Regular Session - March 3, 1999

                                                              732





                           NEW YORK STATE SENATE

                          THE STENOGRAPHIC RECORD





                             ALBANY, NEW YORK

                               March 3, 1999

                                11:00 a.m.



                              REGULAR SESSION





                 LT. GOVERNOR MARY O. DONOHUE, President

                 STEVEN M. BOGGESS, Secretary























                                                          733



                           P R O C E E D I N G S

                            THE PRESIDENT:    The Senate will

                 come to order.

                            I ask that everyone present please

                 rise and repeat with me the Pledge of

                 Allegiance.

                            (Whereupon, the assemblage recited

                 the Pledge of Allegiance to the Flag.)

                            THE PRESIDENT:    The invocation

                 today will be given by Rabbi Lance Sussman

                 from Temple Concord in Binghamton, New York.

                            RABBI SUSSMAN:    Our God, God of

                 your ancestors and all people, we ask for Your

                 blessings on the State of New York and the

                 United States of America, cause us to prosper

                 in all our ways, help us to live up to the

                 high ideals of our founding fathers and

                 mothers, teach us to live together in harmony

                 and to cherish the rich diversity of our many

                 cultural and religious traditions.

                            Lord, strengthen our resolve to

                 serve You by serving our fellow citizens and

                 grant us peace, prosperity and well-being all

                 the days of our lives.  Amen.

                            THE PRESIDENT:    Reading of the





                                                          734



                 Journal.

                            THE SECRETARY:    In Senate,

                 Tuesday, March 2nd.  The Senate met pursuant

                 to adjournment.  The Journal of Monday, March

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

                 adjourned.

                            THE PRESIDENT:    Without

                 objection, the Journal stands approved as

                 read.

                            Presentation of petitions.

                            Messages from the Assembly.

                            Messages from the Governor.

                            Reports of standing committees.

                            The Secretary will read.

                            THE SECRETARY:    Senator LaValle,

                 from the Committee on Higher Education,

                 reports:

                            Senate Print 3021, by Senator

                 Saland, an act to amend the Education Law and

                 the Executive Law.

                            And Senator Farley, from the

                 Committee on Banks, reports the following

                 bills:

                            Senate Print 1918, by Senator

                 Farley, an act to amend the Banking Law; and





                                                          735



                            Senate Print 2925, by Senator

                 Farley, an act to amend the Banking Law.

                            All bills ordered direct for third

                 reading.

                            ACTING PRESIDENT MEIER:    Without

                 objection, all bills directly to third

                 reading.

                            Reports of select committees.

                            Communications and reports from

                 State officers.

                            Motions and resolutions.

                            Senator Skelos.

                            SENATOR SKELOS:    Mr. President,

                 at this time, could we please take up the

                 non-controversial calendar.

                            ACTING PRESIDENT MEIER:    The

                 Secretary will read the non-controversial

                 calendar.

                            THE SECRETARY:    Calendar Number

                 121, by Senator Hannon, Senate Print 1524, an

                 act to amend the Public Health Law, in

                 relation to reimbursement of city or county

                 medical expenses.

                            ACTING PRESIDENT MEIER:    Read the

                 last section.





                                                          736



                            SENATOR DUANE:    Lay it aside.

                            ACTING PRESIDENT MEIER:    Lay the

                 bill aside.

                            THE SECRETARY:    Calendar Number

                 125, by Senator Larkin, Senate Print 1578 -

                            SENATOR PATERSON:    Lay it aside.

                            ACTING PRESIDENT MEIER:    Lay the

                 bill aside.

                            THE SECRETARY:    Calendar Number

                 129, by Senator DeFrancisco, Senate Print 547,

                 an act to amend the Vehicle and Traffic Law,

                 in relation to the maximum speed limit for

                 certain portions of highway located in

                 Onondaga County.

                            ACTING PRESIDENT MEIER:    Read the

                 last section.

                            THE SECRETARY:    Section 2, this

                 act shall take effect immediately.

                            ACTING PRESIDENT MEIER:    Call the

                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes 37.

                            ACTING PRESIDENT MEIER:    The bill

                 is passed.

                            THE SECRETARY:    Calendar Number





                                                          737



                 131, by Senator Holland, Senate Print 1084, an

                 act to amend the Vehicle and Traffic Law, in

                 relation to the maximum speed limit on a

                 certain portion of the Catskill section.

                            ACTING PRESIDENT MEIER:    Read the

                 last section.

                            THE SECRETARY:    Section 2, this

                 act shall take effect immediately.

                            ACTING PRESIDENT MEIER:    Call the

                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes 36.  Nays 1.

                            Senator Duane recorded in the

                 negative.

                            ACTING PRESIDENT MEIER:    The bill

                 is passed.

                            THE SECRETARY:    Calendar Number

                 171, by Senator Nozzolio, Senate Print 1094,

                 an act to amend the Penal Law, in relation to

                 allowing an 11-year-old person to take a

                 hunting safety course.

                            ACTING PRESIDENT MEIER:    Read the

                 last section.

                            THE SECRETARY:    Section 2, this

                 act shall take effect immediately.





                                                          738



                            ACTING PRESIDENT MEIER:    Call the

                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes 37.

                            ACTING PRESIDENT MEIER:    The bill

                 is passed.

                            THE SECRETARY:    Calendar Number

                 181, by Senator Johnson, Senate Print 1588, an

                 act to amend the Criminal Procedure Law, in

                 relation to requiring certain persons to be

                 committed to the custody of the sheriff.

                            ACTING PRESIDENT MEIER:    Read the

                 last section.

                            THE SECRETARY:    Section 2, this

                 act shall take effect immediately.

                            ACTING PRESIDENT MEIER:    Call the

                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes 37.

                            ACTING PRESIDENT MEIER:    The bill

                 is passed.

                            THE SECRETARY:    Calendar Number

                 186, by Senator LaValle, Senate Print 1746, an

                 act to authorize payment of transportation aid

                 to the Miller Place Union Free School





                                                          739



                 District.

                            SENATOR PATERSON:    Lay it aside,

                 please.

                            ACTING PRESIDENT MEIER:    Lay the

                 bill aside.

                            THE SECRETARY:    Calendar Number

                 192, by Senator Wright, Senate Print 2426 an

                 act to amend the Public Service Law, the

                 Public Officers law and the General

                 Construction Law, in relation to video

                 conferencing.

                            ACTING PRESIDENT MEIER:    Read -

                            SENATOR PATERSON:    Lay it aside.

                            ACTING PRESIDENT MEIER:    Lay the

                 bill aside.

                            THE SECRETARY:    Calendar Number

                 193, by Senator Wright, Senate Print 2427, an

                 act to amend the Economic Development Law, the

                 Public Officers Law and the General

                 Construction Law, in relation to video

                 conferences.

                            ACTING PRESIDENT MEIER:    Read the

                 last section.

                            SENATOR PATERSON:    Lay it aside.

                            ACTING PRESIDENT MEIER:    Lay the





                                                          740



                 bill aside.

                            Senator Skelos, that completes the

                 reading of the non-controversial calendar.

                            SENATOR SKELOS:    Mr. President,

                 could we take up the controversial calendar,

                 please.

                            ACTING PRESIDENT MEIER:

                 Secretary will read the controversial

                 calendar.

                            THE SECRETARY:    Calendar Number

                 121, by Senator Hannon, Senate Print 1524, an

                 act to amend the Public Health Law, in

                 relation to reimbursement.

                            ACTING PRESIDENT MEIER:    Senator

                 Duane.

                            Senator Hannon, an explanation has

                 been requested of Calendar 121.

                            SENATOR HANNON:    Thank you, Mr.

                 President.

                            This bill would permit any city or

                 county to seek reimbursement from a

                 third-party insurance carrier in the event a

                 prisoner, who's in their facility, has

                 incurred medical expenses.  This would mean

                 that the municipality would be able to access





                                                          741



                 the benefits that do exist for the individual.

                            ACTING PRESIDENT MEIER:    Senator

                 Duane.

                            SENATOR DUANE:    Thank you, Mr.

                 President.  I would ask if the sponsor would

                 yield to some questions?

                            ACTING PRESIDENT MEIER:    Senator

                 Hannon, do you yield?

                            SENATOR HANNON:    Yes.

                            ACTING PRESIDENT MEIER:    Senator

                 yields.

                            SENATOR DUANE:    Thank you very

                 much.

                            Under this legislation, since a

                 prisoner's going to be using their insurance

                 premiums, does that mean that they will get a

                 choice of which doctor they can see?

                            SENATOR HANNON:    This plan, this

                 proposal envisions that whoever is their

                 current insurance carrier would be paying

                 premiums.  It would, therefore, mean that

                 there would be an existing insurance contract

                 and, therefore, whatever rights, privileges,

                 obligations of the existing insurance contract

                 are there would be applicable.





                                                          742



                            SENATOR DUANE:    So that would

                 mean that the incarcerated person could see

                 whatever specialist that's in the network of

                 their insurance plan?

                            SENATOR HANNON:    Whatever might

                 be appropriate.

                            SENATOR DUANE:    So that would be

                 appropriate, that they could see -

                            SENATOR HANNON:    Whatever would

                 be appropriate in the circumstances pursuant

                 to the legally existing contract of insurance

                 then existing.

                            SENATOR DUANE:    So if -- through

                 you, Mr. President.  If -

                            ACTING PRESIDENT MEIER:    Senator

                 Hannon, do you continue to yield?

                            SENATOR HANNON:    Yes, Mr.

                 President.

                            ACTING PRESIDENT MEIER:    He

                 yields.

                            SENATOR DUANE:    So if an

                 incarcerated person had needed to go to the

                 Mayo Clinic or Sloan Kettering for treatment,

                 and that was covered under their insurance

                 plan, then they would be permitted to go to





                                                          743



                 that facility to get their treatment, if it

                 was so covered by their network?

                            SENATOR HANNON:    It has nothing

                 to do with that and, frankly, nothing in the

                 portion of the bill relates to that.

                            SENATOR DUANE:    Well, the -

                            SENATOR HANNON:    You want to

                 yield again?

                            SENATOR DUANE:    Yes, please.

                            SENATOR HANNON:    Yes.

                            ACTING PRESIDENT MEIER:    Senator

                 yields.

                            SENATOR DUANE:    But it does mean,

                 in fact, then that an incarcerated person, if

                 their insurance is entitling them to that,

                 that they then should be able to use the

                 healthcare professional of their choice or the

                 specialist of their choice.  And I'm -- of

                 course, I would be -

                            SENATOR HANNON:    Senator, I

                 submit to you -

                            SENATOR DUANE:    -- I would be for

                 that.

                            SENATOR HANNON:    Senator, I

                 submit to you that the plain language of the





                                                          744



                 bill simply speaks about reimbursement to the

                 county or city so that -- and it has happened

                 in the past -- people of good means, are

                 incarcerated, have accessed a high amount of

                 medical care and this allows the municipality

                 to get payment that they've had to lay out and

                 it reduces the cost.  But it has nothing to

                 do, and you read by -- the bill is only about

                 13 lines long.  It doesn't say anything about

                 changing access provisions.  Those would

                 remain as they are in current status.

                            SENATOR DUANE:    I would

                 respectfully hold, though, that, in fact, if

                 private insurance is being used by an

                 incarcerated person, then on the other end,

                 they should be entitled to use the private

                 healthcare provider of their choice.

                            I'm also concerned -- if I may

                 continue, Mr. President.

                            ACTING PRESIDENT MEIER:    Are you

                 on the bill now, Senator?

                            SENATOR DUANE:    No, I'm

                 continuing, if I may, I have a couple of other

                 questions, if I may.

                            ACTING PRESIDENT MEIER:    Senator





                                                          745



                 Hannon, do you continue to yield?

                            SENATOR HANNON:    Oh, I didn't

                 realize.  I thought he finished questions.

                            Am I being asked to yield?

                            SENATOR DUANE:    I have other

                 questions, because I think this particular

                 piece of legislation raises a lot of

                 intriguing questions and I'd like to ask

                 another one, if I may.

                            ACTING PRESIDENT MEIER:    Senator

                 Hannon, do you continue to yield?

                            SENATOR HANNON:    I'll yield for

                 another question.

                            ACTING PRESIDENT MEIER:    Sponsor

                 yields.

                            Senator Duane.

                            SENATOR DUANE:    Many HMOs require

                 that after an emergency room visit that the

                 patient needs to call the provider within 24

                 hours.  I'm wondering if, again, the New York

                 State's correctional system could take into

                 account the need of the incarcerated person to

                 make that call so that they don't lose their

                 reimbursement.

                            SENATOR HANNON:    According to the





                                                          746



                 terms of the bill, Senator, we're only dealing

                 with municipalities or cities.  We're dealing

                 with the local correctional facility.  It has

                 nothing to do with the New York State

                 correctional facilities.  And this is for

                 those people who have been incarcerated for a

                 year or less.

                            SENATOR DUANE:    Still then,

                 provision would need to be made that either

                 the incarcerated person or someone from the

                 facility, the local facility, would need to

                 call the HMO within 24 hours, which is what

                 the policy is of most of the HMOs.

                            SENATOR HANNON:    If that's a

                 question, I think I've answered it before,

                 Senator.

                            SENATOR DUANE:    Um, also -

                            ACTING PRESIDENT MEIER:    Senator,

                 work with me.  Do you want the sponsor to

                 continue to yield?

                            SENATOR DUANE:    Yes, please.

                            ACTING PRESIDENT MEIER:    Okay.

                 Senator Hannon, do you continue to yield?

                            SENATOR HANNON:    Yes.

                            ACTING PRESIDENT MEIER:    Sponsor





                                                          747



                 yields.

                            Senator Duane.

                            SENATOR DUANE:    In a case where

                 an incarcerated person is stabbed or injured

                 through no fault of their own, perhaps by

                 another incarcerated person, isn't the state,

                 therefore, liable in a case like that?  Or the

                 municipality?

                            SENATOR HANNON:    I'm sorry.  I

                 did not, I simply didn't hear the last part of

                 the question.  Is it the?

                            SENATOR DUANE:    Is it not the

                 local authority, the city or town or county,

                 liable for treatment of the incarcerated

                 person in a case like that?

                            SENATOR HANNON:    Liable in the

                 sense of liable for the medical treatment?

                            SENATOR DUANE:    Yes.

                            SENATOR HANNON:    Yes.

                            SENATOR DUANE:    And what,

                 therefore -- through you, Mr. President, is

                 the impact of this legislation -

                            ACTING PRESIDENT MEIER:    Do you

                 continue to yield, Senator Hannon?

                            SENATOR HANNON:    The impact?





                                                          748



                            If they have medical insurance and

                 you can access that, you would be able to

                 recover a part or all of that medical

                 treatment from the insurance carrier, the same

                 way as if that person was hurt on the outside

                 and would get payment for their medical

                 treatment from their insurance carrier.

                            SENATOR DUANE:    Through you, Mr.

                 President.

                            I am concerned -

                            ACTING PRESIDENT MEIER:    Senator

                 Hannon, do you continue to yield?

                            SENATOR HANNON:    Yes, Mr.

                 President.

                            ACTING PRESIDENT MEIER:    Sponsor

                 yields.

                            SENATOR DUANE:    I am concerned

                 then that this removes some of the liability

                 from the local correctional institution and

                 the local governing body in a case like this.

                            SENATOR HANNON:    Is that a

                 question?

                            SENATOR DUANE:    Does it -

                            SENATOR HANNON:    Does it?  No.

                            SENATOR DUANE:    It does not?





                                                          749



                            SENATOR HANNON:    Not that I can

                 see.

                            SENATOR DUANE:    I have a couple

                 more questions, Mr. President.

                            ACTING PRESIDENT MEIER:    Senator.

                 Hannon, do you continue to yield?

                            SENATOR HANNON:    Yes, Mr.

                 President.

                            ACTING PRESIDENT MEIER:    Senator

                 yields.

                            SENATOR DUANE:    Will incarcerated

                 persons be allowed to carry their insurance

                 cards with them at all times so that we would

                 all -- they would have access to their numbers

                 to call to access their, their network of

                 physicians?

                            SENATOR HANNON:    Nothing in the

                 bill speaks to anything about that.

                            SENATOR DUANE:    Well, I am

                 concerned about that, Mr. President.

                            And, now, I think maybe I'll just

                 speak now on the bill, if I may, Mr.

                 President.

                            ACTING PRESIDENT MEIER:    Senator

                 Duane, on the bill.





                                                          750



                            SENATOR DUANE:    I'm taken aback

                 at how powerful it is that the Senate seems to

                 think that incarcerated people are, that they

                 all have or that many of them have private

                 insurance.  I don't think that that is the

                 case.  There may be a few, but I don't think

                 it's a vast number of people that carry their

                 private insurance.  We also seem to think that

                 incarcerated people, when they're brought into

                 court, oftentimes shackled or at least

                 handcuffed, that somehow they're able to carry

                 bags of feces and urine that they can throw

                 around in a court room.  I don't see that they

                 are that clever that they can do that sort of

                 thing.  That they don't need legal help

                 because they're so smart, they can write their

                 own legal briefs all the time, and that they

                 are so smart on legal issues that they'll be

                 able tie our court system up.

                            I, while I have a healthy respect

                 for people who are incarcerated, I just don't

                 really give them this kind of superhuman

                 credit.  I don't understand why it is that we

                 continue to pile on in terms of how it is that

                 incarcerated people are being treated in our





                                                          751



                 facilities.  I absolutely believe that there

                 is a price to be paid for criminal behavior,

                 but I do think there comes a point when other

                 issues besides punishment, including

                 rehabilitation, need to be looked at as well.

                            And I plan on voting no on this

                 bill because I think it's unnecessary and I

                 also think it's mean spirited.

                            Thank you, Mr. President.

                            ACTING PRESIDENT MEIER:    Senator

                 Hannon.

                            SENATOR HANNON:    Mr. President,

                 to conclude, just so people are clear as to

                 what the bill exactly says, doesn't impose any

                 new obligations, doesn't propose any new

                 burdens.  It simply says that, if an

                 individual has existing health insurance, then

                 the city or municipality may act and apply for

                 a reimbursement for services it has laid out.

                            It's frankly a very simple

                 proposition and I think one that makes a lot

                 of logic.  So I would urge its adoption.

                            ACTING PRESIDENT MEIER:    Read the

                 last section.

                            THE SECRETARY:    Section 2.  This





                                                          752



                 act shall take effect immediately.

                            ACTING PRESIDENT MEIER:    Call the

                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes 49.  Nays 1.

                            Senator Duane recorded in the

                 negative.

                            ACTING PRESIDENT MEIER:    The bill

                 is passed.

                            THE SECRETARY:    Calendar Number

                 125, by Senator Larkin, Senate Print 1578, an

                 act to amend the Education Law in relation to

                 fostering compliance.

                            SENATOR PATERSON:    Explanation.

                            ACTING PRESIDENT MEIER:    Senator

                 Larkin, an explanation has been requested of

                 Calendar Number 125 by Senator Paterson.

                            SENATOR LARKIN:    Senator

                 Paterson, this is a bill that we had last

                 year.  Basically, what this bill does, it

                 would require the registration to the

                 Selective Service System as a pre-condition

                 for receipt of New York State aid for higher

                 education.

                            The federal government, since 1982,





                                                          753



                 has withheld PELL grants for higher education

                 from the federal level.  And, basically, there

                 are 25 other states who have already signed

                 onto this.  New York would be the 26th.  And

                 what we're saying is a very simple -- and I

                 think for my colleagues on the other side of

                 the aisle, I think a very important statement

                 was made by the Democratic governor of the

                 State of New Hampshire, when she said that

                 "this is a positive step in the realization of

                 young adults of their responsibility.  Men who

                 register not only help America but help

                 themselves.  This is the proper thing to do.

                 Young men who are required to register but do

                 not do so will be denied admission and

                 financial aid to the universities and colleges

                 in the State of New Hampshire."

                            ACTING PRESIDENT MEIER:    Senator

                 Paterson.

                            SENATOR PATERSON:    Thank you, Mr.

                 President.

                            There is nothing about the spirit

                 of this legislation with which we disagree.

                 We just disagree with the nature of the

                 legislation, being that it is the law right





                                                          754



                 now that an individual of seasonable age must

                 register with Selective Service.  That's the

                 law.  If the law is not followed, our federal

                 government has the resources and also has the

                 regulations that it follows to enforce the

                 law.  And, really, as a preemptive measure,

                 this is something that is already discharged

                 by the federal government.

                            The issue of the TAP grants or

                 anything that emanates from the state, is

                 really one that conflicts to some degree with

                 what -- with the carrying out of the federal

                 law.

                            Now, what's interesting is that

                 there are people who apply for small business

                 loans in this state, they apply for job

                 development association type loans.  There are

                 all kinds of loans that we could create this

                 kind of standard, where they must have

                 selected with -- they must have registered

                 with Selective Service.  And many of those

                 individuals are far older than the younger

                 people who we are addressing this legislation

                 to, specifically.

                            So, if we were going to pass this





                                                          755



                 legislation, and I kind of hope that we don't,

                 I would think that we would want to create a

                 standard that would apply to everyone who is

                 put in that situation where they need state

                 aid.

                            The specificity of aiming this at

                 college students, many of whom do receive TAP,

                 we have cut higher education by $114 million

                 this year.  Those who are in TAP have had the

                 amount of their tuition reduced from 90

                 percent to 75 percent.  This amount must be

                 made up by, by themselves.  We are not, as a

                 sovereignty, in economic need right now, but,

                 nonetheless, we've made these cuts.  It really

                 sends an additional message now to let them

                 know that they must be registered with

                 Selective Service even though the federal law

                 says they must have been registered with

                 Selective Service anyway.

                            So what I think I'm saying is that

                 this proposal should, in effect, be void for

                 vagueness because it really does not address

                 anything that is not already covered in the

                 law.  This is a point that was raised last

                 year by Senator Leichter, and this is one that





                                                          756



                 I think remains relevant in terms of passing

                 the legislation.

                            On the issue of whether or not

                 someone should register with Selective

                 Service, they absolutely should.  And if they

                 do not, then they should, should accrue the

                 full punishment or whatever the federal

                 government exacts on those who don't follow

                 the law and cooperate with the Service.  But

                 as far as carrying out the duties in state

                 government, we could attach to this

                 legislation the same kind of standard for not

                 paying one's income tax.  I don't see why a

                 person who doesn't file their income tax

                 should be collecting TAP when they owe the

                 government money that they should have paid.

                            So what I think I'm just saying is

                 that I think we're, in a sense, piling on to

                 those issues that have already been resolved

                 in our federal system.

                            ACTING PRESIDENT MEIER:    Read the

                 last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect on the 1st day of July.

                            ACTING PRESIDENT MEIER:    Call the





                                                          757



                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Those recorded in

                 the negative on Calendar Number 125 are

                 Senators Duane, Mendez, Montgomery, Paterson,

                 Sampson, Seabrook and Smith.

                            Ayes 46.  Nays 7.

                            ACTING PRESIDENT MEIER:    The bill

                 is passed.

                            THE SECRETARY:    Calendar Number

                 186, by Senator LaValle, Senate Print 1746, an

                 act to authorize payment of transportation aid

                 to the Miller Place Union Free School

                 District.

                            ACTING PRESIDENT MEIER:    There is

                 a local fiscal impact note at the desk.

                            Read the last section.

                            THE SECRETARY:    Section 3, this

                 act shall take effect immediately.

                            ACTING PRESIDENT MEIER:    Call the

                 roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MEIER:    Senator

                 Hevesi to explain his vote.

                            SENATOR HEVESI:    Mr. President, I





                                                          758



                 rise to explain my vote on this piece of

                 legislation.

                            This bill recognizes that there may

                 be situations and circumstances by which a

                 school district, for whatever reason, has not

                 submitted claims and is entitled to that money

                 irrespective of those circumstances.  And this

                 bill, essentially, would provide that monies

                 back to that school district, and it is as a

                 result of that circumstance and situation

                 right on the money.  And I commend Senator

                 LaValle for introducing it.

                            What it does, however, is highlight

                 a greater problem and gives me hope that this

                 institution will recognize and remedy the

                 larger problem, which is, the fact that

                 currently there are school districts

                 throughout the State of New York that are owed

                 in the aggregate in excess of $820 million in

                 prior year school claims, including $725

                 million of which comes from the City of New

                 York.  $95.3 million comes from school

                 districts throughout the remainder of the

                 state.  And under the current system of

                 repayment and an inadequate section of the





                                                          759



                 State Education Law which caps at 40 percent

                 the amount any one school district can receive

                 of the total amount allocated to repay these

                 prior year claims in any one year, the current

                 payment schedule for the City of New York

                 means that we will not receive payment, full

                 payment on these claims until the year 2051.

                 And despite the fact that the City will not

                 receive that money to which it's entitled

                 until that time, the other school districts

                 throughout the state will receive their entire

                 payments over the next three years.

                            This situation has progressed to

                 the point where we are in crisis mode.  Not

                 only is it jeopardizing and compromising the

                 fiscal integrity of the City and the state, as

                 viewed through the perspective of the credit

                 rating agencies, what is happening is the City

                 now has not submitted an additional $428

                 million in claims because we have not received

                 sufficient payment on those claims.  And in

                 addition, since, to conform with GAP

                 accounting procedures, we must right off

                 claims that are in excess of 10 years.

                 Currently, if we do not receive in the City of





                                                          760



                 New York $39 million by June 1st of this year,

                 the City will forfeit those funds blowing a

                 hole in the New York City Board of Education

                 budget of $39 million.  Next year that's $33

                 million, then it drops down to 10 and then it

                 kicks up into the hundreds of millions of

                 dollars.

                            So I support Senator LaValle's bill

                 and I hope that this means that this

                 institution, the Assembly and the Governor all

                 recognize that it's time to address this

                 problem of prior year school claims.  The

                 taxpayers of the State of New York and the

                 school children of the State of New York are

                 entitled to these funds.  It's time we

                 recognized the problem.

                            Mr. President, I vote in the

                 affirmative on this legislation.

                            ACTING PRESIDENT MEIER:    Senator

                 Hevesi will be recorded in the affirmative.

                            The clerk will announce the

                 results.

                            THE SECRETARY:    Ayes 54.

                            ACTING PRESIDENT MEIER:    The bill

                 is passed.





                                                          761



                            THE SECRETARY:    Calendar Number

                 192, by Senator Wright, Senate Print 2426, an

                 act to amend the Public Service Law, the

                 Public Officers Law and the General

                 Construction Law, in relation to video

                 conferencing.

                            SENATOR PATERSON:    Explanation,

                 please.

                            ACTING PRESIDENT MEIER:    Senator

                 Wright, an explanation has been requested of

                 Calendar Number 192 by Senator Paterson.

                            SENATOR WRIGHT:    Thank you, Mr.

                 President.

                            The bill amends the law to allow

                 for meetings of the Public Service Commission

                 to be held by video conferencing and further

                 amends the Open Meetings Law as to reflect

                 that these are public meetings and subject to

                 public attendance in all of the open meetings

                 provisions.  It's the same legislation that

                 was passed unanimously by this house last

                 year.

                            ACTING PRESIDENT MEIER:    Senator

                 Duane.

                            SENATOR DUANE:    Thank you, Madam





                                                          762



                 -- Mr. President.

                            Would the sponsor -

                            Habit.

                            Would the sponsor yield to a few

                 questions?

                            ACTING PRESIDENT MEIER:    Senator

                 Wright, do you yield to a question from

                 Senator Duane?

                            SENATOR WRIGHT:    Yes, Mr.

                 President.

                            ACTING PRESIDENT MEIER:    Sponsor

                 yields.

                            SENATOR DUANE:    Thank you very

                 much.

                            Now, I understand that the PSC

                 wants this legislation because they're

                 concerned that without it, if they do do video

                 conferencing, that they would be breaking the

                 Open Meetings Law?

                            Or maybe you could be more specific

                 about why the PSC has requested this.

                            SENATOR WRIGHT:    The intent of

                 the bill is to utilize the new technology

                 that's available through video conferencing.

                            As you may be aware, the Public





                                                          763



                 Service Commission has a large number of staff

                 both in the Capital as well as in their New

                 York City offices.

                            Frequently, if we can

                 telecommunicate between those two, and video

                 conference between those two offices, it would

                 save New York State money and make for a more

                 efficient operation in terms of conducting the

                 meeting without convening everyone in one

                 place.  The same is true of utilities that are

                 located throughout the state.

                            So it's simply a recognition as we

                 move into the new millennium that there are

                 new technologies and government should

                 accommodate utilization of those new

                 technologies and amend its laws accordingly.

                            SENATOR DUANE:    To continue

                 through you, Mr. President.

                            ACTING PRESIDENT MEIER:    Senator

                 Wright, do you continue to yield?

                            SENATOR WRIGHT:    I do, Mr.

                 President.

                            ACTING PRESIDENT MEIER:    Sponsor

                 yields.

                            SENATOR DUANE:    I was under the





                                                          764



                 impression, by the way that the legislation

                 reads, that this is only to be used for the

                 commissioners.  Is that correct or is this

                 supposed to be used agency-wide?

                            SENATOR WRIGHT:    Well, it would

                 be used in terms of the formal Commission

                 meetings themselves, and we specifically amend

                 the Public Service Law to provide for it and

                 to address the determinations in terms of

                 voting.

                            We further amend it in the Open

                 Meetings Law in terms of meeting the

                 requirements of that statute in assuring that

                 there is public awareness of the meetings,

                 public awareness of the utilization of video

                 conferencing and public access to those

                 members utilizing video conferencing.

                            SENATOR DUANE:    Through you, Mr.

                 President.

                            ACTING PRESIDENT MEIER:    Senator

                 Wright, do you yield?

                            SENATOR WRIGHT:    I continue to

                 yield, Mr. President.

                            ACTING PRESIDENT MEIER:    He

                 yields.





                                                          765



                            Senator Duane.

                            SENATOR DUANE:    Does that mean

                 that the video equipment will be in large

                 auditoriums or big conference rooms so that

                 the public can participate any time that

                 equipment is being used?

                            Or maybe not participate, but at

                 least follow the proceedings.

                            SENATOR WRIGHT:    We do not define

                 the size or the specifications of the meeting

                 rooms or the facilities, but the Open Meetings

                 Law and the Public Service Law requires that

                 there be public access to those, those

                 proceedings.  They are generally determined

                 based on the nature of the proceedings as to

                 the size of the facility that is warranted.

                 If it is a highly controversial meeting with a

                 large number of multiple intervenors and

                 participants, they select a location

                 accordingly.

                            SENATOR DUANE:    Through you, Mr.

                 President.

                            ACTING PRESIDENT MEIER:    Senator

                 Wright, do you continue to yield?

                            SENATOR WRIGHT:    Continue to





                                                          766



                 yield, Mr. President.

                            ACTING PRESIDENT MEIER:    Senator

                 Duane.

                            SENATOR DUANE:    The sponsor's

                 indicated that the equipment's only going to

                 be for the New York and Albany offices?

                            Is that correct?

                            And if that is correct, then I

                 don't understand how that is particularly

                 helpful in terms of commissioners from other

                 parts of the state being able to use this, or,

                 for that matter, then the public from other

                 parts of the state getting more access to what

                 happens during the meetings.

                            SENATOR WRIGHT:    Mr. President,

                 in my response, I did not indicate that it was

                 limited to Albany and New York.  I simply

                 cited the location of Public Service

                 Commission offices at those two locations and

                 that they would readily be conducive to

                 utilizing video conferencing from those two

                 areas.  However, I further cited utilities

                 that are located at various locations

                 geographically across the state that,

                 certainly, could make the investment, could be





                                                          767



                 in a position to participate in video

                 conferencing.

                            The very concept of video

                 conferencing, in fact, expands the horizons

                 rather than constricting horizons, as we

                 currently have.

                            SENATOR DUANE:    Through you, Mr.

                 President.

                            ACTING PRESIDENT MEIER:    Senator

                 Wright, do you continue to yield?

                            SENATOR WRIGHT:    Yes, Mr.

                 President.

                            ACTING PRESIDENT MEIER:    Sponsor

                 yields.

                            Senator Duane.

                            SENATOR DUANE:    Then I'm

                 confused.  I didn't understand that this means

                 that the public -- that utilities would now be

                 able to hook into the PSC and be able to have

                 video conferencing in addition to video

                 conferencing among the members of the

                 Commission with the public part of that as

                 well.

                            I'd like a clarification as to

                 whether or not this is also being done in an





                                                          768



                 effort to help hook in utilities with the PSC

                 through video conferencing.

                            SENATOR WRIGHT:    This bill is

                 being done to facilitate the meeting of the

                 Public Service Commission.  That is the intent

                 of the bill.  That's what the statute provides

                 for.  It certainly does not exclude the

                 participation of others through video

                 conferencing since these are open, public

                 meetings, which utilities would be available

                 to participate in, as would any other members

                 of the public, because it would be defined as

                 a public meeting.

                            SENATOR DUANE:    Through you, Mr.

                 President.

                            ACTING PRESIDENT MEIER:    Senator

                 Wright, do you continue to yield?

                            SENATOR WRIGHT:    I do, Mr.

                 President.

                            ACTING PRESIDENT MEIER:    Sponsor

                 yields.

                            SENATOR DUANE:    Well, the third

                 part of the triangle, the utilities, the

                 Commission, the public, the public, actually,

                 then, it seems to me, would be at a





                                                          769



                 disadvantage.  Most citizens don't have

                 telecommunications capability in their homes

                 or their place of work.  And it seems to me

                 that this then gives an advantage, an unfair

                 advantage to public utilities who, most

                 likely, would have more of the financial

                 wherewithal to have video conferencing.

                            SENATOR WRIGHT:    I disagree with

                 that assumption.  It's not inconsistent with

                 the current arrangement, whereby meetings are

                 convened in either Albany or New York.

                            I can assure you that for a

                 consumer from Watertown to travel to either of

                 those areas is a long distance.  They do not

                 have the financial wherewithal to do that, but

                 utilities may well have that financial

                 wherewithal to send their counsel or their

                 representative.  So video conferencing can, in

                 fact, open those horizons, facilitate greater

                 public participation, and that is our

                 objective.

                            SENATOR DUANE:    Well, through

                 you, Mr. President.

                            ACTING PRESIDENT MEIER:    Senator

                 Wright, do you continue to yield?





                                                          770



                            SENATOR WRIGHT:    I do, Mr.

                 President.

                            ACTING PRESIDENT MEIER:    Senator

                 yields.

                            SENATOR DUANE:    The other element

                 of this, though, is that, while we don't see

                 it in this legislation, there is a public, a

                 potential public commitment of funds to create

                 this telecommunications system.  We don't know

                 how much money it is.

                            Why is it that the actual dollar

                 amount of what this video conferencing system

                 would cost in the legislation and why is it

                 not being done as part of a budget bill as

                 opposed to strictly legislation, not taking

                 into account the amount of money that such

                 video conferencing system would cost the

                 citizens of our state?

                            SENATOR WRIGHT:    Well, first have

                 all, the bill itself amends two specific

                 provisions of law and does not reflect

                 appropriations.  That's normally handled

                 through a budget, which is currently being

                 debated.

                            Secondly, if you're familiar with





                                                          771



                 the operation of the Public Service

                 Commission, you know that that is -- the

                 revenues for support of the Public Service

                 Commission are provided through the utilities.

                            SENATOR DUANE:    Through you, Mr.

                 President.

                            ACTING PRESIDENT MEIER:    Senator

                 Wright, do you continue to yield?

                            SENATOR WRIGHT:    I do, Mr.

                 President.

                            ACTING PRESIDENT MEIER:    Senator

                 yields.

                            Senator Duane.

                            SENATOR DUANE:    Mister -- the

                 sponsor of the legislation acknowledges in his

                 Memo of Support, though, that there will be a

                 financial commitment that will need to be made

                 at some point.  Although the exact dollar

                 amount is not set out, it's envisioned, I

                 believe, somewhere in the range of 200 to

                 $300,000, which is public funding, again,

                 which would be used from the outset, more

                 specifically, yes, maybe for the PSC, but also

                 to utility companies.  But I believe, without

                 taking into account how that will impact on





                                                          772



                 the ability of an average citizen who doesn't

                 have teleconferencing capability to

                 participate in this, what we all acknowledge

                 will be, state funded teleconferencing system.

                            SENATOR WRIGHT:    Mr. President, I

                 interpreted that to be a statement as opposed

                 to a question.

                            If there's a question, would the

                 Senator please rephrase it?

                            SENATOR DUANE:    Um, well, I might

                 just, Mr. President, leave that statement

                 hanging there for the moment and go on to say

                 that -- -- .

                            ACTING PRESIDENT MEIER:    You're

                 on the bill now or do you have a -

                            SENATOR DUANE:    Well, I'd like to

                 leave open, Mr. President, the possibility

                 that the sponsor could respond, if he so

                 desires.

                            ACTING PRESIDENT MEIER:    Are you

                 asking the sponsor to yield for a question,

                 Senator Duane?

                            SENATOR DUANE:    Yes, I will ask

                 the sponsor to yield to a question.

                            ACTING PRESIDENT MEIER:    Senator





                                                          773



                 Wright, do you yield to a question?

                            SENATOR WRIGHT:    I do.  And I

                 would prefer a question as opposed to

                 statement, Mr. President.

                            ACTING PRESIDENT MEIER:    Noted.

                            Senator Duane.

                            SENATOR DUANE:    As it is now,

                 when, outside of the public meeting, when a

                 private citizen or a public utility needs to

                 get information from the PSC, is it not just

                 as effective and feasible to do that in a

                 regular telephone call?

                            SENATOR WRIGHT:    I simply have no

                 answer.  In terms of whether a telephone is

                 more efficient than some other method of

                 securing information, that's up to the

                 individual who's attempting to secure the

                 information.  I don't see where that has

                 relevance to video conferencing, where we're

                 talking about convening a public meeting,

                 amending the law for the purposes of

                 establishing a quorum and amending the Open

                 Meetings Law, to insure that those meetings,

                 while being video conferenced, are, in fact,

                 open and accessible to the public.





                                                          774



                            SENATOR DUANE:    Through you, Mr.

                 President.

                            Then it seems to me -

                            ACTING PRESIDENT MEIER:    Well,

                 for a question?

                            SENATOR DUANE:    Yes, please.

                            ACTING PRESIDENT MEIER:    Senator

                 Wright, do you continue to yield?

                            SENATOR WRIGHT:    I do.

                            ACTING PRESIDENT MEIER:    Senator

                 yields.

                            SENATOR DUANE:    Then should we

                 not make sure then that an average citizen

                 will have as much access to this state funded

                 teleconferencing system as will a better

                 funded energy corporation?

                            SENATOR WRIGHT:    The utilization

                 of video conferencing is to facilitate open

                 meetings at various locations.  Those open

                 meetings, by their definition, are open to the

                 public.  Therefore, it is accessible to the

                 public.  Therefore, the money being utilized

                 makes public access more readily available

                 than currently is available by transporting

                 people to one location.





                                                          775



                            You may not be aware of it, but we

                 do not provide public dollars to transport

                 people to meetings of the Public Service

                 Commission.  So, when we're putting in place a

                 system of video conferencing, which will more

                 effectively allow the Commission itself to

                 function and by doing that in multiple

                 locations, that means multiple locations then

                 are accessible to the public; thereby, making

                 it more accessible.

                            SENATOR DUANE:    Through you, Mr.

                 President.

                            ACTING PRESIDENT MEIER:    Senator

                 Wright, do you continue to yield?

                            SENATOR WRIGHT:    If there are new

                 questions, yes, Mr. President.

                            SENATOR DUANE:    I absolutely

                 acknowledge that this will be cheaper for the

                 energy companies to not have to send people to

                 the commission, but I don't see what -- how it

                 becomes cheaper then for the public to access

                 the Commission since they don't have access to

                 telecommunications equipment.

                            SENATOR WRIGHT:    Mr. President,

                 Senator, you seem to be missing the point.  If





                                                          776



                 I am a member of the Public Service Commission

                 in New York City video conferencing with the

                 balance of the Commission in Albany, you, as a

                 New York resident, can go to the location of

                 that video conference and you can observe the

                 entire proceeding in interactive video

                 conferencing; thereby, saving you the cost, if

                 you wish to participate in that Commission

                 meeting, of driving all the way to the

                 Capital, in Albany, and returning.  Therefore,

                 just as a utility executive co-located with

                 you in New York City, they would avoid the

                 cost.  The cost being the same to either

                 party, either party having equal access to

                 that Commission member; thereby, participating

                 in that video conference.

                            SENATOR DUANE:    Mr. President.

                            SENATOR WRIGHT:    Thank you, Mr.

                 President.

                            SENATOR DUANE:    Through you, Mr.

                 President.

                            ACTING PRESIDENT MEIER:    For what

                 purpose?  For a question?

                            SENATOR DUANE:    For a final

                 question.





                                                          777



                            ACTING PRESIDENT MEIER:    Senator

                 Wright, Senator Duane is asking you to yield

                 for a final question.

                            SENATOR WRIGHT:    For a final

                 question, Mr. President, I will be glad to

                 yield.

                            ACTING PRESIDENT MEIER:    Senator

                 Duane.

                            SENATOR DUANE:    I would like to

                 assure the sponsor that I do completely,

                 totally, and 100 percent do understand.

                 However, since there is, we all acknowledge,

                 going to be a public financial commitment to

                 this, I do believe that it is more favorable

                 to, and will not the sponsor understand what

                 I'm saying, that, in fact, it is immediately

                 advantageous, this new infrastructure, that

                 it's more advantageous to be in place and used

                 by an energy company than it is by an average

                 citizen from many, many parts of the state?

                            SENATOR WRIGHT:    I do not agree

                 with that assumption and I did not acknowledge

                 that assumption, and I look forward to

                 debating that assumption further when we take

                 up the budget.





                                                          778



                            SENATOR DUANE:    And then on the

                 bill, Mr. President.

                            ACTING PRESIDENT MEIER:    Senator

                 Duane, on the bill.

                            SENATOR DUANE:    This may or may

                 not be an appropriate use of money, 2 or

                 $300,000.  And, in fact, we're about to do

                 another bill which is similar in intent.  But

                 in a year, when we're fighting about how to

                 spend money on a whole range of issues and

                 making restorations to cuts, whether it's, for

                 instance, $500,000 to funding for housing for

                 people with AIDS or our struggle to put enough

                 money in the budget so that we can do, for

                 instance, senior nutritional programs, or, for

                 that matter, TAP funding, that we would vote

                 on this legislation which everybody

                 acknowledges will have a financial commitment.

                 Although I'm not convinced that it's an

                 equally advantageous financial commitment to

                 the public as it is to power companies, I

                 think that we should be looking at this

                 legislation and the financial commitment that

                 goes along with it in the context of the state

                 budget, in general, where there are many





                                                          779



                 competing interests, and it would be hard to

                 convince me that the money to spend on

                 teleconferencing for these two agencies is

                 more important than providing nutritional

                 assistance to older people.

                            Thank you, Mr. President.

                            ACTING PRESIDENT MEIER:    Read the

                 last section.

                            THE SECRETARY:    Section 6.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MEIER:    Call the

                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes 53.  Nays 1.

                            Senator Duane recorded in the

                 negative.

                            ACTING PRESIDENT MEIER:    The bill

                 is passed.

                            THE SECRETARY:    Calendar Number

                 193, by Senator Wright, Senate Print 2427, an

                 act to amend the Economic Development Law, the

                 Public Officers Law and the General

                 Construction Law, in relation to video

                 conferences.

                            ACTING PRESIDENT MEIER:    Read the





                                                          780



                 last section.

                            THE SECRETARY:    Section 6.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MEIER:    Call the

                 roll.

                            (The Secretary called the roll.)

                            THE PRESIDENT:    Senator Duane to

                 explain his vote.

                            SENATOR DUANE:    I just wanted to

                 say that I'm voting no on this for the same

                 reasons that I debated on the piece of

                 legislation which we discussed.

                            Thank you, Mr. President.

                            ACTING PRESIDENT MEIER:    Senator

                 Duane will be recorded in the negative.

                            Announce the results.

                            Oh, I'm sorry.  Senator Wright.

                            SENATOR WRIGHT:    To explain my

                 vote, Mr. President.  Just for the record, so

                 that we clarify, were these proposals to be

                 rejected, there would be no budget savings

                 available to transfer elsewhere in the budget

                 for other purposes, such as nutrition or other

                 worthy objectives, because these are sole

                 source revenues that are dedicated to these





                                                          781



                 respective agencies.

                            ACTING PRESIDENT MEIER:    Senator

                 Wright will be recorded in the affirmative.

                            Announce the results.

                            THE SECRETARY:    Ayes 53.  Nays 1.

                            Senator Duane recorded in the

                 negative.

                            ACTING PRESIDENT MEIER:    Senator

                 McGee, that concludes the reading of the

                 controversial calendar.

                            SENATOR McGEE:    Mr. President, is

                 there any housekeeping at the desk?

                            ACTING PRESIDENT MEIER:    No,

                 there is not.

                            Oh, wait a minute.  I'm sorry.

                            Senator Montgomery asks to be

                 recognized.

                            SENATOR MONTGOMERY:    Thank you,

                 Mr. President.

                            I would like to unanimous consent

                 to be recorded in the negative on Calendar

                 121.

                            ACTING PRESIDENT MEIER:    Without

                 objection, Senator Montgomery will be recorded

                 in the negative on Calendar 121.





                                                          782



                            SENATOR MONTGOMERY:    Thank you.

                            ACTING PRESIDENT MEIER:    Senator

                 McGee, the desk is clean. there's no

                 housekeeping.

                            SENATOR McGEE:    Mr. President,

                 there being no further business, I move we

                 adjourn until Monday, March 8th, at 3 p.m.,

                 intervening days being legislative days.

                            ACTING PRESIDENT MEIER:    On

                 motion of the Acting Majority Leader Senator

                 McGee, the Senate stands adjourned until

                 Monday, March 8th, at 3 p.m.  Intervening days

                 will be legislative days.

                            (Whereupon, at 11:45 a.m., Senate

                 adjourned.)