Regular Session - August 3, 1997

                                                                 
7440

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         7                  ALBANY, NEW YORK

         8                   August 3, 1997

         9                      2:40 p.m.

        10

        11

        12                  REGULAR SESSION

        13

        14

        15

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

        17       STEPHEN F. SLOAN, Secretary

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        25







                                                             
7441

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

         2                      ACTING PRESIDENT KUHL:  Senate

         3       will come to order.  Members take their places.

         4       Staff take their places.

         5                      I'd ask everybody in the chamber

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

         7       Allegiance to the Flag.

         8                      (Whereupon, the Senate and those

         9       present joined in the Pledge of Allegiance to

        10       the Flag.)

        11                      In the absence of clergy, may we

        12       bow our heads in a moment of silence.

        13                      (Whereupon, there was a moment of

        14       silence.)

        15                      Reading of the Journal.

        16                      THE SECRETARY:  In Senate,

        17       Saturday, August 2nd.  The Senate met pursuant

        18       to adjournment.  The Journal of Friday, August

        19       1st, was read and approved.  On motion, Senate

        20       adjourned.

        21                      ACTING PRESIDENT KUHL:  Hearing

        22       no objection, the Journal stands approved as

        23       read.

        24                      Presentation of petitions.

        25                      Messages from the Assembly.







                                                             
7442

         1                      Messages from the Governor.

         2                      Reports of standing committees.

         3                      Reports of select committees.

         4                      Communications and reports from

         5       state officers.

         6                      Motions and resolutions.

         7                      Senator Marcellino.

         8                      SENATOR MARCELLINO:  Thank you,

         9       Mr. President.  On behalf of myself, I wish to

        10       call up my bill, Print Number 5620, recalled

        11       from the Assembly, which is now at the desk.

        12                      ACTING PRESIDENT KUHL:  The

        13       Secretary will read.

        14                      THE SECRETARY:  By Senator

        15       Marcellino, Senate Print 5620, an act

        16       authorizing the county of Suffolk.

        17                      ACTING PRESIDENT KUHL:  Senator

        18       Marcellino.

        19                      SENATOR MARCELLINO:  Mr.

        20       President, I now move to reconsider the vote by

        21       which this bill was passed.

        22                      ACTING PRESIDENT KUHL:  The

        23       Secretary will call the roll on reconsideration.

        24                      (The Secretary called the roll on

        25       reconsideration.)







                                                             
7443

         1                      THE SECRETARY:  Ayes 39.

         2                      ACTING PRESIDENT KUHL:  The bill

         3       is before the house.

         4                      Senator Marcellino.

         5                      SENATOR MARCELLINO:  Mr.

         6       President, I now offer the following amendments.

         7                      ACTING PRESIDENT KUHL:

         8       Amendments are received and adopted.

         9                      SENATOR MARCELLINO:  Thank you.

        10                      ACTING PRESIDENT KUHL:  Senator

        11       Marcellino.

        12                      SENATOR MARCELLINO:  Mr.

        13       President, on behalf of Senator Stafford, on

        14       page number 4, I offer the following amendments

        15       to Calendar Number 1155, Senate Print Number

        16       5349A, and ask that said bill retain its place

        17       on the Third Reading Calendar.

        18                      ACTING PRESIDENT KUHL:

        19       Amendments are received and adopted.  The bill

        20       will retain its place on the Third Reading

        21       Calendar.

        22                      SENATOR MARCELLINO:  Thank you.

        23                      ACTING PRESIDENT KUHL:  Senator

        24       Lack.

        25                      SENATOR LACK:  Thank you, Mr.







                                                             
7444

         1       President.  I would like to announce that in 14

         2       minutes, at 3:00 o'clock, there will be a

         3       Committee on Judiciary meeting in Room 332, the

         4       Majority Conference Room.

         5                      ACTING PRESIDENT KUHL:  There

         6       will be a Judiciary Committee meeting at 3:00

         7       p.m. this afternoon in the Majority Conference

         8       Room, Room 332.

         9                      Senator Skelos.

        10                      SENATOR SKELOS:  Are there any

        11       substitutions to make at this time?

        12                      ACTING PRESIDENT KUHL:  None at

        13       the desk.

        14                      SENATOR SKELOS:  Mr. President,

        15       there will be an immediate meeting of the Rules

        16       Committee in the Majority Conference Room, and

        17       if we could take up Calendar 65,

        18       noncontroversial.

        19                      ACTING PRESIDENT KUHL:  There

        20       will be an immediate meeting of the Rules

        21       Committee, immediate meeting of the Rules

        22       Committee in the Majority Conference Room, Room

        23       332.

        24                      Senator Skelos.

        25                      SENATOR SKELOS:  If we could take







                                                             
7445

         1       up Calendar Number 1616 first.

         2                      ACTING PRESIDENT KUHL:  Secretary

         3       will read the title to Calendar Number 1616.

         4                      THE SECRETARY:  Calendar Number

         5       1616, by the Committee on Rules, Senate Print

         6       5778, an act to amend the Racing, Pari-Mutuel

         7       Wagering and Breeding law.

         8                      ACTING PRESIDENT KUHL:  The

         9       motion is to accept the message of necessity

        10       which is at the desk on Calendar Number 1616.

        11                      All those in favor, signify by

        12       saying aye.

        13                      (Response of "Aye.")

        14                      Opposed, nay.

        15                      (There was no response.)

        16                      The message is accepted.

        17                      SENATOR STACHOWSKI:  Explanation.

        18                      ACTING PRESIDENT KUHL:  Senator

        19       Larkin, are you doing the explanation of

        20       Calendar Number 1616?

        21                      SENATOR LARKIN:  Yes.

        22                      ACTING PRESIDENT KUHL:  Senator

        23       Stachowski asked for an explanation.

        24                      SENATOR LARKIN:  Bill, all this

        25       does is extend simulcasting for another day.







                                                             
7446

         1                      ACTING PRESIDENT KUHL:  The

         2       Secretary will read the last section.

         3                      THE SECRETARY:  Section 5.  This

         4       act shall take effect immediately.

         5                      ACTING PRESIDENT KUHL:  Call the

         6       roll.

         7                      (The Secretary called the roll.)

         8                      ACTING PRESIDENT KUHL:  Record

         9       the negatives and announce the results.

        10                      THE SECRETARY:  Ayes 38, nays 2,

        11       Senators Padavan and Tully recorded in the

        12       negative.

        13                      ACTING PRESIDENT KUHL:  The bill

        14       is passed.

        15                      Senator Holland.

        16                      SENATOR HOLLAND:  Senator Kuhl,

        17       can we do Calendar 485, please.

        18                      ACTING PRESIDENT KUHL:  Secretary

        19       will read the title to Calendar Number 485.

        20                      THE SECRETARY:  Calendar Number

        21       485, by Senator Bruno, Senate Print 3A, an act

        22       to amend the Education Law.

        23                      SENATOR HOLLAND:  Is there a

        24       message of necessity, Mr. President?

        25                      ACTING PRESIDENT KUHL:  There is.







                                                             
7447

         1                      SENATOR HOLLAND:  Move we accept

         2       the message.

         3                      ACTING PRESIDENT KUHL:  The

         4       motion is to accept the message of necessity on

         5       Calendar Number 485.

         6                      All those in favor, signify by

         7       saying aye.

         8                      (Response of "Aye.")

         9                      Opposed, nay.

        10                      (There was no response.)

        11                      The message is accepted.

        12                      The Secretary will read the last

        13       section.

        14                      THE SECRETARY:  Section 10.  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 40.

        20                      ACTING PRESIDENT KUHL:  The bill

        21       is passed.

        22                      SENATOR HOLLAND:  Mr. President,

        23       may we do Calendar 1577, please.

        24                      ACTING PRESIDENT KUHL:  Secretary

        25       will read Calendar Number 1577.







                                                             
7448

         1                      THE SECRETARY:  Calendar Number

         2       1577, by Senator Seward, Senate Print 5730A, an

         3       act to amend a Chapter of the Laws of 1997.

         4                      ACTING PRESIDENT KUHL:  The

         5       Secretary will read the last section.

         6                      THE SECRETARY:  Section 3.  This

         7       act shall take effect on the same date as such

         8       chapter.

         9                      ACTING PRESIDENT KUHL:  Call the

        10       roll.

        11                      (The Secretary called the roll.)

        12                      THE SECRETARY:  Ayes 40.

        13                      ACTING PRESIDENT KUHL:  The bill

        14       is passed.

        15                      SENATOR HOLLAND:  Mr. President,

        16       can we do Calendar 1614, please.

        17                      ACTING PRESIDENT KUHL:  Secretary

        18       will read Calendar Number 1614.

        19                      THE SECRETARY:  Calendar Number

        20       1614, by Senator Meier, Senate Print 5743, an

        21       act to amend the Alcoholic Beverage Control Law.

        22                      ACTING PRESIDENT KUHL:  Senator

        23       Holland.

        24                      SENATOR HOLLAND:  Is there a

        25       message of necessity at the desk?







                                                             
7449

         1                      ACTING PRESIDENT KUHL:  There is.

         2                      SENATOR HOLLAND:  Move the

         3       message.

         4                      ACTING PRESIDENT KUHL:  The

         5       motion is to accept the message of necessity on

         6       Calendar Number 1614.

         7                      All those in favor, signify by

         8       saying aye.

         9                      (Response of "Aye.")

        10                      Opposed, nay.

        11                      (There was no response.)

        12                      The message is accepted.

        13                      The Secretary will read the last

        14       section.

        15                      SENATOR DOLLINGER:  Explanation.

        16                      ACTING PRESIDENT KUHL:  Senator

        17       Meier, an explanation of Calendar Number 1614

        18       has been requested by Senator Dollinger.

        19                      SENATOR MEIER:  Thank you, Mr.

        20       President.  Although I was not here last year,

        21       members will recall that last year legislation

        22       was changed with regard to the brewing industry

        23       and its relationship with wholesalers and the

        24       nature of the agreements between them.

        25                      At the time that the Governor







                                                             
7450

         1       approved and signed that bill into law, the

         2       message of approval indicated certain concerns

         3       expressed mostly on the part of the small native

         4       breweries within the state of New York.  The

         5       bill before the Senate today addresses those

         6       concerns.

         7                      Generally speaking, what it does

         8       is in the instance of agreements that are made

         9       between a wholesaler and a large national

        10       brewery or a limited partnership formed between

        11       a wholesaler and a large national brewery or a

        12       credit arrangement between them that would

        13       result in a concern on the part of smaller

        14       native brewers that they might, in effect, be

        15       squeezed out of the wholesale market:

        16                      First, that notice of that change

        17       be given so that they can work with the

        18       wholesaler to take care of those concerns;

        19                      Secondly, if the concern becomes

        20       realized that they are able, because of that

        21       change in the marketing strategy that squeezes

        22       out the native smaller brewers, to terminate the

        23       agreement.

        24                      That's broadly speaking what this

        25       does.







                                                             
7451

         1                      ACTING PRESIDENT KUHL:  Senator

         2       Dollinger.

         3                      SENATOR DOLLINGER:  If Senator

         4       Meier will yield?

         5                      ACTING PRESIDENT KUHL:  Senator

         6       Meier, will you yield to a question?

         7                      SENATOR MEIER:  Yes.

         8                      ACTING PRESIDENT KUHL:  The

         9       Senator yields.

        10                      SENATOR DOLLINGER:  Senator, I

        11       appreciate the intent of this bill, and I have

        12       not been through all the text of it, but last

        13       year when we did the franchisee wholesalers

        14       agreement for the brewing industry, F.X. Matt's

        15       and Genesee Brewery were two of the native

        16       brewers that you, I think, are referencing, came

        17       out in opposition to that bill and led the

        18       opposition to that bill, and I voted against

        19       that bill because Genesee Brewery is one of the

        20       largest employers right in the heart of

        21       Rochester, New York.

        22                      My question is, do you know

        23       whether those breweries have had an opportunity

        24       to look at this bill and determine a position on

        25       it?







                                                             
7452

         1                      SENATOR MEIER:  Yes, they have.

         2       My understanding is that the Matt Brewing

         3       Company supports this bill.  I do have a letter

         4       in my hand from the Vice-President and General

         5       Counsel of Genesee, who indicates that his

         6       company neither opposes nor supports this bill.

         7                      SENATOR DOLLINGER:  May I just

         8       examine that for a second.

         9                      Mr. President, on the bill.

        10                      ACTING PRESIDENT KUHL:  Senator

        11       Dollinger, on the bill.

        12                      SENATOR DOLLINGER:  Mr.

        13       President, I'm going to vote in favor of this

        14       technical correction.  I want to commend Senator

        15       Meier and the Governor's office for working to

        16       correct some of the deficiencies in the bill

        17       last year.  The bill last year was largely

        18       written for major national wholesalers of beer,

        19       and it created, in my judgment, a disincentive

        20       for the system to support our native brewing

        21       industry and for someone who represents, as I

        22       said, 600 employees of the Genesee Brewing

        23       Company -- I didn't get a chance to read the

        24       whole memo, but it appears as though they have

        25       at least taken a position of neutrality and that







                                                             
7453

         1       this bill may improve to some extent the

         2       competitive disadvantage that they now have

         3       against large national wholesalers.

         4                      So I'm going to support this, Mr.

         5       President.  I wish I had actually gotten the

         6       memo from Genesee Brewery directly, but I will

         7       support this move, and I think it's a good step,

         8       and I commend the Governor and Senator Meier and

         9       others for working on this problem to make sure

        10       that our -- when we try to improve the lot of

        11       franchisees, we don't do it at the expense of

        12       our own brewing industry.

        13                      ACTING PRESIDENT KUHL:  Is there

        14       any other Senator wishing to speak on the bill?

        15                      Hearing none, the Secretary will

        16       read the last section.

        17                      THE SECRETARY:  Section 5.  This

        18       act shall take effect immediately.

        19                      ACTING PRESIDENT KUHL:  Call the

        20       roll.

        21                      (The Secretary called the roll.)

        22                      THE SECRETARY:  Ayes 44.

        23                      ACTING PRESIDENT KUHL:  The bill

        24       is passed.

        25                      Senator Holland.







                                                             
7454

         1                      SENATOR HOLLAND:  Mr. President,

         2       can we stand at ease awaiting the report of the

         3       Rules Committee, please.

         4                      ACTING PRESIDENT KUHL:  The

         5       Senate will stand at ease.

         6                      (Whereupon, at 2:58 p.m., the

         7       Senate was at until 3:04 p.m.)

         8                      ACTING PRESIDENT KUHL:  Senate

         9       will come to order.

        10                      SENATOR HOLLAND:  Mr. President.

        11                      ACTING PRESIDENT KUHL:  Senator

        12       Holland.

        13                      SENATOR HOLLAND:  Mr. President,

        14       do you have some housekeeping?

        15                      ACTING PRESIDENT KUHL:  Yes.

        16       We'll return to the order of motions and

        17       resolutions.

        18                      The Chair recognizes Senator

        19       Marcellino.

        20                      SENATOR MARCELLINO:  Thank you,

        21       Mr. President.  On behalf of Senator Larkin, I

        22       wish to call up his bill, Print Number 4285A,

        23       recalled from the Assembly, which is now at the

        24       desk.

        25                      ACTING PRESIDENT KUHL:  The







                                                             
7455

         1       Secretary will read.

         2                      THE SECRETARY:  By Senator

         3       Larkin, Senate Print 4285A, an act to amend the

         4       General Municipal Law.

         5                      ACTING PRESIDENT KUHL:  Senator

         6       Marcellino.

         7                      SENATOR MARCELLINO:  Mr.

         8       President, I now move to reconsider the vote by

         9       which this bill was passed.

        10                      ACTING PRESIDENT KUHL:  The

        11       Secretary will call the roll on reconsideration.

        12                      (The Secretary called the roll on

        13       reconsideration.)

        14                      THE SECRETARY:  Ayes 45.

        15                      ACTING PRESIDENT KUHL:  The bill

        16       is before the house.

        17                      Senator Marcellino.

        18                      SENATOR MARCELLINO:  Mr.

        19       President, I now offer the following amendments.

        20                      ACTING PRESIDENT KUHL:  The

        21       amendments are received and adopted.

        22                      SENATOR MARCELLINO:  Thank you,

        23       sir.

        24                      ACTING PRESIDENT KUHL:  Senator

        25       Holland.







                                                             
7456

         1                      SENATOR HOLLAND:  Mr. President,

         2       can we return to the order of standing

         3       committees and have a report of the Rules

         4       Committee, please.

         5                      ACTING PRESIDENT KUHL:  We'll

         6       return to the order of reports of standing

         7       committees.

         8                      The Secretary will read the

         9       report of the Rules Committee, which is at the

        10       desk.

        11                      THE SECRETARY:  Senator Bruno,

        12       from the Committee on Rules, offers up the

        13       following bills:

        14                      Senate Print 95A, by Senator

        15       Velella, an act to amend the Insurance Law;

        16                      Senate Print 1456A, by Senator

        17       Kuhl, an act to amend the Alcoholic Beverage

        18       Control Law;

        19                      Assembly Print 7548, by the

        20       Committee on Rules, an act to amend the Tax Law;

        21                      Senate Print 5531, by the

        22       Committee on Rules, an act to amend Section 564

        23       of the Laws of 1970;

        24                      2808, by Senator Montgomery, an

        25       act to authorize the city of New York;







                                                             
7457

         1                      5358B, by Senator Wright, an act

         2       to amend the County Law;

         3                      5485A, by Senator Marcellino, an

         4       act to amend the Environmental Conservation Law;

         5                      5632, by the Committee on Rules,

         6       an act to amend the Tax Law;

         7                      5710, by Senator Velella, an act

         8       to amend the Penal Law;

         9                      5744, by Senator Johnson, an act

        10       to amend the Insurance Law;

        11                      5754, by Senator Velella, an act

        12       to amend the Insurance Law; and

        13                      5771, by Senator Saland, an act

        14       to amend the Social Services Law.

        15                      All bills directly for third

        16       reading.

        17                      ACTING PRESIDENT KUHL:  Senator

        18       Holland.

        19                      SENATOR HOLLAND:  Mr. President,

        20       I move we accept the report of the Rules

        21       Committee.

        22                      ACTING PRESIDENT KUHL:  The

        23       motion is to accept the report of the Rules

        24       Committee.

        25                      All those in favor, signify by







                                                             
7458

         1       saying aye.

         2                      (Response of "Aye.")

         3                      Opposed, nay.

         4                      (There was no response.)

         5                      The Rules Report is accepted.

         6                      Bills are ordered directly to

         7       third reading.

         8                      Senator Holland.

         9                      SENATOR HOLLAND:  Mr. President,

        10       can we do the Supplemental Calendar 65A, the

        11       noncontroversial reading, please.

        12                      ACTING PRESIDENT KUHL:  The

        13       Secretary will read the noncontroversial reading

        14       of Supplemental Calendar 65A, which is on the

        15       members' desks together with the bills.

        16                      THE SECRETARY:  Calendar Number

        17       233, by Senator Velella, Senate Print 95A, an

        18       act to amend the Insurance Law.

        19                      ACTING PRESIDENT KUHL:  The

        20       Secretary will read the last section.

        21                      THE SECRETARY:  Section 2.  This

        22       act shall take effect immediately.

        23                      ACTING PRESIDENT KUHL:  Call the

        24       roll.

        25                      (The Secretary called the roll.)







                                                             
7459

         1                      THE SECRETARY:  Ayes 45.

         2                      ACTING PRESIDENT KUHL:  The bill

         3       is passed.

         4                      THE SECRETARY:  In relation to

         5       Calendar Number 876, Senator Kuhl moves to

         6       discharge from the Committee on Rules Assembly

         7       Print 1524A and substitute it for the identical

         8       Senate bill, Third Reading 876.

         9                      ACTING PRESIDENT KUHL:  The

        10       substitution is ordered.  The Secretary will

        11       read the title.

        12                      THE SECRETARY:  Calendar Number

        13       876, by Member of the Assembly Matusow, Assembly

        14       Print 1524A, an act to amend the Alcoholic

        15       Beverage Control Law.

        16                      ACTING PRESIDENT KUHL:  The

        17       Secretary will read the last section.

        18                      THE SECRETARY:  Section 2.  This

        19       act shall take effect immediately.

        20                      ACTING PRESIDENT KUHL:  Call the

        21       roll.

        22                      (The Secretary called the roll.)

        23                      THE SECRETARY:  Ayes 45.

        24                      ACTING PRESIDENT KUHL:  The bill

        25       is passed.







                                                             
7460

         1                      THE SECRETARY:  Calendar Number

         2       896, by the Assembly Committee on Rules,

         3       Assembly Print 7548, an act to amend the Tax

         4       Law.

         5                      ACTING PRESIDENT KUHL:  The

         6       Secretary will read the last section.

         7                      THE SECRETARY:  Section 2.  This

         8       act shall take effect immediately.

         9                      ACTING PRESIDENT KUHL:  Call the

        10       roll.

        11                      (The Secretary called the roll.)

        12                      THE SECRETARY:  Ayes 45.

        13                      ACTING PRESIDENT KUHL:  The bill

        14       is passed.

        15                      THE SECRETARY:  Calendar Number

        16       1353, by the Committee on Rules, Senate Print

        17       5531, an act to amend Section 564 of Chapter 170

        18       of the Laws of 1994.

        19                      ACTING PRESIDENT KUHL:  The

        20       Secretary will read the last section.

        21                      THE SECRETARY:  Section 2.  This

        22       act shall take effect immediately.

        23                      ACTING PRESIDENT KUHL:  Call the

        24       roll.

        25                      (The Secretary called the roll.)







                                                             
7461

         1                      THE SECRETARY:  Ayes 45.

         2                      ACTING PRESIDENT KUHL:  The bill

         3       is passed.

         4                      THE SECRETARY:  Calendar Number

         5       1615, by Senator Montgomery, Senate Print 2808,

         6       an act to authorize the city of New York to

         7       reconvey its interest.

         8                      ACTING PRESIDENT KUHL:  There is

         9       a home rule message at the desk.

        10                      The Secretary will read the last

        11       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 45.

        18                      ACTING PRESIDENT KUHL:  The bill

        19       is passed.

        20                      THE SECRETARY:  Calendar Number

        21       1617, by Senator Wright, Senate Print 5358B, an

        22       act to amend the County Law.

        23                      ACTING PRESIDENT KUHL:  There is

        24       a home rule message at the desk.

        25                      The Secretary will read the last







                                                             
7462

         1       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 45.

         8                      ACTING PRESIDENT KUHL:  The bill

         9       is passed.

        10                      THE SECRETARY:  In relation to

        11       Calendar Number 1618, Senator Marcellino moves

        12       to discharge from the Committee on Rules

        13       Assembly Print 7909C and substitute it for the

        14       identical Senate print, Third Reading 1618.

        15                      ACTING PRESIDENT KUHL:

        16       Substitution is ordered.  The Secretary will

        17       read the title.

        18                      THE SECRETARY:  Calendar Number

        19       1618, by the Assembly Committee on Rules,

        20       Assembly Print 7909C, an act to amend the

        21       Environmental Conservation Law.

        22                      ACTING PRESIDENT KUHL:  The

        23       Secretary will read the last section.

        24                      THE SECRETARY:  Section 2.  This

        25       act shall take effect immediately.







                                                             
7463

         1                      ACTING PRESIDENT KUHL:  Call the

         2       roll.

         3                      (The Secretary called the roll.)

         4                      THE SECRETARY:  Ayes 45.

         5                      ACTING PRESIDENT KUHL:  The bill

         6       is passed.

         7                      THE SECRETARY:  In relation to

         8       Calendar Number 1619, Senator Bruno moves to

         9       discharge from the Committee on Rules Assembly

        10       Print 8340 and substitute it for the identical

        11       Senate bill, Third Reading 1619.

        12                      ACTING PRESIDENT KUHL:

        13       Substitution is ordered.  Secretary will read

        14       the title.

        15                      THE SECRETARY:  Calendar Number

        16       1619, by the Assembly Committee on Rules,

        17       Assembly Print 8340, an act to amend the Tax

        18       Law.

        19                      ACTING PRESIDENT KUHL:  The

        20       Secretary will read the last section.

        21                      THE SECRETARY:  Section 2.  This

        22       act shall take effect immediately.

        23                      ACTING PRESIDENT KUHL:  Call the

        24       roll.

        25                      (The Secretary called the roll.)







                                                             
7464

         1                      THE SECRETARY:  Ayes 45.

         2                      ACTING PRESIDENT KUHL:  The bill

         3       is passed.

         4                      THE SECRETARY:  Calendar Number

         5       1620, by Senator Velella, Senate Print 5710, an

         6       act to amend the Penal Law.

         7                      ACTING PRESIDENT KUHL:  The

         8       Secretary will read the last section.

         9                      THE SECRETARY:  Section 4.  This

        10       act shall take effect on the 1st day of

        11       November.

        12                      ACTING PRESIDENT KUHL:  Call the

        13       roll.

        14                      (The Secretary called the roll.)

        15                      THE SECRETARY:  Ayes 45.

        16                      ACTING PRESIDENT KUHL:  The bill

        17       is passed.

        18                      THE SECRETARY:  Calendar Number

        19       1621, by Senator Johnson, Senate Print 5744, an

        20       act to amend the Insurance Law.

        21                      ACTING PRESIDENT KUHL:  The

        22       Secretary will read the last section.

        23                      THE SECRETARY:  Section 4.  This

        24       act shall take effect on the same date as a

        25       chapter of the laws of 1997.







                                                             
7465

         1                      ACTING PRESIDENT KUHL:  Call the

         2       roll.

         3                      (The Secretary called the roll.)

         4                      THE SECRETARY:  Ayes 45.

         5                      ACTING PRESIDENT KUHL:  The bill

         6       is passed.

         7                      THE SECRETARY:  Calendar Number

         8       1622, by Senator Velella, Senate Print 5754, an

         9       act to amend the Insurance Law.

        10                      ACTING PRESIDENT KUHL:  The

        11       Secretary will read the last section.

        12                      THE SECRETARY:  Section 8.  This

        13       act shall take effect in 90 days.

        14                      ACTING PRESIDENT KUHL:  Call the

        15       roll.

        16                      (The Secretary called the roll.)

        17                      THE SECRETARY:  Ayes 45.

        18                      ACTING PRESIDENT KUHL:  The bill

        19       is passed.

        20                      THE SECRETARY:  For the benefit

        21       of the members, Calendar Number 1623 is high.

        22       There is no message at the desk.  So the bill

        23       has to be laid aside.

        24                      Senator Holland, that completes

        25       the reading of the noncontroversial Supplemental







                                                             
7466

         1       Calendar No. 65A.

         2                      SENATOR HOLLAND:  Mr. President,

         3       can we stand at ease awaiting the report of the

         4       Judiciary Committee.

         5                      ACTING PRESIDENT KUHL:  The

         6       Senate will stand at ease awaiting the report of

         7       the Judiciary Committee.

         8                      (Whereupon, at 3:12 p.m., the

         9       Senate was at ease until 4:07 p.m.)

        10                      ACTING PRESIDENT KUHL:  Senate

        11       will come to order.  I ask the members to find

        12       their places, staff to find their places.

        13                      Senator Holland.

        14                      SENATOR HOLLAND:  Mr. President,

        15       may we return to reports of standing committees

        16       for a report of Judiciary Committee, please.

        17                      ACTING PRESIDENT KUHL:  Return to

        18       the order of reports of standing committees.

        19       There is a report of the Judiciary Committee at

        20       the desk.

        21                      I'll ask the Secretary to read

        22       it.

        23                      THE SECRETARY:  Senator Lack,

        24       from the Committee on Judiciary, offers up the

        25       following nominations:







                                                             
7467

         1                      As a Judge of the Family Court of

         2       Nassau County, Richard S. Lawrence, of Merrick.

         3                      ACTING PRESIDENT KUHL:  Senator

         4       Lack.

         5                      SENATOR LACK:  Thank you, Mr.

         6       President.

         7                      I rise to move the nomination of

         8       Richard S. Lawrence of Merrick as a Judge of the

         9       Family Court of Nassau County.  Mr. Lawrence

        10       appeared before the Committee on Judiciary

        11       today.  His credentials have been looked at by

        12       the staff of the committee.  He appeared before

        13       the committee which has unanimously moved -

        14       moved him to the floor.

        15                      I would like if I could, before

        16       yielding to Senator Tully, to say a word on

        17       behalf of our colleague, Senator Norman Levy,

        18       who called me yesterday to talk about his very

        19       longtime friend Richard Lawrence, who has served

        20       as a counsel on his staff and has been a close

        21       and intimate friend of his for many years.

        22                      Senator Levy, of course,

        23       regretted not being able to be here on the floor

        24       today so that he himself could stand and say how

        25       well he thought of this appointment and to thank







                                                             
7468

         1       the Governor on his behalf -- Senator Levy's

         2       behalf -- for the appointment of Mr. Lawrence to

         3       the bench, and that he considered -- Senator

         4       Levy did -- Mr. Lawrence's experience, his

         5       demeanor, his close ties to a variety of

         6       community organizations in Nassau County to be

         7       of such great extent that he more than welcomed

         8       the appointment and is just sorry that he can't

         9       be here today personally to stand and say that

        10       himself.

        11                      So on behalf of both myself and

        12       Senator Levy, I would most respectfully yield to

        13       Senator Mike Tully for purposes of a second.

        14                      ACTING PRESIDENT KUHL:  Chair

        15       recognizes Senator Tully, on the nomination.

        16                      SENATOR TULLY:  Thank you, Mr.

        17       President.

        18                      I'd like to take the opportunity

        19       to congratulate the Governor on his fine

        20       nomination of Richard Lawrence to be a Judge of

        21       the Family Court in Nassau County.  I've known

        22       Richard since he was a very, very young man.  He

        23       holds his age very well.  I wish I could say the

        24       same, and I'd like all to know that Richard

        25       comes from a judicial family.  His father's a







                                                             
7469

         1       judge, and was one of my early neighbors when I

         2       first moved into the county.  He was very

         3       helpful to me as a young attorney.

         4                      And in Richard's case, he comes

         5       with all of the qualifications that one would

         6       want in a member of the judiciary.  He is

         7       well-schooled.  He is very, very intelligent.

         8       He has judicial temperament, and beyond all

         9       that, he has been very, very active in his

        10       community.  He has worked very actively in his

        11       bar association.  He has been involved in the

        12       grievance committee of the bar association and

        13       involved in the grievance committee of the

        14       Appellate Division.

        15                      I think all of us will be served

        16       by this nomination.  I am privileged to be here

        17       to confirm it today.

        18                      Thank you, Mr. President.

        19                      ACTING PRESIDENT KUHL:  Senator

        20       Marcellino, on the nomination.

        21                      SENATOR MARCELLINO:  Thank you,

        22       Mr. President.

        23                      I have known Richard Lawrence for

        24       many, many years.  As a former teacher, I've had

        25       a lot of dealings with people involved in Family







                                                             
7470

         1       Court, and I can think of no better person with

         2       no better temperament to go into that very

         3       difficult situation and do it with intelligence,

         4       common sense and just the right touch of

         5       caring.  Dick will be a fine addition to the

         6       Court.

         7                      Congratulations and Godspeed to

         8       you.

         9                      ACTING PRESIDENT KUHL:  Senator

        10       Skelos, on the nomination.

        11                      SENATOR SKELOS:  Mr. President,

        12       thank you.

        13                      I would like to join my

        14       colleagues from Nassau County in congratulating

        15       you, Rick, on this appointment.

        16                      I've had the opportunity to

        17       attend numerous functions with you over the

        18       years as you have represented Senator Levy in

        19       such a fine way.  I know that this is a very

        20       special day for Norman with you being confirmed

        21       as a judge of the Nassau County Family Court,

        22       and I know Norman is at home with Joy right now,

        23       smiling, and thanking the Governor for this

        24       nomination.

        25                      Congratulations.







                                                             
7471

         1                      ACTING PRESIDENT KUHL:  Is there

         2       any other Senator wishing to speak on the

         3       nomination?

         4                      Hearing none, the question is on

         5       the nomination of Richard S. Lawrence of

         6       Merrick, New York, to become a Judge of the

         7       Family Court of Nassau County.

         8                      All those in favor of the

         9       nomination, signify by saying aye.

        10                      (Response of "Aye.")

        11                      Opposed, nay.

        12                      (There was no response.)

        13                      The nominee is unanimously

        14       confirmed.

        15                      We are very, very pleased to have

        16       Mr. Lawrence with us in the chamber in the

        17       gallery on your left.  He is joined with his

        18       wife, Ronnie; son, Kyle; and friends John Ward,

        19       Mr. Chin, Marge and George Leibowitz.

        20                      If you would rise, please, and be

        21       recognized by the chamber, I know they wish you

        22       all well.

        23                      (Applause.)

        24                      The Secretary will continue to

        25       read.







                                                             
7472

         1                      THE SECRETARY:  As a judge of the

         2       Family Court of Suffolk County, Ettore A.

         3       Simeone, of Islip Terrace.

         4                      ACTING PRESIDENT KUHL:  Senator

         5       Lack.

         6                      SENATOR LACK:  Thank you, Mr.

         7       President.

         8                      I rise to move the nomination of

         9       Ettore A. Simeone of Islip Terrace, who has been

        10       nominated by the Governor as a judge of the

        11       Suffolk County Family Court.

        12                      "Et", as he is known universally

        13       to everyone, has had his credentials vetted by

        14       the staff of the Senate Judiciary Committee.  He

        15       appeared before the committee just before, about

        16       a half hour ago and was unanimously confirmed

        17       and his nomination moved to the floor of the

        18       Senate.

        19                      Et Simeone is currently principal

        20       Law Clerk to Supreme Court Justice Pat Leis, and

        21       in that capacity he works in the -- by

        22       designation, that is, Justice Leis, as the

        23       Article 81 Judge for Suffolk County.

        24                      For those of you who do not

        25       remember, Article 81, of course, is the







                                                             
7473

         1       guardianship article and requires some of the

         2       most complex legal and nonlegal maneuvers by

         3       anybody who is attached to that part.  It also

         4       requires that you have to have a demeanor equal

         5       to that of Job.  You have to be able to take

         6       what are ordinary occurrences for any of us and

         7       put it into the complexion of Article 81 and the

         8       requirements attached thereto.

         9                      I can't think of a better

        10       appointment the Governor can make to Family

        11       Court of Suffolk County than somebody like Et

        12       Simeone, who has spent years of doing just that,

        13       being able to take the ordinary, put it into the

        14       complex requirements of our legal system, and

        15       make sure that people come out of it whole.  If

        16       there is a better definition for how to become a

        17       Family Court Judge, I don't know it.

        18                      I'm not going to go on too much

        19       longer because I know Senator Trunzo has a few

        20       remarks he'd like to make to second the

        21       nomination.

        22                      But, Et, I'd like to offer you my

        23       congratulations and the Governor for appointing

        24       you for this nomination and wish you great

        25       success in our Family Court in Suffolk County.







                                                             
7474

         1                      And, Mr. President, I would most

         2       respectfully yield to Senator Trunzo.

         3                      ACTING PRESIDENT KUHL:  The Chair

         4       recognizes Senator Trunzo, on the nomination.

         5                      SENATOR TRUNZO:  Thank you, Mr.

         6       President.

         7                      Senator Lack, you took my speech

         8       away.  I have known Et Simeone for many years,

         9       and even though his name is Ettore, there's not

        10       too many people who understand what that is, but

        11       it's a good old Italian name.  But Et Simeone

        12       has been a friend and a very dedicated

        13       individual and, as Senator Lack pointed out, he

        14       has been the principal law clerk for Supreme

        15       Court Justice Patrick Leis.

        16                      But prior to that, he was also,

        17       for eight years, an assistant district attorney

        18       of Suffolk County, and he served in the Felony

        19       Trial Bureau as well as the Rackets Bureau,

        20       among many others, and also had been in private

        21       practice working very much on matrimonial and

        22       Family Court items.

        23                      He has spent quite a bit of his

        24       time active in the community.  He's a very

        25       active individual, having belonged to many, many







                                                             
7475

         1       organizations -- community organizations as well

         2       as professional organizations, such as East

         3       Islip Soccer League, East Islip Little League,

         4       Knights of Columbus, Sons of Italy, and many of

         5       the other organizations, professional

         6       organizations within the law practice.

         7                      He is highly respected by his

         8       peers, and he has done an outstanding job, and I

         9       would like to really commend the Governor for

        10       making this appointment for Et Simeone to be

        11       Family Court Judge.

        12                      And with that, I wish you lots of

        13       luck, Et.  I'm sure you will do a great job.

        14                      ACTING PRESIDENT KUHL:  Chair

        15       recognizes Senator LaValle on the nomination.

        16                      SENATOR LAVALLE:  Thank you, Mr.

        17       President.  I, too, rise to commend the Governor

        18       in this nomination, and I think we can't say

        19       enough.  The Family Court is a difficult court

        20       and it requires that the judge have the kind of

        21       temperament, have the kind of concern in dealing

        22       with young people.

        23                      Et has always been involved in

        24       his community from the time he was in high

        25       school, college and into this very time, and I







                                                             
7476

         1       think that being a father of five children also

         2       will be very, very helpful in making him a

         3       sensitive judge in a court that requires

         4       sensitivity and a steady hand.

         5                      Congratulations to Et and his

         6       family.

         7                      ACTING PRESIDENT KUHL:  Senator

         8       Johnson, on the nomination.

         9                      SENATOR JOHNSON:  Mr. President,

        10       I would like to also rise to commend the

        11       Governor on this very fitting nomination.

        12                      Certainly, you have heard of the

        13       background of this candidate from Senator Lack

        14       and Senator Trunzo, but I can tell you that I've

        15       been privileged to know his family, I guess,

        16       perhaps before he was born or just about that

        17       time and other relatives of his, and realize

        18       that here's a young fellow who went to school in

        19       West Babylon like many others -- North Babylon,

        20       next to our community of West Babylon -- took

        21       advantage of every opportunity, was active in

        22       his schools, got very good grades, got to

        23       college, very good education, working, had

        24       positions even while he was going to college,

        25       and he worked himself up to a position where now







                                                             
7477

         1       he's a very well respected lawyer, has a

         2       wonderful wife, Terry, a family.  In fact, his

         3       mother is with him.

         4                      This is really the American

         5       success story, and I just tell you I rise to say

         6       I'm very proud to know this young man and -- not

         7       a young man any more -- middle-aged man, but to

         8       see what he's made of his life and he's a great

         9       example to others, his family and others in the

        10       community and in the State of New York that you

        11       can make what you want of yourself, and I'm just

        12       proud that he has achieved this estimable

        13       position that we can be here to nominate -

        14       confirm his nomination, rather, today.

        15                      ACTING PRESIDENT KUHL:  Senator

        16       Marcellino on the nomination.

        17                      SENATOR MARCELLINO:  Thank you,

        18       Mr. President.

        19                      I rise also to commend the

        20       Governor on this very excellent appointment.

        21       About 40 percent of my district runs into

        22       Suffolk County, and I am relatively the new kid

        23       on the block with the representation of Suffolk,

        24       but ever since the first day, Et's name has been

        25       spoken of and spoken of highly.







                                                             
7478

         1                      He is a good person, a community

         2       activist, well-known in the neighborhood,

         3       well-known in Suffolk County, and well-known for

         4       his ability to show common sense and caring with

         5       respect to his judicial decisions.

         6                      So I'm pleased and proud that Et

         7       will be representing us on the Family Court.

         8       And, again, it's a difficult court and needs the

         9       kind of people with the kind of temperament and

        10       attitude that Et has.

        11                      So congratulations and Godspeed.

        12                      ACTING PRESIDENT KUHL:  Is there

        13       any other Senator wishing to speak on the

        14       nomination?

        15                      Hearing none, the question is on

        16       the nomination of Ettore A. Simeone, of Islip

        17       Terrace, to become a judge of the Family Court

        18       of Suffolk County.

        19                      All those in favor of the

        20       nomination, signify by saying aye.

        21                      (Response of "Aye.")

        22                      Opposed, nay.

        23                      (There was no response.)

        24                      The nominee is unanimously

        25       confirmed.







                                                             
7479

         1                      We're very pleased to have Judge

         2       Simeone with us in the chamber to your left,

         3       together with his wife, Terry; their five

         4       children, Joanne, Alfred, Michael, Mark and

         5       Matthew; his mother, Josephine; and friends Pat

         6       and Marcia Cursio and Ken and Lauren Auerbach.

         7                      Judge, if you will rise and be

         8       recognized.

         9                      Congratulations.

        10                      (Applause.)

        11                      Secretary will continue to read.

        12                      THE SECRETARY:  As a Justice of

        13       the Supreme Court, Second Judicial District,

        14       Vasilios C. Arniotes, of Brooklyn.

        15                      ACTING PRESIDENT KUHL:  Senator

        16       Lack.

        17                      SENATOR LACK:  Thank you, Mr.

        18       President.

        19                      I rise to move the nomination of

        20       Vasilios Arniotes, of Brooklyn, as a judge of

        21       the Supreme Court from Kings County.

        22                      The judge appeared before the

        23       committee this afternoon.  His credentials have

        24       been examined.  The committee unanimously moved

        25       the nomination to the floor.







                                                             
7480

         1                      I will yield to Senator Connor,

         2       but I have to say just in passing that with this

         3       nomination, when we checked his credentials, it

         4       was the unanimous comment of everybody we spoke

         5       to, regardless of any political affiliation, in

         6       Kings County, that this is one of the most

         7       dignified and one of the best judges that have

         8       served in that county, and we were asked to move

         9       this nomination as soon as possible having

        10       received it from the Governor, and I'm most

        11       happy to do so, and I would most respectfully

        12       yield to Senator Connor for purposes of a

        13       second.

        14                      ACTING PRESIDENT KUHL:  The Chair

        15       recognizes Senator Connor, on the nomination.

        16                      SENATOR CONNOR:  Thank you, Mr.

        17       President.

        18                      This, indeed, is my, I guess,

        19       20th session in this body, and I can truly say

        20       that today seconding the nomination of Judge

        21       "Billy" Arniotes is indeed about the proudest

        22       thing I've done.  I've had other friends,

        23       acquaintances, people I thought very, very

        24       highly of, from my district, from Brooklyn,

        25       appear before this body in nomination for







                                                             
7481

         1       various offices and for judicial office, but I

         2       can truly say I am so proud, so delighted, that

         3       the Governor has made this appointment and, as

         4       Senator Lack said, by virtue of he and his staff

         5       calling, as they do, numerous people and bar

         6       associations on the bench, in and out of the

         7       legal profession, I can assure you, Senator

         8       Lack, from my many years of personal

         9       acquaintanceship and friendship with Judge

        10       Arniotes, that what you have found out is indeed

        11       true.

        12                      He is one of the finest gentlemen

        13       I have had the privilege of ever knowing in my

        14       time in Brooklyn, in politics and community

        15       activities.

        16                      Judge Arniotes is a graduate of

        17       St. John's University School of Law, as are so

        18       many other distinguished lawyers in this body

        19       and in our state.  He has had a long, long

        20       career in public service in the court system as

        21       a law secretary to several justices.  He was

        22       once the president of the Association of Law

        23       Secretaries.  He has rendered distinguished

        24       service in the Estate Tax Part of the Estate

        25       Taxation; and I was privileged some years ago,







                                                             
7482

         1       certainly, before he took the bench to be

         2       closely associated with Judge Arniotes on

         3       several cases where we defended truth, justice,

         4       and the Democratic organization in the

         5       courthouses of Brooklyn and New York City.

         6                      And the one thing -- you know, a

         7       lot of things -- a lot of things go into making

         8       a superb judge, certainly intellect, education,

         9       background, but I've found over the years, as a

        10       lawyer and as a public official appearing before

        11       many judges and knowing many judges, that the

        12       most important ingredient in the topmost

        13       respected and excellent judges are elements of

        14       character, are old virtues like patience, a

        15       kindly manner, the ability to listen well, to

        16       convey to litigants, lawyers and others, your

        17       genuine concern for being fair, for upholding

        18       the law and being fair.  And there are many,

        19       many judges who are fair, but they don't quite

        20       get the message out as to why they are doing

        21       what they do and convey that kind of concern for

        22       fairness.

        23                      Judge Arniotes has those -- has

        24       to perfection those qualities of character and

        25       temperament which make him one of the finest







                                                             
7483

         1       judges, I think, that has ever served in Kings

         2       County.

         3                      I'm delighted that the Governor,

         4       looking across partisan lines -- and I

         5       congratulate the Governor because, as I said

         6       before, Judge Arniotes is a Democrat but, while

         7       a loyal Democrat, was never one who regarded

         8       people in other political parties as enemies -

         9       merely adversaries, merely people with whom he

        10       disagreed, but certainly always to be respected

        11       and as he respects and conveys that respect to

        12       the lowliest litigants who appear before him, to

        13       the people who work for him in and around the

        14       courts and to the lawyers who appear before him.

        15                      And I know he will go on now

        16       to -- he's been an Acting Justice of the Supreme

        17       Court.  He will continue his distinguished -

        18       distinguished judicial career as a Justice of

        19       the Supreme Court, and I am just truly delighted

        20       on a personal basis.  He is just a wonderful,

        21       wonderful man.

        22                      He has served on the community

        23       board.  He has been involved in community

        24       activities.  He is, indeed, one of our finest

        25       citizens we are privileged to have in the County







                                                             
7484

         1       of Kings.

         2                      I might note he has also been an

         3       instructor in continuing education programs.  He

         4       continues to do that in Kingsborough Community

         5       College.  He renders that kind of service.  We

         6       were once privileged in the Legislature to have

         7       his services as attorney to several legislative

         8       committees.  He is an active parishioner and

         9       legal advisor to his church, and he is a family

        10       man, wonderful wife and five children, and he

        11       makes wonderful -- where is Senator Skelos?  He

        12       makes wonderful souvlaki.  He's just a man of

        13       many, many talents and superb grace.

        14                      Mr. President, I'm so delighted

        15       to move the confirmation of Judge "Billy"

        16       Arniotes of the County of Kings.

        17                      ACTING PRESIDENT KUHL:  Senator

        18       Smith, on the nomination.

        19                      MR. SMITH:  Thank you, Mr.

        20       President.

        21                      I, too, am delighted to be able

        22       to second the nomination of Judge "Billy"

        23       Arniotes.  It is not often that you have the

        24       privilege of seconding the nomination of someone

        25       who has played an important role in your life,







                                                             
7485

         1       and I truly would not be standing here today if

         2       it were not for Judge Arniotes.

         3                      He truly exemplifies all of the

         4       things that our astute leader, Senator Connor,

         5       has stated.  He has a judicial temperament.  He

         6       is kind.  He is generous and he listens, and I

         7       believe that, as a judge, listening is one of

         8       the most important ingredients.

         9                      I, too, convey my thanks to the

        10       Governor for making such a wise choice, and I

        11       thank each and every one of you on the committee

        12       for voting for him and making this day possible,

        13       for he truly deserves it and he will make each

        14       and every one of us proud of him.

        15                      Thank you.

        16                      ACTING PRESIDENT KUHL:  Senator

        17       Marchi, on the nomination.

        18                      SENATOR MARCHI:  Thank you.

        19                      Mr. President.  Senator Lack has

        20       presided over many discussions and meetings of

        21       the committee where we had candidates present;

        22       and for multiple reasons, I don't think that we

        23       ever had a meeting that so reflected a kind of

        24       warmth that three candidates developed.

        25                      I had both Judge Arniotes and







                                                             
7486

         1       Senator Connor as my constituents way, way back,

         2       but he is six years my junior, Mr. President, so

         3       he has a lot of qualities there that will serve

         4       him in good stead.  He enjoys that deep respect

         5       and esteem with which he is held in his county.

         6                      And if there is such a thing, I

         7       guess I'm an Arniotes Republican; and I'm most

         8       pleased that the Governor has given us three

         9       fine nominations, and, certainly, based on the

        10       length of experience that I have had knowing him

        11        -- Judge Arniotes -- I feel especially pleased

        12       and honored to see him receive this nomination

        13       and the acclaim with which and the impact it

        14       made on those who attended and those who

        15       listened to Senator Connor's fine development of

        16       his background.

        17                      So I'm very delighted to be part

        18       of this experience, Judge.

        19                      ACTING PRESIDENT KUHL:  Is there

        20        -- Senator Sampson, on the nomination.

        21                      SENATOR SAMPSON:  I would like to

        22       take this opportunity to thank the Governor for

        23       nominating Judge Arniotes to the Supreme Court.

        24                      Within the last year I had an

        25       opportunity and throughout my six years of







                                                             
7487

         1       practicing law, I had an opportunity to appear

         2       before Judge Arniotes, and his judicial

         3       temperament is second to none.

         4                      One thing, as Senator Smith said,

         5       he is a man who listens.  On numerous occasions,

         6       I had cases before him.  He cut to the chase,

         7       and I had an opportunity to really learn my

         8       lawyering skills from Judge Arniotes.

         9                      And, once again, I want to thank

        10       the Governor for nominating Judge Arniotes.

        11                      Thank you.

        12                      ACTING PRESIDENT KUHL:  Is there

        13       any other Senator wishing to speak on the

        14       nomination?

        15                      Senator Kruger, on the

        16       nomination.

        17                      SENATOR KRUGER:  Mr. President.

        18       It gives me great privilege this afternoon to

        19       rise in support of this nomination.

        20                      I have known "Billy" both

        21       professionally and personally for the better

        22       part of 20 years.  He's been an honest,

        23       forthright, decent human being, an asset to the

        24       bench, a caring and compassionate community

        25       leader, involved in his church, committed to







                                                             
7488

         1       noble causes, and it's, I think, a privilege

         2       that we today have the community to confirm

         3       "Billy" Arniotes as a Judge of the Supreme

         4       Court, and I know that he will add not only the

         5       professionalism that has become a hallmark in

         6       his chambers but more particularly the

         7       compassion, the caring, the understanding, and

         8       the decency, that we so look for and that we so

         9       need in the Supreme Court today.

        10                      ACTING PRESIDENT KUHL:  Any other

        11       Senators wishing to speak on the nomination?

        12                      Hearing none, the question is on

        13       the nomination of Vasilios -

        14                      Senator Markowitz?

        15                      SENATOR MARKOWITZ:  The only

        16       thing I might say -

        17                      ACTING PRESIDENT KUHL:  From the

        18       left chamber.

        19                      SENATOR MARKOWITZ:  -- to the

        20       Judge, if I may, is Kali Tee-hee.

        21                      Thank you very much.

        22                      ACTING PRESIDENT KUHL:  The

        23       question is on the nomination of Vasilios C.

        24       Arniotes of Brooklyn, New York, to become a

        25       Justice of the Supreme Court in the Second







                                                             
7489

         1       Judicial District.

         2                      All those in favor of the

         3       nomination signify by saying aye.

         4                      (Response of "Aye.")

         5                      Opposed, nay.

         6                      (There was no response.)

         7                      The nominee is unanimously

         8       confirmed.

         9                      We're very, very pleased to have

        10       Judge Arniotes with us in the chamber in the

        11       gallery to your left.  He is accompanied by his

        12       wife, Kate, and also Nick and Ann Marie

        13       Clemente.

        14                      If you would please acknowledge

        15       Judge Arniotes.

        16                      (Applause.)

        17                      Senator Holland.

        18                      SENATOR HOLLAND:  Mr. President,

        19       could we stand at ease, please.

        20                      ACTING PRESIDENT KUHL:  Senator

        21       Dollinger.

        22                      SENATOR DOLLINGER:  Before we

        23       stand at ease, Mr. President, may I have

        24       unanimous consent to be recorded in the negative

        25       on two bills?  I was in the Judiciary Committee







                                                             
7490

         1       when we considered Calendar Number 896, Assembly

         2       Bill 7548.  I would ask to be recorded in the

         3       negative on that bill as well as, Mr. President,

         4       Calendar Number 1619, Senate Bill 5632.  I would

         5       ask to be recorded in the negative on that, as

         6       well.

         7                      ACTING PRESIDENT KUHL:  Without

         8       objection, hearing no objection, Senator

         9       Dollinger will be recorded in the negative on

        10       Calendar Number 896 and also Calendar Number

        11       1619.

        12                      Senator Gentile, why do you

        13       rise?

        14                      SENATOR GENTILE:  Yes, Mr.

        15       President, thank you.  I also ask unanimous

        16       consent to be recorded in the negative also on

        17       Calendar Numbers 896 and 1619.

        18                      ACTING PRESIDENT KUHL:  Without

        19       objection, hearing no objection, Senator Gentile

        20       will be recorded in the negative on Calendar

        21       Number 896 and Calendar Number 1619.

        22                      Senate will stand at ease.

        23                      (Whereupon, at 4:55 p.m., the

        24       Senate was at ease.)

        25                      ACTING PRESIDENT KUHL:  Senate







                                                             
7491

         1       will come to order.

         2                        The Chair recognizes Senator

         3       Skelos.

         4                        SENATOR SKELOS:  Mr.

         5       President.  The Senate will stand in recess

         6       until 8:00 p.m., and I believe Senator Paterson

         7       has an announcement, also.

         8                        ACTING PRESIDENT KUHL:  Senator

         9       Paterson.

        10                        SENATOR PATERSON:  Mr.

        11       President, there will be a Minority Conference

        12       in the Minority Conference Room, which seems

        13       appropriate, at 7:30 this evening.

        14                        ACTING PRESIDENT KUHL:  There

        15       will be a Minority Conference in the Minority

        16       Conference Room 7:30 this evening.

        17                        SENATOR PATERSON:  Sharp.

        18                        ACTING PRESIDENT KUHL:  The

        19       Senate stands in recess until 8;00 p.m. this

        20       evening, sharp.

        21                        (Whereupon, at approximately

        22       6:00 p.m., the Senate was in recess.)

        23                        (The Senate reconvened at 9:07

        24       p.m.)

        25                         ACTING PRESIDENT KUHL:   The







                                                             
7492

         1       Senate will come to order.

         2                         The Chair recognizes Senator

         3       Larkin.

         4                         SENATOR LARKIN:   Mr.

         5       President, there will be an immediate meeting of

         6       the Finance Committee in room 332.

         7                         ACTING PRESIDENT KUHL:

         8       Immediate meeting of the Finance Committee,

         9       immediate meeting of the Finance Committee in

        10       the Majority Conference Room, Room 332.  Senate

        11       stands at ease.

        12                         (The Senate stood at ease from

        13       9:08 p.m. To 9:31 p.m.)

        14                         ACTING PRESIDENT KUHL:   The

        15       Senate will come to order.  Members will take

        16       their chairs, staff take their place.

        17                         The Chair recognizes Senator

        18       Skelos.

        19                         SENATOR SKELOS:   Mr.

        20       President, if we can return to reports of

        21       standing committees, I believe there's a report

        22       of the Finance Committee at the desk.  I ask

        23       that it be read.

        24                         ACTING PRESIDENT KUHL:   There

        25       is.  We'll return to the order of reports of







                                                             
7493

         1       standing committees.  The Secretary will read

         2       the report of the Finance Committee which is at

         3       the desk.

         4                         THE SECRETARY:  Senator

         5       Stafford, from the Committee on Finance, offers

         6       up the following bills:

         7                         Senate Print 704B, budget

         8       bill, an act making appropriations for the

         9       support of government;

        10                         Senate Print 5783, by the

        11       Committee on Rules, an act in relation to

        12       appropriations made by the Chapters of the Laws

        13       of 1997 enacting the Public Protection, Health,

        14       and Mental Hygiene budgets;

        15                         Senate Print 5784, by the

        16       Committee on Rules, an act to amend the Military

        17       Law.

        18                      All bills directly for third

        19       reading.

        20                         ACTING PRESIDENT KUHL:

        21       Senator Skelos.

        22                         SENATOR SKELOS:  Move to

        23       accept the Report of the Finance Committee.

        24                         ACTING PRESIDENT KUHL:  Motion

        25       is to accept the report of the Finance







                                                             
7494

         1       Committee.

         2                         All in favor signify by saying

         3       aye.

         4                         (Response of "Aye.")

         5                         Opposed nay.

         6                         (There was no response.)

         7                         The report is accepted.  The

         8       bills are ordered directly for third reading.

         9                         Senator Skelos.

        10                         SENATOR SKELOS:   Mr.

        11       President, would you call up Calendar Number

        12       1624.

        13                         ACTING PRESIDENT KUHL:

        14       Secretary will read the title of Calendar Number

        15       1624, a copy of which is on the members' desks.

        16                         THE SECRETARY:   Calendar

        17       Number 1624, Senate Print 704B, Budget Bill, an

        18       act making appropriations for the support of

        19       government.

        20                         ACTING PRESIDENT KUHL:

        21       Senator Skelos.

        22                         SENATOR SKELOS:   Mr.

        23       President, is there a message of necessity and

        24       appropriation at the desk?

        25                         ACTING PRESIDENT KUHL:   There







                                                             
7495

         1       is.

         2                         SENATOR SKELOS:   Move to

         3       accept.

         4                         ACTING PRESIDENT KUHL:

         5       Motion is to accept the message of necessity on

         6       calendar 1624.

         7                         All in favor signify by saying

         8       aye.

         9                         (Response of "Aye.")

        10                         Opposed nay.

        11                         (Response of "Nay.")

        12                         The message is accepted.

        13                         Secretary will read the last

        14       section.

        15                         THE SECRETARY:   Section 2.

        16       This act shall take effect immediately.

        17                         ACTING PRESIDENT KUHL:   Call

        18       the roll.

        19                         (The Secretary called the

        20       roll.)

        21                         THE SECRETARY:  Ayes -

        22                         ACTING PRESIDENT KUHL:

        23       Senator Dollinger, to explain his vote.

        24                         SENATOR DOLLINGER:   Mr.

        25       President, I just rise -- I know that the hour







                                                             
7496

         1       is late.  This is not the time, perhaps, to

         2       dissect this enormous bill and the implications

         3       that it has for the state.  I rise just to

         4       recognize one part of it and that is for the

         5       Temporary State Commission on Lobbying, which is

         6       going to be extended for two years, an issue

         7       that we should have spent time taking a good

         8       look at this year.

         9                         The Temporary State Commission

        10       seems to go on and on and we seem to all be

        11       satisfied to have a toothless tiger acting in

        12       the public interest to try to determine the

        13       relationship between elected government and the

        14       vast amounts of money that support its election

        15       campaigns, and it seems to me that this is a

        16       time we should have spent taking a little time

        17       to find out what the future of lobbying should

        18       be and how we should do it.  It's put off for

        19       two years.  It's convenient, I guess, for

        20       everyone involved, it gets us through another

        21       election cycle, both for statewide office and

        22       for ourselves.

        23                         This may be in someone's

        24       interests, but it's clearly not in the public's

        25       interests.







                                                             
7497

         1                         ACTING PRESIDENT KUHL:

         2       Senator Dollinger, how do you vote?

         3                         SENATOR DOLLINGER:   No.

         4                         ACTING PRESIDENT KUHL:

         5       Senator Dollinger will be recorded in the

         6       negative.

         7                         Senator Stafford, to explain

         8       his vote.

         9                         SENATOR STAFFORD:   Mr.

        10       President, I tend to sometimes not say enough,

        11       on the floor, that is.  I can't let this

        12       document be voted upon without sharing with

        13       everyone that a tremendous amount of work went

        14       into this.  The Majority Leader and the staff

        15       and countless members are to be complimented;

        16       the Speaker, his staff, countless members are to

        17       be complimented, and the Governor and his

        18       people.

        19                         I, again, want to share on a

        20       positive note that as the Majority Leader said

        21       the other day when we were discussing the

        22       budget, he said, "I want to be very clear and

        23       make sure every one of you know that everything

        24       you want in here isn't here;" and we all know

        25       that, and, in a state like this, it's impossible







                                                             
7498

         1       to have everything that we want.

         2                         However, I would be remiss if

         3       I did not say that some major decisions were

         4       made in this budget and all of us have our

         5       districts and I would be remiss if I didn't

         6       thank the Majority Leader, the Governor and the

         7       Speaker and all here in the Legislature for some

         8       decisions that were made, and I think you all

         9       know what I'm talking about.

        10                         I compliment all the staff;

        11       they've worked tirelessly.  I don't mean to

        12       overdo this, but I think it should be said.   I

        13       don't apologize for the work that's done here,

        14       I'm very proud of it.  I, too, would maybe like

        15       to have things on a bit of a different date, but

        16       I think sometimes that's overdone when we talk

        17       about exactly when something should be done.

        18                         With that, Mr. President, I

        19       vote aye.

        20                         ACTING PRESIDENT KUHL:

        21       Senator Stafford will be recorded in the

        22       affirmative.

        23                         Senator Gold, how do you vote?

        24                         SENATOR GOLD:  Thank you, Mr.

        25       President.  Are we on a roll call?







                                                             
7499

         1                         ACTING PRESIDENT KUHL:   We're

         2       on a roll call.

         3                         SENATOR GOLD:   That's great

         4       news.  I just wanted to explain my vote very

         5       briefly and say -- and Senator Stafford said

         6       that there are some positive things, and there

         7       are; and while I'm critical sometimes of the

         8       Majority Leader, I will say this:  He has my

         9       congratu- lations for having the guts not to put

        10       out the Governor's budget for seven months and,

        11       along with the rest of the members of the

        12       Senate, rejecting the Governor's budget.

        13                         We should all understand that

        14       the Governor's original budget of 32.8 of

        15       general funds was corrected by the Governor in

        16       February to 32.9; and while some people were

        17       critical of the Assembly's attempt to spend more

        18       money, the final budget that we are passing, God

        19       willing, today, is 34.5 and more money than the

        20       Assembly was talking about.

        21                         Now, it's not only a question

        22       of spending the money.  I think what's important

        23       is that everyone here should understand that the

        24       750 million of school aid dollars that, if it

        25       wasn't for us, wouldn't be going to the schools.







                                                             
7500

         1         Certainly it wasn't because of the Governor

         2       because he didn't have it in there.  And there's

         3       51 million in local government aid which, thanks

         4       to the Assembly and to us, is going out to local

         5       governments, no thanks to the Governor, it

         6       wasn't in his budget.  If we passed his budget,

         7       it wouldn't be in there.

         8                         There's 275 million in SUNY

         9       and CUNY and TAP aid that's going to help our

        10       youngsters go to college, no thanks to the

        11       Governor.  I guess the Medicaid figure is about

        12       a billion.

        13                         And, the bottom line of it all

        14       is that I'm very proud of the fact that we did

        15       not pass a budget on time, if it had to be the

        16       Governor's budget.

        17                         There is a lady who wrote a

        18       letter to the editor of the Daily News and I'm

        19       going to write a letter back to her where she

        20       says if we don't pass a budget, we shouldn't get

        21       paid.  And madam, if you're listening, I earned

        22       my money by holding out to get a budget that

        23       takes care of people.  The Governor didn't do

        24       it.  Thank God we have a Legislature.

        25                         I vote yes.







                                                             
7501

         1                         ACTING PRESIDENT KUHL:

         2       Senator Gold will be recorded in the

         3       affirmative.

         4                         Announce the results

         5                         THE SECRETARY:  Ayes 56, nays

         6       one, Senator Dollinger recorded in the negative.

         7                         ACTING PRESIDENT KUHL:

         8       Senator Leichter also in the negative.

         9                         SENATOR LEICHTER:  Yes, sir.

        10                         THE SECRETARY:  Excuse me.

        11                         ACTING PRESIDENT KUHL:

        12       Senator Leichter recorded in the negative also.

        13                         THE SECRETARY:   Also Senator

        14       Leichter.  Ayes 55, nays 2, Senators Dollinger

        15       and Leichter recorded in the negative.

        16                         ACTING PRESIDENT KUHL:   The

        17       bill is passed.

        18                         Senator Skelos.

        19                         SENATOR SKELOS:   Mr.

        20       President, would call up Calendar Number 1625.

        21                         ACTING PRESIDENT KUHL:  The

        22       Secretary will read the title.

        23                         THE SECRETARY:   Calendar

        24       Number 1625, by the Committee on Rules, Senate

        25       Print 5783, an act in relation to certain







                                                             
7502

         1       revisions which would impact upon expenditures

         2       of certain appropriations.

         3                         SENATOR SKELOS:   Is there a

         4       message of necessity at the desk?

         5                         ACTING PRESIDENT KUHL:   There

         6       is.

         7                         SENATOR SKELOS:  Move to

         8       accept.

         9                         ACTING PRESIDENT KUHL:   The

        10       motion is to accept the message of necessity on

        11       Calendar Number 1625.

        12                         All in favor signify by saying

        13       aye.

        14                         (Response of "Aye.")

        15                         Opposed nay.

        16                         (Response of "Nay.")

        17                         The message is accepted.

        18                         The Secretary will read the

        19       last section.

        20                         THE SECRETARY:   Section 80.

        21       This act shall take effect immediately.

        22                         ACTING PRESIDENT KUHL:   Call

        23       the roll.

        24                         (The Secretary called the

        25       roll.)







                                                             
7503

         1                         SENATOR LEICHTER:   Mr.

         2       President.

         3                         ACTING PRESIDENT KUHL:

         4       Senator Leichter, to explain his vote.

         5                         SENATOR LEICHTER:   Mr.

         6       President, this explanation really also applies

         7       to the bill that we passed, Senate 704B, and

         8       really the whole budget bill.

         9                         I think this budget is such an

        10       affront to the public.  It's such an insult to

        11       openness in government and democratic

        12       procedures.  To have this budget pushed out in

        13       this fashion at this hour on August 2nd is an

        14       absolute disgrace after the leaders had fiddled

        15       around for months, negotiating this budget to

        16       find out that bills are being printed and put on

        17       our desks without any review by the members of

        18       what's in the bills.  We're appropriating some

        19       $63 billion, or maybe more, $68 billion dollars,

        20       bills of thousands of pages, no opportunity for

        21       review.  I just think that is disgraceful.

        22                         And I just want to say that

        23       the process here gets worse and worse and worse.

        24       The public is being disenfranchized.  We, as

        25       members, are not doing our job, we're not







                                                             
7504

         1       meeting our responsibilities of representing the

         2       public.

         3                         I don't know how anybody can

         4       get up and proclaim, "This is a wonderful

         5       budget. We've done our job.  We've worked hard,"

         6       and so on.  This is an absolute disgrace, Mr.

         7       President.

         8                         I vote in the negative.

         9                         ACTING PRESIDENT KUHL:

        10       Senator Leichter will be recorded in the

        11       negative.

        12                         Senator Marchi, to explain his

        13       vote.

        14                         SENATOR MARCHI:   I just

        15       wanted to explain my vote.  I certainly don't

        16       feel offended by the remarks of Senator Leichter

        17       because I know they're sincere, and certainly he

        18       should vote that response.

        19                         On the other hand, I think we

        20       should not overlook the fact that this Governor

        21       has given a definite thrust, it's a national

        22       phenomenon and it's a state phenomenon on

        23       economic stimulation; and had we adhered with

        24       total exactness to the dimensions and the

        25       timetable that is provided in the Constitution,







                                                             
7505

         1       it would have been unrealistic because it

         2       wouldn't have reflected the present state of our

         3       economy, the promise that it implies.

         4                         So that I think every single

         5       member here, whether they voted for or against

         6       it, and obviously it was very persuasive, and

         7       the same sentiment seems to be prevailing in the

         8       Assembly, is something that we all can take

         9       pride of.  No matter what, how you feel,

        10       everyone makes a contribution.

        11                         And even if there is

        12       perplexion, it should be raised.  And I don't -

        13       certainly it does not offend me to hear that.

        14       It just gives us, I think, added confidence that

        15       a prevailing wisdom didn't adhere with that kind

        16       of fanaticism to a constitutional requirement

        17       that at this point, neither the nation or the

        18       state, the first state in the Union, as far as

        19       I'm concerned, took a pragmatic and realistic

        20       view without sacrificing the principles that

        21       should undergird the future of our economy and

        22       the future of public policy.

        23                         So, I'm very proud to be able

        24       to vote positively and affirmatively for this

        25       bill.







                                                             
7506

         1                         ACTING PRESIDENT KUHL:

         2       Senator Marchi will be recorded in the

         3       affirmative.

         4                         Senator Hoffmann, to explain

         5       her vote.

         6                         SENATOR HOFFMANN:  Thank you,

         7       Mr. President.  I appreciate the fact that the

         8       two-minute rule has been extended for

         9       explanations.  I'll try to keep my remarks

        10       within that time, if possible; but, I would like

        11       to note for the record, and occasionally my

        12       constituents check the record so I feel this at

        13       least gives me an opportunity to provide some

        14       communication to them about how things are

        15       carried out here in Albany.

        16                         This particular bill came to

        17       us in a matter of 15 minutes, moved through the

        18       Finance Committee, and I would like to note, for

        19       the record, that it was still warm off of the

        20       copying machines when it was presented to us.

        21                         This bill on which we are now

        22       voting is 456 pages long.  It includes a table

        23       of contents because it is so detailed in its

        24       discussion of various state agencies.  It

        25       includes the Advocates for Persons with







                                                             
7507

         1       Disabilities -- the Office of; Office of Aging;

         2       Capital Defender Office; Commission of

         3       Corrections; Department of Correctional

         4       Services; Crime Victims' Board; Criminal Justice

         5       Services; Developmental Disabilities Planning

         6       Council; Health Department; Interest on Lawyer

         7       Account, that's a new one to me; investigation

         8       on -- the Temporary State Commission on

         9       Investigation;  Judicial Commissions; Department

        10       of Mental Hygiene; Office of Mental Health;

        11       Office of Mental Retardation and Developmental

        12       Disabilities; Office of Alcoholism and Substance

        13       Abuse; Military and Naval Affairs Division;

        14       Department of Motor Vehicles; Division of

        15       Parole; Division of Probation and Correctional

        16       Alternatives; Commission on Quality Care for the

        17       Mentally Disabled -

        18                         SENATOR TULLY:   Mr.

        19       President.

        20                         SENATOR HOFFMANN:   -- State

        21       Police; and then Section 2, contingent and other

        22       appropriations; and finally, as a late starter,

        23       Department of Health.

        24                         In 15 minutes, my friends, the

        25       Finance Committee passed on this and it's now







                                                             
7508

         1       before us and we're passing it in even less

         2       time.

         3                         SENATOR TULLY:   Point of

         4       order.

         5                         SENATOR HOFFMANN:  And as a

         6       duly-elected member of this body, I find that

         7       terribly offensive.

         8                         ACTING PRESIDENT KUHL:

         9       Senator Hoffmann, excuse me.

        10                         Senator Tully, why do you

        11       rise?  I assume that that's concluding your

        12       remarks, Senator Hoffmann?

        13                         SENATOR HOFFMANN:   Yes,  Mr.

        14       President, I've concluded.   I think it was

        15       close to within the time limit.

        16                         ACTING PRESIDENT KUHL:

        17       You're voting in the negative, Senator Hoffmann?

        18                         Senator Hoffmann will be

        19       recorded in the negative.

        20                         SENATOR TULLY:   Mr.

        21       President, I was wondering if Senator Hoffmann

        22       was voting on Senate bill 1625, which did not

        23       certainly include all of the things her remarks

        24       alluded to.

        25                         ACTING PRESIDENT KUHL:







                                                             
7509

         1       Senate 1625 is before the house, Senator Tully.

         2                         Senator Gold, to explain his

         3       vote.

         4                         SENATOR GOLD:   Thank you, and

         5       I'll be very brief, but something Senator Marchi

         6       said I think has to be responded to.  And,

         7       Senator Marchi, this is coming from not only one

         8       of your colleagues, but the head of the Forest

         9       Hills branch of the John Marchi fan club, so you

        10       know how I feel about you.

        11                      But Senator, I don't understand

        12       your remarks about the Constitution.   You know,

        13       Senator Marchi, from your vast experience that

        14       the Constitution provides a budget by a certain

        15       date and that for years, this state was able to

        16       do that and everybody understood that at the end

        17       of session, there might be a, quote,

        18       supplemental budget, and that would take into

        19       account any changes that may have taken place.

        20                         As a result of that procedure,

        21       some people have said, well, we shouldn't have a

        22       budget by April 1 and we should change the date

        23       to June 1, maybe that's more realistic.

        24                         But, living with the

        25       Constitution, I think is urgent and we should







                                                             
7510

         1       have a budget by March 31st and then we can do a

         2       supplemental budget.  Not only that, Senator

         3       Marchi, you and I both know there used to be a

         4       deficiency budget that came in February or March

         5       of the following year and the deficiency budget

         6       would take into account the realities of the

         7       year and then make the adjustments.

         8                         So, nobody ever anticipated,

         9       in doing the Constitution, Senator Marchi, that

        10       we would have total knowledge by March 31st.

        11       But the founding fathers said, "You'll do it by

        12       March 31st."  For years, people did it by March

        13       31st.  This year, we have seen no leadership or

        14       push to do it.

        15                         And I don't give Kudos to the

        16       Governor.  Mario Cuomo, if he couldn't bring one

        17       in on time, used to pester people, at least come

        18       to a meeting; and it was uncomfortable, but

        19       there would be meetings.  Nothing seems to

        20       bother George Pataki about a late budget this

        21       year, and if there are Kudos and congratulations

        22       to go around, I think unquestionably the Speaker

        23       gets it, and unquestionably Senator Bruno, for

        24       at least not passing the Pataki budget.

        25                         I vote aye.







                                                             
7511

         1                         ACTING PRESIDENT KUHL:

         2       Senator Gold will be recorded in the

         3       affirmative.

         4                         Senator Dollinger, to explain

         5       his vote.

         6                         SENATOR DOLLINGER:   Very

         7       briefly, Mr. President, I want to just join my

         8       colleague, Senator Leichter.  We voted against

         9       both these bills, and it goes back to that old

        10       line about fooling some of the people some of

        11       the time but you can't fool all the people all

        12       the time.

        13                         I don't think the people in

        14       this state are fooled by this whole process.

        15       They know that we delayed, we delayed, we

        16       delayed, we didn't get down to work, we didn't

        17       do the people's work on time.   It could have

        18       been done on time.  They know that we were

        19       distracted by rent control, they know we were

        20       distracted by other things, all of which fit the

        21       political agendas of all these people.

        22                         With all due respect to

        23       Senator Marchi, I understand that practicality

        24       and reality may play a role in politics, but the

        25       people of this state set up a Constitution that







                                                             
7512

         1       said -- and I will only quote from the button

         2       that Senator Libous wore so proudly two years

         3       ago, "Get it done by April 1."  They didn't say

         4       get it done by August 3rd.

         5                         And frankly, my hope is that

         6       the people of this state, not having been

         7       fooled, will send everyone in this chamber a

         8       very specific message on Election Day of this

         9       year, they'll vote for a Constitutional

        10       Convention to set some real limitations on the

        11       Legislature to redesign it so that it does the

        12       people's work the way they want it, not the way

        13       we want it.

        14                         ACTING PRESIDENT KUHL:

        15       Announce the results.

        16                         THE SECRETARY:   Those

        17       recorded in the negative on Calendar Number 1625

        18       are Senators Dollinger, Hoffmann and Leichter.

        19       Ayes 54, nays 3.

        20                         ACTING PRESIDENT KUHL:   The

        21       bill is passed.

        22                         Senator Skelos.

        23                         SENATOR SKELOS:   Mr.

        24       President, would you call up Calendar Number

        25       1626?







                                                             
7513

         1                         ACTING PRESIDENT KUHL:  The

         2       Secretary will read.

         3                         THE SECRETARY:   Calendar

         4       Number 1626, by the Committee on Rules, Senate

         5       Print 5784, an act to amend the Military Law.

         6                         ACTING PRESIDENT KUHL:

         7       Senator Skelos.

         8                         SENATOR SKELOS:   Mr.

         9       President, is there a message of necessity at

        10       the desk?

        11                         ACTING PRESIDENT KUHL: There

        12       is.

        13                         THE SECRETARY:   Move to

        14       accept.

        15                         ACTING PRESIDENT KUHL:   The

        16       motion is to accept the message of necessity on

        17       Calendar Number 1626.

        18                         All in favor signify by saying

        19       aye.

        20                         (Response of "Aye.")

        21                         Opposed nay.

        22                         (Response of "Nay.")

        23                         ACTING PRESIDENT KUHL:  The

        24       message is accepted.  The bill is before the

        25       house.







                                                             
7514

         1                         Secretary will read the last

         2       section.

         3                         THE SECRETARY:   Section 76.

         4       This act shall take effect immediately.

         5                         ACTING PRESIDENT KUHL:   Call

         6       the roll.

         7                         (The Secretary called the

         8       roll.)

         9                         ACTING PRESIDENT KUHL:

        10       Record the negatives and announce the results.

        11                         THE SECRETARY:  Those recorded

        12       in the negative on Calendar Number 1626 are

        13       Senators Dollinger, Hoffmann and Leichter.  Ayes

        14       54, nays 3.

        15                         ACTING PRESIDENT KUHL:   The

        16       bill is passed.

        17                         Senator Skelos.

        18                         SENATOR SKELOS:   Mr.

        19       President, if we could continue with the report

        20       of the Finance Committee.

        21                         ACTING PRESIDENT KUHL:  The

        22       Secretary will read.

        23                         THE SECRETARY:   Senator

        24       Stafford, from the Committee on Finance, offers

        25       up the following nomination:







                                                             
7515

         1                         As Commissioner of the Port

         2       Authority of New York and New Jersey, David Mack

         3       of Kings Point.

         4                         SENATOR STAFFORD:   Move the

         5       nomination.

         6                         ACTING PRESIDENT KUHL:   The

         7       question is on the nomination of David Mack, of

         8       Kings Point, as a Commissioner of the Port

         9       Authority of New York and New Jersey.

        10                         All those in favor of the

        11       nomination signify by saying aye -- Senator

        12       Leichter.

        13                         SENATOR LEICHTER:   Mr.

        14       President, on the nomination, and I'm sorry I

        15       didn't raise this issue in the Finance

        16       Committee, but did Mr. Mack appear before any of

        17       the standing committees of this house?  Senator

        18       Stafford, if you could answer that.  I know he

        19       didn't appear before the Finance Committee.

        20                         SENATOR STAFFORD:   Yes,

        21       that's a very legitimate question; and all of us

        22       have been concerned about people appearing,

        23       yourself, Senator Gold, myself, and others.  I

        24       asked that question, and let me see now.  What,

        25       two days ago or yesterday, when he appeared,







                                                             
7516

         1       when we went through the -- there was a

         2       renomination for -- it was a renomination for

         3       the MTA, and also we were remiss in not

         4       including he also is going to be on the Port

         5       Authority, but he has been before us.

         6                         SENATOR LEICHTER:   Mr.

         7       President, if Senator Stafford would yield for

         8       just one further question.

         9                         ACTING PRESIDENT KUHL:

        10       Senator Stafford, do you yield?

        11                         SENATOR LEICHTER:  This is a

        12       new appointment, isn't it?  This is not a

        13       reappointment, is it?

        14                         SENATOR STAFFORD:  The one

        15       yesterday was a reappointment.  This is new.

        16                         SENATOR LEICHTER:  No, no, the

        17       one today.

        18                         SENATOR STAFFORD:  This is

        19       new.

        20                         SENATOR LEICHTER:  Okay, fine.

        21       Thank you very much.  Just very briefly, this

        22       is, again, an example of how we do business.  I

        23       mean, we've had the whole session.  This is an

        24       incredibly important position, a member of the

        25       board of directors, the trustees, or whatever it







                                                             
7517

         1       is, but, in any event, the governing body of the

         2       Port of New York and New Jersey Authority,

         3       terribly important.  A lot of issues, issues

         4       that particularly concern New York State.  There

         5       is more money being spent in New Jersey than in

         6       New York State.  What's happening to the

         7       airports in New York?  That person should have

         8       appeared.

         9                         Frankly, the only thing I know

        10       of Mr. Mack is that he is a very substantial

        11       contributor to the Republican party and to

        12       George Pataki.  Maybe he's also qualified.

        13       Maybe he has a viewpoint as to what should be

        14       done and maybe he could tell us.  Nobody seemed

        15       to ask him.

        16                         Now, I didn't say, "Please

        17       have him appear," and Senator Stafford has been

        18       exceptionally cooperative and when you ask him

        19       to have somebody appear, he does; but, I don't

        20       remember receiving a notice that would have

        21       allowed me to say, "Please have Mr. Mack

        22       appear."

        23                         We ought to be doing our job.

        24       We ought to be taking our job seriously.  If we

        25       want to be just a rubber stamp, then we ought to







                                                             
7518

         1       continue acting as we are now.  If we want to be

         2       serious about it, if we want to protect the

         3       public interest, then when somebody like Mr.

         4       Mack comes for confirmation, we, as Senators,

         5       having the obligation of advice and consent,

         6       will say,"Appear before us and let us hear what

         7       it is you are going to do, what contribution

         8       you're going to make in this important

         9       position."

        10                         Mr. President, I'm going to

        11       vote in the negative and ask that I be recorded

        12       in the negative on this.

        13                         ACTING PRESIDENT KUHL:

        14       Senator Leichter will be recorded in the

        15       negative.

        16                         The question is on the

        17       nomination of David Mack, of Kings Point, to

        18       become a Commissioner of the Port Authority of

        19       New York and New Jersey.

        20                         All those in favor of the

        21       nomination signify by saying aye.

        22                         (Response of "Aye.")

        23                         Opposed nay.

        24                         (Response of "Nay.")

        25                         Senator Leichter will be







                                                             
7519

         1       recorded in the negative.

         2                         The nominee is confirmed.

         3                         Senator Skelos.

         4                         SENATOR SKELOS:   Mr.

         5       President, on the original Calendar Number 65,

         6       would you call up Calendar Number 1590.

         7                         ACTING PRESIDENT KUHL:

         8       Return to the original calendar of the day,

         9       Calendar Number 65.  The Secretary will read

        10       Calendar Number 1590.

        11                         THE SECRETARY:   In relation

        12       to Calendar Number 1590, Senator Volker moves to

        13       discharge from the Committee on Rules, Assembly

        14       Print 8458B and substitute it for the Senate

        15       bill Third Reading 1590.  Senate bill is high,

        16       the Assembly bill is not.

        17                         ACTING PRESIDENT KUHL:   The

        18       substitution is ordered.

        19                         Secretary will read the title.

        20                         THE SECRETARY:   Calendar

        21       Number 1509, by the Assembly Committee on Rules,

        22       Assembly Print 8458B, an act to amend the

        23       Education Law.

        24                         ACTING PRESIDENT KUHL:  The

        25       Secretary will read the last section.







                                                             
7520

         1                         THE SECRETARY:   Section 2.

         2       This act shall take effect immediately.

         3                         ACTING PRESIDENT KUHL:   Call

         4       the roll.

         5                         (The Secretary called the

         6       roll.)

         7                         THE SECRETARY:   Ayes 57.

         8                         ACTING PRESIDENT KUHL:   The

         9       bill is passed.

        10                         Senator Skelos.

        11                         SENATOR SKELOS:   Mr.

        12       President, on the same calendar, would you call

        13       up Calendar Number 1609.

        14                         ACTING PRESIDENT KUHL:  The

        15       Secretary will read.

        16                      THE SECRETARY:   Calendar Number

        17       1609, by Senator Hannon, Senate Print 5690A, an

        18       act in relation to persons who may practice a

        19       profession.

        20                         ACTING PRESIDENT KUHL:

        21       Senator Skelos.

        22                         SENATOR SKELOS:   Mr.

        23       President, is there a message of necessity at

        24       the desk?

        25                         ACTING PRESIDENT KUHL:   There







                                                             
7521

         1       is.

         2                         SENATOR SKELOS:   Move to

         3       accept.

         4                         ACTING PRESIDENT KUHL:   The

         5       motion is to accept the message of necessity on

         6       Calendar Number 1609.

         7                         All in favor signify by saying

         8       aye.

         9                         (Response of "Aye.")

        10                         Opposed nay.

        11                         (There was no response.)

        12                         The message is accepted.  The

        13       bill is before the house.

        14                         Secretary will read the last

        15       section.

        16                      THE SECRETARY:   Section 2.  This

        17       act shall take effect March 1st.

        18                         ACTING PRESIDENT KUHL:   Call

        19       the roll.

        20                         (The Secretary called the

        21       roll.)

        22                         THE SECRETARY:  Ayes 57.

        23                         ACTING PRESIDENT KUHL:   The

        24       bill is passed.

        25                         Senator Skelos.







                                                             
7522

         1                         SENATOR SKELOS:   Mr.

         2       President, on Senate Supplemental Calendar 65A,

         3       would you call up Calendar Number 1623.

         4                         ACTING PRESIDENT KUHL:   Go to

         5       Calendar 65A, Supplemental 1, Secretary will

         6       read the title of Calendar Number 1623.

         7                         THE SECRETARY:   Calendar

         8       Number 1623, by Senator Saland, Senate Print

         9       5771, an act to amend the Social Services Law.

        10                         ACTING PRESIDENT KUHL:

        11       Senator Skelos.

        12                         SENATOR SKELOS:   Is there a

        13       message of necessity at the desk?

        14                         ACTING PRESIDENT KUHL:  There

        15       is.

        16                         SENATOR SKELOS:   Move to

        17       accept.

        18                         ACTING PRESIDENT KUHL:

        19       Motion is to accept the message of necessity on

        20       Calendar Number 1623.

        21                         All in favor signify by saying

        22       aye.

        23                         (Response of "Aye.")

        24                         Opposed nay.

        25                         (There was no response.)







                                                             
7523

         1                         The message is accepted.  The

         2       bill is before the house.

         3                         SENATOR DOLLINGER:  Can we

         4       have an explanation?

         5                         ACTING PRESIDENT KUHL:

         6       Senator Saland, an explanation has been

         7       requested by Senator Dollinger of Calendar

         8       Number 1623.

         9                         SENATOR SALAND:   Thank you,

        10       Mr. President.

        11                         Mr. President, this bill is,

        12       in essence, the child support collection piece.

        13       The bill contains a number of provisions, the

        14       intention of which, quite obviously, is to

        15       strengthen child support collections here in the

        16       state of New York.  It's intended to comply with

        17       recent changes in the federal law.  It provides,

        18       among other things, for a COLA, a COLA which

        19       will be handled administratively through the

        20       Support Collection Unit.

        21                         All child support orders will

        22       be reviewable; any that are two years older or

        23       more will be subject to review if, in fact,

        24       there is a -- going back to the inception of the

        25       order or when it was most recently modified, and







                                                             
7524

         1       if there is a ten percent increase in the CPI

         2       since the inception of the order, those orders

         3       would be modified upwards.

         4                         There also is a provision in

         5       here that deals with the pre-CSSA orders, the

         6       Child Support Standards Act orders, going back

         7       to 1989.  There is, in effect, what some have

         8       called the swat team being created to go back

         9       and look at these 70,000 orders to review and

        10       adjust them and to bring them forward.

        11                         This COLA provision, which I

        12       referred to earlier, is, in fact, a new

        13       alternative available to states by way of

        14       federal action.  Previously we had what was

        15       called a triennial review and adjustment

        16       statute, which unfortunately, and we believe

        17       from the start, unfortunately, could not handle

        18       the volume of cases that we were required to

        19       deal with and, in fact, only could handle, since

        20       its inception back in 1993, about ten percent of

        21       the cases that had been presented for

        22       consideration at that time --  since that time.

        23                         There is a means here for

        24       administrative liens which, again, would be

        25       intended to try and shortcut the process, speed







                                                             
7525

         1       up collections.

         2                         There are additional

         3       information access abilities which will now be

         4       available to serve to assist in enforcement of

         5       these orders.  There will be additional means to

         6       secure interstate enforcement through adoption

         7       of the Uniform Interstate Family Support Act,

         8       called UIFSA.

         9                         There will be additional

        10       paternity measures which will be adopted in this

        11       legislation that will expedite findings of

        12       paternity and, in turn, support collections.

        13                         Welfare reform in this state

        14       obviously cannot work without a couple -- not

        15       without a number of key ingredients, certainly

        16       daycare, which we have yet to reach, is one of

        17       those key ingredients and effective support

        18       collection is another.

        19                         What this bill does is, in

        20       fact, provide assistance to single families,

        21       single head of household families, will provide

        22       additional dollars by way of the various

        23       enforcement tools that have been provided, will

        24       expand the ability for increased self

        25       sufficiency, particularly for women, who are







                                                             
7526

         1       generally the noncustodial parents, and children

         2       and families.

         3                         ACTING PRESIDENT KUHL:

         4       Senator Dollinger.

         5                         SENATOR DOLLINGER:   Just a

         6       couple quick questions, Mr. President, if the

         7       sponsor would yield.

         8                         ACTING PRESIDENT KUHL:

         9       Senator Saland, do you yield to a question from

        10       Senator Dollinger?

        11                         SENATOR SALAND:  Yes, Mr.

        12       President.

        13                         ACTING PRESIDENT KUHL:

        14       Senator yields.

        15                         SENATOR DOLLINGER:  Senator

        16       Saland, this is an awful big piece of work and

        17       someone should be congratulated for putting this

        18       together, but has this been considered in your

        19       committee?  Was this -- have we previously

        20       reported this bill?

        21                         SENATOR SALAND:   This bill is

        22       a bill which is the product of -- a Governor's

        23       program bill -- negotiations with the Senate and

        24       with the Assembly.  I think I would be terribly

        25       remiss if I did not speak of the Governor's







                                                             
7527

         1       commitment to children and families, to his

         2       desire to expand and build upon his record of

         3       dealing with child support enforcement.

         4       Certainly we in this chamber, along with the

         5       Governor, over the course of the past two or

         6       three years, have adopted a number of measures

         7       that have appreciably increased the amount of

         8       child support protections in New York State, and

         9       this is another step in that same direction.

        10                         SENATOR DOLLINGER:  Through

        11       you, Mr. President, just a couple other quick

        12       questions.

        13                         ACTING PRESIDENT KUHL:

        14       Senator Saland, do you continue to yield?

        15                         SENATOR DOLLINGER:  There are

        16       70,000 child support orders in effect in this

        17       state, is that what I heard you say?

        18                         SENATOR SALAND:  No, but there

        19       are some 70,000, I believe, pre-1989 or pre-C -

        20         let me get it right -- CSSA awards or orders

        21       that are outstanding.  The task force or, as I

        22       mentioned earlier, something called the "swat

        23       team", will have, I believe, until December 31st

        24       of the year 2000 in which to accomplish the

        25       review and adjustment of those orders.







                                                             
7528

         1                         There is some $300,000

         2       provided for that purpose matched by about 660

         3       or 670,000 federal dollars, so there is a pool

         4       immediately of some $1 million for the

         5       additional work that will be required to do

         6       that.

         7                         SENATOR DOLLINGER:  Through

         8       you, Mr. President, again, if Senator Saland

         9       would continue to yield.

        10                         ACTING PRESIDENT KUHL:

        11       Senator Saland, do you continue to yield?

        12                         SENATOR SALAND:  Yes, Mr.

        13       President.

        14                         ACTING PRESIDENT KUHL:

        15       Senator yields.

        16                         SENATOR DOLLINGER:  Is there

        17       any additional money for either Family Court

        18       judges or judicial hearing officers to hear

        19       these cases?

        20                         SENATOR SALAND:  The

        21       likelihood is that this will not be something

        22       that's going to impose a burden on hearing

        23       officers or Family Court judges.  This procedure

        24       is going to be dealt with primarily by way of

        25       administrative option.  There will be the







                                                             
7529

         1       ability, whether it's a public assistance case

         2       or a nonpublic assistance case, where you object

         3       to the application of the COLA, to seek

         4       application to the Court to be heard; but the

         5       assumption is, and I think it's a reasonable

         6       one, that the vast, overwhelming majority of

         7       these cases will be handled administratively; in

         8       fact, that's the purpose of this legislation.

         9                         SENATOR DOLLINGER:  Okay.

        10       Again, through you, Mr. President, if Senator

        11       Saland would continue to yield.

        12                         SENATOR SALAND:  Yes, Mr.

        13       President.

        14                         ACTING PRESIDENT KUHL:

        15       Senator continues to yield.

        16                         SENATOR DOLLINGER:  It's your

        17       opinion, then, that those who are paying will

        18       voluntarily recognize the COLA and not appeal

        19       for judicial review?  My experience is exactly

        20       just the opposite in dealing with Family Court

        21       matters.   These decisions are fought over for

        22       long periods of time.  When they're reopened,

        23       suddenly all the issues are reopened, and we go

        24       back to court, we seem to march back to court

        25       endlessly because of the opening of increased







                                                             
7530

         1       payments.  There's an issue of how often the

         2       custody occurs, and it seems to open up a whole

         3       gamut of other issues.

         4                         My concern is if you don't put

         5       any money in for additional Family Court

         6       personnel, you're going to take the Family

         7       Courts already strapped and strap them further.

         8                         SENATOR SALAND:   I believe,

         9       and this certainly will require, obviously, some

        10       record to see if I'm correct, but I believe

        11       that, given the fact that any number of these

        12       1989, pre-1989 orders or any of the orders that

        13       were subsequently enacted under CSSA, for folks

        14       to seek to try and go back and have the CSSA

        15       standards apply, there is a degree of

        16       consideration as to the equities that were

        17       involved, as distinguished from a mere COLA.

        18       Once you break that ten percent, there's a host

        19       of other issues that the court would consider in

        20       the application of the Support Standards Act.

        21       That might encourage most people, and I would

        22       think the vast majority of people, to merely

        23       have the matter handled administratively.  And

        24       if, in fact, that turns out not to be correct,

        25       I'd be more than happy to revisit this with you,







                                                             
7531

         1       Senator Dollinger, based on whatever the track

         2       record is, and find out if there is need for

         3       more additional personnel.

         4                         SENATOR DOLLINGER:   Through

         5       you, Mr. President.

         6                         ACTING PRESIDENT KUHL:

         7       Senator Dollinger.

         8                         SENATOR DOLLINGER:  I

         9       appreciate Senator Saland's concern.  As you

        10       know, I've been very concerned about the Family

        11       Courts in this state, particularly in my home

        12       county of Monroe County, because we seem to put

        13       additional burdens in those courts time and time

        14       again, both in the area of juvenile justice and

        15       now in child support enforcement.  We

        16       continually put burdens on them, all of it very

        17       beneficially intended, but running the risk that

        18       we're going to take justice in the Family Court

        19       and really substitute arbitrariness because

        20       these judges won't have the time to deal with

        21       the questions.

        22                         SENATOR SALAND:   May I add

        23       that there is the intent through this to, in

        24       fact, relieve the court of a number of the

        25       responsibilities that it currently has,







                                                             
7532

         1       including not merely the problem of dealing with

         2       deviations by way of modifications of orders

         3       that people would now come back to the court for

         4       routinely to try and handle it administratively,

         5       but also a number of paternity-related issues

         6       which previously might have been exclusively

         7       within the domain of the court will now be able

         8       to be handled at least in part administratively.

         9                         ACTING PRESIDENT KUHL:

        10       Senator Dollinger.

        11                         SENATOR DOLLINGER:   Thank

        12       you, Mr. President, and I appreciate Senator

        13       Saland's comments.

        14                         I like what I heard, Senator.

        15       I'm prepared to vote for this.  I'd only

        16       suggest, though, just from my personal point of

        17       view, this isn't the right time to do it.  We

        18       should have done this back in March or April.  I

        19       know it may have been difficult to reach

        20       agreement with the other house and with the

        21       Governor, but this is a very important piece of

        22       legislation.  This does many, many good things.

        23       I would like to see the beneficial intents that

        24       you've described actually come to pass as

        25       quickly as possible; but I'm afraid that doing







                                                             
7533

         1       it now, being presented with a 106-page bill, I

         2       certainly am not going to be able to go back and

         3       say this is going to work.

         4                         I'm going to share your

         5       confidence today and I'm going to vote for it.

         6       I hope that that confidence proves to be well

         7       founded and we don't have to revisit it forever.

         8         But, I do have my own skepticism that says

         9       it's a great idea but it's going to take a lot

        10       to work out.

        11                         I commend you for getting it

        12       done, but it would have been nice to see it a

        13       couple months ago so we could have taken more

        14       time on it.

        15                         ACTING PRESIDENT KUHL:

        16       Senator Mendez.

        17                         SENATOR MENDEZ:   Would

        18       Senator Saland yield for a question?

        19                         ACTING PRESIDENT KUHL:

        20       Senator Saland do you yield to Senator Mendez?

        21                         SENATOR SALAND:  Yes.

        22                         ACTING PRESIDENT KUHL:

        23       Senator yields.

        24                         SENATOR MENDEZ:   Thank you.

        25                         Senator Saland, some years







                                                             
7534

         1       ago, when the programs started to collect moneys

         2       for child support from delinquent fathers, I

         3       remember I read that at the time that that

         4       program was implemented, more moneys were being

         5       spent -

         6                         SENATOR SALAND:   Senator

         7       Mendez, may I interrupt you?  Mr. Speaker -- Mr.

         8       President, my apologies.  Can I ask for just a

         9       little bit of quiet?  It's just a little bit

        10       difficult for me to hear.

        11                         ACTING PRESIDENT KUHL:  You

        12       certainly can.

        13                         Senator Mendez, if you can

        14       speak up, and we'll try and get the

        15       conversations terminated; let's wait until they

        16       are.

        17                         SENATOR MENDEZ:   Thank you;

        18       and thank you.

        19                         Senator Saland, some years

        20       back when the ptorgram to get the moneys for

        21       child support from the delinquent fathers, I

        22       read somewhere at the time that that program was

        23       implemented, the costs of administering those

        24       programs was higher than the amounts of moneys

        25       that they were able to recoup, recuperate.  Has







                                                             
7535

         1       that situation changed?

         2                         SENATOR SALAND:   I would -

         3       I'm not familiar with the information that you

         4       received at that time, but that's certainly not

         5       the case now.  And while there's still room for

         6       improvement, there's been dramatic improvement,

         7       double-digit increases in the amounts and the

         8       numbers of collections over the course of the

         9       past couple of years.

        10                         You may recall, for instance,

        11       we did a measure a couple of years ago which

        12       enabled us to suspend somebody's license if they

        13       were delinquent in paying; that was an

        14       initiative that came, you know, from this house.

        15         We subsequently have resorted to the use of

        16       the Department of Taxation and Finance to

        17       collect arrears.  Again, that, too, we

        18       reasonably expect to see considerable benefit

        19       from, and this continues in that same vein.

        20                         So, we're getting better, but

        21       there is room for improvement, and this is part

        22       of that improvement.

        23                         SENATOR MENDEZ:   Thank you.

        24       It is a very good bill and I intend to support

        25       it.  Thank you.







                                                             
7536

         1                         SENATOR SALAND:   Thank you.

         2                         ACTING PRESIDENT KUHL:   Is

         3       there any other Senator wishing to speak on the

         4       bill?

         5                         (There was no response.)

         6                         Hearing none, the Secretary

         7       will read the last section.

         8                         THE SECRETARY:   Section 149.

         9       This act shall take effect on January 1st 1998.

        10                         ACTING PRESIDENT KUHL:   Call

        11       the roll.

        12                         (The Secretary called the

        13       roll.)

        14                         THE SECRETARY:  Ayes 57.

        15                         ACTING PRESIDENT KUHL:   The

        16       bill is passed.

        17                         Senator DeFrancisco.

        18                         SENATOR DeFRANCISCO:   Mr.

        19       President, is there any housekeeping at the

        20       desk?

        21                         ACTING PRESIDENT KUHL:   There

        22       is.  If we could, we'll return to the order of

        23       motions and resolution.

        24                         The Chair recognizes Senator

        25       Marcellino.







                                                             
7537

         1                         SENATOR MARCELLINO:   Thank

         2       you, Mr. President.  On behalf of Senator

         3       Stafford, on page number 4, I offer the

         4       following amendments to Calendar Number 1155,

         5       Senate Print Number 5349B, and I ask that said

         6       bill retain its place on the Third Reading

         7       Calendar.

         8                         ACTING PRESIDENT KUHL:

         9       Amendments are received and adopted.

        10                         SENATOR MARCELLINO:   Thank

        11       you.

        12                         ACTING PRESIDENT KUHL:   And

        13       the bill will retain its place on the Third

        14       Reading Calendar.

        15                         ACTING PRESIDENT KUHL:

        16       Senator DeFrancisco.

        17                         SENATOR DeFRANCISCO:   It's my

        18       understanding there is a resolution calendar at

        19       the desk; I would move the adoption of it.

        20                         ACTING PRESIDENT KUHL:   The

        21       motion is to adopt the Resolution Calendar which

        22       is on the members' desks.

        23                         All those in favor signify by

        24       saying aye.

        25                         (Response of "Aye.")







                                                             
7538

         1                         Opposed nay.

         2                         (There was no response.)

         3                         The Resolution Calendar is

         4       adopted.

         5                         Senator Hoffmann, why do you

         6       rise?

         7                         SENATOR HOFFMANN:   Mr.

         8       President, how am I recorded on Calendar 1624?

         9       It was brought to my attention I may have been

        10       recorded in the affirmative.  I wish to be

        11       recorded in the negative.

        12                         ACTING PRESIDENT KUHL:

        13       Senator Hoffmann, the Clerk informs me that you

        14       are currently recorded in the affirmative on

        15       Calendar Number 1624.

        16                         SENATOR HOFFMANN:   I would

        17       request to be recorded in the negative on 1624.

        18                         ACTING PRESIDENT KUHL:   The

        19       request is to have unanimous consent of the body

        20       to be recorded in the negative on Calendar

        21       Number 1624.  Hearing no objection, Senator

        22       Hoffmann will be recorded in the negative on

        23       Calendar Number 1624.

        24                         Senator DeFrancisco.

        25                         SENATOR DeFRANCISCO:   We're







                                                             
7539

         1       going to have to stand at ease for a few

         2       moments.

         3                         ACTING PRESIDENT KUHL:   The

         4       Senate will stand at ease for a few moments.

         5                         (The Senate stood at ease from

         6       10:12 p.m. to 10:26 p.m.)

         7                         ACTING PRESIDENT SEWARD:

         8       Senator Skelos.

         9                         SENATOR SKELOS:   Mr.

        10       President, there will be an immediate meeting of

        11       the Rules Committee in the Majority Conference

        12       Room.

        13                         ACTING PRESIDENT SEWARD:

        14       Immediate meeting of the Rules Committee in the

        15       Majority Conference Room.

        16                         (The Senate stood at ease from

        17       10:27 p.m. to 10:52 p.m.)

        18                         ACTING PRESIDENT KUHL:  The

        19       Senate will come to order.  Members take places.

        20                         Senator Larkin.

        21                         SENATOR LARKIN:   Mr.

        22       President, would you recognize Senator Mendez,

        23       please?

        24                         ACTING PRESIDENT KUHL:

        25       Senator Mendez.







                                                             
7540

         1                         SENATOR MENDEZ:   Mr.

         2       President, there will be an immediate conference

         3       of the Minority, Room 314.

         4                         ACTING PRESIDENT KUHL:

         5       Senator Larkin.

         6                         SENATOR LARKIN:   Can we

         7       return to reports of standing committees before

         8       they go into conference -- oh, they can go?

         9       Okay.  Could we please have the Rules Committee

        10       report read, Mr. President?

        11                         ACTING PRESIDENT KUHL:

        12       Return to the order of reports of standing

        13       committees.  There is a Rules report at the

        14       desk.  I'll ask the Secretary to read.

        15                         THE SECRETARY:   Senator

        16       Bruno, from the Committee on Rules, offers up

        17       the following bills:

        18                         Assembly Print 7728A, by the

        19       Committee on Rules, an act to amend the

        20       Insurance Law;

        21                         Assembly Print 2300, by the

        22       Assembly Committee on Rules, an act to amend the

        23       Public Housing Law;

        24                         Senate Print 5031D, by Senator

        25       Goodman, an act to amend the Tax Law;







                                                             
7541

         1                         5262B, by Senator Padavan, an

         2       act to amend the New York City charter;

         3                         3389A, by Senator Seabrook, an

         4       act authorizing the city of New York;

         5                         1476B, by Senator Breslin, an

         6       act relating to the repayment of the state in an

         7       advance;

         8                         4450A, by Senator DeFrancisco,

         9       an act to amend the Arts and Cultural Affairs

        10       Law;

        11                         4502A, by Senator Tully, an

        12       act to direct the New York City Taxi and

        13       Limousine Commission;

        14                         4683A, by Senator Levy, an act

        15       in relation to authorizing;

        16                         4894A, by Senator Saland, an

        17       act to reopen the special retirement plan;

        18                         5451, by Senator Connor, an

        19       act to authorize the city of New York;

        20                         5486C, by Senator LaValle, an

        21       act to amend the Town Law;.

        22                         5488A, by Senator Stafford, an

        23       act to amend the State Finance Law;

        24                         5583A, by Senator DeFrancisco,

        25       an act authorizing the State University;







                                                             
7542

         1                         5665A, by Senators Lack and

         2       Trunzo, an act to amend the Tax Law;

         3                         5717A, by Senator Farley, an

         4       act to amend the Banking Law;

         5                         5765A, by Senator LaValle, an

         6       act to amend the Tax Law;

         7                         5781, by Senator Johnson, an

         8       act to amend the Environmental Conservation Law;

         9                         5782, by Senator Trunzo, an

        10       act to amend a Chapter of the Laws of 1997.

        11                         All bills directly for third

        12       reading.

        13                         ACTING PRESIDENT KUHL:

        14       Senator Larkin.

        15                         SENATOR LARKIN:   Move to

        16       accept the report, Mr. President.

        17                         ACTING PRESIDENT KUHL:   The

        18       motion is to accept the report of the Rules

        19       Committee.

        20                         All those in favor signify by

        21       saying aye.

        22                         (Response of "Aye.")

        23                         Opposed nay.

        24                         (There was no response.)

        25                         The Rules report is accepted.







                                                             
7543

         1       The bills are ordered directly to third reading.

         2                         Senator Larkin.

         3                         SENATOR LARKIN:   Mr.

         4       President, there will be a meeting of the

         5       Finance Committee at 11 p.m. In Room 332.

         6                         ACTING PRESIDENT KUHL:   There

         7       is an immediate meeting of the Minority

         8       Conference, five-minute conference, in the

         9       Minority Conference Room; and there will be a

        10       meeting of the Senate Finance Committee in five

        11       minutes at 11 o'clock p.m., August 3rd, and the

        12       Senate will stand at ease.

        13                         (The Senate stood at ease from

        14       10:57 p.m. to 11:21 p.m.)

        15                         ACTING PRESIDENT MAZIARZ:

        16       Senator Skelos.

        17                         SENATOR SKELOS:   First of

        18       all, if we could have order, please.

        19                         ACTING PRESIDENT MAZIARZ:

        20       The chamber will come to order.

        21                         Senator Skelos.

        22                         SENATOR SKELOS:   If we could

        23       take up Senate Supplemental Calendar 65C,

        24       noncontroversial.

        25                         ACTING PRESIDENT MAZIARZ:







                                                             
7544

         1       Secretary will read.

         2                         THE SECRETARY:   Calendar

         3       Number 340, by the Committee on Rules, Assembly

         4       Print 7728A, an act to amend the Insurance Law.

         5                         SENATOR LEICHTER:  Mr.

         6       President.

         7                         ACTING PRESIDENT MAZIARZ:

         8       Senator Leichter.

         9                         SENATOR LEICHTER:   I don't

        10       think we have a calendar yet.  Is there a

        11       calendar on our desks?

        12                         ACTING PRESIDENT MAZIARZ:

        13       Senator Leichter, it is calendar -- Senate

        14       Supplemental Calendar 65C.

        15                         SENATOR LEICHTER:   Could we

        16       ask the clerks, please, to distribute it because

        17       I don't think we have it here.

        18                         ACTING PRESIDENT MAZIARZ:   It

        19       is on all the desks.

        20                         SENATOR LEICHTER:   Well,

        21       where?

        22                         ACTING PRESIDENT MAZIARZ:  The

        23         Secretary will read.

        24                         THE SECRETARY:   Calendar

        25       Number 340, by the Committee on Rules, Assembly







                                                             
7545

         1       Print 7728A, an act to amend the Insurance Law.

         2                         ACTING PRESIDENT MAZIARZ:

         3       Read the last section.

         4                         THE SECRETARY:   Section 2.

         5       This act shall take effect immediately.

         6                         ACTING PRESIDENT MAZIARZ:

         7       Call the roll.

         8                         (The Secretary called the

         9       roll.)

        10                         THE SECRETARY:  Ayes 57.

        11                         ACTING PRESIDENT MAZIARZ:

        12       The bill is passed.

        13                         THE SECRETARY:   Calendar

        14       Number 706, by Member of the Assembly Ramirez,

        15       Assembly Print 2300, an act to amend the Public

        16       Housing Law.

        17                         ACTING PRESIDENT MAZIARZ:

        18       Read the last section.

        19                         THE SECRETARY:  Section 2.

        20       This act shall take effect immediately.

        21                         ACTING PRESIDENT MAZIARZ:

        22       Call the roll.

        23                         (The Secretary called the

        24       roll.)

        25                         THE SECRETARY:  Ayes 57.







                                                             
7546

         1                         ACTING PRESIDENT MAZIARZ:

         2       The bill is passed.

         3                         THE SECRETARY:   Calendar

         4       Number 719, by Senator Goodman, Senate Print

         5       5031D, an act to amend the Tax Law.

         6                         ACTING PRESIDENT MAZIARZ:

         7       Senator Skelos.

         8                         SENATOR SKELOS:   Mr.

         9       President, is there a message of necessity at

        10       the desk?

        11                         ACTING PRESIDENT MAZIARZ:

        12       There is a message of necessity at the desk.

        13                         SENATOR SKELOS:   Move to

        14       accept.

        15                         ACTING PRESIDENT MAZIARZ:

        16       All in favor of accepting the message of

        17       necessity, please signify by saying aye.

        18                         (Response of "Aye.")

        19                         Opposed nay.

        20                         (There was no response.)

        21                         The message is accepted.

        22                         Secretary will read -- read

        23       the last section.

        24                         THE SECRETARY:   Section 7.

        25       This act shall take effect immediately.







                                                             
7547

         1                         ACTING PRESIDENT MAZIARZ:

         2       Call the roll.

         3                         (The Secretary called the

         4       roll.)

         5                         THE SECRETARY:  Ayes 57.

         6                         ACTING PRESIDENT MAZIARZ:

         7       The bill is passed.

         8                         THE SECRETARY:   In relation

         9       to Calendar Number 1241, Senator Padavan moves

        10       to discharge from the Committee on Rules

        11       Assembly Print 7787B, and substitute it for the

        12       identical Senate Print, Third Reading 1241.

        13                         ACTING PRESIDENT MAZIARZ:

        14       The substitution is ordered.

        15                         Secretary will read.

        16                         THE SECRETARY:   Calendar

        17       Number 1241, by the Committee on Rules, Assembly

        18       Print 7787B, an act to amend the New York City

        19       charter.

        20                         ACTING PRESIDENT MAZIARZ:

        21       There is a home rule message at the desk.  Read

        22       the last section.

        23                         THE SECRETARY:  Section

        24       2.  This act shall take effect immediately.

        25                         ACTING PRESIDENT MAZIARZ:







                                                             
7548

         1       Call the roll.

         2                         (The Secretary called the

         3       roll.)

         4                         THE SECRETARY:  Ayes 57.

         5                         ACTING PRESIDENT MAZIARZ:  The

         6       bill is passed.

         7                         THE SECRETARY:   Calendar

         8       Number 1510, by Senator Seabrook, Senate Print

         9       3389A, an act authorizing the city of New York.

        10                         ACTING PRESIDENT MAZIARZ:

        11       There is a home rule message at the desk.  Read

        12       the last section.

        13                         THE SECRETARY:   Section 5.

        14       This act shall take effect immediately.

        15                         ACTING PRESIDENT MAZIARZ:

        16       Call the roll.

        17                         (The Secretary called the

        18       roll.)

        19                         THE SECRETARY:  Ayes 57.

        20                         ACTING PRESIDENT MAZIARZ:

        21       The bill is passed.

        22                         THE SECRETARY:   In relation

        23       to Calendar Number 1627, Senator Breslin moves

        24       to discharge from the Committee on Rules,

        25       Assembly Print 2245B, and substitute it for the







                                                             
7549

         1       identical Senate Print, Third Reading 1627.

         2                         ACTING PRESIDENT MAZIARZ:

         3       The substitution is ordered.  Read the last

         4       section -- I'm sorry, Secretary will read.

         5                         THE SECRETARY:   Calendar

         6       Number 1627, by Member of the Assembly

         7       Canestrari, Assembly Print 2245B, an act

         8       relating to the repayment of the state.

         9                         ACTING PRESIDENT MAZIARZ:

        10       Read the last section.

        11                         THE SECRETARY:   Section 2.

        12       This act shall take effect immediately.

        13                         ACTING PRESIDENT MAZIARZ:

        14       Call the roll.

        15                         (The Secretary called the

        16       roll.)

        17                         THE SECRETARY:  Ayes 56, nays

        18       1, Senator Hannon -- ayes 55, nays 2, Senators

        19       Hannon and Kuhl recorded in the negative.

        20                         ACTING PRESIDENT MAZIARZ:

        21       The bill is passed.

        22                         THE SECRETARY:   Also Senator

        23       Larkin.  Ayes 54, nays 3, those recorded in the

        24       negative, Senators Hannon, Kuhl and Larkin.

        25                         ACTING PRESIDENT MAZIARZ:







                                                             
7550

         1       The bill is passed.

         2                         THE SECRETARY:   Calendar

         3       Number 1628.  In relation to Calendar Number

         4       1628, Senator DeFrancisco moves to discharge

         5       from the Committee on Rules, Assembly Print

         6       7543B, and substitute it for the identical

         7       Senate bill, Third Reading 1628.

         8                         ACTING PRESIDENT MAZIARZ:

         9       The substitution is ordered.  Secretary will

        10       read.

        11                         THE SECRETARY:   Calendar

        12       Number 1628, by the Assembly the Committee on

        13       Rules, Assembly Print 7543B, an act to amend the

        14       Arts and Cultural Affairs Law.

        15                         ACTING PRESIDENT MAZIARZ:

        16       Read the last section.

        17                         THE SECRETARY:   Section 2.

        18       This act shall take effect on the first day of

        19       January.

        20                         ACTING PRESIDENT MAZIARZ:

        21       Call the roll.

        22                         (The Secretary called the

        23       roll.)

        24                         THE SECRETARY:  Ayes 57.

        25                         ACTING PRESIDENT MAZIARZ:







                                                             
7551

         1       The bill is passed.

         2                         THE SECRETARY:   Calendar

         3       Number 1629, by Senator Tully, Senate Print

         4       4502A, an act to direct the New York City Taxi

         5       and Limousine Commission.

         6                         SENATOR PATERSON:   Lay it

         7       aside.

         8                         ACTING PRESIDENT MAZIARZ:

         9       Calendar Number 1629 is laid aside.

        10                         THE SECRETARY:   Calendar

        11       Number 1630, by Senator Levy, Senate Print

        12       4683A, an act in relation to authorizing the

        13       State University of New York.

        14                         ACTING PRESIDENT MAZIARZ:

        15       Read the last section.

        16                         THE SECRETARY:   Section 6.

        17       This act shall take effect immediately.

        18                         ACTING PRESIDENT MAZIARZ:

        19       Call the roll.

        20                         (The Secretary called the

        21       roll.)

        22                         THE SECRETARY:  Ayes 57.

        23                         ACTING PRESIDENT MAZIARZ:

        24       The bill is passed.

        25                         THE SECRETARY:   Calendar







                                                             
7552

         1       Number 1631, by Senator Saland, Senate Print

         2       4894A, an act to reopen the special retirement

         3       plan.

         4                         ACTING PRESIDENT MAZIARZ:

         5       There is a home rule message at the desk.  Read

         6       the last section.

         7                         THE SECRETARY:   Section 3.

         8       This act shall take effect immediately.

         9                         ACTING PRESIDENT MAZIARZ:

        10       Call the roll.

        11                         (The Secretary called the

        12       roll.)

        13                         THE SECRETARY:  Ayes 56, nays

        14       1, Senator Leichter recorded in the negative.

        15                         ACTING PRESIDENT MAZIARZ:

        16       The bill is passed.

        17                         THE SECRETARY:  Calendar

        18       Number 1632.  In relation to Calendar Number

        19       1632, Senator Connor moves to discharge from the

        20       Committee on Rules, Assembly Print 8236 and

        21       substitute it for the identical Senate Print,

        22       Third Reading 1632.

        23                         ACTING PRESIDENT MAZIARZ:

        24       The substitution is ordered.  Secretary will

        25       read. There is a home rule message at the desk.







                                                             
7553

         1                         THE SECRETARY:   Section 2.

         2       This act shall take effect immediately.

         3                         ACTING PRESIDENT MAZIARZ:

         4       Call the roll.

         5                         (The Secretary called the

         6       roll.)

         7                         THE SECRETARY:  Ayes 57.

         8                         ACTING PRESIDENT MAZIARZ:

         9       The bill is passed.

        10                         THE SECRETARY:   Calendar

        11       Number 1633.  In relation to Calendar Number

        12       1633, Senator LaValle moves to discharge from

        13       the Committee on Rules, Assembly Print 8274B,

        14       and substitute it for the identical Senate bill

        15       third reading 1633.

        16                         ACTING PRESIDENT MAZIARZ:

        17       The substitution is ordered.  Secretary will

        18       read.

        19                         THE SECRETARY:   Calendar

        20       Number 1633, by the Assembly Committee on Rules,

        21       Assembly Print 8274B, an act to amend the Town

        22       Law.

        23                         ACTING PRESIDENT MAZIARZ:

        24       Read the last section.

        25                         THE SECRETARY:  Section







                                                             
7554

         1       2.  This act shall take effect immediately.

         2                         ACTING PRESIDENT MAZIARZ:

         3       Call the roll.

         4                         (The Secretary called the

         5       roll.)

         6                         THE SECRETARY:  Ayes 56, nays

         7       1, Senator Hannon recorded in the negative.

         8                         ACTING PRESIDENT MAZIARZ:

         9       The bill is passed.

        10                         Senator Gold.

        11                         SENATOR GOLD:   Mr. President,

        12       I had asked a question about 1629 in committee

        13       and as a courtesy to me, I understand Senator

        14       Paterson laid it aside.  However, Senator Tully

        15       was kind enough to send somebody over earlier

        16       and explain it and I do not have an objection.

        17                         If it's convenient and you

        18       want to call up 1629, I have no objection -- oh,

        19       I understand Senator Leichter wants to debate.

        20                         ACTING PRESIDENT MAZIARZ:

        21       Senator Skelos.

        22                         SENATOR SKELOS:   Regular

        23       order, please.

        24                         ACTING PRESIDENT MAZIARZ:

        25       Continue the calendar.  Secretary will read.







                                                             
7555

         1                         THE SECRETARY:   Calendar

         2       Number 1634, by Senator Stafford, Senate Print

         3       5488A, an act to amend the State Finance Law.

         4                         ACTING PRESIDENT MAZIARZ:

         5       There is a message at the desk.

         6                         SENATOR SKELOS:   Move the

         7       message.

         8                         ACTING PRESIDENT MAZIARZ:

         9       All those in favor of accepting the message of

        10       necessity on Calendar Number 1634 signify by

        11       saying aye.

        12                         (Response of "Aye.")

        13                         Opposed nay.

        14                         (There was no response.)

        15                         The message is accepted.

        16                         Read the last section.

        17                         THE SECRETARY:  Section 2.

        18       This act shall take effect immediately.

        19                         ACTING PRESIDENT MAZIARZ:

        20       Call the roll.

        21                         (The Secretary called the

        22       roll.)

        23                         THE SECRETARY:  Ayes 57.

        24                         ACTING PRESIDENT MAZIARZ:

        25       The bill is passed.







                                                             
7556

         1                         THE SECRETARY:   Calendar

         2       Number 1635, by Senator DeFrancisco, Senate

         3       Print 5583A, an act authorizing the State

         4       University of New York.

         5                         ACTING PRESIDENT MAZIARZ:

         6       Senator Skelos.

         7                         SENATOR SKELOS:   Is there a

         8       message of necessity at the desk?

         9                         ACTING PRESIDENT MAZIARZ:

        10       There is a message of necessity at the desk.

        11                         SENATOR SKELOS:   Move to

        12       accept.

        13                         ACTING PRESIDENT MAZIARZ:

        14       All those in favor of accepting the message of

        15       necessity on Calendar Number 1635 signify by

        16       saying aye.

        17                         (Response of "Aye.")

        18                         Opposed nay.

        19                         (There was no response.)

        20                         The message is accepted.

        21                         Read the last section.

        22                         THE SECRETARY:   Section 8.

        23       This act shall take effect immediately.

        24                         ACTING PRESIDENT MAZIARZ:

        25       Call the roll.







                                                             
7557

         1                         (The Secretary called the

         2       roll.)

         3                         THE SECRETARY:  Ayes 57.

         4                         ACTING PRESIDENT MAZIARZ:

         5       The bill is passed.

         6                         THE SECRETARY:   Calendar

         7       Number 1636, by Senator Lack, Senate Print

         8       5665A, an act to amend the Tax Law.

         9                         ACTING PRESIDENT MAZIARZ:

        10       Read the last section.

        11                         THE SECRETARY:   Section 5.

        12       This act shall take effect immediately.

        13                         ACTING PRESIDENT MAZIARZ:

        14       Call the roll.

        15                         (The Secretary called the

        16       roll.)

        17                         THE SECRETARY:  Ayes 56 -

        18                         ACTING PRESIDENT MAZIARZ:

        19       May we please have some order in the house.

        20                         THE SECRETARY:   Ayes 55, nays

        21       2, Senators Dollinger and Gentile recorded in

        22       the negative.

        23                         ACTING PRESIDENT MAZIARZ:

        24       The bill is passed.

        25                         THE SECRETARY:  Calendar







                                                             
7558

         1       Number 1637, by Senator Farley, Senate Print

         2       5717A, an act to amend the Banking Law.

         3                         ACTING PRESIDENT MAZIARZ:

         4       Senator Skelos.

         5                         SENATOR SKELOS:   Is there a

         6       message of necessity at the desk?

         7                         ACTING PRESIDENT MAZIARZ:

         8       There is a message of necessity at the desk.

         9                         SENATOR SKELOS:   Move to

        10       accept.

        11                         ACTING PRESIDENT MAZIARZ:

        12       All those in favor of accepting the message of

        13       necessity on Calendar Number 1637 signify by

        14       saying aye.

        15                         (Response of "Aye.")

        16                         Opposed nay.

        17                         (Response of "Nay.")

        18                         The message is accepted.

        19                         Read the last section.

        20                         THE SECRETARY:   Section 7.

        21       This act shall take effect immediately.

        22                         SENATOR VELELLA:   Lay it

        23       aside.

        24                         ACTING PRESIDENT MAZIARZ:

        25       Calendar Number 1637 is laid aside at the







                                                             
7559

         1       request of Senator Velella -

         2                         Read the last section.

         3                         THE SECRETARY:   Section 7.

         4       This act shall take effect immediately.

         5                         SENATOR VELELLA:   Mr.

         6       President, I believe I laid the bill, 1637 -

         7       Calendar 1637, I believe I laid that aside.

         8                         ACTING PRESIDENT MAZIARZ:

         9       I'm sorry, Senator Velella, with all the noise

        10       in the chamber, we didn't hear you.

        11                         SENATOR VELELLA:  Oh.

        12                         ACTING PRESIDENT MAZIARZ:

        13       You're requesting -- Senator Velella is

        14       requesting that Calendar Number 1637, by Senator

        15       Farley, Senate Print Number 5717A, be laid

        16       aside, is that correct, Senator Velella?

        17                         SENATOR VELELLA:   Absolutely

        18       correct.

        19                         ACTING PRESIDENT MAZIARZ:

        20       The bill is laid aside.

        21                         THE SECRETARY:   Calendar

        22       Number 1639, by Senator Johnson, Senate Print

        23       5781, an act to amend the Environmental

        24       Conservation Law.

        25                         SENATOR SKELOS:  Is there a







                                                             
7560

         1       message of necessity at the desk?

         2                         ACTING PRESIDENT MAZIARZ:

         3       There is a message of necessity at the desk on

         4       Calendar Number 1639.

         5                         SENATOR SKELOS:   Move to

         6       accept.

         7                         ACTING PRESIDENT MAZIARZ:  All

         8       those in favor of accepting the message of

         9       necessity signify by saying aye.

        10                         (Response of "Aye.")

        11                         Opposed nay.

        12                         (There was no response.)

        13                         The message of necessity is

        14       accepted.

        15                         Read the last section.

        16                         THE SECRETARY:   Section 2.

        17       This act shall take effect immediately.

        18                         ACTING PRESIDENT MAZIARZ:

        19       Call the roll.

        20                         (The Secretary called the

        21       roll.)

        22                         THE SECRETARY:  Ayes 57.

        23                         ACTING PRESIDENT MAZIARZ:

        24       The bill is passed.

        25                         THE SECRETARY:  Calendar







                                                             
7561

         1       Number 1640, by Senator Trunzo, Senate Print

         2       5782, an act to amend a Chapter of the Laws of

         3       1997.

         4                         SENATOR SKELOS:   Mr.

         5       President, is there a message of necessity at

         6       the desk?

         7                         ACTING PRESIDENT MAZIARZ:

         8       There is a message of necessity at the desk.

         9                         SENATOR SKELOS:   Move to

        10       accept.

        11                         ACTING PRESIDENT MAZIARZ:

        12       All those in favor of accepting the message of

        13       necessity on Calendar Number 1640 signify by

        14       saying aye.

        15                         (Response of "Aye.")

        16                         Opposed nay.

        17                         (There was no response.)

        18                         The message of necessity is

        19       accepted.

        20                         Read the last section.

        21                         THE SECRETARY:   Section 2.

        22       This act shall take effect on the same date as a

        23       Chapter of the laws of 1997.

        24                         ACTING PRESIDENT MAZIARZ:

        25       Call the roll.







                                                             
7562

         1                         (The Secretary called the

         2       roll.)

         3                         THE SECRETARY:  Ayes 57.

         4                         ACTING PRESIDENT MAZIARZ:

         5       The bill is passed.

         6                         SENATOR SKELOS:   Mr.

         7       President.

         8                         ACTING PRESIDENT MAZIARZ:

         9       Senator Skelos.

        10                         SENATOR SKELOS:   If we could

        11       take up Senate Supplemental Calendar 65C,

        12       controversial.

        13                         ACTING PRESIDENT MAZIARZ:

        14       Secretary will read.

        15                         THE SECRETARY:   Calendar

        16       Number 1629, by Senator Tully, Senate Print

        17       4502A, an act to direct the New York City Taxi

        18       and Limousine Commission.

        19                         ACTING PRESIDENT MAZIARZ:

        20       There is a home rule message at the desk.

        21                         Senator Tully, an explanation

        22       has been requested of Calendar Number 1629 -

        23       read the last section.

        24                         THE SECRETARY:  Section 2.

        25       This act shall take effect immediately.







                                                             
7563

         1                         ACTING PRESIDENT MAZIARZ:

         2       Call the roll.

         3                         (The Secretary called the

         4       roll.)

         5                         THE SECRETARY:  Ayes 57.

         6                         ACTING PRESIDENT MAZIARZ:

         7       The bill is passed.

         8                         THE SECRETARY:   Calendar

         9       Number 1637, by Senator Farley, Senate Print

        10       5717A, an act to amend the Banking Law.

        11                         ACTING PRESIDENT MAZIARZ:

        12       Can we have some order in the house?

        13                         Thank you.

        14                         Secretary will read.

        15                         SENATOR LEICHTER:

        16       Explanation.

        17                         ACTING PRESIDENT MAZIARZ:

        18       Senator Farley, an explanation has been

        19       requested of Calendar Number 1637 by, I believe,

        20       Senator Leichter, was that -

        21                         SENATOR FARLEY:   This is the

        22       so-called "Wild Card" bill, which has been under

        23       negotiation since last year.  I don't think it's

        24       very funny; it's a significant piece of

        25       legislation.  It's a Governor's program bill.







                                                             
7564

         1                         ACTING PRESIDENT MAZIARZ:

         2       Senator Farley is absolutely right.   Can we

         3       hold Senator Farley to the respect of listening

         4       to his explanation on this extremely important

         5       piece of legislation?

         6                         Senator Farley.

         7                         SENATOR FARLEY:   This is a

         8       Governor's program bill which has been under

         9       negotiation by all three parties since last

        10       year.  And, incidentally, I'd like to thank a

        11       few people here, particularly my ranking person

        12       from the Banking Committee, Senator Santiago,

        13       who's not here today, but she's been a major

        14       force in helping this bill along.  Kathy

        15       McCartney and Peter Edman, from my staff, and

        16       Michael Boxley from Senator Connor's staff; and

        17       of course "Denny" Farrell and Aurelia Greene.

        18                         This is not a totally agreed

        19       upon bill, this is two-way agreement between the

        20       Governor and this house.  There's -- I can

        21       honestly say there's nothing in this piece of

        22       legislation that the Assembly objects to, in my

        23       judgment.

        24                         We have made several

        25       amendments to this legislation to address







                                                             
7565

         1       concerns that have been made by the insurance

         2       industry, and let me just give you the genesis

         3       of this.  This legislation comes about as a

         4       result of a March 1996 decision of the Supreme

         5       Court of the United States basically that said

         6       that any nationally-chartered bank could sell

         7       insurance if they had an office in a small town;

         8       and consequently, the National Conference of

         9       State Legislators, the Council of State

        10       Governments, the National Governors'

        11       Association, all urged that the states protect

        12       the dual banking system by passing "Wild Cards";

        13       and to this date, 44 states have passed this

        14       legislation; New York, the financial center of

        15       the world, is a little bit slow in coming up

        16       with this legislation.

        17                         Unfortunately, we've already

        18       had two major banks in New York State switch to

        19       a national charter.  Key Bank, which had its

        20       headquarters here in Albany and now is in

        21       Cleveland, went to a national charter; Fleet

        22       last week announced that they are going to a

        23       national charter and the lagging on the "Wild

        24       Card" was given as one of the reasons.

        25                         We have worked out amendments







                                                             
7566

         1       on this bill because there was concern about the

         2       -- from the insurance industry.  There was

         3       concern from the insurance industry; and the

         4       professional insurance agents have spoken to me,

         5       they support this; the independent insurance

         6       agents support this legislation.  The

         7       Association of Life Underwriters support this

         8       legislation.  It's my understanding that LICONY,

         9       from Kathy McCartney, concurs.  We have made

        10       amendments;  they concur, and most of their

        11       concerns have been resolved by these recent

        12       amendments.

        13                         Let me just say what this

        14       authorizes the banking board to do:  To enact

        15       regulations to provide state banks with the same

        16       powers as national banks.  It governs bank

        17       insurance powers and it includes language

        18       supported by the banking industry, the insurance

        19       agents, regarding the sale of insurance by

        20       banks.  In these particular -- these provisions

        21       ensure functional regulation; therefore,

        22       insurance activities of banks will be subject to

        23       the same laws, regulations that apply to the

        24       insurance activities of any other entity.

        25                         As far as civil penalties are







                                                             
7567

         1       concerned, this bill significantly increases the

         2       penalties and establlishes a three-tier penalty

         3       structure.  These provisions are very similar to

         4       the existing penalty provisions authorized by

         5       federal law.

         6                         ACTING PRESIDENT MAZIARZ:

         7       Excuse me, Senator Farley.

         8                         Senator Skelos.

         9                         SENATOR SKELOS:   Excuse me,

        10       Senator Farley.  We have an important piece of

        11       legislation -- not that yours isn't -- that we

        12       have to deal with immediately.  So I'm going to

        13       ask at this time if we could withdraw this piece

        14       of legislation at this time, lay it aside

        15       temporarily, and return to reports -- messages

        16       from the Assembly.

        17                         ACTING PRESIDENT MAZIARZ:   We

        18       will withdraw the roll call and lay the bill

        19       aside temporarily.  Return to messages from the

        20       Assembly.

        21                         The Chair hands down a message

        22       from the Assembly.  Secretary will read.

        23                         THE SECRETARY:   Assembly

        24       returns Assembly Bill 8642, by the Assembly

        25       Committee on Rules, an act authorizing the







                                                             
7568

         1       creation of a state debt in the amount of $2

         2       billion.

         3                         ACTING PRESIDENT MAZIARZ:

         4       Senator Skelos.

         5                         SENATOR SKELOS:   Mr.

         6       President, without objection, could we have

         7       third reading -- advance it to third reading.

         8                         ACTING PRESIDENT MAZIARZ:

         9       Without objection, third reading is ordered.

        10       Secretary will read.

        11                         THE SECRETARY:   Calendar

        12       Number 1642, by the Assembly Committee on Rules,

        13       Assembly Print 8642, an act authorizing the

        14       creation of a state debt in the amount of

        15       $2,400,000,000.

        16                         SENATOR SKELOS:   Mr.

        17       President, is there a message of necessity at

        18       the desk?

        19                         ACTING PRESIDENT MAZIARZ:

        20       There is a message of necessity at the desk.

        21                         SENATOR SKELOS:   Move to

        22       accept.

        23                         ACTING PRESIDENT MAZIARZ:

        24       All those in favor of accepting the message of

        25       necessity signify by saying aye.







                                                             
7569

         1                         (Response of "Aye.")

         2                         Opposed no.

         3                         (There was no response.)

         4                         The message is accepted.

         5                         Senator Skelos -- read the

         6       last section.

         7                         THE SECRETARY:   Section 2.

         8       This act shall take effect immediately.

         9                         ACTING PRESIDENT MAZIARZ:

        10       Call the roll.

        11                         (The Secretary called the

        12       roll.)

        13                         THE SECRETARY:   Those

        14       recorded in the negative on Calendar Number 1642

        15       are Senators Dollinger, Hoffmann, and Saland.

        16       Ayes 54, nays 3.

        17                         ACTING PRESIDENT MAZIARZ:

        18       The bill is passed.

        19                         Can we have some order in the

        20       house, please?

        21                         Senator Farley, we're going to

        22       return to your explanation on Calendar Number

        23       1637.  The Chair apologizes to you, Senator

        24       Farley, but the bill had to be passed before

        25       midnight.







                                                             
7570

         1                         Senator Farley.

         2                         SENATOR FARLEY:  Without these

         3       recent developments, the "Wild Card" -

         4                         ACTING PRESIDENT MAZIARZ:

         5       Senator Farley, I don't know why this bill is

         6       generating so much conversation in this chamber.

         7                         The chair recognizes Senator

         8       Farley and only Senator Farley.

         9                         Senator Farley.

        10                         SENATOR FARLEY:   Thank you,

        11       Mr. President.

        12                         Recent developments have made

        13       this federal charter issue -- the federal char

        14       ter much more attractive and it poses a major

        15       challenge to the threat of the state banking

        16       system and these include the implementation of

        17       the Federal Interstate Branching Law and the

        18       aggressive efforts by the federal regulators to

        19       expand powers, cut red tape, and reduce

        20       regulatory fees.

        21                         As a result of these

        22       developments, banks are making decisions now

        23       regarding the future structure of their

        24       institutions.  Recently, as I mentioned, we have

        25       seen two large regional banks flip to a state







                                                             
7571

         1       charter -- to a national charter.

         2                         New York has much to lose if

         3       we don't respond to these changes and keep New

         4       York State's charter attractive and competitive.

         5                         There are 140 state chartered

         6       banks in New York versus 70 federal.  Of the 25

         7       largest banks in New York, 20 are state

         8       chartered, including the largest bank in the

         9       nation, Chase Manhattan. We need to reassure

        10       these state chartered banks that New York is

        11       committed to the state charter.

        12                         I have made amendments to this

        13       legislation to address all of the concerns of

        14       the insurance industry.  I think that they are

        15       all on-board.  I have -- there's no known

        16       opposition, at least that I know of, to this

        17       bill.  It's very, very important to the state of

        18       New York.  It's been described to me by some of

        19       the insurance lobbyists as a national model and

        20       one that they would like to see on the books

        21       because there being no federal insurance

        22       department, it gives the states a guideline as

        23       to how to regulate banks should they be in the

        24       insurance business.

        25                         With that, I'll be happy to







                                                             
7572

         1       answer any questions.

         2                         ACTING PRESIDENT MAZIARZ:

         3       Thank you, Senator Farley.

         4                         Read the last section.

         5                         SENATOR LEICHTER:   Mr.

         6       President.

         7                         ACTING PRESIDENT MAZIARZ:

         8       Senator Leichter.

         9                         SENATOR LEICHTER:   I'll yield

        10       to Senator Velella.  I understand, Senator, you

        11       said you wanted to be heard on this?

        12                         SENATOR VELELLA:   Originally

        13       I had some problems with this bill but -

        14                         ACTING PRESIDENT MAZIARZ:

        15       Senator Velella.

        16                         SENATOR VELELLA:   Thank you

        17       for yielding, Senator.  I had some problems with

        18       this bill, but Senator Farley's explanation

        19       covered almost everything I could think of and

        20       was such an outstanding explanation that it

        21       cleared up any confusion I had on the bill, and

        22       I would think that there would be no questions

        23       at all.  He covered all the bases, so I move

        24       that we move the bill.

        25                         ACTING PRESIDENT MAZIARZ:







                                                             
7573

         1       Senator Leichter.

         2                         SENATOR LEICHTER:   Thank you

         3       very much, Mr. President.

         4                      And, Senator Velella, it's good

         5       that your confusion was cleared up, but

         6       obviously when you put your name on the bill you

         7       must have still been confused because I see your

         8       name on the bill, and I'd like to ask some

         9       questions to see whether we can't clear up some

        10       confusions that I think generally surround this

        11       bill.

        12                         Senator Farley, would you

        13       yield, please?

        14                         ACTING PRESIDENT MAZIARZ:

        15       Senator Farley, would you yield for a question

        16       from -

        17                         SENATOR FARLEY:  Yes, I will.

        18                         ACTING PRESIDENT MAZIARZ:  -

        19       Senator Leichter.

        20                         Senator Leichter.

        21                         SENATOR LEICHTER:   Senator

        22       Farley, I think you rightly said this is an

        23       important bill and I know it's a bill that

        24       you've been very much concerned with throughout

        25       this session, and I believe early in January or







                                                             
7574

         1       maybe it was early in February, you had a

         2       meeting of the Banking Committee and you brought

         3       in two individuals to speak on behalf of the

         4       bill, the then Superintendent, Superintendent

         5       Levin, and the representative of the commercial

         6       bankers.

         7                         At that time, I asked you and

         8       suggested it might be appropriate to hold

         9       hearings on the bill because, as you said, it

        10       was so important.  Were there ever any hearings

        11       held on this bill, Senator Farley?

        12                         SENATOR FARLEY:   No, there

        13       were not.

        14                         ACTING PRESIDENT MAZIARZ:

        15       Senator Farley.

        16                         SENATOR FARLEY:   There were

        17       not hearings held on this bill.  We were,

        18       theoretically, going to have joint hearings

        19       between the Assembly and the Senate.  Yes, there

        20       were some hearings, the Assembly went ahead and

        21       held their own hearings after we had agreed to

        22       hold joint hearings, and I held an informational

        23       meeting, that's all that that was, was an

        24       informational meeting held at the last minute

        25       for my committee and to give the opportunity for







                                                             
7575

         1       committee members to ask the Superintendent of

         2       Banks and Michael Smith from the New York State

         3       Bankers' Association to speak to this issue and

         4       how important it was for them.  But, there were

         5       hearings held by the Assembly; we were not

         6       included.

         7                         ACTING PRESIDENT MAZIARZ:

         8       Senator Leichter.

         9                         SENATOR LEICHTER:   Senator

        10       Farley, if you would continue to yield.

        11                         ACTING PRESIDENT MAZIARZ:

        12       Senator Farley, would you continue to yield?

        13                         SENATOR FARLEY:  Yes, I will.

        14                         SENATOR LEICHTER:   Did I

        15       understand you to say the main reason for this

        16       bill, which would transfer the authority to make

        17       powers as to banking policy and rules is because

        18       unless we do this, that state chartered banks

        19       would opt to have a national charter; is that a

        20       fair statement?

        21                         SENATOR FARLEY:   That's a

        22       fair statement, but I don't like your preamble

        23       to that statement where you said that we're

        24       transferring all of our powers and rules, that's

        25       not true.







                                                             
7576

         1                         SENATOR LEICHTER:   We are

         2       transferring some powers and rules.

         3                         SENATOR FARLEY:   You see,

         4       Senator Leichter, on this issue, the only laws,

         5       and so forth, that we can make affect state

         6       chartered banks.  If they go to a national

         7       charter, we have little or no control over them.

         8                         Much of the legislation,

         9       interstate branching and so many things, came

        10       out of New York legislation.  We have been the

        11       beacon of progressiveness when it comes to

        12       banks, and when you had the S and L crisis

        13       around the nation, you didn't see New York banks

        14       going belly-up; it's because we have the finest

        15       banks in the nation, and most of which are state

        16       chartered.

        17                         SENATOR LEICHTER:   Senator

        18       Farley, if you will continue to yield.

        19                         ACTING PRESIDENT MAZIARZ:

        20       Senator Farley, would you continue to yield to

        21       Senator Leichter?

        22                         SENATOR FARLEY:  Yes, I will.

        23                         SENATOR LEICHTER:   Senator

        24       Farley, I must say I have a problem with your

        25       logic and maybe you can help clear that up for







                                                             
7577

         1       me.

         2                         Your purpose in passing this

         3       bill is to see that the state of New York

         4       continues to exercise control over banks, which

         5       it can do, in most instances, only over state

         6       chartered banks.  In order to keep that control,

         7       you now give the state chartered banks the

         8       powers that they would have as national banks.

         9       So where do we maintain our control?  Where do

        10       we gain anything by the fact that, yes, they

        11       have a state charter, but they have all the

        12       federal powers?

        13                         SENATOR FARLEY:   Senator

        14       Leichter, all the laws that we have on the books

        15       currently to date applying to state chartered

        16       banks will still apply, and there's a number of

        17       them.  For instance, our -- the ATM security

        18       legislation, which we just recently passed, all

        19       of that still applies.

        20                         SENATOR LEICHTER:   But,

        21       Senator, isn't it true that, under this bill, if

        22       the banking board determines that federal policy

        23       does not require ATM security, that the banking

        24       board could override that provision, unless

        25       you've amended the bill?







                                                             
7578

         1                         SENATOR FARLEY:   This "Wild

         2       Card" authority does not permit the exercise of

         3       any power, except in a manner consistent with

         4       the following laws:  The Banking and Credit

         5       Information Program, prohibition of geographic

         6       discrimination, motor vehicle leasing,

         7       interstate branching, ATM safety, the Banking

         8       Law, Truth in Savings, the Banking Law State

         9       Community Reinvestment Act.  The superintendent

        10       has no authority to change any of those.

        11                         SENATOR LEICHTER:   Good.

        12                         Mr. President.

        13                         ACTING PRESIDENT MAZIARZ:

        14       Senator Leichter.

        15                         SENATOR LEICHTER:   Thank you

        16       very much, Senator Farley.  You've been

        17       courteous and gracious, as always.

        18                         Senator Farley points out, I

        19       think rightfully so, that the bill has been

        20       amended and certainly to my mind is not as

        21       meretricious as it was when it was first

        22       introduced, but I think it still raises a very

        23       fundamental principle, which is we are the

        24       Legislature.   By this bill, we are giving up

        25       substantial authority and power to the







                                                             
7579

         1       superintendent.

         2                         Now, it always amuses me when

         3       I see my good friends of the Majority who rail

         4       against the bureaucrats who speak about the

         5       people's representatives should have the right

         6       to make laws, to make decisions and how the

         7       bureaucrats are continuously interfering with

         8       our prerogatives; then we get a bill like this

         9       that turns one of the most important functions

        10       that we have, to regulate and set banking

        11       policy, and not wholly, because Senator Farley

        12       pointed out, the bill has been amended, but to

        13       still a fairly significant extent, it gives

        14       powers to the superintendant and the banking

        15       board to set policy which is now set by this

        16       Legislature.

        17                         Banking, as we all know and to

        18       say a truism, is extremely important to the

        19       welfare of this state, to all of our

        20       constituents.  We feel that it is important that

        21       policy be set by the people's elected

        22       representatives.

        23                         This bill goes absolutely in

        24       the wrong direction.  If you want to give up

        25       your powers, if you want to abdicate the







                                                             
7580

         1       responsibility that we now have, then you'll

         2       vote for this bill.

         3                         But let me just say further

         4       that the concern that Senator Farley has about

         5       banks giving up their state charter, and there's

         6       a risk that that will happen, but not, I think,

         7       because we don't pass "Wild Card", there's a lot

         8       of factors that go into this; but one answer is

         9       that if we feel that it's appropriate, we can

        10       change those laws which may make a state

        11       chartered bank more comfortable in maintaining

        12       its charter.   The argument is, well, we're not

        13       efficient, we're not as quick.  You know, the

        14       same arguments you hear, democracy doesn't work,

        15       democracy isn't efficient.  I think that we work

        16       very well.  We can deal with all of the needs

        17       that state chartered banks have by legislation.

        18                         We should not give up our

        19       powers in this respect, and I would urge you to

        20       keep control over bank policy in the Legislature

        21       and not turn that power over to this extent to

        22       the Superintendent of Banks and the banking

        23       board.

        24                         ACTING PRESIDENT MAZIARZ:

        25       Read the last section.







                                                             
7581

         1                         THE SECRETARY:   Section 7.

         2       This act shall take effect immediately.

         3                         ACTING PRESIDENT MAZIARZ:

         4       Call the roll.

         5                         (The Secretary called the

         6       roll.)

         7                          THE SECRETARY:  Ayes 56, nays

         8       1, Senator Leichter recorded in the negative.

         9                         ACTING PRESIDENT MAZIARZ:

        10       The The bill is passed.

        11                         Senator Bruno.

        12                         SENATOR BRUNO:   Mr.

        13       President, can we return to reports of standing

        14       committees, and I believe there's a report there

        15       from the Finance Committee; I ask that it be

        16       read at this time.

        17                         ACTING PRESIDENT MAZIARZ:

        18       Return to reports of standing committees.  The

        19       Secretary will read.

        20                         THE SECRETARY:   Senator

        21       Stafford, from the Committee on Finance, offers

        22       up the following bill:

        23                         Senate Print 5785, by the

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

        25       and the Banking Law.







                                                             
7582

         1                         SENATOR BRUNO:   Move to

         2       accept the report.

         3                         ACTING PRESIDENT MAZIARZ:

         4       Motion is to accept the report.  All those in

         5       favor signify by saying aye.

         6                         (Response of "Aye.")

         7                          Opposed nay.

         8                         (There was no response.)

         9                         The report is accepted.

        10                         Senator Bruno.

        11                         SENATOR BRUNO:  Mr. President,

        12       can we at this time take up Calendar Number

        13       1641?

        14                         ACTING PRESIDENT MAZIARZ:

        15       Secretary will read.

        16                         THE SECRETARY:   Calendar

        17       Number 1641, by the Committee on Rules, Senate

        18       Print 5785, an act to amend the Tax Law and the

        19       Banking Law.

        20                         SENATOR BRUNO:   Is there a

        21       message of necessity?

        22                         ACTING PRESIDENT MAZIARZ:

        23       There is a message of necessity at the desk.

        24                         SENATOR BRUNO:  Move to accept

        25       the message.







                                                             
7583

         1                         ACTING PRESIDENT MAZIARZ:

         2       All those in favor of accepting the message of

         3       necessity signify by saying aye.

         4                         (Response of "Aye.")

         5                         Opposed nay.

         6                         (There was no response.)

         7                         The message is accepted.

         8                         The Secretary will read -

         9       read the last section.

        10                      THE SECRETARY:   Section 4.  This

        11       act shall take effect immediately.

        12                         ACTING PRESIDENT MAZIARZ:

        13       Senator Paterson.

        14                         SENATOR PATERSON:   Mr.

        15       President, I would like an explanation on

        16       Calendar Number 1641.

        17                         ACTING PRESIDENT MAZIARZ:   An

        18       explanation has been requested of Calendar

        19       Number 1641.

        20                         Senator Bruno.

        21                         SENATOR BRUNO:   Yes, Mr.

        22       President.  This is the tax package that

        23       represents much of what we in this chamber

        24       passed as Senate 1 and Senate 2.  We have a

        25       total of business taxes that, when fully







                                                             
7584

         1       implemented, will be well over $2 billion and in

         2       property tax cuts that are represented, about

         3       2.4 billion.

         4                         And what's represented in this

         5       package is the continuation of what we have done

         6       together in the Legislature with the leadership

         7       of the Governor in having led the country in tax

         8       cuts this will be the third year in a row, and

         9       the taxes that are represented here, I won't go

        10       into great detail because I think they are on

        11       the desk and you're familiar with them, but we

        12       have talked about the gross receipts tax, that's

        13       in here, reduces the gross receipts tax by about

        14       25 percent, it's $500 million when implemented.

        15       Sales tax, one week on clothing this year, one

        16       week next year and then decreased over the next

        17       five years, close to a $500 million reduction on

        18       clothing under $100.

        19                         We have many of the nuisance

        20       business taxes that were implemented over the

        21       last 10 or 15 years that will be eliminated.

        22       The container tax, you name it, it's in there.

        23                         And the bottom line to all of

        24       what is happening here tonight is that we are

        25       continuing the economic development, the job







                                                             
7585

         1       growth and leading the country back so that we

         2       all can be proud of what has happened in this

         3       state and that New York State will lead the

         4       country in job creation, and we have gone from

         5       last in the last three years to about tenth and

         6       we have a ways to go.  So this is something we

         7       can all be proud of.

         8                         I'm proud of the part that we

         9       are playing in helping this become law.

        10                         Thank you.

        11                         ACTING PRESIDENT KUHL:

        12       Senator Connor.

        13                         SENATOR CONNOR:  Thank you,

        14       Mr. President.

        15                         I'm proud that this package is

        16       before us and I'm proud of some aspects of it

        17       and there is perhaps something unique about it.

        18       And, you know, when we did S. 1 and S. 2, it was

        19       a bipartisan effort in this house.   There are

        20       tax cuts in here that reflect the values which

        21       the Democratic members of this house articulated

        22       earlier this year.

        23                         And if you'll recall, Mr.

        24       President, when we did STAR, the Governor

        25       proposed STAR -- and let me say, you know, all







                                                             
7586

         1       too often, much of the fault, both houses, we

         2       don't look like a Legislature sometimes the way

         3       we function and the way it looks in other states

         4       and in Washington.  But this was a case,

         5       certainly, of an idea, an improvement, and a

         6       better improvement on a bipartisan basis.

         7                         The Governor proposed his STAR

         8       proposal.  Senator Bruno, quite commendably,

         9       proposed and enhanced property tax program, and

        10       the Democratic members of this house proposed

        11       what we called Fairness First STAR, which drove

        12       more money to upstate communities by eliminating

        13       a provision in the Governor's bill, in the

        14       Majority's bill, which would have unfairly

        15       benefitted the New York City suburbs to the

        16       detriment of almost every county upstate.

        17                         We also proposed that some of

        18       the enhancement, which was proposed by Senator

        19       Bruno, be driven to the cities of this state.

        20       And I'm happy tonight, Mr. President, that for

        21       once, on a bipartisan basis -- and I

        22       congratulate the Governor, I congratulate

        23       Senator Bruno, and I congratulate the Speaker -

        24       took a good idea, and even though it emanated

        25       from the Minority, incorporated it into the







                                                             
7587

         1       proposal and we have a better bill.

         2                         And I'm sure many members of

         3       this house in the past months have read the

         4       op-eds and the editorials around the state that

         5       praised the proposal that the Minority is very

         6       proud to put forward.  It's a rare event.  I

         7       congratulate the Majority here.  I congratulate

         8       Senator Bruno; and Senator Bruno did say that

         9       day, "It's a very good idea and we're going to

        10       look at it," and you did.

        11                         So we're very, very happy on

        12       this side of the aisle to provide property tax

        13       relief to the residents of New York State, to

        14       all those counties upstate.  And we're very,

        15       very happy that the cities are being treated

        16       fairly, that it's a good idea, it's an idea that

        17       Senator Bruno said that day that the Majority

        18       would address and you have and the Governor has

        19       and the Assembly has.

        20                         We're also happy that a tax

        21       like the gross receipts tax is being reduced

        22       because it's always been my opinion that that

        23       drove energy costs through a way that hurt New

        24       York job creation.  We're certainly happy about

        25       the sales tax relief that we'll work out over







                                                             
7588

         1       the next years because, let's face it, my

         2       colleagues, that is a tax that you pay whether

         3       you're rich or poor, and to tax clothing sales

         4       under $100 by very poor people just seems to be

         5       counterproductive.  At a time that we're

         6       encouraging poor people to work and become more

         7       productive, we shouldn't put those kinds of

         8       disincentives on their economic efforts.

         9                          We're happy about the College

        10       Choice Savings Program.  Earlier this year, the

        11       Democratic conference put forth a pre-paid

        12       tuition kind of plan, very, very similar to the

        13       one that was adopted.  So, we're happy about

        14       that, and we're happy to see that our ideas do

        15       matter.  We're happy we can contribute some

        16       ideas to the effort to make this budget.

        17       Certainly the child care credit is something

        18       we're delighted to support.

        19                         State tax relief, I think is

        20       the kind of thing we always have to keep our eye

        21       on, what other states do, what the federal

        22       government does so that we don't unfairly burden

        23       New Yorkers -- average New Yorkers, not wealthy

        24       people, average New Yorkers whose relatively -

        25       in today's economy, relatively small estates







                                                             
7589

         1       were being taxed and we're often driving people

         2       out of state in their senior years.

         3                         So all in all, Mr. President,

         4       we're delighted, we're really delighted to

         5       support, at least I am delighted to support this

         6       tax cut proposal.  If I dispute anything the

         7       Majority Leader said it's that under the Pataki

         8       years we have created jobs.  All the statistics

         9       I've seen show that that's true and I'm glad

        10       it's true for New York City, for its suburbs,

        11       there has been job growth.  Regrettably, though,

        12       regrettably, and we need to address this, the

        13       rest of the state, and I think my colleagues

        14       from upstate can verify this, the rest of the

        15       state has not shared in that job growth.  It's

        16       been Wall Street driven, it's been downstate,

        17       and every survey I've seen shows that the job

        18       situation in Upstate New York, the economy in

        19       Upstate New York is really not in very good

        20       shape at all, and I think we ought to, in future

        21       years -- in future days, in fact, try and

        22       address that problem.  And I assure you, Mr.

        23       President, the members of this Minority always

        24       stand ready to cooperate with the Majority, with

        25       the Assembly and with the Governor on new ideas







                                                             
7590

         1       and new programs that benefit middle class New

         2       Yorkers, working New Yorkers, and that hopefully

         3       we'll make more New Yorkers enjoy the benefits

         4       of work and the economic boost that that brings.

         5                         So I'm delighted to support

         6       this, Mr. President.

         7                         SENATOR LEICHTER:   Mr.

         8       President.

         9                         ACTING PRESIDENT KUHL:

        10       Senator Leichter.

        11                         SENATOR LEICHTER:   Mr.

        12       President, is there an amendment at the desk?  I

        13       think it's just been served.

        14                         ACTING PRESIDENT KUHL:   There

        15       is an amendment at the desk, Senator Leichter,

        16       but give me just a minute to check and see

        17       whether or not it's appropriate.

        18                         SENATOR LEICHTER:   Sure.

        19                         ACTING PRESIDENT KUHL:

        20       You're asking for an opportunity to waive the

        21       reading at this point, Senator Leichter, and

        22       explain the amendment?

        23                         SENATOR LEICHTER:   Yes, I am,

        24       Mr. President.

        25                         ACTING PRESIDENT KUHL:   The







                                                             
7591

         1       opportunity is yours.

         2                         SENATOR LEICHTER:   I thank

         3       you, Mr. President.

         4                         My fellow colleagues, I am

         5       neither proud, nor am I happy or delighted at

         6       this tax bill.  I'm scared to death by it.  I

         7       think we have brought fiscal irresponsibility to

         8       a new height.  We brought it to a new height

         9       because this tax bill is totally and completely

        10       back-ended.  We're putting $143 million into the

        11       tax -- or the payment of the tax this year.  In

        12       year five, that tax bill is going to cost $5

        13       billion.  If all that we can afford in a year

        14       when we're relatively flush with money because

        15       of a windfall from Wall Street is 143 million,

        16       how can we afford five years from now to pay $5

        17       billion?  This is going to blow an enormous hole

        18       into the state's budget.

        19                         Now let me say this, my

        20       friends:  If you want to vote this sort of a tax

        21       bill for this year, fine, vote on it for this

        22       year.  If you want to vote a tax bill for next

        23       year, vote on it next year.  The third year,

        24       vote on it that year; the fourth year, the fifth

        25       year; but don't now bind the hands of the







                                                             
7592

         1       Legislature five years from now without knowing

         2       what revenue we have, without knowing what needs

         3       we have.

         4                         So, my amendment is very

         5       simple, it just provides that every year we will

         6       vote on these tax cuts, the very same tax cuts.

         7                         If economic conditions permit

         8       it, then we can go ahead with a tax cut.  If

         9       they do not permit it, then we shouldn't vote

        10       the tax cut.  That is called fiscal

        11       responsibility, and I'm not one who ordinarily

        12       puts that mantle around myself, Senator Bruno,

        13       you do; Senator Stafford, you do.  The Majority

        14       does.  And yet, here you are doing the most

        15       fiscally irresponsible act that anybody could

        16       possibly do, which is to say five years from

        17       now, I'm going to have $5 billion.  It's no

        18       wonder that this state has the second lowest

        19       bond rating of all the states in the Union,

        20       because we do these totally fiscally

        21       irresponsible acts.  It started under Governor

        22       Cuomo when, in 1987, we enacted a tax cut four

        23       years into the future, we continued it under

        24       Governor Pataki when we enacted the three-year

        25       tax cut, and we now reach new heights when we







                                                             
7593

         1       have this tax cut that is spread out over five

         2       years.   We should vote on it every year.

         3                         So I would urge your support

         4       for this amendment for fiscal sanity.  And I

         5       just want to point out that if we enact this

         6       particular tax cut and we find ourselves in

         7       economic trouble two or three years from now,

         8       then we're going to have no choice, unless you

         9       want to repeal the tax cut, and we appreciate

        10       that's always difficult to do.  What you're

        11       going to have to do is you're going to have to

        12       cut education, health care of seniors, care of

        13       the mentally ill, the disabled, and so on.  That

        14       will be our only alternative.

        15                         I don't believe any other

        16       state in the Union does these multi-year tax

        17       cuts that are back-ended the way ours is.  We

        18       put very little money in the first year but we

        19       claim credit, as Senator Bruno does, $5 billion,

        20       but you put up $143 million this year.

        21                         The interesting thing is, and

        22       this was a study that was put out today by the

        23       Fiscal Policy Institute that shows that the cost

        24       of the tax cut in the last year is 35 times the

        25       amount that we're putting in to pay for the tax







                                                             
7594

         1       cut this year.  That, my friends, again, I must

         2       say is fiscally irresponsible -- maybe

         3       politically great, we may look great this year,

         4       but you're going to have an awful time in future

         5       years, and even more so when we're acting at a

         6       time when we have had this windfall.  And

         7       everybody says it's a windfall.  You're not

         8       going to be able to continue rolling in this

         9       amount of money from Wall Street.

        10                          Don't do it.  It's wrong.  It

        11       is fiscal suicide for this state.   I urge you

        12       to support my amendment.  Vote on these tax cuts

        13       every year.  Be responsible.

        14                         ACTING PRESIDENT KUHL:

        15       Senator Gold, on the amendment.

        16                         SENATOR GOLD:   Thank you very

        17       much, Mr. President.  I'm going to support the

        18       bill for the reasons explained by Senator

        19       Connor, but I want to just add a little bit to

        20       the comments made by Senator Leichter.

        21                         Just to give you a little

        22       history, and this time of night, the history is

        23       going to be very short, I guarantee you, but if

        24       you take a look at this agreement, as was

        25       pointed out, we're talking about this year's







                                                             
7595

         1       budget, the latest budget ever -- thank you,

         2       Governor -- which is really only a $143 million

         3       package.  If you look through everything, STAR,

         4       it's zero; New York City STAR, it's zero; GRT

         5       rate reduction, zero; Estate Tax reform, zero.

         6       So all this really is is a plan.

         7                         Now, having said that, I was

         8       here and many of you were here when we talked

         9       about the state tax cut package back in '87 and

        10       what happened?  In 1990, we had to vote to delay

        11       it.  In '91, we voted to delay it.  In '92, we

        12       delayed it.

        13                         In '92, '93 and '94, in order

        14       to pay for it, we had to put in new taxes.  So,

        15       on the one hand, we were telling -- we were

        16       cutting taxes, but we were feeding out of their

        17       other pocket with new taxes.

        18                         The bottom line of it is that

        19       to the extent that Senator Leichter indicated,

        20       that every year we have to take a new vote, we

        21       do.  The fact is that with every year we either

        22       do or we do not give the people a tax cut.

        23                         In 1990, by doing the delay,

        24       we didn't do it, even though we announced it

        25       in'87.  So, as long as we're doing this with our







                                                             
7596

         1       eyes open, I'm going to vote for it as a plan.

         2       But my eyes are open; and the plan, to some

         3       extent, is unrealistic.

         4                         Having said that, I think it's

         5       a little bit of an unfairness to the people

         6       unless they understand that what we're talking

         7       about, Senator Bruno, is not $5 billion, that

         8       it's not money into the economy that they are

         9       going to be able to spend with this budget.  And

        10       the budget we're enacting tonight, God willing,

        11       has far less in terms of its impact on the

        12       people and that impact is $143 million, and in

        13       most of the areas that we're talking about, it

        14       is zero.

        15                         ACTING PRESIDENT KUHL:

        16       Senator LaValle, on the amendment.

        17                         SENATOR LAVALLE:   I want to

        18       speak on the main bill, Mr. President.

        19                         ACTING PRESIDENT KUHL:

        20       Senator LaValle waives on the amendment.

        21                         Senator Dollinger, on the

        22       amendment.

        23                         SENATOR DOLLINGER:   Thank

        24       you, Mr. President.

        25                         I guess I find it astounding







                                                             
7597

         1       after the five years that I've been here that

         2       Senator Leichter stands up and seems to talk

         3       about fiscal responsibility and adopting the

         4       principle that we will vote as we go and pay as

         5       we go with tax cuts which I think it seems to me

         6       like a very fiscally conservative thing to be

         7       preaching.  But yet I have this sinking feeling

         8       in the pit of my stomach that that fiscal

         9       conservatism, good, old-fashioned conservatism

        10       will be ignored by the house tonight.

        11                         I have another suggestion, and

        12       I really share Senator Gold's view.  I'm going

        13       to vote for the main bill, too, but I'm going to

        14       suggest to you that this tax cut as it's

        15       structured is a whimpy tax cut, a very, very

        16       whimpy tax cut.

        17                         You remember that great

        18       American pop culture icon J. Wellington Whimpy

        19       who once said, "I would gladly pay you Tuesday

        20       for a hamburger today"?  Well, we get the whole

        21       hamburger today, we get the press release, we

        22       get the $5 billion tax cuts, we're going to all

        23       look like tax heros.  You know what it costs us

        24       this year?  Senator Gold, I think the number

        25       you're talking about, $143 million is actually







                                                             
7598

         1       high because that $143 million includes the $90

         2       million tax cut that -- tax increase that the

         3       Governor was going to put in the assessments.

         4       The actual fiscal cost to us this year for the

         5       $5 billion that we're going to buy on Tuesday is

         6       $53 million.

         7                         In voting for the main bill -

         8       and I won't talk on the main bill -- in voting

         9       for the main bill, I'm suggesting we can afford

        10       that $53 million, but I also agree with Senator

        11       Gold, it's unrealistic for the people of this

        12       state to think that this $5 billion is somehow

        13       going to arrive free at their door.

        14                         I suggest that Senator

        15       Leichter's fiscally conservative approach, vote

        16       as we go, pay as we go, is the right way to go.

        17       Let's vote for this amendment.  Let's perhaps

        18       decrease the amount of ink we put in our press

        19       releases but, frankly, let's be candid and

        20       honest with the people of this state.

        21                         ACTING PRESIDENT KUHL:  The

        22       question is on the amendment.

        23                         All those in favor signify by

        24       saying aye.

        25                         (Response of "Aye.")







                                                             
7599

         1                         Opposed nay.

         2                         (Response of "Nay.")

         3                         ACTING PRESIDENT KUHL:   The

         4       amendment is lost.

         5                         On the main bill, Senator

         6       LaValle.

         7                         SENATOR LAVALLE:   Thank you,

         8       Mr. President.

         9                         I believe the tax bill that we

        10       will be voting on is a very historic measure

        11       that will begin to move our state forward and do

        12       more to keep New Yorkers in New York and I would

        13       say to take their tax savings, whether it's on

        14       real property taxes or utilities, which they

        15       will be saving through the gross receipts tax,

        16       and reinvesting that into our economy.

        17                         And I think certainly the

        18       Governor -- and I would just like to talk a bit

        19       about the school property tax because I believe

        20       that this will have a dramatic impact and

        21       sometimes we don't realize that we are, indeed,

        22       setting public policy and moving the state in a

        23       different direction, it's quite ironic, just

        24       before the next millenium.

        25                         This, coupled with a bill that







                                                             
7600

         1       will be coming later on, the education bill,

         2       will be very, very dramatic in moving how we

         3       finance education and how our schools will be

         4       financed and taking the burden off some of the

         5       hardest pressed taxpayers in this state.

         6                         Certainly Governor Pataki is

         7       to be commended for making this a number one

         8       priority as he had stated in the State of the

         9       State message but I think, again, it must be

        10       noted, as Senator Bruno, in 1996, committed this

        11       body toward resolving a problem of the oppressed

        12       property taxpayer.

        13                         Senator Bruno, in '96 and '97,

        14       has held at least four press conferences and has

        15       explained and debated on this floor on at least

        16       two occasions comprehensive legislation to

        17       resolve this problem.

        18                         The Governor, together with

        19       our Majority Leader, and certainly all of us,

        20       this is an occasion where we can all take credit

        21       for working together in dealing with a problem

        22       that for literally decades has plagued

        23       taxpayers, school property taxpayers, in this

        24       state, and we are moving tonight in a direction

        25       that I think people who will be writing about







                                                             
7601

         1       this session will say this is a very historic

         2       and important move, not only the school property

         3       tax, but the other measures in the tax bill.

         4                         ACTING PRESIDENT KUHL:

         5       Senator Nozzolio.

         6                         SENATOR NOZZOLIO:   Mr.

         7       President, on the bill.

         8                         Governor Pataki, Senator

         9       Bruno, this body, are leading New Yorkers to the

        10       come-back of the Empire State.

        11                         I'm very pleased that we

        12       defeated Senator Leichter's misbegotten

        13       amendment because, frankly, it was the height of

        14       fiscal irresponsibility to put forth a catch as

        15       catch, do as we whim to do, one-year-at-a-time

        16       plan.  Businesses, job producers, come to states

        17       that are reliable, that are dependable, that

        18       demonstrate, clearly, tread lines through time

        19       that they are serious about tax and fiscal

        20       policy.

        21                         This state, in the past, has

        22       been dismal under prior Governors in keeping a

        23       consistent standard of tax reliability.

        24       Businesses throughout the world were running

        25       away from New York, taking opportunity after







                                                             
7602

         1       opportunity other places because this

         2       Legislature and prior Governors were

         3       irresponsible, changing their minds like the

         4       most fickle of fickle individuals.

         5                         Governor Pataki is sticking to

         6       his plan.  The first year we have been the

         7       largest tax cutter in the nation.  The second

         8       year, we have been the largest tax cutter in the

         9       nation.  And, as Senator Bruno said tonight, for

        10       the third year in a row, we are the largest tax

        11       cutter in the nation.  That is a tread line that

        12       the chief executive officers and the chairmen of

        13       the boards of corporations throughout the world

        14       can look to New York and say finally something

        15       is happening in a consistent way; and frankly,

        16       it's because Governor Pataki and this Senate

        17       Majority has stuck to its guns.  We're not going

        18       to be fickle, we're not going to complain, we're

        19       not going to repeat the mistakes of the past.

        20       That was done and it brought this state to

        21       fiscal and economic ruin.

        22                         I'm very pleased and very

        23       proud.  The leadership of our Majority Leader,

        24       the leadership of the Governor, the consistent

        25       rational policy of making our state competitive







                                                             
7603

         1       again on a consistent basis is exactly what we

         2       need and it's exactly why the Governor and the

         3       Majority Leader should be praised and that we

         4       should be proud of this measure.

         5                         ACTING PRESIDENT KUHL:  The

         6       Secretary will read the last section.

         7                         THE SECRETARY:   Section 4.

         8       This act shall take effect immediately.

         9                         ACTING PRESIDENT KUHL:   Call

        10       the roll.

        11                        (The Secretary called the

        12       roll.)

        13                         THE SECRETARY:  Ayes 57.

        14                         ACTING PRESIDENT KUHL:   The

        15       bill is passed.

        16                         Senator Leichter, you want to

        17       be recorded in the negative on the bill?

        18                         SENATOR LEICHTER:   Record me

        19       in the negative.  Thank you.

        20                         ACTING PRESIDENT KUHL:   Any

        21       other Senator wishing to be recorded in the

        22       negative?

        23                         (There was no response.)

        24                         ACTING PRESIDENT KUHL:

        25       Announce the results.







                                                             
7604

         1                         THE SECRETARY:   Ayes 56, nays

         2       1, Senator Leichter recorded in the negative.

         3                         ACTING PRESIDENT KUHL:   The

         4       bill is passed.

         5                         Senator Saland, why do you

         6       rise?

         7                         SENATOR SALAND:   Mr.

         8       President, I would request unanimous consent to

         9       recorded in the affirmative on Calendar 1642.

        10                         ACTING PRESIDENT KUHL:

        11       Without objection.  Hearing no objection,

        12       Senator Saland will be recorded in the

        13       affirmative on Calendar Number 1642.

        14                         SENATOR GOLD:   Mr. President.

        15                         ACTING PRESIDENT KUHL:

        16       Senator Gold, why do you rise?

        17                         SENATOR GOLD:  Yes.  I'd like

        18       unanimous consent to be recorded in the negative

        19       on Calendar Number 1631.

        20                         ACTING PRESIDENT KUHL:

        21       Without objection, hearing no objection, Senator

        22       Gold will be recorded in the negative on

        23       Calendar Number 1631.

        24                      (Long pause)

        25                      ACTING PRESIDENT KUHL:  Senator







                                                             
7605

         1       Bruno.

         2                      SENATOR BRUNO:  Mr. President, I

         3       would ask that people just stay relaxed, but

         4       there being no further business to come before

         5       the Senate at this hour, I would move that we

         6       stand adjourned until Monday.

         7                      ACTING PRESIDENT KUHL:  Without

         8       objection, hearing no objection, the Senate

         9       stands adjourned.

        10                      (Whereupon at 12:27 a.m., the

        11       Senate adjourned.)

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