Regular Session - June 8, 1998

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         9                   ALBANY, NEW YORK

        10                     June 8, 1998

        11                      3:07 p.m.

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        14                   REGULAR SESSION

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        18       LT. GOVERNOR BETSY McCAUGHEY ROSS, President

        19       STEVEN M. BOGGESS, Secretary

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                                                          4091

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

         2                      THE PRESIDENT:  The Senate will

         3       come to order.  Would you please rise and join

         4       with me in the Pledge of Allegiance.

         5                      (The assemblage repeated the

         6       Pledge of Allegiance to the Flag. )

         7                      May we bow our heads that

         8       moment of silence.

         9                      (A moment of silence was

        10       observed. )

        11                      The reading of the Journal,

        12       please.

        13                      THE SECRETARY:  In Senate,

        14       Sunday, June 7th.  The Senate met pursuant to

        15       adjournment.  Senator Farley in the chair,

        16       upon designation of the Temporary President.

        17       The Journal of Saturday, June 6, was read and

        18       approved.  On motion, the Senate adjourned.

        19                      THE PRESIDENT:  Without objec

        20       tion, the Journal stands approved as read.

        21                      Presentation of petitions.

        22                      Messages from the Assembly.

        23                      Messages from the Governor.

        24                      Reports of standing committees.

        25                      Reports of select committees.











                                                          4092

         1                      Communications and reports from

         2       state officers.

         3                      Motions and resolutions.

         4                      Senator Marcellino.

         5                      SENATOR MARCELLINO:  Thank you,

         6       Madam President.

         7                      Amendments are offered to the

         8       following Third Reading Calendar bills: On

         9       behalf of Senator Alesi, on page number 4,

        10       Calendar Number 40, Senate Print Number 4942C;

        11                      On behalf of Senator Farley,

        12       page 13, Calendar Number 502, Senate Print

        13       Number 4246;

        14                      On behalf of Senator Balboni,

        15       on page number 17, Calendar Number 618, Senate

        16       Print Number 6995;

        17                      On behalf of Senator Wright,

        18       page number 23, Calendar Number 737, Senate

        19       Print Number 7318;

        20                      On behalf of Senator Skelos,

        21       page number 31, Calendar Number 922, Senate

        22       Print Number 6427D;

        23                      On behalf of Senator Maziarz,

        24       on page 33, Calendar Number 952, Senate Print

        25       Number 7248A;











                                                          4093

         1                      On behalf of Senator Libous, on

         2       page number 33, Calendar Number 958, Senate

         3       Print Number 6145B;

         4                      On behalf of Senator Kuhl, on

         5       page number 42, 1117 is the Calendar Number,

         6       Senate Print Number 6743.

         7                      Madam President, I now move

         8       these bills retain their place on the Third

         9       Reading Calendar.

        10                      THE PRESIDENT:  Amendments

        11       received.

        12                      Senator Libous.

        13                      SENATOR LIBOUS:  Thank you,

        14       Madam President.

        15                      I would like to place a

        16       sponsor's star on my bill, Calendar Number 52.

        17                      THE PRESIDENT:  So ordered.

        18                      SENATOR LIBOUS:  And on behalf

        19       of Senator Alesi, Madam President, I wish to

        20       call up his bill, Print Number 6133A, recalled

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

        22                      THE PRESIDENT:  The secretary

        23       will read.

        24                      THE SECRETARY:  Calendar Number

        25       760, by Senator Alesi, Senate Print 6133A, an











                                                          4094

         1       act to amend the General Business Law.

         2                      SENATOR LIBOUS:  I move to

         3       reconsider the vote by which this bill was

         4       passed.

         5                      THE PRESIDENT:  Call the roll

         6       on reconsideration, please.

         7                      (The Secretary called the roll

         8       on reconsideration. )

         9                      THE SECRETARY:  Ayes 37.

        10                      SENATOR LIBOUS:  I offer the

        11       following amendments.

        12                      THE PRESIDENT:  Amendments

        13       received.

        14                      Senator Meier.

        15                      SENATOR MEIER:  Madam

        16       President, I wish to call up my bill, Print

        17       Number 6927A, recalled from the Assembly,

        18       which is now at the desk.

        19                      THE PRESIDENT:  Secretary will

        20       read.

        21                      THE SECRETARY:  Calendar Number

        22       887, by Senator Meier, Senate Print 6927A, an

        23       act to amend the Military Law.

        24                      SENATOR MEIER:  Madam

        25       President, I now move to reconsider the vote











                                                          4095

         1       by which the bill was passed.

         2                      THE PRESIDENT:  Call the roll

         3       on reconsideration, please.

         4                      (The Secretary called the roll

         5       on reconsideration. )

         6                      THE SECRETARY:  Ayes 37.

         7                      SENATOR MEIER:  Madam Presi

         8       dent, I now offer the following amendments.

         9                      THE PRESIDENT:  Amendments

        10       received.

        11                      SENATOR MEIER:  Madam

        12       President, I wish to call up Senator Spano's

        13       bill, Print Number 5372B, recalled from the

        14       Assembly, which is now at the desk.

        15                      THE PRESIDENT:  Secretary will

        16       read.

        17                      THE SECRETARY:  Calendar Number

        18       73, by Senator Spano, Senate Print 5372B, an

        19       act to amend the Social Services Law.

        20                      SENATOR MEIER:  I now move to

        21       reconsider the vote by which this bill was

        22       passed.

        23                      THE PRESIDENT:  Call the roll

        24       on reconsideration, please.

        25                      (The Secretary called the roll











                                                          4096

         1       on consideration. )

         2                      THE SECRETARY:  Ayes 37.

         3                      SENATOR MEIER:  Madam Presi

         4       dent, I now offer the following amendments.

         5                      THE PRESIDENT:  Amendments

         6       received.

         7                      SENATOR MEIER:  Madam

         8       President, I wish to call up Senator Saland's

         9       bill, Print Number 5563, recalled from the

        10       Assembly which is now at the desk.

        11                      THE PRESIDENT:  The Secretary

        12       will read.

        13                      THE SECRETARY:  Calendar Number

        14       423, by Senator Saland, Senate Print 5563, an

        15       act to authorize the Commissioner of General

        16       Services.

        17                      SENATOR MEIER:  I now move to

        18       reconsider the vote by which this bill was

        19       passed.

        20                      THE PRESIDENT:  Call the roll

        21       on reconsideration, please.

        22                      (The Secretary called the roll

        23       on reconsideration. )

        24                      THE SECRETARY:  Ayes 37.

        25                      SENATOR MEIER:  Madam Presi











                                                          4097

         1       dent, I now offer the following amendments.

         2                      THE PRESIDENT:  Amendments

         3       received.

         4                      SENATOR MEIER:  Thank you,

         5       Madam President.

         6                      THE PRESIDENT:  Senator Rath.

         7                      SENATOR RATH:  Madam President,

         8       I wish to call up my bill, Print Number 3636,

         9       recalled from the Assembly, which is now at

        10       the desk.

        11                      THE PRESIDENT:  The Secretary

        12       will read.

        13                      THE SECRETARY:  Calendar Number

        14       9, by Senator Rath, Senate Print 3636, an act

        15       to amend the General Municipal Law.

        16                      SENATOR RATH:  Madam President,

        17       I now move to reconsider the vote by which

        18       this bill was passed.

        19                      THE PRESIDENT:  Call the roll

        20       on reconsideration, please.

        21                      (The Secretary called the roll

        22       on reconsideration. )

        23                      THE SECRETARY:  Ayes 37.

        24                      SENATOR RATH:  Madam President,

        25       I now offer the following amendments.











                                                          4098

         1                      THE PRESIDENT:  Amendments

         2       received.

         3                      Senator Farley.

         4                      SENATOR FARLEY:  Thank you,

         5       Madam President.  Would you please place a

         6       sponsor's star on Calendar 870, Senate Print

         7       6676, and on Calendar 872, S. 7375.

         8                      ACTING PRESIDENT MEIER:  So

         9       ordered.

        10                      The Secretary will now read the

        11       substitutions.

        12                      THE SECRETARY:  On page 47,

        13       Senator Marcellino moves to discharge from the

        14       Committee on Rules, Assembly Bill Number

        15       5982A, and substitute it for the identical

        16       Third Reading Calendar 1192.

        17                      On page 47, Senator Hannon

        18       moves to discharge from the Committee on Rules

        19       Assembly Bill Number 10851 and substitute it

        20       for the identical Third Reading Calendar 1193.

        21                      ACTING PRESIDENT MEIER:

        22       Substitutions ordered.

        23                      Senator Skelos.

        24                      SENATOR SKELOS:  Mr.

        25       President, there is a resolution at the desk











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         1       sponsored by Senator Lack.  May we please have

         2       the title read and move for its immediate

         3       adoption.

         4                      ACTING PRESIDENT MEIER:  The

         5       Secretary will read the title.

         6                      THE SECRETARY: By Senator Lack,

         7       Legislative Resolution 3812, honoring Peter

         8       White, a social studies teacher at Northport

         9       High School, upon the occasion of his selec

        10       tion as New York State Teacher of the Year.

        11                      ACTING PRESIDENT MEIER:  The

        12       question is on the resolution.  All those in

        13       favor of the resolution signify by saying aye.

        14                      (Response of "Aye.")

        15                      Opposed nay.

        16                      (There was no response. )

        17                      The resolution is adopted.

        18                      Senator Skelos.

        19                      SENATOR SKELOS:  Mr. President,

        20       there is a concurrent resolution at the desk,

        21       3617; I ask that the title be read and move

        22       for its immediate adoption.

        23                      ACTING PRESIDENT MEIER:  The

        24       Secretary will read.

        25                      THE SECRETARY: By Senator











                                                          4100

         1       Bruno, Concurrent Resolution 3617 of the Sen

         2       ate and Assembly, authorizing the Temporary

         3       President of the Senate and the Speaker of the

         4       Assembly to file an election to make certain

         5       officers and employees of joint legislative

         6       employers eligible for the retirement incent

         7       ive offered by Chapter 41 of the Laws of 1997

         8       as extended by Chapter 47 of the Laws of 1998

         9       as amended.

        10                      The Assembly sends for concur

        11       rence Assembly Concurrent Resolution 2336,

        12       identical with Senate Concurrent Resolution

        13       3617.

        14                      ACTING PRESIDENT MEIER:

        15       Substitution ordered.

        16                      The question is on resolu

        17       tion. All those in favor signify by saying

        18       aye.

        19                      (Response of "Aye.").

        20                      Opposed nay.

        21                      (There was no response. )

        22                      The resolution is adopted.

        23                      Senator Skelos.

        24                      SENATOR SKELOS:  Mr. President,

        25       there is another resolution at the desk,











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         1       Number 3616; I ask that the title be read and

         2       move for its immediate adoption.

         3                      ACTING PRESIDENT MEIER:

         4       Secretary will read.

         5                      THE SECRETARY: By Senator

         6       Bruno, Senate Resolution 3616, authorizing the

         7       Temporary President of the Senate to file an

         8       election to make certain officers or employees

         9       of the Senate eligible for the retirement

        10       incentive offered by Chapter 41 of the Laws of

        11       1997 as extended by Chapter 47 of the Laws of

        12       1998 as amended.

        13                      ACTING PRESIDENT MEIER:  On the

        14       resolution, all those in favor signify by

        15       saying aye.

        16                      (Response of "Aye.").

        17                      Opposed nay.

        18                      (There was no response. )

        19                      The resolution is adopted.

        20                      Senator Skelos.

        21                      SENATOR SKELOS:  Mr. President,

        22       there is a resolution at the desk sponsored by

        23       Senator Wright, which was adopted on June 2nd.

        24       May we please have it read in its entirety?

        25                      ACTING PRESIDENT MEIER:  The











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         1       Secretary will read.

         2                      THE SECRETARY: By Senator

         3       Wright, Legislative Resolution 3730, congrat

         4       ulating and commending the 1998 New York State

         5       winners of the United States Small Business

         6       Administration Small Business Awards.

         7                      Whereas, small business owners

         8       embody the entrepreneurial spirit which has

         9       fueled the economy of our country since its

        10       founding; and

        11                      Whereas, small businesses

        12       create two out of every three new jobs and

        13       train most workers entering our economy.  They

        14       account for 99.7 percent of all United States

        15       employers and employ 60 percent of the private

        16       work force.  Small businesses are responsible

        17       for 54 percent of all United States sales.

        18       They account for 40 percent of the Gross

        19       National Product and 21 percent of the

        20       nation's exports.  Small business owners

        21       contribute significantly to New York State,

        22       risking their personal wealth and devoting

        23       countless hours to their businesses in order

        24       to provide jobs and produce goods and services

        25       for the people of the state of New York; and











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         1                      Whereas, each year the United

         2       States Small Business Administration, in part

         3       nership with public and private sector small

         4       business supporters, honors the outstanding

         5       contributions of small business persons, advo

         6       cates and exporters.  The SBA's annual Small

         7       Business Awards program recognizes the impor

         8       tant contributions the small business commun

         9       ity makes to the nation and the state's econ

        10       omy in stimulating the economy and in creating

        11       new job opportunities; and

        12                      Whereas, this legislative body

        13       is proud to recognize and applaud the 1998 New

        14       York State recipients of the United States

        15       Small Business Administration's Small Business

        16       Awards, all of whom exemplify the drive and

        17       determination of small business people who

        18       have brought success to both themselves and

        19       New York State and to commend them for their

        20       hard work and dedication to their businesses

        21       and their communities; and

        22                      Whereas, the 23 1998 New York

        23       State Small Business Award winners are: Small

        24       Business Person of the Year, Christian

        25       DelPrince, President of DelPrince Fashions,











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         1       Limited, Buffalo District; Lawrence A.

         2       Castiglia, President of Tennyson Machine

         3       Company, Incorporated, New York District;

         4       Gilbert Rivera, President of M & G Water

         5       proofing, Incorporated, New York District; and

         6       William G. Ballard, President of Norwich Aero

         7       Products, Incorporated, Syracuse District.

         8                      Minority Small Business

         9       Advocate of the Year, Dorothy C. Johnson,

        10       President of Johnson Security, Incorporated,

        11       New York District.  Women in Business Advocate

        12       of the Year, Gretchen E. Stringer, Senior

        13       Vice-president of the Non-profit Management

        14       Center, Buffalo District; Judith K. Beckman,

        15       Managing Director of Financial Solutions, New

        16       York District; and Marilyn McCall Wiles,

        17       President of ALERT, Syracuse District.

        18                      Veteran Small Business Advocate

        19       of the Year, Gary R. Heuck, Local Veterans

        20       Employment Representative, New York State

        21       Department of Labor, Buffalo District; Michael

        22       J. Handy, Director of the New York City

        23       Mayor's Office of Veterans' Affairs, New York

        24       District; and Harold E. Schultz, National

        25       Service Officer/Supervisor, Disabled American











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         1       Veterans, Syracuse District.

         2                      Accountant Advocate of the

         3       Year, James T. Keefe, partner at Fiddler and

         4       Company, Buffalo District; and Rochelle C.

         5       Barnett, partner at Marks Shron & Company, New

         6       York District.

         7                      Financial Services Advocate of

         8       the Year, Brenda L. Copeland, President and

         9       Director of the Bank of Castile, Buffalo

        10       District; Roslyn D. Goldmacher, Executive

        11       Director of the Long Island Development

        12       Corporation, New York District; and David

        13       Terrenzio, Senior Vice-president and Senior

        14       Loan Officer of the New York Business

        15       Development Corporation and the Empire State

        16       Certified Development Corporation, Syracuse

        17       District.

        18                      Media Advocate of the Year,

        19       Sylvia F. Paterson, Independent Television

        20       Producer, New York District; and Elizabeth

        21       Doran, Reporter, Syracuse Newspapers, Syracuse

        22       District.

        23                      Small Business Exporter of the

        24       Year, Olga Cohen, President of Olga G. Marcus

        25       Cosmetics, Incorporated, New York District and











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         1       Jason Levinthal, President of Line Skiboards

         2       Manufacturing, Incorporated, Syracuse District

         3                      Phoenix Award, Ursula Garreau

         4       Rickenbacher, President and Chief Executive

         5       Officer of Ursula of Switzerland, Syracuse

         6       District; and Jeanie D. Roberts, Executive

         7       Director of the American Red Cross, Clinton

         8       Northern Essex Chapter, Syracuse District.

         9                      Welfare to Work Award, Richard

        10       W. Rank, President of Rank's IGA, Buffalo

        11       District.

        12                      Whereas, all these United

        13       States Small Business Administration Award

        14       winners have contributed through their success

        15       and involvement in the small business sector

        16       to the economic strength of their communities,

        17       their state and their country; and

        18                      Whereas, these New Yorkers

        19       exemplify the values of diligence, initiative

        20       and independence which make small business

        21       such a vital sector of New York State's

        22       economy; now, therefore, be it

        23                      Resolved, that this legislative

        24       body pause in its deliberations to extend its

        25       congratulations to these New Yorkers upon the











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         1       occasion of their designation by the United

         2       States Small Business Administration as 1998

         3       Small Business Award winners and to express

         4       its pleasure at having the opportunity to

         5       honor them at a luncheon to be held on Monday,

         6       June 8, 1998; and be it further

         7                      Resolved, that copies of this

         8       resolution, suitably engrossed, be transmitted

         9       to the aforementioned honorees.

        10                      SENATOR SKELOS:  Mr. President.

        11                      ACTING PRESIDENT MEIER:

        12       Senator Skelos.

        13                      SENATOR SKELOS:  Prior to your

        14       recognizing Senator Wright, there will be an

        15       immediate meeting of the Rules Committee in

        16       the Majority Conference Room.

        17                      ACTING PRESIDENT MEIER:

        18       Immediate meeting of the Rules Committee in

        19       the Majority Conference Room.

        20                      Senator Wright.

        21                      SENATOR WRIGHT:  Thank you, Mr.

        22       President.

        23                      Earlier today, I had the

        24       privilege of joining Majority Leader Bruno,

        25       Senator Present, as chair of the Economic











                                                          4108

         1       Development and Commerce Committee, to

         2       recognize the award winners who were just

         3       identified and recognized in the resolution

         4       presented here to the Senate previously last

         5       week when we formally adopted the resolution,

         6       and today we actually have the awardees and

         7       the award winners here joining us today in the

         8       Capitol.

         9                      I think it's very evident to

        10       all of us as we annually take up legislation

        11       that addresses small business, the importance

        12       that small business place in each of our

        13       individual communities but as well to the

        14       entire economy of the state of New York and

        15       the strong recovery that small businesses have

        16       made, particularly in the last four years as

        17       this Senate, led by Senator Bruno, led by

        18       Senator Stafford, as chair of the Finance

        19       Committee, have delivered on the tax cuts that

        20       have been promised, have delivered on the

        21       reforms in Workers' Compensation, have changed

        22       the estate laws so that small businesses not

        23       only have the opportunity to receive a return

        24       on their investment and grow that business,

        25       but also have the opportunity to pass that











                                                          4109

         1       small business on to their family and to their

         2       sons and daughters.

         3                      We're here today to recognize

         4       and honor those individuals; and you'll notice

         5       that the award winners represent businesses

         6       and different types of businesses from

         7       throughout the state, upstate and downstate,

         8       all in their own successful endeavors have

         9       accomplished what all New Yorkers want to see

        10       accomplished for their businesses.

        11                      So I would ask the awardees to

        12       stand and I would ask my colleagues to

        13       recognize them.  Thank you for joining us

        14       today.

        15                      (Applause)

        16                      Thank you, Mr. President.

        17                      ACTING PRESIDENT MEIER:  The

        18       resolution was previously passed on June 2nd.

        19                      On behalf of the Senate, we

        20       welcome you here today and we congratulate you

        21       on your very impressive accomplishments.

        22                      Senator Kuhl.

        23                      SENATOR KUHL:  Mr. President,

        24       can we now take up the non-controversial

        25       calendar, please?











                                                          4110

         1                      ACTING PRESIDENT MEIER:  The

         2       Secretary will read the non-controversial

         3       calendar.

         4                      THE SECRETARY:  Calendar Number

         5       558, by Senator Nozzolio, Senate Print 6333A,

         6       an act to legalize, validate and confirm

         7       certain actions with respect to the issuance

         8       of serial bonds.

         9                      ACTING PRESIDENT MEIER:  Read

        10       the last section.

        11                      THE SECRETARY:  Section 3.

        12       This act shall take effect immediately.

        13                      ACTING PRESIDENT MEIER:  Call

        14       the roll.

        15                      (The Secretary called the

        16       roll. )

        17                      THE SECRETARY:  Ayes 47.

        18                      ACTING PRESIDENT MEIER:  The

        19       bill is passed.

        20                      THE SECRETARY:  Calendar Number

        21       612, by Senator Velella, Senate Print 577C, an

        22       act to amend the Insurance Law, in relation to

        23       providing premium reductions.

        24                      ACTING PRESIDENT MEIER:  Read

        25       the last section.











                                                          4111

         1                      THE SECRETARY:  Section 2. This

         2       act shall take effect on the first day of

         3       June.

         4                      ACTING PRESIDENT MEIER:  Call

         5       the roll.

         6                      (The Secretary called the

         7       roll. )

         8                      THE SECRETARY:  Ayes 47.

         9                      ACTING PRESIDENT MEIER:  The

        10       bill is passed.

        11                      THE SECRETARY:  Calendar Number

        12       836, by Senator Volker, Senate Print 5009B, an

        13       act to amend the Civil Practice Law and Rules,

        14       in relation to requiring disclosure.

        15                      ACTING PRESIDENT MEIER:  Read

        16       the last section.

        17                      THE SECRETARY:  Section 3.

        18       This act shall take effect in 60 days.

        19                      ACTING PRESIDENT MEIER:  Call

        20       the roll.

        21                      (The Secretary called the

        22       roll. )

        23                      THE SECRETARY:  Ayes 47.

        24                      ACTING PRESIDENT MEIER:  The

        25       bill is passed.











                                                          4112

         1                      THE SECRETARY:  Calendar Number

         2       864, by Senator Marchi, Senate Print 6646B, an

         3       act to amend the Business Corporation Law, the

         4       Limited Liability Company Law and the

         5       Partnership Law, in relation to mergers.

         6                      ACTING PRESIDENT MEIER:  Read

         7       the last section.

         8                      THE SECRETARY:  Section 9.

         9       This act shall take effect in 60 days.

        10                      ACTING PRESIDENT MEIER:  Call

        11       the roll.

        12                      (The Secretary called the

        13       roll. )

        14                      THE SECRETARY:  Ayes 47.

        15                      ACTING PRESIDENT MEIER:  The

        16       bill is passed.

        17                      THE SECRETARY:  Calendar Number

        18       868, by Senator Farley, Senate Print 4717B, an

        19       act to amend the Banking Law, the Estates

        20       Powers and Trusts Law, and others, in relation

        21       to including the Uniform Transfers to Minors

        22       Act.

        23                      ACTING PRESIDENT MEIER:  Read

        24       the last section.

        25                      THE SECRETARY:  Section 9.











                                                          4113

         1       This act shall take effect immediately.

         2                      ACTING PRESIDENT MEIER:  Call

         3       the roll.

         4                      (The Secretary called the

         5       roll. )

         6                      THE SECRETARY:  Ayes 47.

         7                      ACTING PRESIDENT MEIER:  The

         8       bill is passed.

         9                      THE SECRETARY:  Calendar Number

        10       919, by Senator DeFrancisco, Senate -

        11                      SENATOR KUHL:  Lay the bill

        12       aside for the day, please.

        13                      ACTING PRESIDENT MEIER:  Lay

        14       the bill aside for the day.

        15                      THE SECRETARY:  Calendar Number

        16       915, by member of the Assembly Clark, Assembly

        17       Print 9827, an act to amend Chapter 993 of the

        18       Laws of 1981.

        19                      ACTING PRESIDENT MEIER:  Read

        20       the last section.

        21                      THE SECRETARY:  Section 2.

        22       This act shall take effect immediately.

        23                      ACTING PRESIDENT MEIER:  Call

        24       the roll.

        25                      (The Secretary called the











                                                          4114

         1       roll. )

         2                      THE SECRETARY:  Ayes 47.

         3                      ACTING PRESIDENT MEIER:  The

         4       bill is passed.

         5                      THE SECRETARY:  Calendar Number

         6       923, by member of the Assembly Sweeney,

         7       Assembly Print 10023A, an act to amend the

         8       Public Health Law, in relation to making a

         9       technical correction.

        10                      ACTING PRESIDENT MEIER:  Read

        11       the last section.

        12                      THE SECRETARY:  Section 2.

        13       This act shall take effect immediately.

        14                      ACTING PRESIDENT MEIER:  Call

        15       the roll.

        16                      (The Secretary called the

        17       roll. )

        18                      THE SECRETARY:  Ayes 47.

        19                      ACTING PRESIDENT MEIER:

        20       Senator Kuhl.

        21                      SENATOR KUHL:  Mr. President,

        22       can we go back to 868?

        23                      ACTING PRESIDENT MEIER:  The

        24       Secretary will read.

        25                      SENATOR KUHL:  I would like to











                                                          4115

         1       have the Secretary read -- well, maybe I

         2       should do it this way, Mr. President.  I would

         3       like to move to reconsider the vote by which

         4       Calendar Number 864 passed the house.

         5                      ACTING PRESIDENT MEIER: The

         6       Secretary will call the roll on

         7       reconsideration.

         8                      THE SECRETARY:  Calendar Number

         9       864, by Senator Marchi, Senate Print 6646B, an

        10       act to amend the Business Corporation Law.

        11                      SENATOR KUHL: Now, Mr. Presi

        12       dent, I understand there is a substitution at

        13       the desk; can we have that read, please.

        14                      ACTING PRESIDENT MEIER:  We'll

        15       have to lay it aside, Senator.  It's not at

        16       the desk yet.

        17                      SENATOR KUHL:  Okay.  Lay the

        18       bill aside temporarily.

        19                      ACTING PRESIDENT MEIER:  The

        20       bill will be temporarily laid aside.

        21                      Secretary will call the roll on

        22       reconsideration on Calendar 864.

        23                      (The Secretary called the roll

        24       on reconsideration. )

        25                      THE SECRETARY:  Ayes 47.











                                                          4116

         1                      ACTING PRESIDENT MEIER:  The

         2       bill will be temporarily laid aside.  The

         3       Secretary will resume in regular order.

         4                      THE SECRETARY:  Calendar 919,

         5       by Senator Volker, Senate Print 395, an act to

         6       amend the Public Health Law, and others, in

         7       relation to establishing a program.

         8                      SENATOR OPPENHEIMER:  Lay it

         9       aside -

        10                      SENATOR VOLKER:  Excuse me, Mr.

        11       President.  Would you lay that aside for the

        12       day, please?

        13                      ACTING PRESIDENT MEIER:  The

        14       bill will be laid aside for the day at the

        15       request of the sponsor.

        16                      THE SECRETARY:  Calendar Number

        17       936, by Senator Maltese, Senate Print 7021A,

        18       an act to amend the Public Officers Law, in

        19       relation to the conviction of persons.

        20                      ACTING PRESIDENT MEIER:  Read

        21       the last section.

        22                      THE SECRETARY:  Section 2.

        23       This act shall take effect immediately.

        24                      ACTING PRESIDENT MEIER:  Call

        25       the roll.











                                                          4117

         1                      (The Secretary called the

         2       roll. )

         3                      THE SECRETARY:  Ayes 47.

         4                      ACTING PRESIDENT MEIER:  The

         5       bill is passed.

         6                      THE SECRETARY:  Calendar Number

         7       957, by Senator LaValle, Senate Print 5370A,

         8       an act to amend the Education Law, in relation

         9       to the duty of school districts.

        10                      ACTING PRESIDENT MEIER:  Read

        11       the last section.

        12                      THE SECRETARY:  Section 3.

        13       This act shall take effect July 1.

        14                      ACTING PRESIDENT MEIER:  Call

        15       the roll.

        16                      (The Secretary called the

        17       roll. )

        18                      THE SECRETARY:  Ayes 47.

        19                      ACTING PRESIDENT MEIER:  The

        20       bill is passed.

        21                      THE SECRETARY:  Calendar Number

        22       1000, by Senator Holland, Senate Print 6005,

        23       an act to amend the Social Services Law, in

        24       relation to access to the statewide register.

        25                      ACTING PRESIDENT MEIER:  Read











                                                          4118

         1       the last section.

         2                      THE SECRETARY:  Section 2.

         3       This act shall take effect immediately.

         4                      ACTING PRESIDENT MEIER:  Call

         5       the roll.

         6                      (The Secretary called the

         7       roll. )

         8                      THE SECRETARY:  Ayes 47.

         9                      ACTING PRESIDENT MEIER:  The

        10       bill is passed.

        11                      THE SECRETARY:  Calendar Number

        12       1035, by Senator Lack, Senate Print 1265, an

        13       act in relation to certain assessment

        14       decisions rendered in the county of Suffolk.

        15                      ACTING PRESIDENT MEIER:  Read

        16       the last section.

        17                      THE SECRETARY:  Section 2.

        18       This act shall take effect immediately.

        19                      ACTING PRESIDENT MEIER:  Call

        20       the roll.

        21                      (The Secretary called the

        22       roll. )

        23                      THE SECRETARY:  Ayes 47.

        24                      ACTING PRESIDENT MEIER:  The

        25       bill is passed.











                                                          4119

         1                      THE SECRETARY:  Calendar Number

         2       1037, by Senator Balboni, Senate Print 7362,

         3       an act authorizing the assessor of the county

         4       of Nassau.

         5                      ACTING PRESIDENT MEIER:  Read

         6       the last section.

         7                      THE SECRETARY:  Section 2.

         8       This act shall take effect immediately.

         9                      ACTING PRESIDENT MEIER:  Call

        10       the roll.

        11                      (The Secretary called the

        12       roll. )

        13                      THE SECRETARY:  Ayes 46, nays

        14       one, Senator Dollinger recorded in the

        15       negative.

        16                      ACTING PRESIDENT MEIER:  The

        17       bill is passed.

        18                      THE SECRETARY:  Calendar Number

        19       1038, by Senator Meier, Senate Print 7426, an

        20       act to authorize the town of New Hartford to

        21       discontinue certain park land.

        22                      ACTING PRESIDENT MEIER:  There

        23       is a home rule message at the desk.  Read the

        24       last section.

        25                      THE SECRETARY:  Section 3.











                                                          4120

         1       This act shall take effect immediately.

         2                      ACTING PRESIDENT MEIER:  Call

         3       the roll.

         4                      (The Secretary called the

         5       roll. )

         6                      THE SECRETARY:  Ayes 46, nays

         7       one, Senator Dollinger recorded in the

         8       negative.

         9                      ACTING PRESIDENT MEIER:  The

        10       bill is passed.

        11                      THE SECRETARY:  Calendar Number

        12       1183, by Senator Kuhl, Senate Print 1347B, an

        13       act to amend the Public Service Law, in

        14       relation to the establishment of rates and

        15       charges.

        16                      ACTING PRESIDENT MEIER:  There

        17       is a home rule message at the desk.  Read the

        18       last section.

        19                      THE SECRETARY:  Section 2.

        20       This act shall take effect immediately.

        21                      SENATOR DOLLINGER:  Is this

        22       1185?

        23                      ACTING PRESIDENT MEIER:  1183.

        24                      SENATOR DOLLINGER:  My

        25       apologies.











                                                          4121

         1                      ACTING PRESIDENT MEIER:  Read

         2       the last section.

         3                      THE SECRETARY:  Section 2.

         4       This act shall take effect immediately.

         5                      ACTING PRESIDENT MEIER:  Call

         6       the roll.

         7                      (The Secretary called the

         8       roll. )

         9                      THE SECRETARY:  Ayes 47.

        10                      ACTING PRESIDENT MEIER:  The

        11       bill is passed.

        12                      THE SECRETARY:  Calendar Number

        13       1184, by Senator Wright, Senate Print 1416B,

        14       an act to amend the Tax Law, in relation to

        15       adding mining and extraction reimbursements.

        16                      ACTING PRESIDENT MEIER:  Read

        17       the last section.

        18                      THE SECRETARY:  Section 3.

        19       This act shall take effect on the first day of

        20       January.

        21                      ACTING PRESIDENT MEIER:  Call

        22       the roll.

        23                      (The Secretary called the

        24       roll. )

        25                      THE SECRETARY:  Ayes 47.











                                                          4122

         1                      ACTING PRESIDENT MEIER:  The

         2       bill is passed.

         3                      THE SECRETARY:  Calendar Number

         4       1185, by Senator Montgomery, Senate Print

         5       2575B, an act authorizing the city of New

         6       York.

         7                      ACTING PRESIDENT MEIER:  The

         8       bill will be temporarily laid aside while we

         9       wait for the substitution.

        10                      The Secretary will read.

        11                      THE SECRETARY:  Calendar Number

        12       1186, by Senator Leibell, Senate Print 2920,

        13       an act to amend the Public Authorities Law, in

        14       relation to loan insurance.

        15                      ACTING PRESIDENT MEIER:  Read

        16       the last section.

        17                      THE SECRETARY:  Section 2.

        18       This act shall take effect immediately.

        19                      ACTING PRESIDENT MEIER:  Call

        20       the roll.

        21                      (The Secretary called the

        22       roll. )

        23                      THE SECRETARY:  Ayes 47.

        24                      ACTING PRESIDENT MEIER:  The

        25       bill is passed.











                                                          4123

         1                      THE SECRETARY:  Calendar Number

         2       1187, by Senator Rath, Senate Print 4413, an

         3       act to amend the Surrogate's Court Procedure

         4       Act, in relation to petitions for guardian

         5       ship.

         6                      ACTING PRESIDENT MEIER:  Read

         7       the last section.

         8                      THE SECRETARY:  Section 4.

         9       This act shall take effect immediately.

        10                      ACTING PRESIDENT MEIER:  Call

        11       the roll.

        12                      (The Secretary called the

        13       roll. )

        14                      THE SECRETARY:  Ayes 47.

        15                      ACTING PRESIDENT MEIER:  The

        16       bill is passed.

        17                      THE SECRETARY:  Calendar Number

        18       1189, by Senator Alesi, Senate Print 6093, an

        19       act to amend the Penal Law, in relation to the

        20       minimum sentence upon conviction.

        21                      ACTING PRESIDENT MEIER:  Read

        22       the last section.

        23                      THE SECRETARY:  Section 2.

        24       This act shall take effect on the first day of

        25       November.











                                                          4124

         1                      ACTING PRESIDENT MEIER:  Call

         2       the roll.

         3                      (The Secretary called the

         4       roll. )

         5                      THE SECRETARY:  Ayes 47.

         6                      ACTING PRESIDENT MEIER:  The

         7       bill is passed.

         8                      THE SECRETARY:  Calendar Number

         9       1190, by Senator DeFrancisco, Senate Print

        10       6524, an act to amend the Highway Law, in

        11       relation to the state highway system in

        12       Onondaga County.

        13                      ACTING PRESIDENT MEIER:  Read

        14       the last section.

        15                      THE SECRETARY:  Section 2.

        16       This act shall take effect immediately.

        17                      ACTING PRESIDENT MEIER:  Call

        18       the roll.

        19                      (The Secretary called the

        20       roll. )

        21                      THE SECRETARY:  Ayes 47.

        22                      ACTING PRESIDENT MEIER:  The

        23       bill is passed.

        24                      THE SECRETARY:  Calendar Number

        25       1191, by Senator Balboni, Senate Print 6630,











                                                          4125

         1       an act to amend the Penal Law, in relation to

         2       establishing a new crime of unlawfully dealing

         3       with a child.

         4                      ACTING PRESIDENT MEIER:  Read

         5       the last section.

         6                      THE SECRETARY:  Section 4.

         7       This act shall take effect on the first day of

         8       January.

         9                      ACTING PRESIDENT MEIER:  Call

        10       the roll.

        11                      (The Secretary called the

        12       roll. )

        13                      THE SECRETARY:  Ayes 47.

        14                      ACTING PRESIDENT MEIER:  The

        15       bill is passed.

        16                      THE SECRETARY:  Calendar Number

        17       1192, substituted earlier today, by member of

        18       the Assembly Sidikman, Assembly Print 5982A,

        19       an act to amend the Criminal Procedure Law, in

        20       relation to victim impact statements.

        21                      ACTING PRESIDENT MEIER:  Read

        22       the last section.

        23                      THE SECRETARY:  Section 2.

        24       This act shall take effect immediately.  Call.

        25                      ACTING PRESIDENT MEIER:  Call











                                                          4126

         1       the roll.

         2                      (The Secretary called the

         3       roll. )

         4                      THE SECRETARY:  Ayes 47.

         5                      ACTING PRESIDENT MEIER:  The

         6       bill is passed.

         7                      THE SECRETARY:  Calendar Number

         8       1193, substituted earlier today by the

         9       Assembly Committee on Rules, Assembly Print

        10       10851, an act to amend the Chapter 904 of the

        11       Laws of 1984, amending the Public Health Law.

        12                      ACTING PRESIDENT MEIER:  Read

        13       the last section.

        14                      THE SECRETARY:  Section 2.

        15       This act shall take effect immediately.

        16                      ACTING PRESIDENT MEIER:  Call

        17       the roll.

        18                      (The Secretary called the

        19       roll. )

        20                      THE SECRETARY:  Ayes 47.

        21                      ACTING PRESIDENT MEIER:  The

        22       bill is passed.

        23                      THE SECRETARY:  Calendar Number

        24       1194, by Senator Volker, Senate Print 7356, an

        25       act to amend the Tax Law, in relation to











                                                          4127

         1       exempting certain sales of Internet access

         2       service.

         3                      ACTING PRESIDENT MEIER:  Read

         4       the last section.

         5                      THE SECRETARY:  Section 4 -

         6                      SENATOR DOLLINGER:  Lay that

         7       bill aside.

         8                      ACTING PRESIDENT MEIER:  Lay

         9       the bill aside.

        10                      THE SECRETARY:  Calendar Number

        11       1195, by Senator Spano, Senate Print 7507, an

        12       act to amend the Tax Law, in relation to

        13       creating an exemption to the petitioner's

        14       burden of proof.

        15                      SENATOR KUHL:  Lay the bill

        16       aside for the day, please.

        17                      ACTING PRESIDENT MEIER:  Lay

        18       the bill aside for the day.

        19                      THE SECRETARY:  Calendar Number

        20       1197, by Senator Fuschillo, Senate Print 7542,

        21       an act to amend the Vehicle and Traffic Law,

        22       in relation to the right-of-way of vehicles.

        23                      ACTING PRESIDENT MEIER:  Read

        24       the last section.

        25                      THE SECRETARY:  Section 3.











                                                          4128

         1       This act shall take effect immediately.

         2                      ACTING PRESIDENT MEIER:  Call

         3       the roll.

         4                      (The Secretary called the

         5       roll. )

         6                      THE SECRETARY:  Ayes 47.

         7                      ACTING PRESIDENT MEIER:  The

         8       bill is passed.

         9                      THE SECRETARY:  Calendar Number

        10       1199, by Senator Bruno, Senate Print 7565, an

        11       act to authorize the city of Troy, county of

        12       Rensselaer, to discontinue the use and convey

        13       certain park lands.

        14                      ACTING PRESIDENT MEIER:  There

        15       is a home rule message at the desk.  Read the

        16       last section.

        17                      THE SECRETARY:  Section 4.

        18       This act shall take effect immediately.

        19                      ACTING PRESIDENT MEIER:  Call

        20       the roll.

        21                      (The Secretary called the

        22       roll. )

        23                      THE SECRETARY:  Ayes 51.

        24                      ACTING PRESIDENT MEIER:  The

        25       bill is passed.











                                                          4129

         1                      THE SECRETARY:  Calendar Number

         2       1200, by Senator Volker, Senate Print 7591, an

         3       act to authorize the participation of the

         4       county of Erie in the renovation and operation

         5       of the county stadium sports and entertainment

         6       complex.

         7                      ACTING PRESIDENT MEIER:  There

         8       is a home rule message at the desk.  Read the

         9       last section.

        10                      THE SECRETARY:  Section 8.

        11       This act shall take effect immediately.

        12                      ACTING PRESIDENT MEIER:  Call

        13       the roll.

        14                      (The Secretary called the

        15       roll. )

        16                      THE SECRETARY:  Ayes 51.

        17                      ACTING PRESIDENT MEIER:  The

        18       bill is passed.

        19                      Senator Kuhl, that completes

        20       the reading of the non-controversial calendar.

        21                      SENATOR KUHL:  Have the

        22       substitutions arrived on the two bills that

        23       were laid aside?

        24                      ACTING PRESIDENT MEIER:  The

        25       desk is checking on that status.











                                                          4130

         1                      SENATOR KUHL:  Can we return to

         2       motions and resolutions.  I understand there's

         3       an amendment motion at the desk.

         4                      ACTING PRESIDENT MEIER:

         5       Senator Marcellino.

         6                      SENATOR MARCELLINO:  Thank you,

         7       Mr. President.  On behalf of Senator Balboni,

         8       on page number 41, I offer the following

         9       amendments to Calendar Number 1092, Senate

        10       Print Number 7200, and ask that said bill

        11       retain its place on the Third Reading

        12       Calendar.

        13                      ACTING PRESIDENT MEIER:

        14       Amendments are received and the bill will

        15       retain its place on the Third Reading

        16       Calendar.

        17                      SENATOR KUHL:  Mr. President,

        18       may we take up the controversial calendar and

        19       make the substitutions as we reach each bill

        20       in order?

        21                      ACTING PRESIDENT MEIER:  The

        22       Secretary will read.

        23                      THE SECRETARY:  On page 27,

        24       Senator Marchi moves to discharge from the

        25       Committee on Rules, Assembly Bill Number











                                                          4131

         1       10104A and substitute it for the identical

         2       Third Reading Calendar 864.

         3                      ACTING PRESIDENT MEIER:

         4       Substitution ordered.

         5                      Secretary will read.

         6                      THE SECRETARY:  Calendar Number

         7       864, by member of the Assembly Vann, Assembly

         8       Print 10104A, an act to amend the Business

         9       Corporation Law, the Limited Liability Company

        10       Law and the Partnership Law.

        11                      ACTING PRESIDENT MEIER:  Read

        12       the last section.

        13                      THE SECRETARY:  Section 2.

        14       This act shall take effect immediately.

        15                      ACTING PRESIDENT MEIER:  Call

        16       the roll.

        17                      (The Secretary called the

        18       roll. )

        19                      THE SECRETARY:  Ayes 51.

        20                      ACTING PRESIDENT MEIER:  The

        21       bill is passed.

        22                      THE SECRETARY:  On page 46,

        23       Senator Montgomery moves to discharge from the

        24       Committee on Rules, Assembly Bill Number 4212B

        25       and substitute it for the identical Third











                                                          4132

         1       Reading Calendar 1185.

         2                      ACTING PRESIDENT MEIER:

         3       Substitution ordered.

         4                      Secretary will read.

         5                      THE SECRETARY:  Calendar Number

         6       1185, by member of the Assembly Vann, Assembly

         7       Print 4212B, an act authorizing the city of

         8       New York to reconvey its interest in certain

         9       real property.

        10                      ACTING PRESIDENT MEIER:  Read

        11       the last section -- there is a home rule

        12       message at the desk.  Read the last section.

        13                      THE SECRETARY:  Section 2.

        14       This act shall take effect immediately.

        15                      ACTING PRESIDENT MEIER:  Call

        16       the roll.

        17                      (The Secretary called the

        18       roll. )

        19                      THE SECRETARY:  Ayes 51.

        20                      ACTING PRESIDENT MEIER:  The

        21       bill is passed.

        22                      THE SECRETARY:  Calendar Number

        23       1194, by Senator Volker, Senate Print 7356, an

        24       act to amend the Tax Law, in relation to

        25       exempting certain sales of Internet access











                                                          4133

         1       service.

         2                      SENATOR DOLLINGER:  Explanation

         3       just briefly, Mr. President, if I could.

         4                      ACTING PRESIDENT MEIER:

         5       Senator Volker, an explanation has been

         6       requested by Senator Dollinger.

         7                      SENATOR VOLKER:  Mr. President,

         8       this is a Governor's program bill which, in

         9       all candor, follows up on a bill that passed

        10       this house last year, essentially the same

        11       bill, except that this bill, according to the

        12       Governor's memo, provides even more coverage

        13       to exempt Internet services, Internet access

        14       of related services from state and local sales

        15       taxes.

        16                      The real truth about this bill

        17       is that it codifies a regulation of the Tax

        18       Department which was promulgated, I believe,

        19       in February of 1997.

        20                      As I say, we had had a bill,

        21       Assemblyman Shimminger and I had had a bill

        22       which was vetoed and the veto message said

        23       that the reason it was vetoed was because of

        24       the fact that the Governor's office felt that

        25       a broader bill that would cover the entire











                                                          4134

         1       area was necessary.

         2                      So, in keeping with that,

         3       that's exactly what this bill does and it

         4       deals with a couple of areas that were of

         5       concern to the Governor's office in relation

         6       to out-of-state services in this state because

         7        -- and I guess there was some confusion by

         8       some people in the committee meeting as to

         9       whether it would encourage people who were out

        10       of state to stay out of state; but, in

        11       reality, what the language would do is to make

        12       sure that people who deal with Internet

        13       services within this state and who gain

        14       revenue from it are not covered by sales

        15       taxes.

        16                      One of the problems here is,

        17       from what I've heard rumblings of it across

        18       the country that some other states have kind

        19       of looked at this and said, "You know, this is

        20       a good source of revenue.  Maybe this is not

        21       such a good idea."  But we, in New York,

        22       shouldn't take that attitude.  The attitude we

        23       should take is that Internet services of this

        24       kind should not be taxed, and I think the Tax

        25       Department has already taken that position and











                                                          4135

         1       we think that this bill is necessary to make

         2       sure that such services are not taxed.

         3                      ACTING PRESIDENT MEIER:

         4       Senator Dollinger.

         5                      SENATOR DOLLINGER:  Thank you,

         6       Mr. President.

         7                      Senator Volker, I think you

         8       responded to half of the questions that I

         9       asked in the Finance Committee and I think

        10       you're accurate with respect to the text of

        11       the bill.

        12                      Through you, Mr. President, if

        13       the sponsor will yield to just one question.

        14                      ACTING PRESIDENT MEIER:  Does

        15       the sponsor yield?

        16                      SENATOR VOLKER:  Certainly.

        17                      ACTING PRESIDENT MEIER:  The

        18       Senator yields.

        19                      Senator Dollinger.

        20                      SENATOR DOLLINGER:  Does this

        21       mean that the out-of-state seller of product,

        22       who puts his display ad on the Internet, that

        23       if a sale occurs based on that ad, that

        24       solicitation, that the sale is not subject to

        25       New York State sales tax?











                                                          4136

         1                      SENATOR VOLKER:  My counsel, I

         2       didn't realize he was here, scared me just

         3       now, that's why I was kind of jolted.

         4                      What I understand it would do,

         5       standing alone, I suppose that it might; but

         6       what the bill really stands for is it would

         7       have to have some connections in New York in

         8       order not to be taxed.

         9                      Now, if, however, the state

        10       where that Internet sale originated from was

        11       not taxed, then it would continue not to be

        12       taxed in New York.  I don't know if you know

        13       what I mean.

        14                      SENATOR DOLLINGER:  Yes.

        15                      SENATOR VOLKER:  In other

        16       words, we really can only tax Internet

        17       services that either originate from New York

        18       or are services that, in effect, are taxed by

        19       someone out of state.  But if they are not

        20       taxed by anyone out of state, we cannot tax

        21       that service and that's one of the things this

        22       makes clear because we would then have, if you

        23       think about it, an interstate commerce problem

        24       and this bill doesn't change that, except to

        25       make sure that we don't have that kind of











                                                          4137

         1       problem, otherwise we'd have a constitutional

         2       problem.

         3                      SENATOR DOLLINGER:  Right.

         4                      Through you, Mr. President,

         5       just one other question.

         6                      ACTING PRESIDENT MEIER:  Does

         7       the Senator yield for another question?

         8                      SENATOR VOLKER:  I do.

         9                      ACTING PRESIDENT MEIER:  The

        10       Senator yields.

        11                      Senator Dollinger.

        12                      SENATOR DOLLINGER:  My

        13       understanding is that this bill would not

        14       alter the issue of the nexus between the

        15       seller of the product at some remote location

        16       and the buyer here in New York to affect both

        17       taxation and jurisdiction of our courts.  It

        18       has no effect -- that's an independent inquiry

        19       apart from this.

        20                      SENATOR VOLKER:  That's

        21       correct.

        22                      SENATOR DOLLINGER:  Okay.

        23                      SENATOR VOLKER:  And that's

        24       really the issue.  I guess if there was really

        25       an issue in last year's bill it may be that











                                                          4138

         1       this really is kind of it because there was a

         2       question in that bill whether we amended the

         3       right section of the Tax Law and whether we

         4       may have -- could have created a

         5       constitutional issue, and apparently this part

         6       of the bill is what is an attempt to resolve

         7       that issue and the answer is yes, we don't

         8       change that.

         9                      SENATOR DOLLINGER:  Okay.

        10       Through you, Mr. President.

        11                      ACTING PRESIDENT MEIER:

        12       Senator Dollinger.

        13                      SENATOR DOLLINGER:  I

        14       appreciate Senator Volker helping me

        15       understands this bill and I'm going to vote in

        16       favor of this bill, but I do think that the

        17       broader issue that's left unanswered in this

        18       bill is one that we have to pay attention to

        19       because the question will arise whether the

        20       use of the Internet as the advertising tool

        21       creates a sufficient nexus for the New York

        22       courts to exercise jurisdiction.  That may not

        23       be the case under this bill, but it seems to

        24       me we have to keep in mind one thing, which is

        25       that many of the purchases over the Internet











                                                          4139

         1       are the same kind of purchases that you would

         2       otherwise go to your local retail store to

         3       make, you're buying clothes through the

         4       Internet, you're buying personal articles.

         5       They may not be of significant cost, but you

         6       buy through the Internet, you use the

         7       advertising mechanism of the Internet, you

         8       dial up or even click the little icon and you

         9       order it right over the Internet.

        10                      My concern is that if that

        11       doesn't establish some nexus with New York

        12       State, we're going to find that there is the

        13       potential for rampant consumer fraud in these

        14       transactions.  And the New York resident who

        15       pays $50 for a shirt or $50 for a Buffalo

        16       Bills jacket or something from out of state

        17       that's shipped into this state will find that

        18       they have virtually no remedy because their

        19       only solution will be to go to the home state

        20       or go to a foreign nation in order to enforce

        21       their rights, which means that they will be

        22       stripped of everything, the jurisdictional

        23       protections that would otherwise occur in New

        24       York State, and my concern is that you set up

        25       a Bermuda corporation, a mail house in











                                                          4140

         1       Bermuda, you toss your advertising icon onto

         2       the Internet; Michael Dollinger, 19-year-old

         3       son of a state Senator, dials it up on his

         4       machine, keeps clicking the icon, makes the

         5       order, puts his credit card number in, or

         6       what's worse, his father's, and ends up in a

         7       position where the goods don't arrive or they

         8       arrive in a defective way and he has no remedy

         9       because his only solution would be to go out

        10       and sue the supplier in Bermuda.  I think

        11       that's an issue that we need to reexplore.

        12                      I appreciate Senator Volker

        13       saying that this does not affect that, but

        14       this does move us down the road to a decision

        15       in which we would relinquish the jurisdiction

        16       of the New York courts over this transaction,

        17       and I'm concerned about the precedent that it

        18       may be setting for our consumers in the

        19       future.

        20                      I'll vote in favor of it with

        21       the guarded caution that this is not creating

        22       a precedent that we would rely on in the

        23       future, it's just to deal with the specific

        24       Internet access issue that Senator Volker

        25       articulated a minute ago.  Thank you.











                                                          4141

         1                      SENATOR VOLKER:  Mr.

         2       President.

         3                      ACTING PRESIDENT MEIER:

         4       Senator Volker.

         5                      SENATOR VOLKER:  Let me just

         6       quickly say I think that is potentially a

         7       problem down the line.  This bill doesn't

         8       really impact on that and it's one of the

         9       issues that we've been talking with the

        10       Attorney General about; and there is, I

        11       believe, some legislation that is being

        12       contemplated dealing with the Internet and

        13       that is one of the issues that my counsel was

        14       saying, in a sense, it's no different than

        15       some of the telephone issues we're trying to

        16       deal with now, and they are very serious

        17       issues because you're confronted by the issue

        18       of interstate commerce and the Constitution

        19       and all the rest of the things, but it is

        20       something that will have to be looked at, but

        21       we don't believe that this bill has any real

        22       impact on that.

        23                      ACTING PRESIDENT MEIER:

        24       Senator Dollinger.

        25                      SENATOR DOLLINGER:  If I could











                                                          4142

         1       just respond to Senator Volker, I agree in

         2       reading the text of this, I think it's

         3       narrowly drafted enough so it doesn't affect

         4       that.  We may or may not be setting a

         5       precedent; we may be moving down that road.

         6                      I appreciate the fact that the

         7       chairman of the Codes Committee recognizes

         8       that what we're doing here serves a good

         9       purpose.  To do something similar that would

        10       have broad implications on the recovery of

        11       consumers might not be a good thing.

        12                      So, as I see this bill, it's

        13       tightly enough drafted to serve the purpose

        14       that Senator Volker articulated, but I don't

        15       want to some day be accused I've already made

        16       a commitment to do this and relinquish

        17       jurisdiction over these companies in the

        18       future.

        19                      I note just for the record that

        20       we have done a lot of work in the Gaming,

        21       Wagering and Racing Committee to deal with the

        22       issue of Internet gambling and how we deal

        23       with that, what jurisdiction do we exercise,

        24       what do we require of those who post gambling

        25       services on the Internet.  That may also be a











                                                          4143

         1       somewhat questionable constitutional exercise

         2       of our jurisdiction, but it seems to me we've

         3       got to, at some point, broach those issues

         4       because this tool, at least from my

         5       perspective, 10 or 15 years from now will be

         6       the source of an enormous volume goods and

         7       services that will be sold right through the

         8       Internet.

         9                      Thank you, Mr. President.

        10                      ACTING PRESIDENT MEIER:  Read

        11       the last section.

        12                      THE SECRETARY:  Section 4.

        13       This act shall take effect immediately.

        14                      ACTING PRESIDENT MEIER:  Call

        15       the roll.

        16                      (The Secretary called the

        17       roll. )

        18                      THE SECRETARY:  Ayes 54.

        19                      ACTING PRESIDENT MEIER:  The

        20       bill is passed.

        21                      Senator Kuhl, that completes

        22       the reading of the controversial calendar.

        23                      SENATOR KUHL:  May we return to

        24       motions and resolutions? I believe that there

        25       is a privileged resolution by Senator Connor











                                                          4144

         1       at the desk.  I would ask that the title be

         2       read in its entirety and that you recognize

         3       Senator Connor to speak to the resolution.

         4                      ACTING PRESIDENT MEIER:  The

         5       Secretary will read.

         6                      THE SECRETARY:  By Senator

         7       Connor, Legislative Resolution 3873, honoring

         8       the memory of Robert Francis Kennedy on the

         9       30th Anniversary of his death.

        10                      ACTING PRESIDENT MEIER:

        11       Senator Connor.

        12                      SENATOR CONNOR:  Thank you, Mr.

        13       President.  This is one of those sad

        14       anniversaries that from time to time we

        15       commemorate in American history; sad because

        16       it marks the tragic death, the assassination,

        17       of our United States Senator from the state of

        18       New York, the late Robert Francis Kennedy.

        19                      But at times like this, 30

        20       years having passed, it also is appropriate to

        21       commemorate his life and some of the meaning

        22       that that has for us today.

        23                      Mr. President, I was a younger

        24       man 30 years ago, I was, in fact a law

        25       student, avidly watching the 1968 presidential











                                                          4145

         1       primaries.  Senator Kennedy entered the

         2       primaries and then won, I believe, four of the

         3       six primaries he was in, and this was an era

         4       when you didn't have to necessarily run in all

         5       the primaries in either party to run for

         6       president.  Indeed, most candidates stayed out

         7       of the primaries on their way to the

         8       nomination, and that was true in both parties,

         9       and I don't think it's true in either party

        10       any more.  But, it was a different era.

        11                      Senator Kennedy's tragic death

        12       after his greatest primary victory, that of

        13       California, shocked the nation.  It shocked a

        14       nation to see the second brother in public

        15       life in the United States cut down at an early

        16       age.  It certainly saddened the nation to see

        17       a father of so many young children, indeed one

        18       not yet born, cut down in his prime.

        19                      Senator Kennedy had a career of

        20       many dimensions for a man who was so young at

        21       his death.  He had served as counsel, indeed

        22       on a famous committee chaired by Senator

        23       McCarthy; he resigned from that committee and

        24       later went back and worked for the committee

        25       when Senator McClellan was in charge of it,











                                                          4146

         1       and they investigated abuses in the labor

         2       movement.  He was the Attorney General of the

         3       United States; he was his brother, President

         4       Kennedy's, campaign manager, and he was our

         5       United States Senator from New York.  He was a

         6       man whose political philosophy and appeal

         7       evolved over the short years he was active in

         8       public life.

         9                      I commend to anyone that they

        10       read some of the bio's about Senator Kennedy

        11       and you will see there the development of a

        12       philosophy of public service.  It avoids the

        13       stereotypes that we tend to throw around in

        14       politics these days.  In some matters, by

        15       today's standards, we would say he was

        16       Conservative.  In other matters, by today's

        17       standards, we would stay, "Oh, he was a

        18       Liberal."  Indeed what I thought was rather

        19       interesting was his own attempt to define

        20       himself, using both descriptions, Conservative

        21       and Liberal.

        22                      We tend now by today's

        23       controversies to look back at President

        24       Kennedy and Senator Kennedy through today's

        25       lenses and say, "Oh, they would have, if they











                                                          4147

         1       were here today," what they would have done.

         2       Who knows what they would have done.  We only

         3       know what they did do.  And we know that

         4       Senator Kennedy evolved into a compassionate,

         5       caring, public official who cared about

         6       bringing Americans together of all races and

         7       creeds, who provided hope in that 1968

         8       campaign to many, many people at a time when

         9       the nation was deeply divided over issues

        10       involving racial conflict, involving the war

        11       in Vietnam, conflicts that we, 30 years later,

        12       still in some respects in our public life bear

        13       the legacy of.

        14                      Indeed, I think as New Yorkers

        15       we can be proud that Senator Kennedy did serve

        16       as the United States Senator from New York,

        17       and we all in our private moments can wonder

        18       what this country and what this state would

        19       have been like had he lived his public life to

        20       its natural end, be that a victory or defeat

        21       in elections.  I think all of us who are in

        22       public life certainly aspire to fulfill our

        23       careers; and if it must be ended, let it be

        24       ended by the voters, not by a madman's bullet.

        25                      But that said, Mr. President, I











                                                          4148

         1       would ask all my colleagues -- and I note

         2       they've all joined in co-sponsoring this

         3       resolution commemorating this great man on the

         4       positive anniversary of his death.  Thank you.

         5                      ACTING PRESIDENT BALBONI:

         6       Thank you, Senator Connor.

         7                      Senator Marchi.

         8                      SENATOR MARCHI:  Mr. President,

         9       I had the pleasure, oh, I guess, in the early

        10        '40s I was giving instruction under the

        11       release time provision and I had both Bobby

        12       Kennedy and his friend, and I don't remember

        13       his name now, but he was the son of Ed Flynn,

        14       who was the chairman of the Democratic Party

        15       in the Bronx, and he was bright, perceptive,

        16       with the saving grace of humor, and it was

        17       just a delight to have him in the class.

        18                      In speaking to people who knew

        19       all of the Kennedies, the Kennedy family, and

        20       some of my family did, no one would dispute

        21       the fact that of all the Kennedies, regardless

        22       of how their abilities or their capabilities

        23       or intensity and dedication to work, that he

        24       easily led them all.  He was assiduous in his

        25       pursuit, the discharge of his responsibilities











                                                          4149

         1       on the highest possible plain.

         2                      Some may say he was controvers

         3       ial; and the only way not to be controversial

         4       is not to do anything.  Certainly I echo the

         5       remarks of Senator -- the Minority Leader on

         6       this -- on his comments, and I'm very happy to

         7       see it observed, as it should be, on what

         8       seemed like an incredibly long time, 30 years

         9       of his passing.

        10                      ACTING PRESIDENT BALBONI:

        11       Thank you, Senator Marchi.

        12                      On the resolution, all those in

        13       favor signify by saying aye.

        14                      (Response of "Aye.")

        15                      Opposed nay.

        16                      (There was no response. )

        17                      The resolution is adopted.

        18                      Senator Kuhl.

        19                      SENATOR KUHL:  Yes, Mr.

        20       President.  May we now go to reports of

        21       standing committees? I understand there is a

        22       report of the Rules Committee at the desk and

        23       ask that it be read.

        24                      ACTING PRESIDENT BALBONI:  The

        25       Secretary will read.











                                                          4150

         1                      THE SECRETARY:  Senator Bruno,

         2       from the Committee on Rules, reports the

         3       following bills direct to third reading:

         4       Senate Print 419B, by Senator Goodman, an act

         5       to amend the Vehicle and Traffic Law; 1705, by

         6       Senator Marchi, an act to amend the Mental

         7       Hygiene Law; 1932, by Senator Padavan, an act

         8       to amend the Vehicle and Traffic Law and the

         9       Administrative Code of the city of New York;

        10                      2058, by Senator Kuhl, an act

        11       to amend the Workers' Compensation Law;

        12                      2618A, by Senator Lachman, an

        13       act to amend the Public Authorities Law;

        14                      2971, by Senator DeFrancisco,

        15       an act to amend the General Obligations Law;

        16                      3259, by Senator Kuhl, an act

        17       to amend the Highway Law;

        18                      4460, by Senator Rath, an act

        19       to amend the Social Services Law;

        20                      5137, by Senator Marcellino, an

        21       act to amend the Criminal Procedure Law;

        22                      6047B, by Senator Johnson, an

        23       act to amend the Civil Rights Law;

        24                      6380, by Senator Nozzolio, an

        25       act to amend the Vehicle and Traffic Law;











                                                          4151

         1                      6480, by Senator Wright, an act

         2       to amend the Tax Law; 6526, by Senator

         3       Onorato, an act authorizing the city of New

         4       York to reconvey its interests;

         5                      6637, by Senator Sampson, an

         6       act to authorize the city of New York; 6666,

         7       by Senator Marchi, an act to amend the

         8       Business Corporation Law, and others;

         9                      6773, by Senator Alesi, an act

        10       to amend the Tax Law;

        11                      6852, by Senator Goodman, an

        12       act to amend the Public Officers Law;

        13                      6956, by Senator Alesi, an act

        14       to amend the Vehicle and Traffic Law and the

        15       Insurance Law; 7023, by Senator Maltese, an

        16       act to amend the Election Law;

        17                      7400, by Senator Johnson, an

        18       act to amend the Vehicle and Traffic Law;

        19                      7427, by Senator Johnson, an

        20       act to repeal section 10-B of the Highway Law;

        21                      7444, by Senator Balboni, an

        22       act to amend the Penal Law;

        23                      7469, by Senator Seward, an act

        24       to amend the Insurance Law;

        25                      7489A, by Senator Stafford, an











                                                          4152

         1       act to amend the State Finance Law;

         2                      7508, by Senator Present, an

         3       act to amend the Public Authorities Law;

         4                      7517, by Senator Johnson, an

         5       act to amend the Vehicle and Traffic Law;

         6                      7536, by Senator Holland, an

         7       act to amend the Vehicle and Traffic Law;

         8                      And 7556, by Senator Stafford,

         9       an act to amend the Public Officers Law.

        10                      All bills ordered direct for

        11       third reading.

        12                      ACTING PRESIDENT BALBONI:

        13       Senator Kuhl.

        14                      SENATOR KUHL:  Yes, Mr.

        15       President.  I move we accept the report of the

        16       Rules Committee.

        17                      ACTING PRESIDENT BALBONI:  All

        18       those in favor of accepting the report of the

        19       Rules Committee, significant by saying aye.

        20                      (Response of "Aye.")

        21                      Opposed nay.

        22                      (There was no response. )

        23                      The report is accepted.

        24                      SENATOR KUHL:  Thank you.

        25                      Would you recognize Senator











                                                          4153

         1       Montgomery, please?

         2                      ACTING PRESIDENT BALBONI:

         3       Senator Montgomery.

         4                      SENATOR MONTGOMERY:  Mr.

         5       President, I would like unanimous consent to

         6       be reported in the negative on Calendar

         7       Numbers 1189 and 1191.

         8                      ACTING PRESIDENT BALBONI:

         9       Without exception, so ordered.

        10                      Senator Kuhl.

        11                      SENATOR KUHL:  Is there any

        12       housekeeping at the desk?

        13                      ACTING PRESIDENT MEIER:  No,

        14       there is not, Senator.

        15                      SENATOR KUHL:  Then I move at

        16       this time to adjourn until tomorrow, June 9th,

        17       usual time, 3 p.m.

        18                      ACTING PRESIDENT MEIER:  Thank

        19       you, Senator.

        20                      On motion of the Senator, the

        21       Senate stands adjourned until Tuesday, June

        22       9th at 3 p.m.

        23                      (Whereupon, at 4:03 p.m., the

        24       Senate adjourned. )

        25