Regular Session - June 3, 1998
3984
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9 ALBANY, NEW YORK
10 June 3, 1998
11 11:02 a.m.
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14 REGULAR SESSION
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18 SENATOR JOHN R. KUHL, JR., Acting President
19 STEVEN M. BOGGESS, Secretary
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3985
1 P R O C E E D I N G S.
2 ACTING PRESIDENT KUHL: The
3 Senate will come to order. Ask the members to
4 take their places, staff to take their places,
5 please. Ask everybody in the chamber to rise
6 and join with me in saying the Pledge of
7 Allegiance, and please remain standing for the
8 invocation.
9 (The assemblage repeated the
10 Pledge of Allegiance to the Flag.)
11 We're very pleased to be joined
12 by the Reverend Dr. Dennis Meyer of Our
13 Redeemer Lutheran Church of Scotia, New York.
14 Reverend Meyer for the invocation.
15 REVEREND MEYER: I thank you
16 for the invitation. Like to take this
17 opportunity just for the moment to introduce
18 my daughter Megan, who is here with me today.
19 Let us pray.
20 Creator of an infinite variety,
21 You must love our diversity. Teach us to
22 value our differing abilities, to find ways to
23 include everyone into the fullness of our
24 human community so that all can participate
25 and contribute to this society.
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1 Creator of an ordered and
2 harmonious cosmos, You willed that all things
3 exist in exquisite interdependence. Guide us
4 to find responsible ways to care for others
5 and to accept our needs for their gifts.
6 Creator of each and every
7 individual thing, you have endowed all of us
8 with a precious and unique identity. Help us
9 to guard the independence and dignity of every
10 human being. On this Disability Awareness
11 Day, show us the way that people with
12 disabilities and those who are temporarily
13 able can work together with You to build a
14 better world for all of us.
15 You have called us to ventures
16 of which we can not see the ending by paths as
17 yet untrodden through perils unknown. Bless
18 the Senate of New York State and the people of
19 this state. Give us faith to move forward
20 with good courage knowing that Your hand is
21 leading us and Your love supporting us.
22 Amen.
23 ACTING PRESIDENT KUHL: The
24 reading of the Journal.
25 THE SECRETARY: In Senate,
3987
1 Tuesday, June 2nd. The Senate met pursuant to
2 adjournment. The Journal of Monday, June 1st,
3 was read and approved. On motion, Senate
4 adjourned.
5 ACTING PRESIDENT KUHL: Hearing
6 no objection, the Journal stands approved as
7 read.
8 Presentation of petitions.
9 Messages from the Assembly.
10 Messages from the Governor.
11 Reports of standing committees.
12 Reports of select committees.
13 Communications and reports from
14 state officers.
15 Motions and resolutions. The
16 Chair recognizes Senator Maziarz.
17 SENATOR MAZIARZ: Thank you
18 very much, Mr. President.
19 Mr. President, on behalf of
20 Senator Rath, on page 19 I offer the following
21 amendments to Calendar Number 638, Senate
22 Print Number 6485, and ask that said bill
23 retain its place on the Third Reading
24 Calendar.
25 ACTING PRESIDENT KUHL:
3988
1 Amendments to Calendar Number 638 are received
2 and adopted. The bill will retain its place
3 on the Third Reading Calendar.
4 Senator Maziarz.
5 SENATOR MAZIARZ: Thank you,
6 Mr. President.
7 Again on behalf of Senator
8 Rath, on page number 37, I offer the following
9 amendments to Calendar Number 1010, Senate
10 Print Number 5383-B and ask that said bill
11 retain its place on Third Reading Calendar.
12 ACTING PRESIDENT KUHL:
13 Amendments to Calendar Number 1010 are
14 received and adopted. The bill will retain
15 its place on the Third Reading Calendar.
16 Senator Maziarz.
17 SENATOR MAZIARZ: Thank you,
18 Mr. President.
19 On behalf of Senator Goodman,
20 on page 42 I offer the following amendments to
21 Calendar Number 1090, Senate Print 6988, and
22 ask that said bill retain its place on the
23 Third Reading Calendar.
24 ACTING PRESIDENT KUHL:
25 Amendments to Calendar Number 1090 are
3989
1 received and adopted. The bill will retain
2 its place on the Third Reading Calendar.
3 Senator Maziarz.
4 SENATOR MAZIARZ: Thank you
5 again, Mr. President.
6 On page number 43, on behalf of
7 Senator Goodman, I offer the following
8 amendments to Calendar Number 1093, Senate
9 Print 7317, and ask that said bill retain its
10 place on the Third Reading Calendar.
11 ACTING PRESIDENT KUHL:
12 Amendments to Calendar Number 1093 are
13 received and adopted, and the bill will retain
14 its place on the Third Reading Calendar.
15 Senator Skelos.
16 SENATOR SKELOS: Mr. President,
17 I believe there are 12 resolutions at the
18 desk, by Senator Wright. May we have the
19 titles read and move for their immediate
20 adoption.
21 ACTING PRESIDENT KUHL: Would
22 you like to do that in one motion, Senator
23 Skelos?
24 SENATOR SKELOS: Yes.
25 ACTING PRESIDENT KUHL:
3990
1 Secretary will read the titles to the 12
2 privileged resolutions, by Senator Wright,
3 which are at the desk, and then we will take a
4 motion to adopt them at one time.
5 Secretary will read.
6 THE SECRETARY: By Senator
7 Wright, Legislative Resolution honoring
8 Elizabeth Doran, Reporter, Syracuse
9 Newspapers, upon the occasion of her
10 designation as the recipient of New York
11 State's 1998 United States Small Business
12 Administration Media Advocate of the Year
13 Award.
14 By Senator Wright, Legislative
15 Resolution honoring Sylvia F. Patterson,
16 independent television producer, upon the
17 occasion of her designation as the recipient
18 of New York State's 1998 United States Small
19 Business Administration Media Advocate of the
20 Year Award.
21 By Senator Wright, Legislative
22 Resolution honoring Roslyn D. Goldmacher,
23 Executive Director of the Long Island
24 Development Corporation, upon the occasion of
25 her designation as the recipient of New York
3991
1 State's 1998 United States Small Business
2 Administration's Financial Services Advocate
3 of the Year Award.
4 By Senator Wright, Legislative
5 Resolution honoring Olga Cohen, President of
6 Olga G. Marcus Cosmetics, Inc., upon the
7 occasion of her designation as the recipient
8 of New York State 1998 United States Small
9 Business Administration Small Business
10 Exporter of the Year Award.
11 By Senator Wright, Legislative
12 Resolution honoring Lawrence A. Castiglia,
13 President of Tennyson Machine Company, Inc.,
14 upon the occasion of his designation as
15 recipient of New York State's 1998 United
16 States Small Business Administration's Small
17 Business Person of the Year Award.
18 By Senator Wright, Legislative
19 Resolution honoring Jeanie D. Roberts,
20 Executive Director of the American Red Cross,
21 Clinton Northern Essex Chapter upon the
22 occasion of her designation as the recipient
23 of New York State's 1998 United States Small
24 Business Administration's Phoenix Award.
25 By Senator Wright, Legislative
3992
1 Resolution honoring Jason Levinthal, President
2 of Line Skiboards Manufacturing, Inc., upon
3 the occasion of his designation as the
4 recipient of New York State's 1998 United
5 States Small Business Administration's Small
6 Business Exporter of the Year Award.
7 By Senator Wright, Legislative
8 Resolution honoring Dorothy C. Johnson,
9 President of Johnson Securities, Inc., upon
10 the occasion of her designation as the
11 recipient of New York State's 1998 United
12 States Small Business Administration Minority
13 Small Business Advocate of the Year Award.
14 By Senator Wright, Legislative
15 Resolution honoring William G. Ballard,
16 President of Norwich Aero Products, Inc., upon
17 the occasion of his designation as the
18 recipient of New York State's 1998 United
19 States Small Business Administration Small
20 Business Person of the Year Award.
21 By Senator Wright, Legislative
22 Resolution honoring David Terrenzio, Senior
23 Vice-president and Senior Loan Officer of the
24 New York State Business Development
25 Corporation and the Empire State Certified
3993
1 Development Corporation, upon the occasion of
2 his designation as the recipient of New York
3 State's 1998 United States Small Business
4 Administration Financial Services Advocate of
5 the Year Award.
6 By Senator Wright, Legislative
7 Resolution honoring Brenda L. Copeland,
8 President and Director of the Bank of Castile,
9 upon the occasion of her designation as the
10 recipient of New York State's 1998 United
11 States Small Business Administration's
12 Financial Services Advocate of the Year
13 Award.
14 And by Senator Wright,
15 Legislative Resolution honoring Ursula
16 Rickenbacher, President and Chief Executive
17 Officer of Ursula of Switzerland, upon the
18 occasion of her designation as the recipient
19 of New York State's 1998 United States Small
20 Business Administration Phoenix Award.
21 ACTING PRESIDENT KUHL: The
22 question is on the resolutions. All those in
23 favor signify by saying aye.
24 (Response of "Aye.")
25 Opposed nay.
3994
1 (There was no response. )
2 The resolutions are adopted.
3 Senator Skelos.
4 SENATOR SKELOS: Mr. President
5 there is a resolution at the desk sponsored by
6 Senator Libous which was adopted on Monday.
7 May we please have it read in its entirety.
8 ACTING PRESIDENT KUHL: There
9 is a privileged resolution by Senator Libous
10 at the desk. I'll ask the Secretary to read
11 the resolution in its entirety.
12 THE SECRETARY: By Senator
13 Libous, Legislative Resolution commending the
14 Special Olympians upon the occasion of
15 completing the Capital District Leg of the New
16 York State Special Olympics Law Enforcement
17 Torch Run at the Opening Ceremonies marking
18 the 18th Annual Legislative Disability
19 Awareness Day Wednesday, June 3rd, 1998, at
20 the State Capitol.
21 WHEREAS, it is the intent of
22 this legislative body to recognize and pay
23 just tribute to those citizens who embody the
24 true American spirit, demonstrating personal
25 courage and conviction in pursuit of athletic
3995
1 achievement without regard to physical
2 limitation;
3 The 18th Annual Legislative
4 Disability Awareness Day provides individuals
5 with an opportunity to acknowledge and
6 understand the needs and abilities of people
7 with disabilities throughout New York State;
8 New York State Police
9 Superintendent James W. McMahon, over 40 law
10 enforcement officers and Special Olympians
11 from across the state as they complete the
12 Capital District Leg of the New York State
13 Special Olympics Law Enforcement Torch Run,
14 will take part in the opening ceremonies of
15 the 18th Annual Legislative Disability
16 Awareness Day June 3rd, 1998;
17 The Law Enforcement Torch Run
18 for Special Olympics is an international
19 series of torch relays run by law enforcement
20 officers leading up to each state or nation's
21 summer games. Law enforcement officers raise
22 money in conjunction with their respective
23 torch runs for their local Special Olympics
24 program;
25 The Law Enforcement Torch Run
3996
1 began in 1981 when Wichita, Kansas Police
2 Chief Richard LaMunyon saw an urgent need to
3 raise funds for an increased awareness of
4 Special Olympics. He conceived of the idea of
5 a torch run as a way to involve local law
6 enforcement personnel in the community with
7 Special Olympics. After three years of
8 successful torch runs in Kansas, he presented
9 the program to the International Association
10 of Chiefs of Police (IACP);
11 With IACP's enthusiastic
12 support and leadership, as well as the
13 involvement of all facets of the law
14 enforcement community -- Sheriffs'
15 Associations, police unions, state, county,
16 municipal, military and federal law
17 enforcement, and correction officers -- the
18 torch run expanded into seven states by 1985,
19 43 states by 1986 and 50 states and 25 nations
20 in 1997;
21 Every two years law enforcement
22 officers representing their state or nation's
23 torch run program comprise a "Final Leg Team"
24 which carries the Olympic flame into the
25 opening ceremonies of the Special Olympics
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1 World Games;
2 WHEREAS, it is the sense of
3 this legislative body to recognize and applaud
4 the achievements of its citizens who would
5 elect to challenge life with uncommon valor
6 and determination, demonstrating by example
7 and purposeful action that commitment to
8 personal goals is the wellspring of self
9 fulfillment and achievement;
10 NOW, THEREFORE, BE IT RESOLVED
11 that this legislative body pause in its
12 deliberations and commend the Special
13 Olympians upon the occasion of completing the
14 Capital District Leg of the New York State
15 Special Olympics Law Enforcement Torch Run at
16 opening ceremonies marking the 18th Annual
17 Legislative Disability Awareness Day,
18 Wednesday, June 3rd, 1998 at the State
19 Capitol; and
20 BE IT FURTHER RESOLVED that
21 copies of this resolution, suitably engrossed,
22 be transmitted to selected representatives of
23 persons with disabilities.
24 ACTING PRESIDENT KUHL: As the
25 Deputy Majority Leader indicated to the
3998
1 members, this resolution was previously
2 adopted, but the chair will recognize Senator
3 Libous at this time to speak on the
4 resolution.
5 Senator Libous.
6 SENATOR LIBOUS: Thank you, Mr.
7 President.
8 It is indeed an honor for me to
9 stand before you today on our Legislative
10 Disability Awareness Day -- and we've had a
11 full day of festivities -- and, Mr. Chairman,
12 let me first introduce to my colleagues our
13 interpreter who is standing next to me, Dale
14 Neimeyer, and we have another interpreter who
15 is taking a break right now -- and Trudy,
16 could you please stand -- Trudy Gilbert, and
17 they have been with us through the festivities
18 and are helping us to communicate what we do
19 here to those folks with disabilities.
20 Let me first say that the Torch
21 Run is a very special honor when we look at
22 the Special Olympics, and I want to say thank
23 you to Superintendent McMahon and all of the
24 members, men and women of the New York State
25 Police who participated this morning and for
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1 their hard work and dedication for New York
2 State's Special Olympics, helping people with
3 disabilities.
4 Before I talk about Special
5 Olympics, I want to share that on this
6 Disability Awareness Day, over in the well, I
7 would invite my colleagues, their staff
8 members, to stop by any of the 30 exhibits.
9 Some of the exhibits are from their home
10 towns, people from their district. They'll
11 find that there are a number of interesting
12 things that they will learn in dealing with
13 and helping people in New York State and in
14 their communities with disabilities and, Mr.
15 President, I think it's important that on this
16 day and later today, we will be passing a
17 number of pieces of legislation that will help
18 people in New York who are disabled, that we
19 recognize that there are a number of folks who
20 may not be as fortunate as we are and who need
21 the extra help of government, and that's why
22 we have this very special day.
23 Let me talk just for a moment
24 and thank a few people. We have with us to
25 day up in the gallery from Special Olympics
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1 Neil Johnson, who is the CEO of New York
2 State's Special Olympics. We have also a
3 couple of our Special Olympian athletes, Ezra
4 Canty and Kevin Brown, and I would like Ezra
5 and Kevin just to stand for a minute because,
6 as I speak on this resolution, many of you
7 might have seen Ezra's picture just a few
8 months ago because he was with Governor Pataki
9 and his picture is now on the Wheaties box as
10 Wheaties is honoring New York State's Special
11 Olympians, and Ezra was honored to have his
12 picture, along with four other athletes, on
13 that box.
14 So we salute both of you today
15 as we honor our Special Olympians.
16 We also have the Chairman of
17 the Board and individual who is from the
18 United Teachers, Tony Bifaro, who has been
19 very dedicated, and the United Teachers have
20 been extremely dedicated to the Special
21 Olympics for another year and, Tony, thank you
22 for joining us today.
23 Mr. President, the Torch Run is
24 very significant to the entire Special Olympic
25 program because these Special Olympians
4001
1 participate throughout New York State on a
2 number of different week ends, a number of
3 different days, and I think all too often the
4 goals of Special Olympics are overlooked
5 because those of us who are in this chamber
6 feel that Special Olympics might be just one
7 day in their district. It is indeed a number
8 of days, many days throughout New York State,
9 and it was indeed a pleasure to have the torch
10 come through, and I know that at 12:00 o'clock
11 noon today, Mayor Jennings is also having a
12 ceremony at his office.
13 ACTING PRESIDENT KUHL: Thank
14 you, Senator Libous.
15 On behalf of Senator Bruno and
16 Senator Libous and all the members of the
17 chamber, we welcome these very distinguished
18 guests to the chamber who are joining us on
19 this special Disability Awareness Day. Enjoy
20 your stay in the Capitol and keep doing what
21 you're doing. We appreciate it and we're with
22 you and, if you'd like to stand, we'd like to
23 recognize you. I'm sure the members of the
24 chamber would love to see all of you who are
25 here.
4002
1 (Applause)
2 The Secretary will read the
3 other privileged resolution at the desk.
4 THE SECRETARY: By Senator
5 Libous, Legislative Resolution commending
6 Bonnie Snapp upon the occasion of her
7 competing in the Special Olympics of New York
8 State.
9 WHEREAS, it is the intent of
10 this legislative body to recognize and pay
11 just tribute to those citizens who embody the
12 true American spirit, demonstrating personal
13 courage and conviction in their pursuit of
14 athletic achievement without regard to
15 physical limitation;
16 This legislative body is justly
17 proud to honor Bonnie Snapp upon the occasion
18 of her competing in the Special Olympics of
19 New York State;
20 Bonnie Snapp has been
21 participating in Special Olympics since she
22 was six years old. She has attended area,
23 sectional and state events, competed in
24 soccer, bowling, swimming, volleyball,
25 basketball, track and field, floor hockey and
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1 softball. She was recently chosen the
2 WBNG-Channel 12 (Binghamton) Academic All
3 Star for her participation in Special
4 Olympics;
5 Bonnie Snapp graduated from
6 Newark Valley High School as part of the Class
7 of 1997. She also graduated from Broome-Tioga
8 BOCES Commercial Foods and Work Study
9 Program. During this time she received the
10 President Academic Excellence Award;
11 Bonnie Snapp was very active in
12 4-H where she has raised lambs and works on
13 art projects. She won awards at the State
14 Fair for public speaking and for her art work;
15 Today Bonnie Snapp is employed
16 in the area of food service;
17 WHEREAS, it is the sense of
18 this legislative body to recognize and applaud
19 the achievement of its citizens who would
20 elect to challenge life with an uncommon valor
21 and determination, demonstrating by example
22 and purposeful action, that commitment to
23 personal goals is the wellspring of self
24 fulfillment and achievement;
25 NOW, THEREFORE, BE IT RESOLVED
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1 that this legislative body pause in its
2 deliberations to commend Bonnie Snapp upon the
3 occasion of her competing in the Special
4 Olympics of New York State; and
5 BE IT FURTHER RESOLVED that a
6 copy of this resolution, suitably engrossed,
7 be transmitted to Bonnie Snapp.
8 ACTING PRESIDENT KUHL: The
9 Chair recognizes Senator Libous, on the
10 resolution.
11 SENATOR LIBOUS: Thank you, Mr.
12 President.
13 Again it's indeed an honor for
14 me to stand, and, Bonnie, I'm going to ask you
15 to stand if you would please, while I make
16 some brief remarks honoring you.
17 Bonnie is an outstanding young
18 woman. She has done an extraordinary job.
19 She told me earlier today -- we did a
20 television show, and she shared with me that
21 she began in Special Olympics, her first grade
22 teacher got her interested, and I said to
23 Bonnie, "What is most exiting about the
24 Special Olympics program?" and she said, "You
25 know, it gives me self-esteem and self
4005
1 respect, and I just enjoy participating, and,"
2 she says, "winning isn't too bad either," and
3 certainly she has won her share as you can see
4 by the medals that she is displaying around
5 her neck.
6 We talked a little bit about
7 some of the activities she participates in and
8 Bonnie likes soccer, bowling, swimming,
9 volleyball, basketball, track and field
10 events, floor hockey and softball, and again I
11 shared this this morning at the event, and I
12 asked Bonnie what is her favorite sport and
13 she said basketball, and I said, "Why?"
14 Bonnie then shared with me, she said, "I like
15 when the ball swishes through the net." She
16 says, "I feel like Michael Jordan," and I
17 shared with her that probably a number of the
18 members of the NBA wished they also would feel
19 like Michael Jordan from time to time.
20 Bonnie is also a bright young
21 lady because, as was mentioned in the
22 resolution, she has passed a number of
23 courses, received awards from the President of
24 the United States, received awards from local
25 businesses and, Mr. President, I think that
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1 Bonnie is indicative of the type of individual
2 that we have in our Special Olympics program
3 and, Bonnie, I'm extremely proud to say that
4 you come from my district and, after hearing
5 you speak this morning, I hope that you are
6 not interested in running for public office
7 because you'd have the crowds to their feet,
8 and I want to welcome again Bonnie and she has
9 a couple of people with her I'd like to
10 introduce. Her mother Linda is with her today
11 and if she would stand, and two very good
12 friends of mine and very, very good friends of
13 all the Special Olympians, the two individuals
14 who have been so dedicated in their life to
15 the Broome-Tioga Special Olympics, John and
16 Jane Crosby. Would they stand up and take a
17 bow.
18 Mr. President, again on this
19 Legislative Disability Awareness Day, it is
20 indeed an honor for this body to honor these
21 outstanding individuals.
22 ACTING PRESIDENT KUHL: Thank
23 you, Senator Libous.
24 For the members' benefit, this
25 resolution was previously adopted, but on
4007
1 behalf of Senator Bruno, Senator Libous, all
2 the members of the chamber, Bonnie, we welcome
3 you to the chamber. We congratulate you on
4 your many victories, certainly your courageous
5 participation in all the events that you've
6 done. We urge you to continue and make a
7 contribution, as we know you will, to life and
8 to New York State.
9 Thank you for sharing just a
10 small moment of your life with us today.
11 Thank you.
12 (Applause)
13 Senator Velella.
14 SENATOR VELELLA: Mr. President
15 can we now go to the controversial calendar -
16 non-controversial calendar, starting with
17 Calendar Number 1.
18 ACTING PRESIDENT KUHL:
19 Secretary will read Calendar Number 1 off of
20 the controversial calendar.
21 THE SECRETARY: Calendar Number
22 1, by Senator Libous, Senate Print 1122-A, an
23 act to amend the Vehicle and Traffic Law, in
24 relation to parking spaces for handicapped
25 persons.
4008
1 ACTING PRESIDENT KUHL:
2 Secretary will read the last section.
3 THE SECRETARY: Section 3.
4 This act shall take effect on the first day of
5 September.
6 ACTING PRESIDENT KUHL: Call
7 the roll.
8 (The Secretary called the
9 roll. )
10 THE SECRETARY: Ayes 49.
11 ACTING PRESIDENT KUHL: The
12 bill is passed.
13 THE SECRETARY: Calendar Number
14 2, by Senator Libous, Senate Print 3831, an
15 act to amend the Mental Hygiene Law and the
16 Executive Law, in relation to authorizing
17 providers of service.
18 ACTING PRESIDENT KUHL: The
19 secretary will read the last section.
20 THE SECRETARY: Section 3.
21 This act shall take effect in 90 days.
22 ACTING PRESIDENT KUHL: Call
23 the roll.
24 (The Secretary called the
25 roll. )
4009
1 THE SECRETARY: Ayes 49.
2 ACTING PRESIDENT KUHL: The
3 bill is passed.
4 THE SECRETARY: Calendar Number
5 332, by Senator Libous, Senate Print 1125, an
6 act to amend the Public Health Law, in
7 relation to requiring consent for visual
8 observation.
9 ACTING PRESIDENT KUHL: The
10 Secretary will read the last section.
11 THE SECRETARY: Section 2.
12 This act shall take effect immediately.
13 ACTING PRESIDENT KUHL: Call
14 the roll.
15 (The Secretary called the
16 roll. )
17 THE SECRETARY: Ayes 49.
18 ACTING PRESIDENT KUHL: The
19 bill is passed.
20 THE SECRETARY: Calendar -
21 SENATOR VELELLA: Mr.
22 President.
23 ACTING PRESIDENT KUHL: Senator
24 Velella.
25 SENATOR VELELLAl: Can we take
4010
1 up Calendar Number 636 at this time.
2 ACTING PRESIDENT KUHL:
3 Secretary will read Calendar Number 636.
4 THE SECRETARY: Calendar Number
5 636, by Senator Johnson, Senate Print 6337, an
6 act to amend the General Municipal Law and the
7 Education Law.
8 ACTING PRESIDENT KUHL:
9 Secretary will read the last section.
10 THE SECRETARY: Section 3.
11 This act shall take effect immediately.
12 ACTING PRESIDENT KUHL: Call
13 the roll.
14 (The Secretary called the
15 roll. )
16 THE SECRETARY: Ayes 49.
17 ACTING PRESIDENT KUHL: The
18 bill is passed.
19 Senator Velella.
20 SENATOR VELELLA: Can we go to
21 Calendar 767, please.
22 ACTING PRESIDENT KUHL:
23 Secretary will read Calendar Number 767.
24 THE SECRETARY: Calendar Number
25 767, by Senator Skelos, Senate Print 6377, an
4011
1 act to amend the Town Law, in relation to
2 authorizing.
3 ACTING PRESIDENT KUHL: The
4 Secretary will read the last section.
5 THE SECRETARY: Section 2.
6 This act shall take effect immediately.
7 ACTING PRESIDENT KUHL: Call
8 the roll.
9 (The Secretary called the
10 roll. )
11 THE SECRETARY: Ayes 49.
12 ACTING PRESIDENT KUHL: The
13 bill is passed.
14 Senator Velella.
15 SENATOR VELELLA: Mr.
16 President, can we go to Calendar 1178,
17 please.
18 ACTING PRESIDENT KUHL:
19 Secretary will read Calendar Number 1178.
20 THE SECRETARY: Calendar Number
21 1178, by Senator Goodman, Senate Print 7072-B,
22 an act to amend the Education Law, in relation
23 to student financial aid.
24 ACTING PRESIDENT KUHL:
25 Secretary will read the last section.
4012
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 51.
8 ACTING PRESIDENT KUHL: The
9 bill is passed.
10 THE SECRETARY: Senator
11 Velella.
12 SENATOR VELELLA: Mr.
13 President, can we now go back to the
14 non-controversial calendar in the regular
15 order.
16 ACTING PRESIDENT KUHL:
17 Secretary will read the non-controversial
18 calendar beginning with Calendar Number 632,
19 in regular order.
20 THE SECRETARY: Calendar Number
21 632, by Senator Cook, Senate Print 6274, an
22 act to amend the General Municipal Law, in
23 relation to establishing.
24 ACTING PRESIDENT KUHL:
25 Secretary will read the last section.
4013
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 51.
8 ACTING PRESIDENT KUHL: The
9 bill is passed.
10 THE SECRETARY: Calendar Number
11 783, by Senator Hannon, Senate Print 7378.
12 SENATOR VELELLA: Lay that
13 aside for the day, please.
14 ACTING PRESIDENT KUHL: Lay the
15 bill aside for the day at the request of the
16 Majority Leader.
17 THE SECRETARY: Calendar Number
18 814, by Senator Saland, Senate Print 7302, an
19 act to amend the Social Service Law, in
20 relation to disclosure.
21 ACTING PRESIDENT KUHL:
22 Secretary will read the last section.
23 THE SECRETARY: Section 2.
24 This act shall take effect immediately.
25 ACTING PRESIDENT KUHL: Call
4014
1 the roll.
2 (The Secretary called the
3 roll.)
4 THE SECRETARY: Ayes 55.
5 ACTING PRESIDENT KUHL: The
6 bill is passed.
7 THE SECRETARY: Calendar Number
8 898, by Senator Trunzo, Senate Print 7237, an
9 act to amend the Civil Service Law, in
10 relation to permitting deputy sheriffs.
11 ACTING PRESIDENT KUHL:
12 Secretary will read the last section.
13 THE SECRETARY: Section 2.
14 This act shall take effect immediately.
15 ACTING PRESIDENT KUHL: Call
16 the roll.
17 (The Secretary called the
18 roll. )
19 THE SECRETARY: Ayes 55.
20 ACTING PRESIDENT KUHL: The
21 bill is passed.
22 THE SECRETARY: Calendar Number
23 902, by Senator Marchi, Senate Print 7412, an
24 act to amend the Education Law, in relation to
25 the right of retired members.
4015
1 ACTING PRESIDENT KUHL:
2 Secretary will read the last section.
3 SENATOR LEICHTER:
4 Explanation.
5 ACTING PRESIDENT KUHL: Senator
6 Leichter, did you wish that bill laid aside?
7 SENATOR LEICHTER: Yes.
8 ACTING PRESIDENT KUHL: The bill
9 will be laid aside at the request of Senator
10 Leichter.
11 THE SECRETARY: Calendar Number
12 929, by Senator Volker, Senate Print 395-B.
13 SENATOR VELELLA: Lay that
14 aside.
15 ACTING PRESIDENT KUHL: Lay the
16 bill aside.
17 THE SECRETARY: Calendar Number
18 934, by Senator Velella, Senate Print 6639-B,
19 an act in relation to authorizing state of New
20 York.
21 ACTING PRESIDENT KUHL:
22 Secretary will read the last section.
23 THE SECRETARY: Section 3.
24 This act shall take effect immediately.
25 ACTING PRESIDENT KUHL: Call
4016
1 the roll.
2 (The Secretary called the
3 roll. )
4 THE SECRETARY: Ayes 55.
5 ACTING PRESIDENT KUHL: The
6 bill is passed.
7 THE SECRETARY: Calendar Number
8 991, by Senator Trunzo, Senate Bill 7279, an
9 act to amend the Penal Law, in relation to the
10 unlawful sale of tobacco products to a child.
11 ACTING PRESIDENT KUHL: The
12 Secretary will read the last section.
13 THE SECRETARY: Section 3.
14 This act shall take effect immediately.
15 ACTING PRESIDENT KUHL: Call
16 the roll.
17 (The Secretary called the
18 roll. )
19 THE SECRETARY: Ayes 55.
20 ACTING PRESIDENT KUHL: The
21 bill is passed.
22 THE SECRETARY: Calendar Number
23 1001, by Senator Seward, Senate Print 6628, an
24 act to amend the Social Service Law, in
25 relation to required training for child day
4017
1 care providers.
2 ACTING PRESIDENT KUHL: The
3 Secretary will read the last section.
4 THE SECRETARY: Section 2.
5 This act shall take effect immediately.
6 ACTING PRESIDENT KUHL: Call
7 the roll.
8 (The Secretary called the
9 roll. )
10 THE SECRETARY: Ayes 55.
11 ACTING PRESIDENT KUHL: The
12 bill is passed.
13 THE SECRETARY: Calendar Number
14 1005, by Senator Velella, Print Number 6253-A,
15 an act to amend Chapter 435 of the Laws of
16 1895.
17 ACTING PRESIDENT KUHL:
18 Secretary will read the last section.
19 THE SECRETARY: Section 2.
20 This act shall take effect immediately.
21 ACTING PRESIDENT KUHL: Call
22 the roll.
23 (The Secretary called the
24 roll. )
25 THE SECRETARY: Ayes 55.
4018
1 ACTING PRESIDENT KUHL: The
2 bill is passed.
3 THE SECRETARY: Calendar Number
4 1025, by Senator Volker, Senate Print 6739-A,
5 an act to amend the Local Finance Law.
6 ACTING PRESIDENT KUHL: There
7 is a home rule message at the desk. The
8 Secretary will read the last section.
9 THE SECRETARY: Section 2.
10 This act shall take effect immediately.
11 ACTING PRESIDENT KUHL: Call
12 the roll.
13 (The Secretary called the
14 roll.)
15 THE SECRETARY: Ayes 55.
16 ACTING PRESIDENT KUHL: The
17 bill is passed.
18 THE SECRETARY: Calendar Number
19 1030, by Senator Balboni, Senate Print 7152,
20 an act in relation to authorizing the assessor
21 of the county of Nassau.
22 ACTING PRESIDENT KUHL:
23 Secretary will read the last section.
24 THE SECRETARY: Section 2.
25 This act shall take effect immediately.
4019
1 ACTING PRESIDENT KUHL: Call
2 the roll.
3 (The Secretary called the
4 roll. )
5 THE SECRETARY: Ayes 54, nays
6 1, Senator Cook recorded in the negative.
7 ACTING PRESIDENT KUHL: The
8 bill is passed.
9 THE SECRETARY: Calendar Number
10 1040, by Senator Seward, Senate Print 3486-A,
11 an act to amend the Public Service Law and the
12 Uniform Commercial Code.
13 SENATOR SMITH: Lay aside.
14 ACTING PRESIDENT KUHL: Lay the
15 bill aside.
16 THE SECRETARY: Calendar Number
17 1066, by Senator Leibell, Senate Print 3538-A,
18 an act to amend the Military Law.
19 ACTING PRESIDENT KUHL:
20 Secretary will read the last section.
21 THE SECRETARY: Section 2.
22 This act shall take effect immediately.
23 ACTING PRESIDENT KUHL: Call
24 the roll.
25 (The Secretary called the
4020
1 roll. )
2 THE SECRETARY: Ayes 55.
3 THE SECRETARY: Calendar Number
4 1089, by Senator Marcellino, Senate Print
5 6913, an act to amend the Tax Law, in relation
6 to termination of sale.
7 ACTING PRESIDENT KUHL:
8 Secretary will read the last section.
9 THE SECRETARY: Section 2.
10 This act shall take effect immediately.
11 ACTING PRESIDENT KUHL: Call
12 the roll.
13 (The Secretary called the
14 roll. )
15 THE SECRETARY: Ayes 55.
16 ACTING PRESIDENT KUHL: The bill
17 is passed.
18 THE SECRETARY: Calendar Number
19 1106, by Senator Johnson, Senate Print 7433,
20 an act to amend the Public Authorities Law, in
21 relation to emergency contracts.
22 ACTING PRESIDENT KUHL:
23 Secretary will read the last section.
24 THE SECRETARY: Section 3.
25 This act shall take effect immediately.
4021
1 ACTING PRESIDENT KUHL: Call
2 the roll.
3 (The Secretary called the
4 roll.)
5 THE SECRETARY: Ayes 55.
6 ACTING PRESIDENT KUHL: The bill
7 is passed.
8 THE SECRETARY: Calendar Number
9 1119, by Senator Kuhl, Senate Print 6825-A, an
10 act to amend the Agriculture and Markets Law.
11 ACTING PRESIDENT KUHL:
12 Secretary will read the last section.
13 THE SECRETARY: Section 4.
14 This act shall take effect immediately.
15 ACTING PRESIDENT KUHL: Call
16 the roll.
17 (The Secretary called the
18 roll. )
19 THE SECRETARY: Ayes 55.
20 ACTING PRESIDENT KUHL: The
21 bill is passed.
22 THE SECRETARY: Calendar Number
23 1148, by Senator DeFrancisco, Senate Print
24 5978, an act to amend the Surrogate's Court
25 Procedure Act.
4022
1 ACTING PRESIDENT KUHL:
2 Secretary will read the last section.
3 THE SECRETARY: Section 2.
4 This act shall take effect on the first day of
5 January.
6 ACTING PRESIDENT KUHL: Call
7 the roll.
8 (The Secretary called the
9 roll. )
10 THE SECRETARY: Ayes 55.
11 ACTING PRESIDENT KUHL: The
12 bill is passed.
13 THE SECRETARY: Calendar Number
14 1149, by member of the Assembly Sweeney,
15 Senate Print 9211, an act to amend the Uniform
16 District Court Act.
17 ACTING PRESIDENT KUHL:
18 Secretary will read the last section.
19 THE SECRETARY: Section 2.
20 This act shall take effect immediately.
21 ACTING PRESIDENT KUHL: Call
22 the roll.
23 (The Secretary called the
24 roll.)
25 THE SECRETARY: Ayes 55.
4023
1 ACTING PRESIDENT KUHL: The
2 bill is passed.
3 Senate Velella, that completes
4 the reading of the non-controversial
5 calendar. What's your pleasure?
6 SENATOR VELELLA: Mr.
7 President, can we go to motions and
8 resolutions, and call up Resolution Number
9 3701 which has been previously passed. Like to
10 ask that the title be read and recognize
11 Senator Maltese.
12 ACTING PRESIDENT KUHL: We'll
13 return to motions and resolutions. I'll ask
14 the Secretary to read the title to the
15 privileged resolution by Senator Maltese, 3701
16 I believe it was. Secretary will read.
17 THE SECRETARY: By Senator
18 Maltese, Legislative Resolution honoring the
19 New York City Police Sergeants upon the
20 occasion of the First Annual Legislative
21 Luncheon of the Sergeants Benevolent
22 Association.
23 ACTING PRESIDENT KUHL: Chair
24 recognizes Senator Maltese on the resolution.
25 SENATOR MALTESE: Mr.
4024
1 President, this is an auspicious occasion not
2 only for the New York City Police Sergeants
3 but for this body. We will be recognizing by
4 this resolution, in effect, our first line of
5 defense in the city of New York, the New York
6 City Police Sergeants who supervise police
7 officers and detectives in over 200 commands
8 in the entire city of New York.
9 There has been much said about
10 the decreassing crime throughout the country
11 and throughout the City. Certainly in New
12 York City, a large part of that decrease can
13 be attributed to the heroism and dedicated
14 efforts of these fine police officers. They
15 are superior officers in every sense of the
16 word.
17 They are here today for
18 establishing a tradition, their First Annual
19 Legislative Luncheon, recognizing that more
20 and more the state Legislature has an effect
21 on their daily lives and the way they conduct
22 their fine services to the City.
23 For 70 years, they have been
24 represented by the Sergeants Benevolent
25 Association, which is the preeminent voice and
4025
1 advocate of the New York City Police
2 Department, the Police Sergeants. They are
3 represented here in the chamber by their
4 eminent president, Joe Cole and the recording
5 secretary, Alan Carina, as well as represented
6 in the balcony by many of the officers who
7 journeyed here to Albany to hold their
8 legislative lunch, and as an indication of the
9 fact that they are also quite perceptive in
10 their legislative efforts, their luncheon
11 today will honor our esteemed Majority Leader,
12 Jos... Senator Joseph Bruno.
13 They are more than 4500 in the
14 city of New York, 4500 first line of defense,
15 defending our people in the City. We owe a
16 great debt of gratitude to them and their
17 families who permit them and work with them so
18 that they could provide the safety to the New
19 York City citizens.
20 Mr. President, I'm proud to
21 sponsor this resolution. The resolution is
22 open to any that would care to join in the
23 resolution, and I wish with your indulgence to
24 ask them to stand, the Police Sergeants to
25 stand, to be recognized by this body.
4026
1 (Applause)
2 ACTING PRESIDENT KUHL: Senator
3 Goodman, on the resolution.
4 SENATOR GOODMAN: On the
5 resolution, Mr. President.
6 Mr. President, as you probably
7 are aware, we've had a remarkable reduction in
8 crime in the city of New York in the last
9 several years and without question, the group
10 of sergeants who are represented here today
11 are signally responsible for that outstanding
12 result.
13 The sergeants represent the
14 supervisory responsibility for the department
15 at its operating level and, without their very
16 keen and continuous oversight of what occurs
17 in the day-to-day situation in law enforcement
18 in New York, there is no question that we
19 could not have achieved this extraordinary
20 result for the citizens of the City.
21 So I join most warmly with
22 Senator Maltese, and I'm delighted that he
23 introduced the resolution. I hope that it
24 will, of course, be unanimously passed and we
25 salute the sergeants for their superb work
4027
1 both on the line and in supervision of the
2 patrolmen who represent the key work of the
3 department.
4 We're particularly happy that,
5 as a result of action taken in this body, it
6 was possible to augment the police force,
7 putting more patrols on the street under the
8 supervision of these able sergeants. We
9 salute them and we thank them for their
10 dedicated work.
11 ACTING PRESIDENT KUHL: Is
12 there any other member wishing to speak on the
13 resolution?
14 Senator Velella, there are a
15 number of members who have indicated that they
16 would like to be co-sponsors. Should we
17 follow the standard procedure and put all of
18 the members on the resolution as co
19 sponsors?
20 SENATOR VELELLA: Yes, Mr.
21 President, and if they desire not to be, they
22 will contact the desk.
23 ACTING PRESIDENT KUHL: Anyone
24 wishing not to be a co-sponsor of Resolution
25 Number 3701, by Senator Maltese, please
4028
1 indicate to the desk. This resolution was
2 previously adopted, but on behalf of Senator
3 Bruno, who you're honoring later at the
4 luncheon, gentlemen, Senator Maltese and all
5 the City members, certainly all the members in
6 the chamber, we welcome you to the chamber.
7 We certainly recognize the dedicated and
8 heroic service that you provide not only to
9 the citizens of the city of New York but to
10 all the citizens of this state. We compliment
11 you on that service. We are -- those of us
12 who visit the City on more than one occasion
13 are appreciative of your efforts to make the
14 City safe for not only the residents but for
15 the visitors.
16 So keep up the good work, enjoy
17 your stay here, and thank you for coming and
18 sharing just a moment with us.
19 Thank you.
20 (Applause)
21 Senator Velella.
22 SENATOR VELELLA: Would you
23 recognize Senator Mendez for a moment.
24 ACTING PRESIDENT KUHL: Chair
25 recognizes Senator Mendez.
4029
1 SENATOR MENDEZ: Thank you, Mr.
2 President.
3 I want to take this opportunity
4 to introduce two lovely ladies that have
5 worked very, very hard in a problem that is
6 very dear to my heart. I am referring to the
7 Puerto Rican lawyer Josephine Mercado, who
8 with me are the founders of an organization
9 that is called First Saturday in October, and
10 the purpose of that organization is to provide
11 services and information to the -- those
12 under-served and unserved communities so that
13 the women realize that the earlier they go for
14 detection, when they do so, their life is
15 saved; and also here with Ms. Mercado is Julie
16 Relyea, the president of the board of that
17 organization.
18 So, Mr. President, I just want
19 to welcome Ms. Mercado and Ms. Relyea. Thank
20 you.
21 ACTING PRESIDENT KUHL: Thanks,
22 Senator Mendez, for that welcoming note.
23 Senator Velella.
24 SENATOR VELELLA: Can we return
25 to the controversial calendar now, please.
4030
1 ACTING PRESIDENT KUHL:
2 Secretary will continue to read the
3 controversial calendar, beginning with
4 Calendar Number 902, by Senator Marchi.
5 THE SECRETARY: Calendar Number
6 902, by Senator Marchi, Senate Print 7412, an
7 act to amend the Education Law, in relation to
8 retired members.
9 ACTING PRESIDENT KUHL: Senator
10 Paterson, why do you rise?
11 SENATOR PATERSON: Mr.
12 President, I'm just rising to inform you that
13 Senator Leichter laid this bill aside. We
14 just wanted to see if we could hold it just a
15 second. I think he should be right out here.
16 SENATOR LEICHTER: Yes, an
17 explanation.
18 ACTING PRESIDENT KUHL: Senator
19 Marchi, an explanation of Calendar Number 902
20 has been requested by Senator Leichter now
21 that he has his coffee.
22 SENATOR MARCHI: Mr. President,
23 this bill is not complicated or unfair. It's
24 an equitable treatment that is accorded to
25 other associations in the city and state of
4031
1 New York in the matter of check-offs on either
2 employment or retirement. This is completely
3 voluntary. You can join if you want to. You
4 don't have to join if you're -- if you feel
5 adversely, and you wish to continue perhaps a
6 payment personally.
7 SENATOR LEICHTER: Explanation
8 satisfactory. Thank you.
9 ACTING PRESIDENT KUHL:
10 Explanation satisfactory, Senator Leichter?
11 Secretary will read the last
12 section.
13 THE SECRETARY: Section 2.
14 This act shall take effect immediately.
15 ACTING PRESIDENT KUHL: Call
16 the roll.
17 (The Secretary called the
18 roll. )
19 THE SECRETARY: Ayes 57.
20 ACTING PRESIDENT KUHL: The
21 bill is passed.
22 THE SECRETARY: Calendar Number
23 929, by Senator Volker, Senate Print 395-B, an
24 act to amend the Public Health Law and the
25 Multiple Dwelling Law.
4032
1 SENATOR DOLLINGER:
2 Explanation.
3 SENATOR PRESENT: Lay it aside
4 temporarily.
5 ACTING PRESIDENT KUHL: Lay the
6 bill aside temporarily.
7 THE SECRETARY: Calendar number
8 1040, by Senator Seward, Senate Print 3486-A,
9 an act to amend the Public Service Law and the
10 Uniform Commercial Code.
11 SENATOR OPPENHEIMER:
12 Explanation.
13 ACTING PRESIDENT KUHL: Senator
14 Seward, an explanation of Calendar Number 1040
15 has been requested by Senator Oppenheimer.
16 SENATOR SEWARD: Certainly, Mr.
17 President.
18 As we all know, the Public
19 Service Commission has reached settlement
20 agreements with the various investor-owned
21 utilities across New York State to restructure
22 the utility industry, usher in an era of
23 competition.
24 We've seen rate savings for the
25 first time in this state as a result, and the
4033
1 bill before us today is designed to supplement
2 the PSC action by providing additional rate
3 relief.
4 Now, it does it by establishing
5 a financing mechanism through which rates
6 could be reduced as a result of the low cost
7 financing of certain utility assets and in
8 tangible property such as regulatory assets
9 including demand side management provisions,
10 IPP contracts for certain stranded assets.
11 Now, the bill authorizes, but
12 it does not require, that the utility submit a
13 plan for refinancing to the Public Service
14 Commission for approval and then the
15 Commission could, after reviewing the plan,
16 determine that they could approve it in part
17 or in whole under the condition that there be
18 significant ratepayer relief involved with the
19 refinancing plan.
20 Additionally, the Commission
21 would be authorized to obtain concessions from
22 the utilities applying for the rate reduction
23 refinancing such as rate reductions and a
24 write-down of a portion of utility stranded
25 costs. Those are just some examples of the
4034
1 so-called concessions that could be wrung from
2 the utilities under this legislation.
3 Now, the bill calls for a full
4 public notice of the plans and the results of
5 the negotiations with the Public Service
6 Commission, and it calls for judicial review
7 on the part of any aggrieved party that could
8 seek that judicial review.
9 Now, the bill sunsets on
10 December 31st, 1999, so we're talking about a
11 piece of legislation that I would describe as
12 a bridge to competition. It's a short-term
13 bill, and it deals with the current expenses
14 that are being paid by our ratepayers right
15 now, and it provides a means for those
16 ratepayers to derive some savings, rate
17 relief, through this lower cost financing.
18 ACTING PRESIDENT KUHL: Senator
19 Oppenheimer.
20 SENATOR OPPENHEIMER: Actually,
21 I don't have any questions. I -
22 ACTING PRESIDENT KUHL:
23 Secretary will read the last section.
24 SENATOR OPPENHEIMER: I would
25 like to speak on the bill.
4035
1 ACTING PRESIDENT KUHL: Senator
2 Oppenheimer, on the bill.
3 SENATOR OPPENHEIMER: And I'm
4 not sure why we need this bill now because so
5 much of the debt has been refinanced. I can't
6 understand why we're still looking at this,
7 but this would recover through the rates any
8 investments that the utilities made in the
9 past regardless of whether the investment was
10 a wise and a prudent one, and it would
11 establish a permanent rate order that's based
12 on intangible property.
13 Considering the fact that so
14 much refinancing has taken place, I really
15 think the stockholders are not being harmed
16 and I might have seen a reason for this
17 perhaps in the past, but at this juncture I
18 really don't see a need for this.
19 This gives the PSC complete
20 discretionary authority to decide what costs
21 will be guaranteed to be recoverable from the
22 ratepayers in the utility rates and these
23 decisions will go beyond the reach of us, the
24 Legislature, and also the judiciary.
25 New York is the only state
4036
1 proceeding with deregulation without having a
2 law to guide what will be a very major public
3 policy. In New York State, all decision
4 making has been done by the PSC, by -- by rule
5 or fiat, and completely cuts us off. The
6 savings to be realized by securitizing debts
7 are very much smaller than was the case when
8 this bill was introduced two years ago and
9 that's because, as I said earlier, the
10 interest rates have fallen since then and
11 utilities have already refinanced so much of
12 their debt and equity that I don't understand
13 why this is before us now.
14 The PSC estimates that a
15 securitization law could save utilities about
16 $163 million per year, and that may decrease
17 rates for residential and small business
18 customers by a mere one percent. Does a
19 potential one percent decrease justify the
20 obligation of legislators and judiciary
21 recourse over securitization decisions?
22 There is a Tonko bill which I
23 won't go into, but it has limits. It
24 prescribes restrictions and limits and, if we
25 are to move ahead with this concept, I would
4037
1 strongly prefer seeing before us the Tonko
2 bill because it does prescribe those limits,
3 and it caps the total amount which can be
4 securitized at $5 billion statewide and the
5 associated ratepayer savings must be at least
6 five percent, not one percent, and I won't go
7 into the bill, but I would commend you looking
8 at that bill because it does prescribe
9 restraints and restrictions.
10 Thank you. I'll be voting no.
11 This is a bill that is not, needless to say,
12 supported by the EPL.
13 ACTING PRESIDENT KUHL: Any
14 other Senator wishing to speak on the bill?
15 Chair recognizes Senator
16 Waldon.
17 SENATOR WALDON: Thank you very
18 much, Mr. President.
19 Would the gentleman yield for a
20 question?
21 ACTING PRESIDENT KUHL: Senator
22 Seward, do you yield?
23 SENATOR SEWARD: Certainly.
24 ACTING PRESIDENT KUHL: Senator
25 yields.
4038
1 SENATOR WALDON: Senator, would
2 you be kind enough to explain to myself and my
3 colleagues -- can you hear me?
4 SENATOR SEWARD: Yes.
5 SENATOR WALDON: -- the
6 parameters of the qualified rate order?
7 SENATOR SEWARD: The parameters
8 of the qualified rate order? When you refer
9 to "the parameters of the qualified rate
10 order" that is the order that the PSC would
11 issue at the end of the process that I had
12 described earlier in terms of having the
13 utility submit a plan for refinancing of
14 certain what we call intangible assets
15 currently, such as IPP contracts, demand side
16 management programs and those expenses
17 associated with that, environmental
18 remediation programs, are just some examples
19 of the so-called intangible assets, and what
20 it would -- what we would be doing, what the
21 PSC would be doing, if they approved the plan
22 would be to raise from the level of
23 expectation to the level of a property right
24 the intangible properties belonging to a
25 utility and that, of course, by doing that
4039
1 would open up the lower cost financing and
2 under the bill those savings would be required
3 to be passed on to the ratepayers,
4 specifically residential and small commercial
5 ratepayers.
6 SENATOR WALDON: Would the
7 gentleman continue to yield, Mr. President?
8 ACTING PRESIDENT KUHL: Senator
9 Seward?
10 SENATOR SEWARD: Certainly.
11 ACTING PRESIDENT KUHL:
12 Certainly, Senator.
13 SENATOR WALDON: Senator, if we
14 pass this proposal and if it eventually
15 becomes law in the state of New York, once
16 that qualified rate order is agreed to through
17 the PSC and the particular utility in
18 question, is there any opportunity for this
19 legislative body to revisit the agreement just
20 in case one time out of the millions of
21 contracts they will do was determined by
22 ourselves to be abusive, to be too punitive in
23 terms of the pass-along to the ratepayers?
24 SENATOR SEWARD: Well, Mr.
25 President and Senator Waldon, I would say that
4040
1 there is no legislative -- direct legislative
2 oversight over this process. There is, as I
3 pointed out earlier, a full disclosure
4 provision, and, of course, judicial review.
5 SENATOR WALDON: One last
6 question, Senator.
7 ACTING PRESIDENT KUHL:
8 Senator, do you continue to yield?
9 SENATOR SEWARD: Certainly.
10 ACTING PRESIDENT KUHL: Senator
11 continues to yield.
12 SENATOR WALDON: Senator, thank
13 you for your response, and I just want to make
14 sure I'm clear. I believe what you have said
15 is the following, that once the qualified rate
16 order is agreed to between the PSC and the
17 particular utility in question, we cannot
18 intervene legislatively; is that correct? This
19 legislative body.
20 SENATOR SEWARD: Well, Senator,
21 we are the New York State Senate. As far as
22 the New York State Legislature, obviously we
23 can change -- we change laws as we as
24 legislators see the need. However, the
25 legislation calls for judicial review rather
4041
1 than the direct legislative approval or
2 disapproval of any of these qualified rate
3 orders that are issued by the PSC.
4 SENATOR WALDON: Thank you very
5 much, Senator. Thank you, Mr. President.
6 Mr. President, is it
7 appropriate now to speak on the bill?
8 ACTING PRESIDENT KUHL: Senator
9 Waldon, on the bill.
10 SENATOR WALDON: I would
11 encourage -- thank you, Mr. President. I
12 would encourage my colleagues not to support
13 this, because what may happen with the PSC -
14 and I have no desire to point my finger to the
15 PSC as doing a scurrilous act, but it may
16 happen that the PSC makes a mistake and in
17 making that mistake the utility will be
18 allowed to elevate those intangible costs to
19 the point where it may be particularly
20 punitive to the catchment area of that utility
21 and the ratepayer will be creating the bottom
22 line in a greater sense for the utility.
23 I don't think that's fair. I
24 think that ratepayers should have passed along
25 to them costs which are necessary, but not
4042
1 overly burdensome, and so I cannot support
2 something which does not in and of itself
3 allow us to intervene. You would have to wait
4 for judicial action or we would have to
5 convene ourselves and pass new legislation to
6 deal with this what may be, in my opinion, one
7 day a mistake, so I would encourage you to
8 take a chance with me and let's pull the plug
9 on this one and vote no.
10 ACTING PRESIDENT KUHL: Senator
11 Dollinger.
12 SENATOR DOLLINGER: Mr.
13 President I voted in favor of this bill last
14 year. I'm going to vote in favor of it
15 again. I have read with some interest the
16 Industrial Energy Consumers Coalition
17 memorandum which talks about some additional
18 refinements in the concept of the
19 securitization which I think, if this bill
20 eventually gets to a conference committee,
21 would be part of that discussion, and I hope
22 part of the improvement of the overall
23 package, but I still believe -- and I
24 appreciate Senator Waldon's comments about the
25 final rate that ratepayers have to pay and
4043
1 what role this body has in those rates and
2 when we intervene and what power we have over
3 them.
4 As we go through this
5 topsy-turvy world of energy deregulation, I
6 think it's easy for us to sit here after 20
7 years of saying we've pretty much controlled
8 the rates which residential and commercial and
9 large industrial customers have paid. We've
10 either done that through the PSC or we've done
11 it through legislation. Our attempts to set
12 prices, or our attempts to fix prices in this
13 marketplace in the energy business have
14 largely been a failure. I mean if there is
15 anything that the six-cent law taught us, it
16 was the most expensive entry into the
17 marketplace that the people of this state will
18 ever have to pay for.
19 Many of the intangible assets
20 that are going to be covered by securitization
21 or by some other financing scheme are there
22 because of the six-cent law. We went in the
23 marketplace; we told people that we would
24 guarantee a particular rate of return, a
25 particular price, and it ended up being a
4044
1 catastrophe in this state. So it seems to me
2 that this issue of what people ought to pay
3 for electrical energy and what people will pay
4 and how the marketplace is going to dictate
5 that price or set that price is a terribly
6 difficult thing to forecast, but it seems to
7 me that the concept of securitization allowing
8 a more favorable climate to reduce some costs
9 of our utilities who, for 30 years have been
10 our captive, is not a bad way to go.
11 I hope that the chairman, if
12 this does go to a conference committee, will
13 look at the issues raised in the Independent
14 Energy Consumeres Coalition memo and maybe we
15 can make some changes in this bill that will
16 address their concerns, broaden the base of
17 support, and I hope as everybody recognizes
18 that if this bill, if it becomes law, doesn't
19 reduce energy rates in this state it's all but
20 a disaster because we've got to be able to do
21 that, to continue the growth of our industrial
22 base which brings us the jobs that our
23 constituents desperately need.
24 ACTING PRESIDENT KUHL: Senator
25 Oppenheimer, for a second time.
4045
1 SENATOR OPPENHEIMER: I guess I
2 do want to question something, if Senator
3 Seward would yield.
4 ACTING PRESIDENT KUHL: Senator
5 Seward, do you yield for a question from
6 Senator Oppenheimer?
7 SENATOR SEWARD: Certainly.
8 ACTING PRESIDENT KUHL: Senator
9 yields.
10 SENATOR OPPENHEIMER: I
11 mentioned earlier that so much refinancing has
12 taken place. What do you believe the cost
13 savings would be to the small ratepayer now in
14 light of the fact that there has been so much
15 savings?
16 SENATOR SEWARD: Well, Mr.
17 President, my colleagues, the savings vary, of
18 course, depending on the conditions in each of
19 the service territories of the various
20 utilities and that, quite frankly, is why the
21 legislation is flexible, provides flexibility
22 because we, as a Legislature, in my
23 estimation, cannot legislate and micromanage
24 the restructuring of utilities throughout the
25 state because the conditions vary so greatly
4046
1 and they also vary as it pertains to the
2 impact of our rate reduction refinancing bill
3 before us today.
4 You -- current numbers,
5 Senator, you quoted earlier, we estimate
6 through the information provided to us by the
7 PSC there would be a statewide impact of about
8 $163 million annually, and that varies across
9 the state ranging from one percent up to four
10 and a half percent savings in one of the
11 utilities, and I think -- I believe you are
12 serviced in your district by Con Ed, and the
13 indications are that it would be a 1.9 percent
14 annual savings for the residential and small
15 commercial people in your district, in the Con
16 Ed service area.
17 SENATOR OPPENHEIMER: Right.
18 SENATOR SEWARD: And this is -
19 I might point out, this is not the cure-all or
20 end-all to rate relief in the state of New
21 York. This is just one piece of the puzzle to
22 bring down rates. The PSC, through their
23 settlement restructuring the industry, they
24 have brought rates down. There are some
25 things that the PSC cannot do that we can do
4047
1 as a Legislature.
2 Passing this piece of
3 legislation is one of those things. Further
4 GRT -- gross receipts tax -- relief is another
5 way that this Legislature can bring down
6 rates, and so what we're talking about here is
7 a total package. This is one piece of that
8 package, and I am not going to apologize for
9 any rate relief in the state of New York.
10 After we have seen over the last 10 to 15, 20
11 years in this state, the debate was not about
12 how low we can bring rates; the debate in this
13 Capitol was how high are rates going to go.
14 So I think this is a very
15 refreshing change that we're seeing here in
16 this Capitol, and the way that we are dealing
17 with providing electric service to our
18 constituents with an eye toward bringing down
19 rates.
20 ACTING PRESIDENT KUHL: Senator
21 Oppenheimer.
22 SENATOR OPPENHEIMER: Thank
23 you, but I think before we step in, that the
24 Tonko bill which says a five percent rate
25 saving should be the limit, the minimum
4048
1 amount, makes far more sense to me, and I'll
2 be voting no, and I can only tell you the EPL
3 has two smokestacks.
4 ACTING PRESIDENT KUHL: Senator
5 Wright.
6 SENATOR WRIGHT: Thank you, Mr.
7 President.
8 I too rise in support of the
9 bill and want to encourage my colleagues to
10 support it. Unlike my colleague, I would be
11 glad to have one percent rate reduction as
12 opposed to zero percent rate reduction and
13 when faced with that alternative, I would
14 certainly take that, but I think we can
15 achieve more, as Senator Seward pointed out.
16 This is but one element of a
17 comprehensive effort to reduce our rates.
18 More importantly, the concept of stranded
19 costs are identified not only in New York
20 State but are identified by the federal energy
21 regulatory commission and they acknowledge
22 that, in fact, there are prudent stranded
23 costs, so it's a well established concept.
24 More importantly the concept of
25 securitization is not unique to New York but
4049
1 is used consistently throughout the nation.
2 As restructuring has been put in place,
3 securitization has been one element of that
4 restructuring. You will find it in
5 Massachusetts; you will find it in
6 Connecticut; you will find it elsewhere in
7 terms of restructuring.
8 Equally important, we are not
9 the only state that is doing restructuring
10 through a regulatory format. There are a
11 number of other states as well as there are
12 states that simply pass legislation that says
13 we want to reduce rates and restructure
14 administratively go about doing that, so New
15 York's experience is not unique to the nation
16 but, in fact, New York is moving ahead in a
17 very complicated environment.
18 This can be beneficial to our
19 ratepayers, and the bottom line does accrue
20 not to the stockholders but to the ratepayers
21 and in that negotiation of an approved plan
22 with the PSC, issues such as property tax
23 relief, an impact that was identified and
24 discussed yesterday, can become part of that
25 negotiation as well as a number of other
4050
1 issues that the Public Service Commission has
2 the jurisdiction to negotiate with those
3 utilities, all of the benefit again accruing
4 to the ratepayers.
5 So I believe that it's not the
6 role of the Legislature to involve itself, as
7 it has historically, in driving up the rates
8 but to facilitate competition and an environ
9 ment in this state that will provide for the
10 lower rates. Securitization is but one piece
11 of that comprehensive approach, and I would
12 encourage my colleagues to support it.
13 Thank you.
14 ACTING PRESIDENT KUHL:
15 Secretary will read the last section.
16 THE SECRETARY: Section 6.
17 This act shall take effect immediately.
18 ACTING PRESIDENT KUHL: Call
19 the roll.
20 SENATOR OPPENHEIMER: If I
21 could explain my vote.
22 (The Secretary called the
23 roll. )
24 ACTING PRESIDENT KUHL: The
25 Chair recognizes Senator Oppenheimer to
4051
1 explain her vote. Record the negatives and
2 announce the results.
3 Senator Oppenheimer.
4 SENATOR OPPENHEIMER: The other
5 states that were just mentioned are states
6 that have put in place an entire public
7 utility policy. Our state is going ahead with
8 securitization without the entire policy put
9 in place, and it is concerning that stranded
10 costs now will fall to -- if this bill
11 survives the other house, would fall to the
12 ratepayer and not be shared by the
13 shareholder, the stockholder of the company.
14 It would all -- all intangible costs would
15 then fall to the ratepayer. It doesn't seem
16 wise to me, and I'll be voting no.
17 ACTING PRESIDENT KUHL: Senator
18 Oppenheimer will be recorded in the negative.
19 Senator Dollinger to explain
20 his vote.
21 SENATOR DOLLINGER: Just to
22 explain my vote.
23 I appreciate Senator
24 Oppenheimer's comment. I understand why the
25 EPL is concerned about this, but understand
4052
1 one thing about this method of refinancing.
2 If we already -- if we didn't regulate the
3 utilities the way we did, then if we had an
4 open marketplace this is a very conventional
5 way to finance lower debt, to take a
6 guaranteed income stream and budget in order
7 to be able to reduce your debt level.
8 The reason why we're here, the
9 reason why we have to do it, is because we've
10 regulated them for 30, 40, 50 years. We're
11 deregulating them to the extent of allowing
12 them to go out and do a type of financing that
13 any major corporation with a set income stream
14 would do. It's not a revolutionary proposal.
15 It may have the effect, and I know I discussed
16 this with Senator Seward, of what effect it
17 will have on rates. I've talked about it with
18 my home town utility. I'm not necessarily
19 assured that it's going to see any dramatic
20 reduction in rates, but it reduces the cost
21 and it moves these utilities into a lower cost
22 environment in which they can go out and
23 compete with lower rates. They've got the
24 incentive now to go out and sell lower rates.
25 What this will allow them to do
4053
1 is to shuck a little bit of that half a
2 century of regulation to allow them to go out
3 and compete. It's not an unconventional
4 financing mechanism in the unregulated private
5 sector.
6 ACTING PRESIDENT KUHL: Senator
7 Dollinger will be recorded -
8 SENATOR DOLLINGER: Yes.
9 ACTING PRESIDENT KUHL: -- in
10 the affirmative. Announce the results.
11 THE SECRETARY: Those recorded
12 in the negative on Calendar 1040 are Senators
13 Connor, Leichter, Markowitz, Montgomery,
14 Nanula, Onorato, Oppenheimer, Paterson,
15 Rosado, Sampson, Santiago, Smith, Stavisky,
16 Waldon, also Senator Mendez. Ayes 44, nays
17 15.
18 ACTING PRESIDENT KUHL: The
19 bill is passed.
20 Senator Farley, why do you
21 rise?
22 SENATOR FARLEY: The bill is
23 passed, right. This is on another issue.
24 Mr. President, we have in the
25 gallery a remarkable group of men, all of whom
4054
1 are ex-prisoners of war, came over here to
2 visit us. I'd ask them to stand and would you
3 please pay the respects of the New York State
4 Senate to these great Americans who were
5 prisoners of war for our country.
6 ACTING PRESIDENT KUHL: Thank
7 you, Senator Farley.
8 On behalf of Senator Bruno,
9 Senator Farley, all the members we welcome you
10 distinguished gentlemen to the chamber. Thank
11 you for your contribution that makes all of
12 this possible for all of us and for all the
13 residents of this state of New York and
14 country. Thank you for your service to God
15 and country, and you're to be commended for
16 spending some time here today.
17 Thank you, gentlemen. Enjoy
18 your stay.
19 (Applause)
20 Senator Present.
21 SENATOR PRESENT: Mr.
22 President, would you recognize Senator Rath,
23 please.
24 ACTING PRESIDENT KUHL: The
25 Chair recognizes Senator Rath.
4055
1 SENATOR RATH: Yes, Mr.
2 President. Good morning. Excuse me for being
3 so very late as I wandered into the chamber.
4 I was at one of the other meetings, Higher
5 Education meeting, and it gives me a great
6 deal of pleasure to introduce to you Tara
7 Neal, who is with you on the platform, Miss
8 Western New York. We're very glad to have you
9 in the chamber with us this afternoon. Tara,
10 I haven't had the pleasure of greeting you
11 personally because of circumstances today, but
12 you're certainly an able delegate and a fine
13 representative from the western door of New
14 York State, as I like to think about it.
15 Congratulations and good luck.
16 Thank you for being here.
17 ACTING PRESIDENT KUHL: Senator
18 Maziarz.
19 SENATOR MAZIARZ: Thank you
20 very much, Mr. President.
21 I want to join with Senator
22 Rath and also Senator Volker who is not in the
23 chamber today in congratulating Tara and
24 wishing her well the end of this month. She's
25 going to be competing in Watertown against
4056
1 other young ladies of all of your districts
2 and she is going to win, so you are all going
3 to have some sorry constituents out there
4 because like Mary Ellen Stamler, a Miss New
5 York State from my district, Tara, we expect
6 you not only to win in Watertown but also in
7 September to win in Atlantic City.
8 And so on behalf of Senator
9 Volker and all the members of the Senate,
10 Senator Bruno, I want to congratulate and wish
11 you well as Miss Western New York, where not
12 enough state money is spent as opposed to Long
13 Island, and, as I told you this morning.
14 I thank you.
15 ACTING PRESIDENT KUHL: Senator
16 Present.
17 SENATOR PRESENT: Mr.
18 President, I'd like to announce an immediate
19 meeting of the Rules Committee in Room 332.
20 ACTING PRESIDENT KUHL: There
21 will be an immediate meeting of the Rules
22 Committee, immediate meeting of the Rules
23 Committee in the Majority Conference Room,
24 Room 332. Immediate meeting of the Rules
25 Committee in the Majority Conference Room,
4057
1 Room 332.
2 Senator Present. Senator
3 Present. We have one bill left on the
4 controversial calendar, Calendar Number 929,
5 by Senator Volker. 929, by Senator Volker,
6 would you like to take that up now?
7 SENATOR PRESENT: We're going
8 to stand at ease. No, stand at ease awaiting
9 the Rules Committee report.
10 ACTING PRESIDENT KUHL: Senate
11 will stand at ease awaiting the report of the
12 Rules Committee.
13 (The Senate stood at ease from
14 12:12 until 12:33 p.m.)
15 ACTING PRESIDENT KUHL: The
16 Senate will come to order. Ask the members to
17 find their places, staff to find their
18 places.
19 Senator Skelos.
20 SENATOR SKELOS: Mr. President,
21 if we could return to reports of standing
22 committees. I believe there is a report of
23 the Rules Committee at the desk. I ask that
24 it be read.
25 ACTING PRESIDENT KUHL: We will
4058
1 return to the order of reports of standing
2 committees. There is a report of the Rules
3 Committee. I'll ask the Secretary to read.
4 THE SECRETARY: Senator Bruno,
5 from the Committee on Rules, offers up the
6 following bills directly for third reading:
7 1347-B, by Senator Kuhl, an act
8 to amend the Public Service Law;
9 1416-B, by Senator Wright, an
10 act to amend the Tax Law;
11 2575-B, by Senator Montgomery,
12 an act authorizing the city of New York;
13 2920, by Senator Leibell, an
14 act to amend the Public Authorities Law;
15 Senate 4413, by Senator Rath,
16 an act to amend the Surrogate Court Procedure
17 Act;
18 4556-B, by Senator Johnson and
19 others, an act to amend the Tax Law;
20 6093, by Senator Alesi, an act
21 to amend the Penal Law;
22 6524, by Senator DeFrancisco,
23 an act to amend the Highway Law;
24 6630, by Senator Balboni, an
25 act to amend the Penal Law;
4059
1 6710, by Senator Marcellino, an
2 act to amend the Criminal Procedure Law;
3 6726-B, by Senator Marchi, an
4 act to amend the Public Authorities Law;
5 7041-B, by Senator Libous, an
6 act to amend the Public Authorities Law;
7 7346, by Senator Hannon, an act
8 to amend Chapter 904 of the Laws of 1984;
9 7356, by Senator Volker, an act
10 to amend the Tax Law;
11 7455-A, by Senator Goodman, an
12 act to amend the tax law;
13 7507, by Senator Spano, an act
14 to amend the Tax Law;
15 7533, by Senator Volker, an act
16 to amend the Judiciary Law;
17 7542, by Senator Fuschillo, an
18 act to amend the Vehicle and Traffic Law;
19 7546, by Senator Fuschillo, an
20 act to amend the Vehicle and Traffic Law;
21 7565, by Senator Bruno, an act
22 to authorize the city of Troy;
23 7591, by Senator Volker, an act
24 to authorize participation of the county of
25 Erie;
4060
1 7604, by Senator Trunzo, an act
2 to amend Chapter 41 of the Laws of 1997.
3 All bills directly for third
4 reading.
5 ACTING PRESIDENT KUHL: Senator
6 Skelos?
7 The motion is to accept the
8 report of the Rules Committee. All those in
9 favor signify by saying aye.
10 (Response of "Aye.")
11 Opposed nay.
12 (There was no response. )
13 The report is accepted. All
14 bills ordered directly to third reading.
15 Senator Skelos.
16 SENATOR SKELOS: Mr. President,
17 at this time could we take up Calendar Number
18 1179, Senate 6726-B, that was just reported by
19 the Rules Committee.
20 ACTING PRESIDENT KUHL:
21 Secretary will read Calendar Number 1179,
22 Senate 6726-B.
23 THE SECRETARY: Calendar Number
24 1179, by Senator Marchi, Senate Print 6726-B,
25 an act to amend the Public Authorities Law, in
4061
1 relation to the powers of the NYSARC, Inc.
2 ACTING PRESIDENT KUHL:
3 Secretary will read the last section.
4 THE SECRETARY: Section 3.
5 This act shall take effect immediately.
6 ACTING PRESIDENT KUHL: Call
7 the roll.
8 (The Secretary called the
9 roll. )
10 THE SECRETARY: Ayes 59.
11 ACTING PRESIDENT KUHL: The
12 bill is passed.
13 Senator Skelos.
14 SENATOR SKELOS: Mr. President,
15 would you please take up Calendar Number 1180,
16 Senate 7041-B, just reported by the Rules
17 Committee.
18 ACTING PRESIDENT KUHL:
19 Secretary will read Calendar Number 1180,
20 Senate Print 7041-B.
21 THE SECRETARY: Calendar 1180,
22 by Senator Libous, Senate Print 7041-B, an act
23 to amend the Public Authorities Law.
24 ACTING PRESIDENT KUHL:
25 Secretary will read the last section.
4062
1 THE SECRETARY: Section 4.
2 This act shall take effect immediately.
3 ACTING PRESIDENT KUHL: Call
4 the roll.
5 THE SECRETARY: Ayes 59.
6 ACTING PRESIDENT KUHL: The
7 bill is passed.
8 Senator Skelos.
9 SENATOR SKELOS: Mr. President,
10 would you please take up Calendar Number 1181,
11 Senate 7455-A, that was reported from the
12 Rules Committee.
13 ACTING PRESIDENT KUHL:
14 Secretary will read Calendar Number 1181,
15 Senate 7455-A.
16 THE SECRETARY: Calendar Number
17 1181, by Senator Goodman, Senate Print 7455-A,
18 an act to amend the Tax Law.
19 ACTING PRESIDENT KUHL: Senator
20 Skelos.
21 SENATOR SKELOS: Is there a
22 message of necessity at the desk?
23 ACTING PRESIDENT KUHL: There
24 is.
25 SENATOR SKELOS: Move to
4063
1 accept.
2 ACTING PRESIDENT KUHL: Motion
3 is to accept the message of necessity on
4 Calendar Number 1181. All those in favor
5 aye.
6 (Response of "Aye.")
7 Opposed nay.
8 (There was no response.)
9 The message is accepted.
10 Secretary will read the last section.
11 SENATOR LEICHTER: Excuse me.
12 ACTING PRESIDENT KUHL: Senator
13 Leichter, why do you rise?
14 SENATOR LEICHTER: Yeah. I
15 just saw this bill for the first time in the
16 Rules Committee. Could we just have a brief
17 explanation of this bill.
18 SENATOR SKELOS: Lay it aside
19 temporarily.
20 ACTING PRESIDENT KUHL: Bill is
21 laid aside temporarily.
22 Senator Skelos.
23 SENATOR SKELOS: 7604.
24 ACTING PRESIDENT KUHL:
25 Secretary will read Calendar Number 1182.
4064
1 THE SECRETARY: Calendar Number
2 1182, by Senator Trunzo, Senate Print 7604-A,
3 an act to amend Chapter 41 of the Laws of
4 1997.
5 ACTING PRESIDENT KUHL: Senator
6 Skelos.
7 SENATOR SKELOS: Is there a
8 message of necessity at the desk?
9 ACTING PRESIDENT KUHL: There
10 is.
11 SENATOR SKELOS: Move to
12 accept.
13 ACTING PRESIDENT KUHL: Motion
14 is to accept the message of necessity on
15 Calendar Number 1182. All those in favor
16 aye.
17 (Response of "Aye.")
18 Opposed nay.
19 (There was no response.)
20 The message is accepted. The
21 bill is before the house. Secretary will read
22 the last section.
23 THE SECRETARY: Section 5.
24 This act shall take effect -
25 ACTING PRESIDENT KUHL: Senator
4065
1 Leichter?
2 SENATOR LEICHTER: Going very
3 fast. Can we have a brief explanation of the
4 bill?
5 ACTING PRESIDENT KUHL: Senator
6 Trunzo, an explanation of Calendar Number 1182
7 has been requested by Senator Leichter.
8 SENATOR TRUNZO: Senator
9 Leichter, this is just merely technical
10 amendments to the early retirement bill that
11 was passed earlier this year. There were
12 wrong dates in the original bill, correcting
13 those dates in various sections of the bill
14 and that's all it does is really technical so
15 that we can implement the early retirement
16 bill that was passed and signed by the
17 Governor.
18 ACTING PRESIDENT KUHL: Senator
19 Leichter.
20 SENATOR LEICHTER: If Senator
21 Trunzo would yield.
22 Senator, the aim and purpose of
23 the bill is to allow one or more individuals
24 that didn't take advantage of early retirement
25 under the old provision of the bill to do so
4066
1 now?
2 SENATOR TRUNZO: That's right.
3 SENATOR LEICHTER: And how many
4 such individuals are there?
5 SENATOR TRUNZO: I really don't
6 know. People haven't applied yet. You know,
7 it's statewide; it's all over the state.
8 SENATOR LEICHTER: This bill.
9 SENATOR TRUNZO: This bill just
10 finalizes so we can implement the early
11 retirement bill which was Chapter 47 of the
12 Laws of 1998 which was passed earlier this
13 year and signed by the Governor, and these
14 bills had to be changed to fix the dates that
15 weren't in the original bill.
16 SENATOR LEICHTER: O.K. Just
17 one more question, if you will yield,
18 Senator. So the -- you're telling me the aim
19 and purpose is not to benefit a specifically
20 known individual or individuals.
21 SENATOR TRUNZO: No, no.
22 SENATOR LEICHTER: All right.
23 ACTING PRESIDENT KUHL:
24 Secretary will read the last section.
25 THE SECRETARY: Section 5.
4067
1 This act shall take effect immediately.
2 ACTING PRESIDENT KUHL: Call
3 the roll.
4 (The Secretary called the
5 roll.)
6 THE SECRETARY: Ayes 59.
7 ACTING PRESIDENT KUHL: The
8 bill is passed.
9 Senator Skelos.
10 SENATOR SKELOS: Mr. President,
11 would you please take up Calendar Number 1181
12 that was laid aside.
13 ACTING PRESIDENT KUHL:
14 Secretary will read.
15 THE SECRETARY: Calendar Number
16 1181, by Senator Goodman, Senate Print 7455-A,
17 an act to amend the Tax Law.
18 ACTING PRESIDENT KUHL: Message
19 of necessity was previously accepted, Senator
20 Leichter.
21 Senator Goodman, an explanation
22 of Calendar Number 1181, Senate Print 7455 has
23 been requested by Senator Leichter.
24 SENATOR GOODMAN: Thank you,
25 Mr. President. I'll put up my dukes and
4068
1 explain the bill which relates to boxing and
2 wrestling in the state of New York. That's
3 the least -
4 ACTING PRESIDENT KUHL: Senator
5 Leichter.
6 SENATOR LEICHTER: If Senator
7 Goodman would yield.
8 SENATOR GOODMAN: May I just
9 take a moment because, in reading you the
10 explanation, it will refresh my recollection
11 of the explanation I made before.
12 SENATOR LEICHTER: Sure.
13 SENATOR GOODMAN: The purpose
14 of this bill is to amend the boxing and
15 wrestling exhibition tax imposed by Article 19
16 of the Tax Law to reduce the amount of tax,
17 narrow the base on which tax is imposed and
18 set maximum amounts of tax for any match or
19 exhibition.
20 The bill would provide economic
21 benefits to the state while improving the
22 administration and enforcement of the boxing
23 and wrestling exhibition tax. The reductions
24 realized in the revision of the gross receipts
25 tax should encourage promoters to bring events
4069
1 into New York. This increase in major events
2 will have a beneficial impact on the economy.
3 The bill would have a minimal
4 impact on the state's fiscal year 1998-99 and
5 would reduce the state's receipts by
6 approximately $192,000.
7 The bill would amend the Tax
8 Law to clarify the definition of gross
9 receipts. The bill would further define and
10 clarify sparring or wrestling match or
11 exhibition. Section 2 would amend the Tax Law
12 commencing June 1st, 1998 to impose a tax on
13 gross receipts and ticket sales at the rate of
14 3 percent, capped at $50,000 for any match or
15 exhibition and on gross receipts from broad
16 casting rights at the rate of 3 percent, also
17 capped at $50,000 for any single match or
18 exhibition. Thus the combined maximum tax per
19 match or exhibition would be $100,000.
20 A match or exhibition is
21 understood to be a single bout or event or, in
22 the case of a bout or match or fight on a
23 given date, a single date, a given location is
24 one match or exhibition.
25 Section 3 of the bill would
4070
1 amend the Tax Law to reflect changes made by
2 the bill, Section 1 and 2.
3 If the U.S. Supreme Court or
4 New York State Court of Appeals holds that the
5 per match cap on the taxed event is un
6 constitutional, then the cap would be
7 eliminated.
8 Section 5 of the bill provides
9 that the bill would take effect on June 1st,
10 '98 and would apply to matches and
11 exhibitions held on or after that date, et
12 cetera, et cetera, et cetera.
13 That's the flavor, and I'm at
14 your disposal, Senator.
15 SENATOR LEICHTER: Senator, Mr.
16 President, I thank Senator Goodman for that
17 reading.
18 My question was, I see that
19 you've capped the gross receipts tax on the
20 sales of these tickets at $50,000. That sort
21 of troubled me. Suppose we had a big, big
22 match, Holyfield versus Tyson, with gates of
23 hundreds of millions of dollars. Would you
24 still cap the total amount of the tax in that
25 event at $50,000?
4071
1 SENATOR GOODMAN: The answer is
2 that I would, for precisely the reason that I
3 referred to in the explanation of the bill,
4 namely, that we wish to give assurance and
5 attract people into New York with these
6 matches and, if they felt that this was an
7 unlimited tax liability that they would have
8 to be subject to, that that would be a
9 discouragement for bringing other matches.
10 Furthermore, Senator, it's
11 unlikely that gates of the magnitude that you
12 mentioned would not readily occur or would
13 only occur once in a while, but to permit the
14 thing to be without a cap would expand the
15 liability of the promoters and, therefore,
16 deter their entrance into New York.
17 SENATOR LEICHTER: Mr.
18 President, just very briefly on the bill.
19 ACTING PRESIDENT KUHL: Senator
20 Leichter, on the bill.
21 SENATOR LEICHTER: I just think
22 to cap that at $50,000 is to be unreasonably
23 low. Maybe you want to cap it at something.
24 I don't know whether you want to cap it at
25 all, but I certainly don't want to cap it at
4072
1 this low an amount.
2 We have events that go on in
3 New York State all the time, whether they're
4 World Series games, where the prices go up,
5 where I'm sure the total amount of receipts is
6 greater. I don't think we've discouraged
7 World Series events to be held in New York
8 State because of that.
9 I just think that it's an
10 unjustified limitation on taxes that should be
11 paid. We're just decreasing the amount that
12 flows into the public treasury.
13 ACTING PRESIDENT KUHL:
14 Secretary will read the last section.
15 THE SECRETARY: Section 5.
16 This act shall take effect immediately.
17 ACTING PRESIDENT KUHL: Call
18 the roll.
19 (The Secretary called the
20 roll. )
21 ACTING PRESIDENT KUHL: Record
22 the negatives and announce the results.
23 THE SECRETARY: Those recorded
24 in the negative on Calendar Number 1181 are
25 Senators Dollinger, Hoffmann and Leichter.
4073
1 Ayes 56, nays 3.
2 ACTING PRESIDENT KUHL: The
3 bill is passed.
4 Senator Skelos.
5 SENATOR SKELOS: Mr. President,
6 is there any housekeeping at the desk?
7 ACTING PRESIDENT KUHL: We do
8 have a couple of motions.
9 Senator Leichter. Excuse me.
10 Senator Montgomery, why do you rise?
11 SENATOR MONTGOMERY: Mr.
12 President, I would like unanimous consent to
13 be recorded in the negative on Calendar Number
14 2.
15 ACTING PRESIDENT KUHL: Without
16 objection, hearing no objection, Senator
17 Montgomery will be recorded in the negative on
18 Calendar Number 2.
19 SENATOR MONTGOMERY: Thank you,
20 Mr. President.
21 Senator Marcellino, you got a
22 motion. Return to the order of motions and
23 resolutions. Chair recognizes Senator
24 Marcellino.
25 SENATOR MARCELLINO: Thank you,
4074
1 Mr. President.
2 On page number 12, I offer the
3 following amendments to Senator Cook's bill
4 Calendar Number 446, Senate Print Number 899
5 B, and ask that said bill retain its place on
6 the Third Reading Calendar.
7 ACTING PRESIDENT KUHL:
8 Amendments to Calendar Number 446 are received
9 and adopted. The bill will retain its place
10 on the Third Reading Calendar.
11 Senator Marcellino.
12 SENATOR MARCELLINO: Thank you,
13 Mr. President.
14 On behalf of Senator Spano, I
15 wish to call up his bill, Calendar Number 514,
16 Assembly Print Number 9511-A.
17 ACTING PRESIDENT KUHL:
18 Secretary will read.
19 THE SECRETARY: Calendar Number
20 514, by member of the Assembly Luster,
21 Assembly Print 9511-A, an act to amend the
22 Labor Law.
23 ACTING PRESIDENT KUHL: Senator
24 Marcellino.
25 SENATOR MARCELLINO: I now move
4075
1 to reconsider the vote by which this Assembly
2 bill was substituted for Print Number 6571-A,
3 on June 2nd.
4 ACTING PRESIDENT KUHL:
5 Secretary will call the roll on
6 reconsideration.
7 (The Secretary called the roll
8 on reconsideration.)
9 THE SECRETARY: Ayes 59.
10 ACTING PRESIDENT KUHL: Senator
11 Marcellino.
12 SENATOR MARCELLINO: Mr.
13 President, I now move that the Assembly bill
14 be recommitted to the Committee on Labor and
15 the Senate bill restored to the order of third
16 reading.
17 ACTING PRESIDENT KUHL: The
18 assembly bill is recommitted; the Senate bill
19 is restored.
20 SENATOR MARCELLINO: Mr.
21 President, I now offer the following
22 amendments.
23 ACTING PRESIDENT KUHL: The
24 amendments are received and adopted.
25 SENATOR SKELOS: Any other
4076
1 substitutions to be made? Any other
2 housekeeping?
3 SENATOR KUHL: No other
4 housekeeping, Senator, at this time.
5 SENATOR SKELOS: Mr. President,
6 would you call up Senator Volker's bill,
7 Calendar Number 929.
8 ACTING PRESIDENT KUHL:
9 Secretary will read Calendar Number 929.
10 THE SECRETARY: Calendar Number
11 929, by Senator Volker, Senate Print 395-B, an
12 act to amend the Public Health Law and the
13 Multiple Dwelling Law.
14 SENATOR SKELOS: Lay it aside
15 for the day.
16 ACTING PRESIDENT KUHL: Bill is
17 laid aside for the day at the request of the
18 Majority Leader.
19 SENATOR SKELOS: No other
20 housekeeping.
21 ACTING PRESIDENT KUHL: Desk is
22 clean, Senator Skelos.
23 SENATOR SKELOS: If there is no
24 further business, Mr. President, I move we
25 adjourn until June 8th, Monday, at 3:00 p.m.,
4077
1 intervening days being legislative days.
2 ACTING PRESIDENT KUHL: Without
3 objection, the Senate stands adjourned until
4 Monday, June 8th, at 3:00 p.m., intervening
5 days to be legislative days.
6 (Whereupon at 12:48 p.m., the
7 Senate adjourned.)
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