARY:  Calendar Number

         7       252, by Senator Skelos, Senate Print Number

         8       1740, an act to amend the Executive Law and the

         9       Penal Law, in relation to payment of a fee by

        10       persons sentenced to probation.

        11                      SENATOR PATERSON:  Lay aside.

        12                      ACTING PRESIDENT KUHL:  Lay the

        13       bill aside.

        14                      THE SECRETARY:  Calendar Number

        15       259, by Senator Rath, Senate Print 539A, an act

        16       to amend the Education Law, in relation to

        17       student refunds of certain financial aid grants.

        18                      ACTING PRESIDENT KUHL:  Secretary

        19       will read the last section.

        20                      THE SECRETARY:  Section 2.  This

        21       act shall take effect on the 60th day.

        22                      ACTING PRESIDENT KUHL:  Call the

        23       roll.











                                                             
1491

         1                      (The Secretary called the roll. )

         2                      THE SECRETARY:  Ayes 58.

         3                      ACTING PRESIDENT KUHL:  The bill

         4       is passed.

         5                      THE SECRETARY:  Calendar Number

         6       264, by Senator LaValle, Senate Print Number

         7       3269, an act to amend the Education Law, in

         8       relation to the issuance of limited permits in

         9       dentistry.

        10                      ACTING PRESIDENT KUHL:  Secretary

        11       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 58.

        18                      ACTING PRESIDENT KUHL:  The bill

        19       is passed.

        20                      Senator Skelos, that completes

        21       the non-controversial calendar.

        22                      SENATOR SKELOS:  I wonder if we

        23       could take up the controversial calendar at this











                                                             
1492

         1       time.

         2                      ACTING PRESIDENT KUHL:  Secretary

         3       will read the controversial calendar.

         4                      THE SECRETARY:  Calendar Number

         5       214, by Senator Leibell, Senate Print 3480A, an

         6       act to amend the Administrative Code of the city

         7       of New York and the Emergency Tenant Protection

         8       Act of 1974.

         9                      SENATOR PATERSON:  Explanation.

        10                      SENATOR LEIBELL:  Thank you, Mr.

        11       President.  This is -

        12                      ACTING PRESIDENT KUHL:  Senator

        13       Leibell, the floor for an explanation.

        14                      SENATOR LEIBELL:  This is a bill

        15       that we had seen last year, and it's an act to

        16       amend the Administrative Code of the city of New

        17       York and the Emergency Tenant Protection Act of

        18       1974 in relation to determining primary

        19       residency.

        20                      Currently, in order to be covered

        21       by rent regulations statutes, New York State law

        22       requires that a residential unit be maintained

        23       as a tenant's primary residence.











                                                             
1493

         1                      SENATOR LEICHTER:  Mr. President.

         2                      ACTING PRESIDENT KUHL:  Senator

         3       Leichter, why do you rise?

         4                      SENATOR LEICHTER:  Yes, is

         5       Calendar 259 still at the desk?

         6                      ACTING PRESIDENT KUHL:  Is it at

         7       the desk?  Yes, it is.

         8                      SENATOR LEICHTER:  Could I ask

         9       that we reconsider the vote by which that bill

        10       passed, please.

        11                      ACTING PRESIDENT KUHL:  Senator

        12       Leibell, will you excuse an interruption?

        13                      SENATOR LEIBELL:  Yes.

        14                      ACTING PRESIDENT KUHL:  Senator

        15       Leichter, why don't we continue with this.

        16                      SENATOR LEICHTER: Yeah.

        17                      ACTING PRESIDENT KUHL:  At my

        18       direction, we'll take up the motion up to

        19       reconsider the vote by which the bill passed

        20       this house after this matter.

        21                      SENATOR LEICHTER:  O.K. Thank

        22       you.

        23                      ACTING PRESIDENT KUHL:  Senator











                                                             
1494

         1       Leibell to conclude the explanation.

         2                      SENATOR LEIBELL:  Thank you.

         3                      Present case law allows for the

         4       inspection of tax returns in determing whether

         5       the unit should be eligible for coverage under

         6       the applicable rent protection regulations.

         7       This bill provides guides for the courts in

         8       determining whether or not a person's primary

         9       residence is in New York State.  It is a method

        10       of discovery for the courts.

        11                      ACTING PRESIDENT KUHL:  The Chair

        12       recognizes Senator Paterson.

        13                      SENATOR PATERSON:  Mr. President,

        14       if Senator Leibell would be kind enough to yield

        15       for a question.

        16                      ACTING PRESIDENT KUHL:  Senator

        17       Leibell, do you yield to Senator Paterson?

        18                      SENATOR LEIBELL:  Yes, I do.

        19                      ACTING PRESIDENT KUHL:  The

        20       Senator yields.

        21                      SENATOR PATERSON:  Senator, what

        22       are the other factors the courts consider right

        23       now in the determination of the primary











                                                             
1495

         1       residency under the emergency protection laws?

         2                      SENATOR LEIBELL:  What other -

         3       I'm sorry, what other elements?

         4                      SENATOR PATERSON:  In other

         5       words, you want to limit it to where the

         6       personal income tax is filed, and what I want to

         7       know is where it stands right now.

         8                      SENATOR LEIBELL:  No, Senator,

         9       this does not change any other body of law other

        10       than to state that the tax return can be -- can

        11       be used to establish primary residency.

        12                      SENATOR PATERSON:  What I'm

        13       asking is, is there anything else that can be

        14       used to determine the primary residency right

        15       now?

        16                      SENATOR LEIBELL:  I think,

        17       frankly, there's a body of case law that is

        18       pretty diffuse and all over the place, frankly,

        19       and this is intended to provide legislative

        20       guidance for the courts.

        21                      SENATOR PATERSON:  Thank you,

        22       Senator.

        23                      ACTING PRESIDENT KUHL:  Senator











                                                             
1496

         1       Paterson.

         2                      SENATOR PATERSON:  This singular

         3       identification of the filing of the income tax,

         4       as I understand it, was overruled on December

         5       28th -- not overruled, but at least it was in

         6       that particular case on December 28th, 1995

         7       involving the case of the Federal Home Loan

         8       Mortgage Association against the Department of

         9       Housing and Community Renewal.

        10                      How can we pass this legislation

        11       with a -- an edict from the federal court

        12       sitting on it such that if anyone goes to court,

        13       even if we pass this legislation, it's likely

        14       the legislation would be -- would be defeated?

        15                      SENATOR LEIBELL:  I'm not -

        16       Senator -- counsel advises me you may be

        17       thinking in terms of the next bill that's up

        18       with respect to that case.

        19                      ACTING PRESIDENT KUHL:  Senator

        20       Paterson.

        21                      SENATOR PATERSON:  That's because

        22       I'm thinking ahead, Senator.

        23                      SENATOR LEIBELL:  It's a good











                                                             
1497

         1       trait, Senator.

         2                      ACTING PRESIDENT KUHL:  Senator

         3       Paterson, you still have the floor.

         4                      SENATOR PATERSON:  Well, then, so

         5       you're saying a court of competent jurisdiction.

         6                      ACTING PRESIDENT KUHL:  Are you

         7       asking Senator Leibell, Senator Paterson, to

         8       continue to yield?

         9                      SENATOR PATERSON: Yes.

        10                      ACTING PRESIDENT KUHL:  Senator

        11       Leibell, do you continue to yield?

        12                      SENATOR LEIBELL:  Yes, I do.

        13                      ACTING PRESIDENT KUHL:  Senator

        14       continues to yield.

        15                      SENATOR PATERSON: Then you're

        16       saying that a court of competent jurisdiction

        17       would only view the personal income tax so that

        18       individuals, for instance, that have other

        19       residences around the country and who are likely

        20       to not spend that much time in New York and,

        21       therefore, it is definite that even though they

        22       might have a driver's license or they might have

        23       other identifications in New York, that it's











                                                             
1498

         1       clear that they don't spend that much time

         2       there, that they're actually living in other

         3       places, and this is -

         4                      SENATOR LEIBELL:  Senator, this

         5       does not attempt to change the law in any way.

         6       The -- other than to establish a guideline for

         7       the courts.  What we are attempting to do here

         8       is to determine a method to establish clearly

         9       where a primary residency is.

        10                      If you're saying to me, in fact,

        11       that a person -- and I think what you're

        12       alluding to, Senator is that somebody may, in

        13       fact, be living in Florida and may not, in fact,

        14       have a primary residency in New York State.

        15       That's what we're attempting to deal with.

        16                      If, in fact, there is a housing

        17       crisis in this state, it certainly is not going

        18       to be addressed very effectively by having

        19       people who do not have a primary residency here

        20       or a need for one, to take our rent controlled

        21       and stabilized apartments.

        22                      SENATOR PATERSON:  Thank you,

        23       Senator.











                                                             
1499

         1                      Then, if the guidelines are

         2       already set forth, what is the purpose of this

         3       legislation? In other words, what is this going

         4       to add to what exists right now in terms of

         5       establishing of guidelines that's going to

         6       enlighten us based on how we are going to

         7       appraise where the residency is?

         8                      SENATOR LEIBELL:  I think this

         9       would be fairly clear from a reading of the bill

        10       that a tax return can be used to establish that

        11       primary residency.  It certainly is a very

        12       convenient way to do it, a very logical way to

        13       do it.  It's a method to make sure that a fraud

        14       does not exist within this system, and this

        15       would go to clarify what is or appears to be a

        16       good deal of confusion from some of the

        17       decisions that have been rendered by various

        18       courts.

        19                      As this legislative body does on

        20       a continuous basis, we try and clarify the law

        21       and make it such that there will be no confusion

        22       within our various courts.

        23                      ACTING PRESIDENT KUHL:  Senator











                                                             
1500

         1       Paterson.

         2                      SENATOR PATERSON:  Thank you very

         3       much.  Mr. President, on the bill.

         4                      ACTING PRESIDENT KUHL:  Senator

         5       Paterson, on the bill.

         6                      SENATOR PATERSON:  And thank you,

         7       Senator Leibell, for your response.

         8                      SENATOR LEIBELL:  You're

         9       welcome.

        10                      SENATOR PATERSON:  The reason

        11       that I have a problem supporting this bill is

        12       that even in the legislation itself, Senator

        13       Leibell indicates that the timely filing of

        14       income taxes is not a presumption of residency,

        15       and so to restrict the definition of residency

        16       in a seasonable period to just that filing is -

        17       our feeling is not going to really establish

        18       residency any more than it does right now and

        19       may actually serve to confuse the issue even

        20       more.

        21                      Thank you.

        22                      ACTING PRESIDENT KUHL:  Is there

        23       any other Senator wishing to speak on Calendar











                                                             
1501

         1       Number 214?

         2                      Hearing none, the Secretary will

         3       read the last section.

         4                      THE SECRETARY:  Section 5.  This

         5       act shall take effect immediately.

         6                      ACTING PRESIDENT KUHL:  Call the

         7       roll.

         8                      (The Secretary called the roll. )

         9                      ACTING PRESIDENT KUHL:  Announce

        10       the results when tabulated.

        11                      THE SECRETARY:  Those recorded in

        12       the negative on Calendar Number 214 are Senators

        13       Abate, Babbush, Connor, Espada, Gold, Gonzalez,

        14       Goodman, Kruger, Leichter, Markowitz, Nanula,

        15       Onorato, Paterson, Seabrook, Smith, Waldon, also

        16       Senator Lachman.  Ayes 42, nays 17.

        17                      ACTING PRESIDENT KUHL:  The bill

        18       is passed.

        19                      Senator Leichter.  Senator

        20       Leichter, you had a motion relative to Calendar

        21       Number 259 which had passed the house.  Motion

        22       to reconsider the vote by which the bill passed

        23       the house?











                                                             
1502

         1                      SENATOR LEICHTER:  Yes.

         2                      ACTING PRESIDENT KUHL:  Ask the

         3       Secretary to call the roll on reconsideration.

         4                      THE SECRETARY:  Calendar Number

         5       259, by Senator Rath, Senate Print 539A, an act

         6       to amend the Education Law.

         7                      ACTING PRESIDENT KUHL: Senator

         8       Leichter.

         9                      SENATOR LEICHTER: Would you lay

        10       that bill aside, Mr. President.

        11                      ACTING PRESIDENT KUHL:  Lay

        12       Calendar Number 259 -- or call the roll.

        13                      (The Secretary called the roll on

        14       reconsideration. )

        15                      THE SECRETARY:  Ayes 59.

        16                      ACTING PRESIDENT KUHL:  Lay the

        17       bill aside.

        18                      Secretary will continue to call

        19       the controversial calendar.

        20                      THE SECRETARY:  Calendar Number

        21       216, by Senator Hannon, Senate Print Number

        22       3540, an act to amend the Emergency Tenant

        23       Protection Act of 1974 and the Administrative











                                                             
1503

         1       Code of the city of New York.

         2                      ACTING PRESIDENT KUHL:  Secretary

         3       will read the last section.

         4                      SENATOR PATERSON:  Explanation.

         5                      ACTING PRESIDENT KUHL:  Senator

         6       Hannon, an explanation of Calendar Number 216

         7       has been asked for by Senator Paterson.

         8                      SENATOR HANNON:  Under the

         9       provisions of this proposal, when there has been

        10       a foreclosure of a building that originally had

        11       been under rent stabilization, lost that status

        12       when it became a co-op, and then thereafter

        13       there is a foreclosure on the cooperative loan,

        14       it changes the law so that that building does

        15       not revert back to being a cooperative.  It

        16       remains in its new status as non-controlled.

        17                      ACTING PRESIDENT KUHL:  Senator

        18       Paterson.

        19                      SENATOR PATERSON:  Mr. President,

        20       earlier I tried to take a court decision that

        21       applies to this particular bill and adapt it to

        22       anything I wanted it to since there had been so

        23       many -- so few court decisions that I've agreed











                                                             
1504

         1       with, I thought I'd try to expand it.

         2                      If Senator Hannon would yield for

         3       a question.

         4                      ACTING PRESIDENT KUHL:  Senator

         5       Hannon, do you yield?

         6                      SENATOR HANNON:  Yes, Mr.

         7       President.

         8                      ACTING PRESIDENT KUHL:  Senator

         9       Hannon yields.

        10                      SENATOR PATERSON:  Since there

        11       does appear to be a ruling in that particular

        12       case, Senator, where the court speaks to that

        13       exact issue and it is a federal court and says

        14       that in that case it would be just the reverse

        15       of what you're proposing, that the property

        16       would go back into rent stabilization, I just

        17       wanted to ask you what the merit of this bill

        18       would be and whether or not you think it could

        19       stand a court challenge since there's already a

        20       court ruling on the record?

        21                      SENATOR HANNON:  That court

        22       ruling was one of two that are on this that

        23       interpret the law correctly.  What we're doing











                                                             
1505

         1       here is changing the law.  We're changing the

         2       law because, when this original law was written

         3       we really did not have the entire process of

         4       converting buildings into co-ops and the

         5       language was never changed.  All that the courts

         6       did was say this is what the current law

         7       states.

         8                      Why I'm proposing this is that

         9       that laugh is no longer good public policy.  It

        10       inhibits the ability of people to get a

        11       cooperative.  It actually stops the fact that

        12       there will have been -- it stops the process of

        13       any bank ever granting a loan on a building that

        14       would go into cooperative status because they

        15       know that that loan will be valueless should it

        16       ever go into foreclosure.  They know that the

        17       amount of money that would come into that

        18       building would go back to the prior level of

        19       rent stabilization.  It would not even be

        20       ticking while the building was in cooperative

        21       status, so what you do unless you change the law

        22       and adjust to current public housing policy is

        23       that you have something that doesn't make any











                                                             
1506

         1       sense and you've effectively repealed the whole

         2       co-op'ing process of changing from a building

         3       under rent stabilization into a building that's

         4       a co-op.

         5                      ACTING PRESIDENT KUHL:  Senator

         6       Paterson.

         7                      SENATOR PATERSON:  Thank you,

         8       Senator Present, and thank Senator Hannon for

         9       his response.  On the bill.

        10                      ACTING PRESIDENT KUHL:  Senator

        11       Paterson, on the bill.

        12                      SENATOR PATERSON:  Senator Hannon

        13       made a very good point involving the cooperative

        14       process, but between the cooperative process and

        15       the interest that the public -

        16                      ACTING PRESIDENT KUHL:  Senator

        17       Paterson, excuse me just a minute.  We've got

        18       quite a bit of noise here.  There's a group of

        19       our colleagues who appear to be celebrating the

        20       passage of the last resolution still.  I'd ask

        21       them to calm down the conversation so that we

        22       could hear Senator Paterson.

        23                      Senator Paterson.











                                                             
1507

         1                      SENATOR PATERSON:  Mr. President,

         2       on this particular bill, between the -- those

         3       two issues which are being addressed, it is the

         4       latter, the issue of housing for the public and

         5       particularly in the areas that would be most

         6       affected by this that we would presume to

         7       favor.

         8                      What Senator Hannon may say is

         9       correct about the co-op'ing process and about

        10       the fact that it would be very hard for banks to

        11       establish this mortgage, but what is a greater

        12       problem in our society right now is the

        13       availability of housing; and so what this will

        14       simply do is just lower the pool, lower the

        15       stock of housing that would become available.

        16       The public policy that the court ruled in the

        17       issue involving the Federal Home Loan Mortgage

        18       Association v. DHCR was establishing a public

        19       policy that we think should continue.

        20                      It's going to serve a lot more

        21       people, a lot of people who -- more people who

        22       have fewer options than the banks, particularly

        23       in this day and age, to receive housing and for











                                                             
1508

         1       that reason, we recommend that this bill not be

         2       passed.

         3                      ACTING PRESIDENT KUHL:  Senator

         4       Hannon, on the bill.

         5                      SENATOR HANNON:  Yes, Mr.

         6       President.

         7                      I am, with all due deference, in

         8       sharp disagreement with the policy enunciated by

         9       Senator Paterson.  I am in favor of there being

        10       more housing of a good quality, of a stock

        11       that's maintained, and you're only going to get

        12       that if you have the flow of capital into that

        13       market, if you have people willing to lend to

        14       purchasers who want to buy, whether to buy the

        15       whole building or buy their unit, be it a

        16       cooperative or a condominium and so long as we

        17       have these artificial controls over the supply,

        18       we're not going to have the people willing to

        19       lend the money.  The money is going to go

        20       elsewhere; 49 other states, hundreds of

        21       thousands of other municipalities, the money

        22       will go elsewhere.

        23                      We won't obviously get a chance











                                                             
1509

         1       to deal with that major public policy until next

         2       year, but I think the goals are there but doing

         3       it in a regulated way, doing it in a controlled

         4       way, doesn't work.  It works in reverse, and so

         5       I would think doing it this way, this little

         6       part of the world, would help immensely.

         7                      Thank you.

         8                      ACTING PRESIDENT KUHL:  Is there

         9       any other Senator wishing to speak on Calendar

        10       Number 216?

        11                      Hearing none, the Secretary will

        12       read the last section.

        13                      THE SECRETARY:  Section 3.  This

        14       act shall take effect immediately.

        15                      ACTING PRESIDENT KUHL:  Call the

        16       roll.

        17                      (The Secretary called the roll. )

        18                      ACTING PRESIDENT KUHL:  Announce

        19       the results when tabulated.

        20                      THE SECRETARY:  Those recorded in

        21       the negative on Calendar Number 216 are Senators

        22       Abate, Babbush, Connor, Espada, Gold, Gonzalez,

        23       Goodman, Kruger, Lachman, Leichter, Markowitz,











                                                             
1510

         1       Mendez, Montgomery, Nanula, Onorato,

         2       Oppenheimer, Padavan, Paterson, Santiago,

         3       Seabrook, Smith and Waldon.  Ayes 38, nays 22.

         4                      ACTING PRESIDENT KUHL:  The bill

         5       is passed.

         6                      Secretary will continue to call

         7       the controversial calendar.

         8                      THE SECRETARY:  Calendar Number

         9       220, by Senator Skelos, Senate Print 425, an act

        10       to amend the Business Corporation Law, in

        11       relation to corporate finance.

        12                      ACTING PRESIDENT KUHL:  Senator

        13       Leichter, why do you rise?

        14                      SENATOR LEICHTER:  Yes.  Mr.

        15       President, on the bill.

        16                      ACTING PRESIDENT KUHL:  Senator

        17       Leichter, on the bill.

        18                      SENATOR LEICHTER:  This is a very

        19       significant bill, and I would hope people would

        20       focus on it.

        21                      Now, last year, I see that it

        22       passed unanimously.  I don't know if I was in

        23       the chamber.  I well might have voted for it,











                                                             
1511

         1       but this year I've had a chance to look at it

         2       and I would really urge all the members to look

         3       at it because I think that this bill goes in the

         4       wrong direction on something that is really very

         5       fundamental to the American economic system and

         6       that is corporate democracy, seeing the

         7       shareholders, the people who own corporations

         8       have a voice in the overall management of that

         9       corporation and that they can protect their

        10       interests.

        11                      Now, I think all of us have read

        12       and if your reaction was the same as mine, with

        13       some dismay, about the very large corporate

        14       payments, remuneration that goes to chief

        15       executive officers and other top corporate

        16       officials, payments of millions and millions of

        17       dollars annually, far in excess of what their

        18       counterparts are paid in Japan or Germany.

        19                      But it's not only the big profit

        20       able corporations.  The Times had an article and

        21       I don't know how many of you saw it, of

        22       corporate officers of medium size, of small

        23       corporations, they were losing money but they











                                                             
1512

         1       were paying themselves millions of dollars in

         2       compensation.

         3                      Now, this bill will make it

         4       harder for shareholders to protect the interests

         5       of all of the owners of that corporation.

         6                      One of the things that this does,

         7       which concerns me, and maybe Senator Skelos will

         8       want to comment on it, but it allows directors

         9       to set their own options and their own rights.

        10       Can you imagine what sort of a raid that's going

        11       to be where these directors will provide that

        12       directors may have options to purchase a certain

        13       number of shares at a certain price and that

        14       price maybe will turn out to be very much lower

        15       than the market price at the time that they

        16       exercise their option.

        17                      Now, I've got no problem if the

        18       shareholders want to say, "I want to give that

        19       sort of compensation to the directors."  That's

        20       fine.  It's their corporation and, frankly, many

        21       shareholders have approved these enormously

        22       large corporate remunerations.  But why take

        23       away the power, the power of the shareholders,











                                                             
1513

         1       to protect their interests? Why give directors

         2       the right to fix their own options? I find that

         3       just a -- a mistake, particularly at a time when

         4       we have this really greed capitalism on the part

         5       of top corporate officers.

         6                      You know, one of the best things

         7       that can happen to you financially now is to be

         8       fired from a corporation, because these golden

         9       parachutes that these corporate officers write.

        10       We had a former not a colleague but somebody

        11       that some of us worked with, Bob Morgado, he had

        12       the good fortune to be fired from Time-Warner

        13       and his compensation for being fired was $46

        14       million.  That was the golden parachute that had

        15       been set.

        16                      Now, it's going to be that much

        17       more difficult under this bill for corporate

        18       shareholders to see that these sort of excesses

        19       don't occur.  For instance, the bill dilutes

        20       really the shareholders' control of the

        21       corporation.  It removes the shareholder

        22       approval requirement for an increase or decrease

        23       in the number of preferred shares, issuance of











                                                             
1514

         1       stock rights or options to directors and

         2       directors' loans.

         3                      That's another thing, the

         4       directors can make themselves loans and at

         5       probably very favorable terms.  The bill reduces

         6       the required shareholder approval percentage

         7       from two-thirds to majority for significant

         8       corporate decisions, including amendments to the

         9       certificate of incorporation, merger or

        10       consolidation of the corporation.

        11                      With all of the acquisitions and

        12       takeovers that are occurring, you certainly

        13       don't want to make it more difficult for

        14       shareholders to try to protect their interests

        15       and, as we know, many of these mergers are

        16       worked out where corporations or corporate

        17       officers work out their compensations and their

        18       arrangements and very frequently the only

        19       protection that shareholders have is that they

        20       can vote to disapprove the merger.

        21                      It also reduces the shareholder

        22       approved percentage for sale of most of the

        23       corporation assets, share exchanges and











                                                             
1515

         1       dissolution of the corporation.

         2                      I know the argument is going to

         3       be made, well, we need this for business and we

         4       want corporations in the state -- first of all,

         5       it doesn't matter whether a corporation is

         6       incorporated in Delaware or it's incorporated in

         7       the Cayman Islands or Luxembourg, and so on.

         8       What counts is where it has its plants, where it

         9       has its facilities.  Does it employ New Yorkers?

        10       And it can do that with a Delaware charter or a

        11       New York charter.  That really means absolutely

        12       nothing.

        13                      The argument is also made, well,

        14       it's hard.  We want to attract the best people

        15       to be directors and unless you give them a lot

        16       of rights and powers and so on, we're not going

        17       to be able to get directors of high quality.  I

        18        -- I say nonsense to that argument.  It's very

        19       prestigious to be a director of a corporation,

        20       particularly of a large corporation.  They get

        21       very well taken care of, but let me say, I can't

        22       understand somebody saying, Well, I don't want

        23       to be a director of a corporation if it's going











                                                             
1516

         1       to be democratically run, and if the people who

         2       own the corporation are going to have a say.

         3                      I don't think that ought to -

         4       any director who proceeds on that basis I

         5       wouldn't want to have as a director.  I question

         6       what his fiduciary commitment is.

         7                      I really don't understand why we

         8       would want to dilute shareholder control, why we

         9       would want to move away from corporate democracy

        10       and why we would allow just further raids, and

        11       they have occurred.  There have been raids.

        12       There has been outrageous compensation that has

        13       been paid to corporate officers far beyond

        14       anything that can reasonably be said is just and

        15       fair compensation.

        16                      Just this -- this just takes

        17       money from shareholders.  It takes money from

        18       people who live in New York, who work in New

        19       York.  It makes corporations, to my mind, less

        20       attractive to New York.  I think that we ought

        21       to keep the law as it is and let me tell you, my

        22       friends, that law gives so many powers to

        23       corporate executives and directors, if anything,











                                                             
1517

         1       we ought to be working to create more

         2       shareholder democracy, not to weaken and lessen

         3       it.

         4                      ACTING PRESIDENT KUHL:  The Chair

         5       recognizes Senator Dollinger.

         6                      SENATOR DOLLINGER:  Mr.

         7       President, just on the bill briefly.

         8                      I guess I must have been in the

         9       same room with Senator Leichter when this bill

        10       passed last year.  There are some good things in

        11       this bill that improve the activities of

        12       shareholders and corporations, but there are two

        13       provisions that I'm concerned about.

        14                      One we addressed in a specific

        15       bill last time that I voted against and that was

        16       the repeal of Section 630 of the Business

        17       Corporation Law.  That's the provision that says

        18       payment of wages is one of the few exceptions to

        19       liability on behalf of shareholders of a

        20       corporation.

        21                      We have a law that says limited

        22       liability applies.  If you're a shareholder,

        23       you're not bound by the debts, to pay the debts











                                                             
1518

         1       of the corporation except in one circumstance

         2       and that is when someone goes out and works for

         3       the corporation, the top ten shareholders are

         4       liable for the payment of wages.

         5                      I note that in the memorandum

         6       accompanying the bill, it says it hasn't been

         7       utilized in New York since 1989.  That's the

         8       last reported case from New York on

         9       shareholders' liability for wages.

        10                      I offer an explanation for that.

        11       It's very simple.  The statute is unequivocal.

        12       There's no way to get out of it.  If you're a

        13       shareholder in a small corporation and you are

        14       one of the top ten shareholders and the company

        15       doesn't pay the wages of the employees you're

        16       liable for them.  We said that unequivocally and

        17       as a consequence we don't need the courts to

        18       interpret them.  We didn't need a lot of case

        19       law.  You sue them, they pay.

        20                      I think that's a good provision

        21       that protects the working class people in this

        22       state who have the one thing that we all agree

        23       could be the worst thing that could happen to











                                                             
1519

         1       anybody, that's to go to work for a small

         2       corporation, work diligently, and then be told,

         3       "I'm sorry, the corporation is going out of

         4       business; we don't have to pay you."

         5                      One of the provisions that I'm

         6       concerned about in this bill which, again, I

         7       didn't take a careful look at until today is the

         8       provision regarding loans to directors of

         9       corporations.  There's a provision in here that

        10       says we generally have a ban on loans to

        11       corporations unless they're expressly approved

        12       by shareholders so that all the shareholders

        13       know before the corporation is making a loan to

        14       one of its favorite sons, a member of the board

        15       of directors, the owner of the corporation's

        16       brother-in-law, a closely held corporation of

        17       family member, there may be dissident small

        18       shareholders who want to know whether the loan

        19       is being made.

        20                      This change says that you can

        21       make a loan or guarantee, more importantly, the

        22       corporation can guarantee a loan to a director,

        23       simply by the corporation determining that the











                                                             
1520

         1       loan is in the best interests of the corporation

         2       and represents a reasonable and prudent

         3       investment.

         4                      Well, it seems to me if you have

         5       three directors and all three of them say we'd

         6       like to guarantee this loan, they can do that

         7       without even notifying the shareholders, much

         8       less asking the shareholders for their input.  I

         9       think that's a real danger that will create

        10       disincentives for people to make investments in

        11       small corporations.  I think it will -- you will

        12       find that small corporations will find it more

        13       difficult to raise capital, especially from

        14       venture capitalists if corporations can

        15       guarantee or underwrite loans to directors

        16       without the direct approval of shareholders.

        17                      So while I think this bill has

        18       some good things that may justify a vote in

        19       favor of it, I think the fact that it can leave

        20       working people out in the cold and, in fact,

        21       would let every corporation in this state leave

        22       the people who work for them out in the cold not

        23       getting paid and the fact that it would











                                                             
1521

         1       encourage practices that are inimical to the

         2       interests of shareholders by allowing approval

         3       of loans to directors without shareholder

         4       approval, I can't justify an affirmative vote.

         5                      I'll be voting in the negative,

         6       Mr. President.

         7                      ACTING PRESIDENT KUHL:  Senator

         8        -- any other Senator wishing to speak on the

         9       bill?

        10                      SENATOR PATERSON:  Mr.

        11       President.

        12                      ACTING PRESIDENT KUHL:  Senator

        13       Paterson.

        14                      SENATOR PATERSON:  Thank you, Mr.

        15       President.

        16                      After listening to Senator

        17       Dollinger, I really have some misgivings about

        18       my vote last year and even my vote earlier today

        19       when he advises us that in order to -- for loans

        20       to be approved that it's something that exists

        21       among the other directors and really doesn't

        22       apply at all to the shareholders.  When you

        23       really think about that, you create almost a











                                                             
1522

         1       political arrangement between the directors and

         2       that always seems to lead to some of kind of

         3       compromise, and since I think sometimes the

         4       world is drowning in an orgy of compromise we

         5       have a whole circumstance that really leads to

         6       what would not be the most prudent decisions.

         7                      The ten percent of the -- the ten

         8       percent largest shareholders being responsible

         9       for employee wages is another bill that we

        10       passed earlier this session, was something that

        11       a few of us voted against, and again we see it

        12       appearing in this particular legislation, one

        13       that's particularly dangerous when you start to

        14       think about the fact, not only as Senator

        15       Leichter pointed out that we have corporations

        16       that are going out of business but it's still

        17       paying high wages to the executives, but now we

        18       have corporations that are actually turning

        19       great profits who are still laying off large

        20       sums of workers really because it's a good

        21       corporate decision.  It is not a good decision

        22       for people.  It is not a good decision for

        23       workers.  It is not a good decision for a











                                                             
1523

         1       greater number of people who will be affected

         2       negatively than any who would benefit

         3       positively.

         4                      Finally, the issue I'd like to

         5       point out are the rights of preemption where a

         6       shareholder that might say have one or two

         7       percent of the -- of the entire value of the

         8       corporation will lose their rights of preemption

         9       if there's a reissue of corporate assets.

        10                      I think that's actually kind of

        11       dangerous, and also the two-thirds to one-half

        12       voting rule is one that is probably going to

        13       diminish the smaller shareholders from having

        14       any control and the larger shareholders who

        15       often, when you co-aggregate all of their

        16       holdings, it exceeds one-half, it really is

        17       something that is moving in a direction; and so

        18       the ambience of the legislation, in spite of the

        19       fact that it provides for some very positive

        20       things but it's kind of an omnibus corporate

        21       bill, is one that really is doing nothing but

        22       fostering what is a movement in this society, an

        23       inertia that is really going to envelop us all











                                                             
1524

         1       if we don't do something to stop it, giving

         2       greater advantages to the few, creating greater

         3       encumbrances for the many.

         4                      So I want to thank Senator

         5       Leichter for the reconsideration and would

         6       advise that he is on a good course.

         7                      ACTING PRESIDENT KUHL:  Secretary

         8       will read the last section.

         9                      SENATOR GOLD:  Mr. President.

        10                      ACTING PRESIDENT KUHL:  Senator

        11       Gold.

        12                      SENATOR GOLD:  Yeah.  Would

        13       Senator Skelos yield to a question?

        14                      ACTING PRESIDENT KUHL:  Senator

        15       Skelos, do you yield?  Yes, Senator yields.

        16                      SENATOR GOLD:  I want to give you

        17       an opportunity to defend yourself.  No.

        18                      Senator, the bill has -- I know

        19       we've had it before, and I even see on the memo,

        20       Senator John Daly, so I guess it's been around a

        21       little bit, but there's an eight-page memo.

        22       It's a rather comprehensive bill, and my

        23       question is, do you know who developed it or











                                                             
1525

         1       where it came from?

         2                      SENATOR SKELOS:  This -- this

         3       legislation was worked on by Senator Daly when

         4       he was in this house.  It was drafted with the

         5       assistance of the Corporate Law Committees of

         6       the New York State Bar Association and the

         7       Association of the Bar of the city of New York.

         8                      Now, I think one of the points

         9       that -- that are being missed in this debate is

        10       that this is merely permissive, that it will

        11       allow individuals that want to incorporate in

        12       New York State to do this.  It can be a one-half

        13       vote.  It can be a two-thirds vote.  We're not

        14       saying it has to be one-half, and basically what

        15       this is doing is it's putting New York State in

        16       line with 48 other states in most instances with

        17       this legislation so that companies will now

        18       start incorporating in New York State rather

        19       than Delaware or New Jersey, other states.

        20                      What that means, filing fees for

        21       the state of New York, millions of dollars, we

        22       could use the money.  It means that when we're

        23       incorporating, individuals will go to a New York











                                                             
1526

         1       State attorney rather than a Delaware attorney,

         2       so that attorney will make a little money, pay

         3       an income tax on it.  Again New York State

         4       benefits from it.

         5                      So what we're doing is we're

         6       really recodifying the BCL, which has not been

         7       done since 1963, bringing New York State in line

         8       with the rest of the states and, quite honestly,

         9       as Senator Leichter said, it's irrelevant where

        10       you incorporate.  Well, then if people don't

        11       like the law as it presently exists in New York

        12       State, they're going to go to other states and

        13       incorporate where they can get the benefits that

        14       they so desire.

        15                      But again, the most important

        16       thing is this is permissive.  You don't have to

        17       use 50 percent, two-thirds.  You don't have to

        18       do the number of terrible things that this

        19       legislation was accused of.  It's merely

        20       permissive.

        21                      SENATOR GOLD:  Will you yield to

        22       another question?

        23                      ACTING PRESIDENT KUHL:  Senator











                                                             
1527

         1       Skelos, do you continue to yield?

         2                      SENATOR SKELOS:  Yes.

         3                      ACTING PRESIDENT KUHL:  Senator

         4       continues to yield.

         5                      SENATOR GOLD:  Yeah.  Senator,

         6       one thing that I think is odd and maybe it's

         7       just that my notes are incomplete but I would

         8       imagine that if the bill were developed by bar

         9       associations, subcommittees on corporations -

        10       and I'm not denying that it was, but that we

        11       would have some memo in support from them which

        12       basically says that their committees have met

        13       and this is part of their work product or

        14       supported by them, and I'm curious as to whether

        15       there are any memos.

        16                      SENATOR SKELOS:  Yes, we could

        17       get that for you, but I think they felt that

        18       this body in its infinite wisdom would see how

        19       important and how good this legislation is, and

        20       a memo would not be necessary but, in all

        21       honesty, we can provide the memos to you.

        22                      SENATOR GOLD:  All right.  And if

        23       the Senator would be kind enough to yield to











                                                             
1528

         1       another question.

         2                      ACTING PRESIDENT KUHL:  Senator

         3       continues to yield.

         4                      SENATOR SKELOS:  Yes.

         5                      SENATOR GOLD:  Senator, as you

         6       know, there are a lot of corporations that

         7       actually do get filed in the state of New York

         8       and, as a practicing lawyer, I've done a number

         9       of corporations and, in all fairness, it's

        10       generally one- or two-person corporations and

        11       you know, it's nothing very, very elaborate.

        12       But, Senator, when you're talking about people

        13       who have some degree of sophistication and who

        14       may be considering incorporating in Delaware or

        15       some other state, aren't there other issues

        16       involved, tax issues and monetary issues which

        17       are probably more overriding to them in terms of

        18       the decision as to where they incorporate rather

        19       than -

        20                      SENATOR SKELOS:  That may be

        21       something they may consider.  I don't know if

        22       it's overriding, but it's something I'm sure

        23       they consider; but with the new atmosphere that











                                                             
1529

         1       exists in New York State with Governor Pataki

         2       reducing the personal income tax, bringing down

         3       the corporate taxes, bringing down the burdens

         4       of regulation and over-regulation and now with

         5       the adoption of the revisions to the BCL New

         6       York State is going to be a magnet for people to

         7       want to incorporate and have their business

         8       located here.

         9                      SENATOR GOLD:  Well, Senator -

        10       Senator, and I promise this is going to be the

        11       last question.

        12                      ACTING PRESIDENT KUHL:  Senator

        13       continues to yield.

        14                      SENATOR GOLD:  I mean last year

        15       this bill came before us, and for whatever

        16       reasons, it did not receive the scrutiny that

        17       apparently it's receiving today, and I have a

        18       great respect for Senator Leichter and Senator

        19       Dollinger and others.

        20                      I am, of course, always

        21       interested if people in the professions working

        22       through the bar associations have been involved,

        23       and have certain beliefs.  Would you consider











                                                             
1530

         1       perhaps laying the bill aside and having us get

         2       the input, because I know from the point of view

         3       of someone like myself, if in fact, you know, we

         4       have that kind of support and the business

         5       community says that we're not doing anything

         6       wrong, or there's other arguments, or perhaps

         7       there are things that we all want to weigh, and

         8       you know it still, in all fairness, is kind of

         9       early in the session and if it -- if it can

        10       stand that test, I think it would just be

        11       helpful to many of us who don't want to get into

        12       a struggle between colleagues, but really we're

        13       looking to really just educate ourselves about

        14       it.

        15                      SENATOR SKELOS:  You can smile?

        16                      SENATOR GOLD:  At you I always

        17       smile.  It's only Onorato when I got to pay him

        18       money, I don't smile.

        19                      SENATOR SKELOS:  Why don't we do

        20       this.  If we now have an understanding that

        21       we've vented on this legislation and we've

        22       declared our war on corporations and in New York

        23       State, I'd be happy to, at your request, to lay











                                                             
1531

         1       it aside until next week so that we can get you

         2       some memos but this bill did pass last year,

         3       quite honestly, and I do believe that if there

         4       had been any real objection to it, Senator Gold,

         5       that we would have heard in the last six, seven,

         6       eight months objections to the legislation, but

         7       out of respect -

         8                      SENATOR GOLD:  You may actually

         9       be right, and I appreciate the courtesy more

        10       than anything.

        11                      SENATOR SKELOS:  But I am

        12       extending the courtesy.  Lay the bill aside.

        13                      SENATOR GOLD: Thank you.

        14                      ACTING PRESIDENT KUHL:  Secretary

        15       will lay the bill aside.

        16                      Senator Santiago, why do you

        17       rise?

        18                      SENATOR SANTIAGO:  Mr. President,

        19       I would like to be recorded in the negative on

        20       Calendar 214, please.

        21                      ACTING PRESIDENT KUHL:  Without

        22       objection, and hearing no objection, Senator

        23       Santiago will be recorded in the negative on











                                                             
1532

         1       Calendar Number 214.  Calendar 214.

         2                      Secretary will continue to call

         3       the controversial calendar.

         4                      THE SECRETARY:  Calendar Number

         5       230, by Senator Levy, Senate Print Number 5967,

         6       an act to amend Chapter 145 of the Laws of 1995,

         7       relating to addressing the situation in the

         8       Roosevelt Union Free School District.

         9                      ACTING PRESIDENT KUHL:  Secretary

        10       will -

        11                      SENATOR DOLLINGER:  I had asked

        12       the bill be laid aside, and I understand Senator

        13       Levy will be coming in momentarily just for a

        14       quick explanation.

        15                      ACTING PRESIDENT KUHL:  Senator

        16       Levy, an explanation of Calendar Number 230 has

        17       been asked for by Senator Dollinger.

        18                      SENATOR LEVY:  Yes.  Senator

        19       Dollinger, this is a -- this is a bill that was

        20       drafted by the state Department of Education

        21       relating to the Citizens Advisory Committee that

        22       works with the Regents and the Commissioner's

        23       representative in overseeing the Roosevelt











                                                             
1533

         1       School District.

         2                      The first piece of the bill

         3       relates to validating the appointment of the

         4       chair of the Citizens Advisory Committee, Robert

         5       Francis, who does not live in the Roosevelt

         6       School District but lives adjacent to the

         7       Roosevelt School District, and since the

         8       Governor signed the bill into law he has been

         9       the president, rather the chair of the advisory

        10       committee and has been the driving force in

        11       rehabilitating the school from an education

        12       standpoint and from an infrastructure standpoint

        13       and has worked closely with his panel and with

        14       the Commissioner and Regents representatives.

        15       So it is important that he stay in the position

        16       that he is in.

        17                      The second at-large position is

        18       being created for a highly respected minister in

        19       the community who leads one of the largest and

        20       most prominent religious institutions in the

        21       community, Reginald Tuggle, and Mr. Tuggle had

        22       lived in the Roosevelt community -- rather

        23       Reverend Tuggle had lived in the Roosevelt











                                                             
1534

         1       community.  His wife passed away and he has

         2       moved into an adjacent community and all

         3       involved, by virtue of the position of respect

         4       that he holds in the community, are supportive

         5       of adding a position -- of adding a second at

         6       large position so that can be filled by Reginald

         7       Tuggle.

         8                      Reginald Tuggle, in addition to

         9       being a pastor of the church that I've outlined

        10       this for you, he was also previously one of the

        11       principal executors of a little tiny newspaper

        12       that we have on Long Island called Newsday and

        13       now -- now is -- holds a major executive

        14       position with Nassau Community College.  He was

        15       a -- he is a person of extraordinary ability and

        16       respect in the community.

        17                      ACTING PRESIDENT KUHL:  Senator

        18       Dollinger.

        19                      SENATOR DOLLINGER:  Through you,

        20       Mr. President, if the sponsor would just yield

        21       to a couple questions.

        22                      ACTING PRESIDENT KUHL:  Senator

        23       Levy, do you yield?











                                                             
1535

         1                      SENATOR LEVY: Yes, of course.

         2                      ACTING PRESIDENT KUHL:  Senator

         3       yields.

         4                      SENATOR DOLLINGER:  Could you

         5       just refresh my recollection as to how these

         6       individuals are put on the advisory council.  Is

         7       it an election process?  Is it a selection

         8       process, selection process?  Who actually makes

         9       the decision as to who is on the advisory

        10       council?

        11                      SENATOR LEVY:  This is the

        12       Regents and the Commissioner do the appointing.

        13                      SENATOR DOLLINGER:  O.K. They

        14       have appointive authority under the statute?

        15                      SENATOR LEVY:  Yes, and you asked

        16       me before and what has happened here is that

        17       after -- and, incidentally, this bill is

        18       sponsored by the school district's Assembly

        19       representative in the Assembly, Assemblywoman

        20       Earlene Hill, who was part of the discussions

        21       that led to the state Education Department

        22       developing the piece of legislation.

        23                      What has happened, to bring you











                                                             
1536

         1       up to date because you asked me privately before

         2       the bill was called up what has gone on with the

         3       school district, and to bring you up to date as

         4       to what happened, let me go back in history.

         5                      Assemblywoman Hill wanted to ab

         6       initio have the board removed as a part of the

         7       legislation which became law.  I felt, and the

         8       Regents and the Commissioner agreed with me,

         9       that the duly elected board members should have

        10       the opportunity to work along with the Regents

        11       and the Commissioner of Education in

        12       rehabilitating the education process and the

        13       infrastructure.

        14                      The final piece of legislation

        15       left the board in place.  That was signed into

        16       law by the Governor.  Unfortunately -- and we

        17       still did the right thing the way we handled

        18       it.  Unfortunately, the board declined to go

        19       along with -- with the plans that were outlined

        20       by the Regents and Commissioner of Education's

        21       representative, Dr. Domenech, and in fact, fired

        22       the sitting superintendent without consultation

        23       with Domenech, the Commissioner or the Regents,











                                                             
1537

         1       and there were a whole series of other alleged

         2       omissions of responsibility both subsequent to

         3       and prior to the state intervening in the

         4       Roosevelt School District.  The Commissioner and

         5       the Regents drew up a set of charges, and I

         6       think on the first business day in January the

         7       Regents ousted the school board.

         8                      Now, I have to tell you that

         9       Assemblywoman Hill and I have had really the

        10       pleasure and the privilege a couple of weeks ago

        11       to visit the school district and to tour the

        12       school district, and there has been enormous

        13       progress both educationally and from the

        14       standpoint of infrastructure since the

        15       Commissioner's people, the Commissioner's

        16       representatives are now running the affairs of

        17       the school district along with -- along with the

        18       Citizens Advisory Committee.

        19                      Now, under the bill that we

        20       passed which became law on May 21st, there will

        21       be an election of new school trustees for this

        22       school district, and that really brings you up

        23       to date.  It was really eye-opening, the











                                                             
1538

         1       progress that was made with the team of

         2       administrators and educators that have been

         3       brought in by the Regents and the Commissioner

         4       to run the affairs of the school district.

         5                      ACTING PRESIDENT KUHL:  Senator

         6       Dollinger.

         7                      SENATOR DOLLINGER:  Through you,

         8       Mr. President.  I greatly appreciate that

         9       update.  Senator, could you just answer one

        10       question about the election that's upcoming,

        11       again through you, Mr. President.

        12                      SENATOR LEVY:  Yes, sir.

        13                      SENATOR DOLLINGER:  Is there any

        14       disqualification for those who run in that

        15       election that would disqualify them if they

        16       previously had held a board seat?

        17                      SENATOR LEVY:  Yes.  Let me just

        18       bring you up to date on where we are.  The

        19       counsel to the state Department of Education has

        20       advised not only the advisory committee but the

        21       Commissioner's representatives and it's also

        22       been publicly reported in the press, that in the

        23       judgment of counsel to the state Department of











                                                             
1539

         1       Education, that the trustees who were ousted are

         2       barred from -- for at least one year from the

         3       date of the ouster from running for election to

         4       the school board, that is the position that has

         5       been taken by the Department through its counsel

         6       so if if that issue is not litigated, that is

         7       the Commissioner's decision as it relates to the

         8       former trustees of the school board.

         9                      SENATOR DOLLINGER:  Again through

        10       you, Mr. President.

        11                      ACTING PRESIDENT KUHL:  Senator

        12       Dollinger.  Senator Levy, do you constitute to

        13       yield?

        14                      SENATOR LEVY:  Yes.

        15                      ACTING PRESIDENT KUHL:  Senator

        16       continues to yield.

        17                      SENATOR DOLLINGER:  Did the

        18       legislation that we have passed contain that

        19       debarment provision that bars them from running

        20       for a term or is that -

        21                      SENATOR LEVY:  That was in law

        22       according to -- that was the law of the state

        23       prior to the legislation that we passed that











                                                             
1540

         1       became law.

         2                      SENATOR DOLLINGER:  O.K.

         3                      SENATOR LEVY:  And that -- that

         4       we have been told subsequent to the enactment of

         5       the legislation by counsel to the Department and

         6       the Commissioner's representatives that that is

         7       their interpretation of the law prior to the

         8       time that we did the Roosevelt legislation.

         9                      SENATOR DOLLINGER:  O.K.

        10                      SENATOR LEVY:  And the trustees

        11       are barred.

        12                      SENATOR DOLLINGER:  Thank you.

        13       On the bill.

        14                      ACTING PRESIDENT KUHL:  Senator

        15       Dollinger, on the bill.

        16                      SENATOR DOLLINGER:  Mr.

        17       President, I voted against this bill last year

        18       when the decision was made by this Legislature

        19       to take over or to engage in a process that

        20       could lead to the takeover of the Roosevelt

        21       School District.  I did so at that time because

        22       I believed that the notion of local control of

        23       education was so important to this state that we











                                                             
1541

         1       should respect the decisions of local school

         2       boards, and I said at the time that I felt it

         3       was the power and the responsibility of the

         4       parents and those that live in this school

         5       district to decide whether they wanted change

         6       and use the elected statutory process to make

         7       that change happen as, frankly, everyone in this

         8       state has the power and ability to change their

         9       school boards.  We can change it simply by

        10       exercising that power, going to the ballot box

        11       and electing someone who will do the good things

        12       that needed to be done in this district.

        13                      I was opposed at the time.  I

        14       still remain opposed to the idea of takeover.  I

        15       understand the good will, and, frankly, the

        16       public good will that drives both Senator Levy

        17       and his Assembly counterpart to not only propose

        18       this but to see this difficult child through the

        19       growth that's necessary to reach quality

        20       education in the Roosevelt School District.

        21                      I would be opposed to this except

        22       I guess I concede now that we're in the system.

        23       We're in a situation where good things will











                                                             
1542

         1       happen if these members, that we enlarge the

         2       group of the advisory council that it will

         3       continue to drive it toward a better education

         4       system, but I'd be remiss if I didn't suggest

         5       again that, because of the importance of this

         6       takeover which may presage other takeovers of

         7       schools or even school districts in this state,

         8       that this process has to be very careful in the

         9       way it accommodates local interest.

        10                      My concern, and I said it at the

        11       time, I'll repeat it now, is that when the state

        12       leaves, what happens then? Putting members on

        13       the advisory council who live outside the

        14       district doesn't provide the long-term stability

        15       that the community needs to generate inside

        16       itself to support schools and, while I agree

        17       that it may help the advisory council foment the

        18       kind of educational principals, the kind of

        19       educational respect that will rebuild this

        20       school district, I think it's important that

        21       this be done through the parents that have the

        22       mower to control this district under normal

        23       state law.











                                                             
1543

         1                      So I'm going to vote in favor of

         2       this, but I think of as we continue down this

         3       path, we have to keep very close contact on

         4       what's happening in this district and the

         5       precedent it sets for all of us.

         6                      SENATOR LEVY:  Senator, let me

         7       just point out you that the panel as originally

         8       constituted is not going to have two less

         9       members than were originally contemplated.  This

        10       panel is being expanded by two, which will then

        11       open up that panel to have two additional local

        12       school district residents appointed in addition

        13       to the validation of the Francis appointment and

        14       the addition of Tuggle.

        15                      ACTING PRESIDENT KUHL:  Chair

        16       recognizes Senator Waldon.

        17                      SENATOR WALDON:  Thank you very

        18       much, Mr. President.

        19                      Would our learned colleague yield

        20       for a question?

        21                      ACTING PRESIDENT KUHL:  Senator

        22       Levy, will you yield for a question?

        23                      SENATOR LEVY:  Yes.











                                                             
1544

         1                      ACTING PRESIDENT KUHL:  The

         2       Senator yields.

         3                      SENATOR WALDON:  Senator, are the

         4       schools in this district those which come under

         5       the umbrella of SURR, S-U-R-R, Schools Under

         6       Registration review to some extent?

         7                      SENATOR LEVY:  I'm sorry.  I

         8       didn't -

         9                      SENATOR WALDON:  The schools in

        10       the district, the Roosevelt School District -

        11                      SENATOR LEVY:  Yes.

        12                      SENATOR WALDON:  -- are they

        13       schools which have been labeled or designated,

        14       which is a better term, SURR, S-U-R-R, Schools

        15       Under Registration Review?

        16                      SENATOR LEVY:  Yes, they have

        17       been -- they have been, for a period of time

        18       prior to the takeover of the school district,

        19       under the special scrutiny of the Regents and

        20       the Commissioner of Education because of the

        21       deficiencies in the school district.

        22                      SENATOR WALDON:  O.K. And is it

        23       true that in 1989 the Regents created this











                                                             
1545

         1       vehicle when schools are chronically ill,

         2       meaning they're not teaching the children, the

         3       children are not learning at acceptable levels,

         4       that they could come in and create a panel to

         5       rectify that situation?

         6                      SENATOR LEVY: All I can tell you

         7       is that the wheels that were put in motion that

         8       led to the action that we took here in the last

         9       night of the 1995 session were triggered by a

        10       visit to the school district by Regent Sanford

        11       and her team as a result of the deficiencies in

        12       the school District and the report that she

        13       triggered as a result of what she saw, and we

        14       were in session.  I wasn't there, but one of my

        15       staff people were there and Assemblywoman Hill's

        16       staff people were there at the time of the

        17       Regent Sanford visit.

        18                      SENATOR WALDON:  If I may, Mr.

        19       President, one more.

        20                      ACTING PRESIDENT KUHL:  Senator

        21       Levy, you continue to yield?

        22                      SENATOR LEVY:  Yes, sure.

        23                      ACTING PRESIDENT KUHL:  Senator











                                                             
1546

         1       continues to yield.

         2                      SENATOR WALDON:  Senator, the

         3       panel that's in existence at this moment which

         4       will be expanded by two, is that the panel that

         5       was appointed by the Regents?

         6                      SENATOR LEVY: Yes, and pursuant

         7       to the legislation we did that last night of the

         8       session.

         9                      SENATOR WALDON:  On the bill, Mr.

        10       President.

        11                      ACTING PRESIDENT KUHL:  Senator

        12       Waldon, on the bill.

        13                      SENATOR WALDON:  What Senator

        14       Levy is proposing here is, in my opinion, the

        15       right thing.  Schools Under Registration Review

        16       are schools which chronically fail to teach our

        17       children, and it's only after a long history of

        18       such failure has the Board of Regents, since

        19       1989, decided that they will step in and create

        20       a panel of persons to replace the failing board

        21       in order to rectify that situation and bring the

        22       schools up to speed, and I think what he's

        23       looking to accomplish here is to that panel to











                                                             
1547

         1       add two persons who will more greatly reflect

         2       the community's mind set in terms of dealing

         3       with the issue, and I will support that.

         4                      I'll vote aye.

         5                      ACTING PRESIDENT KUHL:  Chair

         6       recognizes Senator Marcellino.

         7                      SENATOR MARCELLINO:  Mr.

         8       President, on the bill.

         9                      ACTING PRESIDENT KUHL:  Senator

        10       Marcellino, on the bill.

        11                      SENATOR MARCELLINO:  I sincerely

        12       support the actions of my colleague, Senator

        13       Levy.  He's taken, and Assemblywoman Hill has

        14       taken great strides to promote good quality

        15       education for young people on Long Island.

        16                      It is a shame, it is a disgrace

        17       that a system charged with the responsibility of

        18       educating our youth, our future, was allowed to

        19       get to the position that this district

        20       eventually reached.  These two people who are

        21       being added to this board will further the

        22       effort to make quality education our goal and

        23       quality education for the kids of the Roosevelt











                                                             
1548

         1       School District.

         2                      I would hope as a former

         3       educator, that this procedure acts as a model.

         4       I disagree with my colleague across the way.  We

         5       need a more activist state ed' board.  There are

         6       too many schools on Long Island and throughout

         7       the state that are failing our youngsters, that

         8       are not living up to their charter, that are

         9       not living up to their charge, and state ed', if

        10       it's going to stay in existence and if it has

        11       any real purpose, should step in and move in

        12       with effort, carefully involving those people in

        13       the community that are concerned and give a darn

        14       and take care and move to quality education is

        15       prime.  All the other shenanigans that go on,

        16       but quality education.  Too many districts are

        17       failing our young people, and this legislation

        18       should be used as a model for that kind of take

        19       over.

        20                      ACTING PRESIDENT KUHL:  Is there

        21       any other Senator wishing to speak on the bill.

        22                      Senator Dollinger, why do you

        23       rise?











                                                             
1549

         1                      SENATOR DOLLINGER: Will Senator

         2       Marcellino yield to a question?

         3                      ACTING PRESIDENT KUHL:  Senator

         4       Marcellino, will you yield to a question?

         5                      SENATOR DOLLINGER:  Senator, I

         6       agree with you we need to improve education in

         7       lots of those districts, but isn't the first

         8       line of defense the local school board?  We give

         9       them the power to decide that.

        10                      SENATOR MARCELLINO:  That's

        11       right.

        12                      SENATOR DOLLINGER:  If we give

        13       them the power to do that and they don't change

        14       the composition of the school board, why should

        15       we assume that we can do it better?

        16                      SENATOR MARCELLINO:  You're

        17       absolutely right, Senator.  I have sat on a

        18       local school board.  I ran for election and I

        19       sat on a school board and I know the nature of

        20       the problems a local school board member has to

        21       deal with, and it's not easy.  However, there

        22       are many instances where the school districts

        23       are simply not being run up to what anybody











                                                             
1550

         1       would -- anybody would conceive of quality

         2       education for these kids.  The primacy must be

         3       the kid.  The primacy must be quality education

         4       for the students.

         5                      I don't care one iota about the

         6       school board members.  I care about the kids in

         7       those districts and, if those board members are

         8       failing to charge -- to do their charge and

         9       failing to perform their duty, they should be

        10       removed.  That is our responsibility here in the

        11       state.  Education is a state responsibility,

        12       it's time we take responsibility, Senator,

        13       rather than just talk about it.

        14                      ACTING PRESIDENT KUHL:  Senator

        15       Dollinger, you have the floor.

        16                      SENATOR DOLLINGER:  Mr.

        17       President, just in response to Senator

        18       Marcellino, I agree it's a state

        19       responsibility.  I hope that, when we have a

        20       debate later on this year, we have a debate

        21       about how the state is going to fulfill that

        22       responsibility by eliminating some of the

        23       proposals that came from the second floor that I











                                                             
1551

         1       think will devastate the quality of education in

         2       this state, which will devastate special

         3       education in this state.

         4                      There's a whole lot in this

         5       budget which I hope, and I think Senator

         6       Marcellino will join us, we're going to have to

         7       change to achieve that goal, but my concern is

         8       about our centuries old system of local control

         9       of education.

        10                      We have procedures in law that

        11       allow the removal of school board members if

        12       they don't achieve that goal.  In the case of

        13       the Roosevelt School District, what we did, we

        14       didn't remove one member, what we ended up doing

        15       was removing them all.

        16                      My concern -- my concern

        17       throughout this has been, if the parents of a

        18       community don't stand up and demand quality

        19       education for their children, if they don't

        20       stand up and demand that the candidates for

        21       their school board provide it and have the guts

        22       to tax for it to provide it, it seems to me that

        23       to have it imposed from the top is the wrong way











                                                             
1552

         1       to do it, and I think local control of that,

         2       local control and local quality of education.

         3                      ACTING PRESIDENT KUHL:  Senator

         4       Marcellino, you asking Senator Dollinger to

         5       yield?

         6                      SENATOR MARCELLINO:  Yes, I am.

         7                      ACTING PRESIDENT KUHL:  Senator

         8       Dollinger, do you yield?

         9                      SENATOR DOLLINGER:  I will, Mr.

        10       President.

        11                      ACTING PRESIDENT KUHL:  Senator

        12       yields.

        13                      SENATOR MARCELLINO:  Senator,

        14       with all due respect and certainly no animus

        15       between us, are you familiar with the percentage

        16       of people voting in local school board

        17       elections?

        18                      SENATOR DOLLINGER:  I know it's

        19       extremely low.

        20                      SENATOR MARCELLINO:  It is

        21       extremely low, and that becomes a problem.  You

        22       have a minority of a minority of a minority

        23       actually getting involved in school board











                                                             
1553

         1       elections and special interest groups, and I

         2       don't care what their meaning is, I don't care

         3       what titles or acronyms you give them, get

         4       involved and start to take over school districts

         5       and that's not necessarily always in the child

         6       or the children's best interests, and the state

         7       must act as a monitor, and it must act and I

         8       mean act in a positive way to protect the

         9       interests of the children of the district.

        10                      We've done that here in the

        11       Roosevelt system.  It's working.  I've talked to

        12       some of the people over there.  I've talked to

        13       people in the district.  It's not that far away

        14       from mine.  I've talked to Representative Hill

        15       who has, by the way, taken some heat for her

        16       courageous stand on this, as has Senator Levy.

        17                      This is something that had to be

        18       done, and it was done in the correct way.  I

        19       don't say we should walk in willy-nilly and take

        20       over every district in town, but certainly

        21       districts out there have to know there is a real

        22       state ed' department and not some shell out

        23       there that pretends that it exists, but a real











                                                             
1554

         1       one.

         2                      ACTING PRESIDENT KUHL:  Senator

         3       Dollinger, you have the floor.

         4                      SENATOR DOLLINGER:  Yeah, Mr.

         5       President, I'll just conclude.

         6                      Senator Marcellino, I don't think

         7       we disagree on the ultimate objective.  My

         8       concern continues to be that local judgments,

         9       the people closest to those school districts, I

        10       agree with you, it's reprehensible that only 10

        11       percent of the people vote but the other 90

        12       percent have the power to go to the polls, they

        13       have the power to influence the process.  They

        14       simply neglect to do it.

        15                      My concern is, I said this at the

        16       time.  I'm in favor of this.  I'm going to vote

        17       in favor of this, but at the time I said I was

        18       terribly concerned about the notion that the

        19       people who have the power, who have the

        20       statutory power to change that school board,

        21       aren't using it and we're assuming because

        22       they're not using it we're going to substitute

        23       our judgment for theirs.  That's my concern.











                                                             
1555

         1                      ACTING PRESIDENT KUHL:  The Chair

         2       recognizes Senator Levy to close.

         3                      SENATOR LEVY:  Let me just clear

         4       the record because, number one, we did not

         5       remove the school board.  We did not remove the

         6       school board through the legislation which

         7       became law.  That's what the Assembly wanted to

         8       do.

         9                      We did not -- we did not want to

        10       go in that direction, and the final piece of

        11       legislation created a mechanism to remove the

        12       school board if certain conditions were met, and

        13       the school board was given the opportunity to

        14       work with the Regents, to work with the

        15       Commissioner, to work with the advisory

        16       committee, and finally in January, through an

        17       administrative hearing where the Regents sat in

        18       judgment on specifications that were drawn up by

        19       the Commissioner, after really what was a trial,

        20       they then acted and removed the school board.

        21                      So I wanted the record to be

        22       clear.  We did not take away the duly elected

        23       members of the school board by legislative











                                                             
1556

         1       action that was signed into law by the

         2       Governor.  It was the process that I've laid

         3       out.

         4                      Now, in fairness to the

         5       Commissioner of Education, and the Regents, they

         6       wanted a broader power to move as ultimately

         7       they moved in the Roosevelt School District with

         8       an intervention, to give them that power on a

         9       statewide basis, but I have to tell you, I felt

        10       that the route that we should go was the route

        11       that we went with the Roosevelt School District

        12       and not to usurp the powers of the community

        13       that elect school board members, that we should

        14       not give that power to the Commissioner or to

        15       the Regents, that it should be exercised very,

        16       very sparingly and only if the duly elected

        17       representatives in the Senate and Assembly that

        18       represented the school district, certainly after

        19       much thought and deliberation and concern and

        20       anxiety and communication in the community, were

        21       to sponsor legislation on a case-by-case basis

        22       to take that action.

        23                      So the record is clear, the











                                                             
1557

         1       Commissioner did want the generic omnibus

         2       comprehensive power to move against any school

         3       district in the state; and let me, finally, say

         4       so that it's crystal clear, number one, I don't

         5       want anyone to draw the conclusion that somebody

         6       made a judgment that of all the school districts

         7       in the state that weren't meeting their respon

         8       sibilities that Roosevelt was number -- number

         9       one in the state.  I don't think anybody can

        10       make that judgment that there weren't other

        11       school districts that were more deserving of

        12       being the first school district to create a

        13       power where the Regents and the Commissioner

        14       could intervene and essentially take over that

        15       school district.

        16                      For a lot of reasons, the Regents

        17       and the Commissioner of Education and the

        18       legislators that represent this district felt

        19       this was the district to move forward with on

        20       the first initial basis, and that's why

        21       Roosevelt was selected by the Regents, the

        22       Commissioner, and we went along with it.

        23                      ACTING PRESIDENT KUHL:  Secretary











                                                             
1558

         1       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 60.

         8                      ACTING PRESIDENT KUHL:  The bill

         9       is passed.

        10                      Secretary will continue to call

        11       the controversial calendar.

        12                      THE SECRETARY:  Calendar Number

        13       252, by Senator Skelos, Senate Print 1740, an

        14       act to amend the Executive Law and the Penal Law

        15       in relation to payment of a fee by persons

        16       sentenced to probation.

        17                      ACTING PRESIDENT KUHL:  Senator

        18       Abate.

        19                      SENATOR ABATE:  Yes, on the bill.

        20                      ACTING PRESIDENT KUHL:  Senator

        21       Abate, on the bill.

        22                      SENATOR ABATE:  Last year a

        23       number of state Senators and I voted against











                                                             
1559

         1       this bill.

         2                      If you look at the bill and on

         3       first impression the bill seems benevolent.  It

         4       seems as though it makes a lot of sense, because

         5       why shouldn't we ask probationers to defray the

         6       cost of probation supervision?

         7                      However, the way the legislation

         8       is drafted, it will become a burden for some

         9       probation departments around the state.  In

        10       fact, it will become an unfunded mandate for

        11       some certain probation departments and a benefit

        12       for others.

        13                      So last year, I proffered an

        14       amendment that left it as a local option.  The

        15       county or the city of New York could be in a

        16       position to adopt a local law so that they could

        17       require probationers to pay a fee.  This

        18       legislation requires all probation departments

        19       to collect these fees.

        20                      In speaking to a number of the

        21       departments and also in my experience as the

        22       Commissioner of the New York City Department of

        23       probation, particularly in New York City, this











                                                             
1560

         1       kind of legislation would be extremely onerous.

         2       And why is that? It's because there would have

         3       to be an investment in a large number of

         4       administrative staff, staff that does not exist,

         5       that has to investigate whether an individual

         6       had sufficient means to pay the fee and then

         7       there would be required additional staff to

         8       collect this fee on a monthly basis, and in New

         9       York City, there are about 80,000 people on

        10       probation.  There are complaints by victims that

        11       there are not sufficient probation officers to

        12       talk with victims in preparing a victim impact

        13       statement.

        14                      There are complaints by

        15       communities that the case loads of 200 or more,

        16       probation officer on average has to supervise

        17       200, 250 people.  If you go around the state,

        18       the numbers are less, but certainly there are

        19       huge case loads.  So at a time when the Governor

        20       is proposing a 25 percent cut in probation aid,

        21       state aid to probation departments around the

        22       state, this kind of legislation which seemingly

        23       would produce more revenue for certain











                                                             
1561

         1       departments will become a tremendous burden for

         2       others.

         3                      The better way of dealing with

         4       this situation is to change the language of the

         5       bill, not mandate it, but give it to local

         6       option.  I've spoken again to a number of the

         7       departments.  They would prefer the bill being

         8       drafted that way.  Again, it's certainly a

         9       benefit to departments like Nassau County, where

        10       many of the probationers are there because of

        11       DWI, driving while impaired or driving while

        12       intoxicated.  Many of the probationers have a

        13       means to pay, and clearly I have no opposition

        14       to having those probationers pay a fee to

        15       support the expense of the probation

        16       department.

        17                      But, on the other hand, mandating

        18       probation departments such as the city of New

        19       York which may have at this point I think 80,000

        20       people, many of them are felons, most of them

        21       are indigent individuals, what this means for

        22       that department is that the cost of setting up

        23       the administrative apparatus will far exceed any











                                                             
1562

         1       revenue that they can possibly collect in any

         2       given year.

         3                      I hope that this bill will go

         4       back to the drawing boards.  There was a request

         5       last year.  I think this bill will receive bi

         6       partisan support in both houses if the language

         7       was changed and again this year -- I know the

         8       sponsor of the bill is not in the chamber.  I

         9       again hope that he will consider laying it

        10       aside, amending this bill so that counties can

        11       decide what's in their best interest.  We should

        12       not be passing along to a county another

        13       unfunded mandate that will further burden

        14       certain probation departments in the state.

        15                      For these reasons, as I stated

        16       today, I am not supporting the bill.  I am

        17       asking my colleagues again to oppose this bill.

        18       Join me, let's produce better legislation.  I

        19       think we'll receive full support by every

        20       probation department around the state if these

        21       changes were made.

        22                      ACTING PRESIDENT KUHL:  Is there

        23       any other Senator wishing to speak on the bill?











                                                             
1563

         1                      Hearing none, the Secretary will

         2       read the last section.

         3                      THE SECRETARY:  Section 3.  This

         4       act shall take effect on the first day of

         5       November.

         6                      ACTING PRESIDENT KUHL:  Call the

         7       roll.

         8                      (The Secretary called the roll. )

         9                      ACTING PRESIDENT KUHL:  Announce

        10       the results when tabulated.

        11                      THE SECRETARY:  Those recorded in

        12       the negative on Calendar Number 252 are Senators

        13       Abate, Connor, Gold, Leichter, Markowitz,

        14       Mendez, Montgomery, Onorato, Paterson, Santiago,

        15       Seabrook, Smith and Waldon.  Ayes 47, nays 13.

        16                      ACTING PRESIDENT KUHL:  The bill

        17       is passed.

        18                      Secretary will continue to call

        19       the controversial calendar.

        20                      THE SECRETARY:  Calendar Number

        21       259, by Senator Rath, Senate Print 539A, an act

        22       to amend the Education Law, in relation to

        23       student refunds of certain financial aid grants.











                                                             
1564

         1                      ACTING PRESIDENT KUHL:  Senator

         2       Leichter, why do you rise?

         3                      SENATOR LEICHTER:  Mr. President,

         4       I wanted to ask Senator Rath to answer some

         5       questions on the bill.

         6                      ACTING PRESIDENT KUHL:  Senator

         7       Rath, do you yield to Senator Leichter?

         8                      SENATOR RATH:  Yes, Mr.

         9       President.

        10                      ACTING PRESIDENT KUHL:  The

        11       Senator yields.

        12                      SENATOR LEICHTER:  Senator, I

        13       didn't notice before.  You have a cast on.  I'm

        14       sorry to see that, but I'm not going to ask you

        15       about that now.  Those weren't the questions I

        16       had in mind.

        17                      Senator, as I read your bill -

        18       and I understand that your concern and what it's

        19       aimed at is that if some student has illegal

        20       income and he hasn't reported that income and he

        21       has qualified himself for student aid not

        22       disclosing that income, this bill would provide

        23       that that student would be declared ineligible











                                                             
1565

         1       and would lose his student aid, and I have no

         2       problem with that.  But I think as you have

         3       worded the bill, I just don't think that it

         4       works because what you've also done is that you

         5       have included not only the student or the spouse

         6       and his parents but you haven't provided any

         7       nexus between a spouse or a parent having

         8       illegal income and the student receiving that

         9       income.

        10                      So as I read the bill, in an

        11       instance where there is a student and let's say

        12       his father's an embezzler, embezzles money from

        13       the bank, that's never reported on the financial

        14       forms, and it's obviously not going to be

        15       reported, and the parent gets convicted, even

        16       though the student never got a penny of it,

        17       under your bill the student would be ineligible

        18       for financial aid.  I don't think you intend

        19       that but, as I read the bill, that seems to be

        20       the interpretation.

        21                      SENATOR RATH:  Senator Leichter,

        22       the same question was asked by Senator Paterson

        23       last year.











                                                             
1566

         1                      SENATOR LEICHTER:  Oh, was it?

         2                      SENATOR RATH:  Yes, and we walked

         3       through it, and I have the transcript of last

         4       year.  But rather than reading through the whole

         5       thing, I would tell you that a synopsis of my

         6       response to Senator Paterson's question was that

         7       at the time of the request, the application for

         8       student assistance, the student needs to

         9       indicate that they know of no illegal activity;

        10       and if a student knows of no illegal activity,

        11       then they are not responsible for returning or

        12       for the requirements of this bill, which what

        13       this bill asks -- what it sets in place is a way

        14       for the Higher Education Services Corporation to

        15       be able to identify students, because right now

        16       there is no coordination between the state's

        17       criminal justice system.

        18                      And if you'll recall, what really

        19       brought this bill about was a student on the

        20       Buffalo State College campus.  You may recall I

        21       came in one day passing copies out to everyone.

        22       I was so outraged when I found that this young

        23       woman who was in a prostitution ring was











                                                             
1567

         1       receiving TAP awards, and there was no way that

         2       we could go back and make this happen that she

         3       would have to return the dollars; and so,

         4       although that was brought about because of this

         5       prostitution ring, there are other things that

         6       might -- it might be a drug ring rather than

         7       prostitution.  It could be any number of things.

         8                      But, again, we did walk through

         9       that question last year.

        10                      SENATOR LEICHTER:  Senator -

        11                      ACTING PRESIDENT KUHL:  Senator

        12       Leichter.

        13                      SENATOR LEICHTER:  -- if you

        14       would be good enough to yield, and if you

        15       convinced somebody as tough and hard as Senator

        16       Paterson then maybe I shouldn't be venturing

        17       forth, but I must say I don't understand.

        18                      The fact that the student has to

        19       say, "I knew," or whether he knows of any

        20       income, suppose the student -- suppose the

        21       student has knowledge that his father engaged in

        22       criminal activity.  In fact, he has to know that

        23       because under your bill it only works if there











                                                             
1568

         1       is a conviction, so, obviously, he would know.

         2       He says, "Yes, my father was convicted of

         3       embezzling a million dollars from the bank"; but

         4       where is the nexus?

         5                      "Yeah, he took that million

         6       dollars and took his girlfriend and went off to

         7       the Bahamas. I never got a penny of it."

         8                      I mean where -- where is the

         9       requirement in here that the illegal income

        10       actually went to the recipient of the student

        11       aid?  That's what I think is missing here.

        12                      I have no problem if you want to

        13       limit it to students.  I think what creates the

        14       difficulty in the bill is when you add the

        15       spouse and the parent, and you don't make it

        16       clear that the illegal monies went to help the

        17       student.

        18                      SENATOR RATH:  The understanding

        19       that we developed last year as we finished out

        20       the debate on the floor was that the application

        21       for the tuition assistance was clear enough, and

        22       through that process, as the student signs his

        23       name on the application for the tuition











                                                             
1569

         1       assistance, that it was clear enough that we

         2       would be able to go forward making possible the

         3       interaction between the criminal justice system

         4       and the higher education system so that the

         5       student could be identified and the information

         6       could be retrieved and, indeed, the dollars

         7       recovered.

         8                      Because of the obvious need for

         9       every dollar that we can give to tuition

        10       assistance for students who are deserving and

        11       who are crying out for help, to have a student

        12       receiving dollars that has parents involved in

        13       illegal activities and if the student says they

        14       knew about it, they should not have, in the

        15       first case, asked for tuition assistance at that

        16       point, because this will make it very clear.

        17                      SENATOR LEICHTER:  Senator Rath,

        18       I, again, commend you for dealing with the

        19       problem, but I must say as your bill is written

        20        -- and I'm not at all sure that that's cured by

        21       the application.  I'm not going to make a fuss

        22       about it, but it may well be the reason that the

        23       bill is here for a second year in a row without











                                                             
1570

         1       getting action from the Assembly is that there

         2       may be some problem with the bill, and maybe by

         3       trying to make it so broad -- if you would just

         4       limit it to the student, then it would be very

         5       clear.  There would be no problem with it, and I

         6       would think that the other house would act on

         7       it.

         8                      It may well be that the other

         9       house felt, as, obviously, Senator Paterson did

        10       last year and I did this year, that at least

        11       reading the bill -- maybe, in some ways or

        12       other, the forms will cure the problem, but I

        13       think you've got a real problem because you

        14       don't make it at all clear that monies that the

        15       spouse or the parents may have illegally gotten

        16       have to be given to the recipient of the student

        17       aid in order for us, in justice, to say, "Wait a

        18       second, you got this illegal money.  You knew

        19       the money was illegal when you got it.  You

        20       didn't report it.  You used it and yet you

        21       received student aid."

        22                      Seems to me without that nexus,

        23       the bill seems to be lacking something.











                                                             
1571

         1                      ACTING PRESIDENT KUHL:  Secretary

         2       will read the last section.

         3                      THE SECRETARY:  Section 2.  This

         4       act shall take effect on the 60th day.

         5                      ACTING PRESIDENT KUHL:  Call the

         6       roll.

         7                      (The Secretary called the roll.)

         8                      THE SECRETARY:  Ayes 60.

         9                      ACTING PRESIDENT KUHL:  The bill

        10       is passed.

        11                      Senator DeFrancisco.

        12                      SENATOR DeFRANCISCO:  Do you have

        13       some housekeeping at the desk?

        14                      ACTING PRESIDENT KUHL:  Yes, we

        15       do.

        16                      Return to motions and

        17       resolutions.

        18                      The Chair recognizes Senator

        19       Present.

        20                      SENATOR PRESENT:  Mr. President.

        21       On behalf of Senator Leibell, on page 10, I

        22       offer the following amendments to Calendar 226,

        23       Senate Print 5928, and ask that it retain its











                                                             
1572

         1       place on the Third Reading Calendar.

         2                      ACTING PRESIDENT KUHL:

         3       Amendments to Calendar Number 226 are received

         4       and adopted.  The bill will retain its place on

         5       the Third Reading Calendar.

         6                      Senator Dollinger, why do you

         7       rise?

         8                      SENATOR DOLLINGER:  Mr.

         9       President.  I believe I have a privileged

        10       resolution at the desk.  I would ask that it be

        11       read in its entirety, as it relates to a former

        12       member of this body.

        13                      ACTING PRESIDENT KUHL:  Senator

        14       Dollinger, you are absolutely correct.  There is

        15       a special, very privileged resolution at the

        16       desk.

        17                      I will ask the Secretary to read

        18       it in its entirety.

        19                      THE SECRETARY:  By Senator

        20       Dollinger, Legislative Resolution, expressing

        21       sincerest sorrow upon the occasion of the death

        22       of the Honorable Ralph Quattrociocchi, former

        23       New York State Senator from the 55th Senatorial











                                                             
1573

         1       District.

         2                      Whereas, it is the sense of this

         3       Legislative Body that those who give positive

         4       definition to the profile and disposition of the

         5       communities of the State of New York do so

         6       profoundly strengthen our shared commitment to

         7       the exercise of freedom; and

         8                      Whereas, attendant to such

         9       concern and fully in accord with its

        10       long-standing traditions, it is the intent of

        11       this Legislative Body to express sincerest

        12       sorrow upon the occasion of the death of the

        13       Honorable Ralph Quattrociocchi, former New York

        14       State Senator from the 55th Senatorial District;

        15       and

        16                      Whereas, Ralph Quattrociocchi is

        17       survived by his wife, Sharon, and by four

        18       children, Stephen of Washington, D.C., Sue-Ellen

        19       of Rochester, Aimee of Pittsburgh, and Andrew,

        20       who is stationed with the Navy in Japan; he is

        21       also survived by his brothers Peter and John of

        22       Rochester and Frank of San Francisco and his

        23       sisters, Rose and Jeanette, both of Rochester;











                                                             
1574

         1       and

         2                      Whereas, Ralph Quattrociocchi was

         3       a lifelong resident of Monroe County; after

         4       graduating from Edison Technical High School, he

         5       served in the United States Air Force, assigned

         6       to a unit specializing in radar systems;

         7       following the Air Force, Ralph Quattrociocchi

         8       took a job with American Telephone and

         9       Telegraph, where he worked for more than 30

        10       years; and

        11                      Whereas, Ralph's political career

        12       started in 1975 when he was elected to the

        13       Monroe County Legislature, representing Greece;

        14       he was elected to five consecutive terms; and

        15                      Whereas, in 1984, Mr.

        16       Quattrociocchi was elected to the State Senate;

        17       and

        18                      Whereas, Ralph Quattrociocchi

        19       went on to win a third term in 1988;

        20                      Ralph Quattrociocchi was a leader

        21       in the drive to extend Route 531 from Manitou

        22       Road to Ogden and was reelected in 1990;

        23                      Most recently, Ralph had been











                                                             
1575

         1       spending two or three days a week tutoring

         2       children at Hope Hall, a private academy that

         3       specializes in helping students with learning

         4       problems; and

         5                      Whereas, Ralph Quattrociocchi did

         6       so magnanimously labor for the positive and

         7       salutory definition of the 55th Senatorial

         8       District; and

         9                      Whereas, Robert Ingersol once

        10       wrote these words concerning the death of his

        11       brother:  "If everyone to whom he had rendered

        12       some loving service were to bring but one

        13       blossom to his grave, he would sleep beneath a

        14       wilderness of flowers"; and

        15                      Whereas, it is the sense of this

        16       Legislative Body that Ralph Quattrociocchi

        17       sleeps beneath a wilderness of flowers; and

        18                      Whereas, through his long and

        19       sustained commitment to the ideals and

        20       principles upon which this beloved nation was

        21       first founded, Ralph Quattrociocchi did so

        22       unselfishly advance that spirit of united

        23       purpose and shared concern which is the











                                                             
1576

         1       unalterable manifestation of our American

         2       experience; now, therefore, be it

         3                      Resolved, That this Legislative

         4       Body pause in its deliberations and express

         5       sincerest sorrow upon the occasion of the death

         6       of the Honorable Ralph Quattrociocchi, fully

         7       confident that such procedure mirrors our

         8       commitment to preserve, to enhance and yet to

         9       effect that patrimony of freedom which is our

        10       American heritage; and be it, further

        11                      Resolved, That a copy of this

        12       resolution, suitably engrossed, be transmitted

        13       to Mrs. Ralph Quattrociocchi and family, Monroe

        14       County, New York.

        15                      ACTING PRESIDENT KUHL:  Senator

        16       Dollinger, the chair has had a couple of

        17       inquiries from members already, that they would

        18       like to inquire as to whether or not you were

        19       going to open it up.

        20                      SENATOR DOLLINGER:  Absolutely,

        21       Mr. President.

        22                      ACTING PRESIDENT KUHL:  And I

        23       would ask the Acting Majority Leader if the











                                                             
1577

         1       procedure will be that we will put all of the

         2       members on the resolution unless there is

         3       somebody who does not wish to be, if they would

         4       notify the desk.  So we will take that

         5       procedure.

         6                      The Chair recognizes Senator

         7       Dollinger, on the resolution.

         8                      SENATOR DOLLINGER:  Mr.

         9       President.  Ralph Quattrociocchi was the best

        10       known man in Monroe County.  There are two

        11       people in this chamber that know that for a

        12       fact.  One is me and the other is Guy Velella.

        13       We both spent a lot of falls polling the name

        14       Ralph Quattrociocchi in Monroe County, and I can

        15       tell you that about 93 percent of the people in

        16       our county recognize that very distinctive

        17       Italian surname, and I can tell you that it was

        18       very difficult to run against him.

        19                      Ralph was a man of Monroe County;

        20       and I'm not surprised, I guess, that Ralph,

        21       who'd had a heart problem before, died because

        22       of a heart problem.  He gave a lot of that big

        23       heart to Monroe County and to the people there.











                                                             
1578

         1                      Although I ran against him, I've

         2       worked with him.  I worked with him once in a

         3       defense fund for him when I think he was

         4       unjustly accused of a crime, and unfortunately

         5       so.  I worked with him in the Democratic Party

         6       and then, lo and behold, I ran against him when

         7       he was both a Conservative and a Republican.

         8                      But as I told the newspapers when

         9       I learned of his death, there was never any

        10       doubt about where his heart was.  It was with

        11       the people of the county, the working people of

        12       the county and the town of Greece, his beloved

        13       home.

        14                      My regrets and sadness go to his

        15       wife and his family.  I know Ralph was buried

        16       today in Rochester.  He was an important figure

        17       in Rochester because of what he stood for and

        18       what he contributed.

        19                      And, Ralph, I wish you eternal

        20       rest.

        21                      ACTING PRESIDENT KUHL:  The Chair

        22       recognizes Senator Gold on the resolution.

        23                      SENATOR GOLD:  Thank you, Mr.











                                                             
1579

         1       President.

         2                      First of all, I'm really -- I

         3       don't know whether happy is the right word.  I

         4       am delighted that Senator Dollinger has offered

         5       the resolution and said the words that he has

         6       said.  This is a tough business and we can

         7       define the word "tough" with many other

         8       adjectives, some not so nice, and it was very

         9       difficult for me and for some of our colleagues

        10       when politics took the turns that it took, and

        11       there was some friction between Ralph and the

        12       Democratic Party.

        13                      But if the truth be told, the man

        14       was a very, very sweet lovable man whose company

        15       I enjoyed many, many days and evenings when he

        16       sat in this legislative body.  I didn't agree

        17       with him on a lot of political issues, but I

        18       could never ever allow anybody to even suggest

        19       that any vote he ever made was other than from

        20       his heart.

        21                      As a matter of fact, there were

        22       times politically when members of this

        23       conference suggested that there were safer ways











                                                             
1580

         1       of doing certain things politically, and there

         2       were safer ways of phrasing his political

         3       positions, and he really wasn't interested in

         4       that.  He was interested in saying what was on

         5       his mind and letting the chips fall where they

         6       may.

         7                      And, from my point of view, as

         8       someone who did not share a lot of his political

         9       views, I was lucky to share his company, and the

        10       man was absolutely a delight on a personal basis

        11       and I will miss him, and I want to extend my

        12       personal feelings of remorse to his family.

        13                      And, I know that wherever Ralph

        14       is he is smiling down because he is out there

        15       playing golf and George and I aren't.

        16                      ACTING PRESIDENT KUHL:  The Chair

        17       recognizes Senator Onorato on the resolution.

        18                      SENATOR ONORATO:  Mr. President.

        19       I rise, too, to join with my colleagues in

        20       expressing my extreme sorrow in hearing of the

        21       death of Ralph Quattrociocchi.

        22                      As many of you know, Ralph and I

        23       were extremely close while he was serving in











                                                             
1581

         1       this chamber.  I got him back to playing golf

         2       again, and we had many, many an enjoyable

         3       afternoon after session or before session out on

         4       that course with many of the members of this

         5       chamber.

         6                      And, Ralph's temperament on the

         7       golf course was the same as it was here in the

         8       chamber.  Nothing fazed him, didn't get excited

         9       about anything.  He did what he had to do, and

        10       he did it with all his heart and soul.

        11                      And he certainly will be missed

        12       not only by his family but by every one of us in

        13       here who consider him part of our own family;

        14       and to his family, I extend my heartfelt sorrow,

        15       and if there's anything that I can do to

        16       alleviate their pain, I hope that they will call

        17       on me to do so.

        18                      ACTING PRESIDENT KUHL:  Is there

        19       any other Senator wishing to speaking on the

        20       resolution?

        21                      Chair recognizes Senator Alesi.

        22                      SENATOR ALESI:  Thank you, Mr.

        23       President.











                                                             
1582

         1                      It's unfortunate that I would

         2       have to rise under these circumstances and, yet,

         3       I consider it a honor and a privilege to speak

         4       about Q, the man whose last name was so

         5       difficult for so many people, but it was so easy

         6       to know him and to like him.

         7                      He was certainly a man of the

         8       people, someone that could very well be a role

         9       model for so many people who were just looking

        10       for a politician who was a good man at the same

        11       time.  I think Ralph Quattrociocchi was someone

        12       that all of us, including myself, learned an

        13       awful lot from, and, unfortunately, he won't be

        14       here for us to learn so much more.

        15                      Thank you, Mr. President.

        16                      ACTING PRESIDENT KUHL:  Chair

        17       recognizes Senator Smith.

        18                      SENATOR SMITH:  Thank you, Mr.

        19       President.

        20                      It is with deep sorrow that I

        21       rise to bring condolences to the family of Ralph

        22       Quattrociocchi.

        23                      Some eight years ago when I came











                                                             
1583

         1       here, I met with Ralph's quick wit and his

         2       beautiful smile.  I will never forget my first

         3       night in Albany when we had a dinner, and he and

         4       former Senator Donald Halperin had this ongoing

         5       joke about a brick; and, somehow, the next day I

         6       ended up bringing this brick into the chambers

         7       in a briefcase, thanks to Senator Gold.

         8                      Well, Ralph, you have the brick.

         9       We miss you.  We loved you, and anything that we

        10       can do on behalf of the family, we are here.

        11                      ACTING PRESIDENT KUHL:  The

        12       question is on the resolution.

        13                      All those in favor, signify by

        14       saying aye.

        15                      (Response of "Aye.")

        16                      Opposed, nay.

        17                      (There was no response.)

        18                      The resolution is unanimously

        19       adopted.

        20                      Senator Lachman, why do you

        21       rise?

        22                      SENATOR LACHMAN:  Yes.  I was

        23       temporarily out of chamber when the vote took











                                                             
1584

         1       place on calendar item 252.  I would ask the

         2       Chair for unanimous consent to be permitted to

         3       vote in the negative on calendar item 252.

         4                      ACTING PRESIDENT KUHL:  Without

         5       objection, hearing no objection, Senator Lachman

         6       will be recorded in the negative on Calendar

         7       Number 252.

         8                      Chair recognizes -

         9                      SENATOR DEFRANCISCO:  Are there

        10       any other housekeeping matters?

        11                      ACTING PRESIDENT KUHL:  No, sir.

        12                      SENATOR DEFRANCISCO:  If not, I

        13       move that we adjourn out of respect for Senator

        14       Ralph Quattrociocchi, until 11:00 a.m. tomorrow,

        15       February 27, 1996.

        16                      ACTING PRESIDENT KUHL:  Without

        17       objection, the Senate stands adjourned until

        18       tomorrow, February 28, at 11:00 a.m., in respect

        19       to our former colleague, Ralph Quattrociocchi.

        20                      (Whereupon, at 5:26 p.m., Senate

        21       adjourned.)

        22

        23