Regular Session - May 18, 1999
3087
NEW YORK STATE SENATE
THE
STENOGRAPHIC RECORD
ALBANY, NEW YORK
May 18, 1999
3:03 p.m.
REGULAR SESSION
LT. GOVERNOR MARY O. DONOHUE, President
STEVEN M. BOGGESS, Secretary
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P R O C E E D I N G S
THE PRESIDENT: The Senate will
come to order.
I ask everyone present to 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 the Reverend Peter G.
Young, from Blessed Sacrament Church in Bolton
Landing.
REVEREND YOUNG: Let us pray.
Dear God, we ask Your presence and
blessings for this Senate session. Our
Senators have been elected to express our
concerns about the welfare of our state, to
learn from each other, to grow in spirit and
character, to find out Your will for our lives
and our neighborhoods.
We thank You for the opportunity of
this country to assemble ourselves at any time
to discuss the concerns of our New York State
citizens. Grant this, and in the wisdom then
of this body to carry out the discussions that
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will make it a better place to be in New York
State, now and forever.
Amen.
THE PRESIDENT: Reading of the
Journal.
THE SECRETARY: In Senate,
Monday, May 17th, the Senate met pursuant to
adjournment. The Journal of Sunday, May 16th,
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.
Reports of select committees.
Communications and reports from
state officers.
Motions and resolutions.
Senator McGee.
SENATOR McGEE: Thank you, Madam
President. I offer the -- amendments to the
following Third Reading Calendar bills.
3090
On behalf of Senator Kuhl, page 16,
Calendar Number 446, Senate Print Number 3242.
On behalf of Senator Kuhl, page
number 26, Calendar Number 627, Senate Print
3241.
On behalf of Senator Rath, page
number 27, Calendar Number 633, Senate Print
Number 4436.
On behalf of Senator Marcellino,
page number 34, Calendar Number 740, Senate
Print 2790A.
Madam President, I now move that
these bills retain their place on the order of
third reading.
THE PRESIDENT: The amendments
are received, Senator McGee, and the bills
will retain their place on the Third Reading
Calendar.
SENATOR McGEE: Thank you, Madam
President.
Madam President, on behalf of
Senator Rath, please place a sponsor star on
Calendar Number 729.
THE PRESIDENT: So ordered,
Senator.
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SENATOR McGEE: Thank you, Madam
President.
THE PRESIDENT: Senator Bruno.
SENATOR BRUNO: Madam President,
can we at this time adopt the Resolution
Calendar, with the exception of Resolutions
1388, 1391, 1392, 1412, and 1457.
THE PRESIDENT: All in favor of
adopting the Resolution Calendar, with the
exception of Resolutions 1388, 1391, 1392,
1412, and 1457, signify by saying aye.
(Response of "Aye.")
THE PRESIDENT: Opposed, nay.
(No response.)
THE PRESIDENT: The Resolution
Calendar is adopted.
Senator Bruno.
SENATOR BRUNO: Madam President,
can we at this time take up Senate Resolution
1388, by Senator Meier. I ask that the title
be read and move for its immediate adoption.
THE PRESIDENT: The Secretary
will read.
THE SECRETARY: By Senator Meier,
Legislative Resolution Number 1388,
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commemorating Memorial Day, May 30, 1999, in
the State of New York.
THE PRESIDENT: The question is
on the resolution. All in favor signify by
saying aye.
(Response of "Aye.")
THE PRESIDENT: Opposed, nay.
(No response.)
THE PRESIDENT: The resolution is
adopted.
Senator Bruno.
SENATOR BRUNO: Madam President,
there is another privilege resolution at the
desk, 1391, by Senator Meier. I would ask
again that the title be read and move for its
immediate adoption.
THE PRESIDENT: The Secretary
will read.
THE SECRETARY: By Senator Meier,
Legislative Resolution Number 1391,
commemorating May 7, 1999, as Victory in
Europe Day in the State of New York.
THE PRESIDENT: The question is
on the resolution. All in favor signify by
saying aye.
3093
(Response of "Aye.")
THE PRESIDENT: Opposed, nay.
(No response.)
THE PRESIDENT: The resolution is
adopted.
Senator Bruno.
SENATOR BRUNO: Madam President,
another privilege resolution, 1392, by Senator
Meier. I would ask that the title be read and
move for its immediate adoption.
THE PRESIDENT: The Secretary
will read.
THE SECRETARY: By Senator Meier,
Legislative Resolution Number 1392, honoring
the United States Armed Forces upon the
occasion of Armed Forces Day on May 16, 1999.
THE PRESIDENT: The question is
on the resolution. All in favor signify by
saying aye.
(Response of "Aye.")
THE PRESIDENT: Opposed, nay.
(No response.)
THE PRESIDENT: The resolution is
adopted.
Senator Bruno.
3094
SENATOR BRUNO: Madam President,
there's another privilege resolution at the
desk, 1412, by Senator Meier. I would ask
that the title be read and move for its
immediate adoption.
THE PRESIDENT: The Secretary
will read.
THE SECRETARY: By Senator Meier,
Legislative Resolution Number 1412, honoring
the Veterans of New York State upon the
occasion of Veterans Day on November 11, 1999.
THE PRESIDENT: The question is
on the resolution. All in favor signify by
saying aye.
(Response of "Aye.")
THE PRESIDENT: Opposed, nay.
(No response.)
THE PRESIDENT: The resolution is
adopted.
Senator Bruno.
SENATOR BRUNO: Madam President,
the last privilege resolution at the desk,
1457, by Senator Maziarz. I would ask that
the title be read and move for its immediate
adoption.
3095
Wanted to see whether or not you're
paying attention, Senator.
THE PRESIDENT: The question is
on the resolution.
The Secretary will first read.
THE SECRETARY: By Senator
Maziarz, Legislative Resolution Number 1457,
memorializing Governor George E. Pataki to
proclaim 1999 as the International Year of
Older Persons, to be recognized October 1,
1998, through December 31, 1999, in the State
of New York.
THE PRESIDENT: Senator Maziarz.
SENATOR MAZIARZ: Thank you very
much, Madam President. I thank Senator Meier
for giving me a brief moment here to adopt
another resolution.
Madam President, as this resolution
states, 1999 has been designated by the United
Nations as the International Year of the Older
Person. And I would just like to take a brief
moment to highlight what Governor George
Pataki and the New York State Office of the
Aging, under the directorship of Walter
Hoefer, is doing, preparing for the next
3096
millennium for the older persons of New York
State with Project 2015, which is a proactive
study of what the next generation of older
persons in New York State are going to require
as far as health care, employment,
transportation, and housing -- some very
critical issues for the baby boomers of
today's generation but the seniors of the
future.
Thank you, Madam President.
THE PRESIDENT: The question is
on the resolution. All in favor signify by
saying aye.
(Response of "Aye.")
THE PRESIDENT: Opposed, nay.
(No response.)
THE PRESIDENT: The resolution is
adopted.
Senator Bruno.
SENATOR BRUNO: Madam President,
I would ask that these five resolutions that
were just passed be open to the entire
membership of the house. Anyone not wishing
to be on the resolutions would please notify
the desk.
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THE PRESIDENT: Thank you,
Senator Bruno.
We will put everyone on these
resolutions. If a member is not interested in
being a cosponsor, please notify the desk.
Senator Bruno.
SENATOR BRUNO: Can we at this
time, Madam President, take up the
noncontroversial calendar.
THE PRESIDENT: The Secretary
will read.
THE SECRETARY: Calendar Number
349, by Senator Lack, Senate Print 3400, an
act to amend the Estates, Powers and Trusts
Law and the General Obligations Law.
THE PRESIDENT: Read the last
section.
THE SECRETARY: Section 3. This
act shall take effect September 1st.
THE PRESIDENT: Call the roll.
(The Secretary called the roll.)
THE SECRETARY: Ayes, 43.
THE PRESIDENT: The bill is
passed.
THE SECRETARY: Calendar Number
3098
494, by Senator Kuhl, Senate Print 3086B, an
act to amend the Soil and Water Conservation
Districts Law.
THE PRESIDENT: Read the last
section.
THE SECRETARY: Section 2. This
act shall take effect immediately.
THE PRESIDENT: Call the roll.
(The Secretary called the roll.)
THE SECRETARY: Ayes, 43.
THE PRESIDENT: The bill is
passed.
THE SECRETARY: Calendar Number
613, by Senator Kuhl, Senate Print 3243, an
act to amend the Alcoholic Beverage Control
Law, in relation to the imposition of drivers'
licenses.
THE PRESIDENT: Read the last
section.
THE SECRETARY: Section 2. This
act shall take effect on the first day of
November.
THE PRESIDENT: Call the roll.
(The Secretary called the roll.)
THE SECRETARY: Ayes, 42. Nays,
3099
1. Senator Duane recorded in the negative.
THE PRESIDENT: The bill is
passed.
THE SECRETARY: Calendar Number
644, by Senator Saland, Senate Print 3815A, an
act to amend the Family Court Act, in relation
to dispositions.
THE PRESIDENT: Read the last
section.
THE SECRETARY: Section 5. This
act shall take effect on the first day of
November.
THE PRESIDENT: Call the roll.
(The Secretary called the roll.)
THE SECRETARY: Ayes, 43.
THE PRESIDENT: The bill is
passed.
THE SECRETARY: Calendar Number
646, by Senator Saland, Senate Print 4357, an
act to amend the Family Court Act and the
Domestic Relations Law.
THE PRESIDENT: Read the last
section.
THE SECRETARY: Section 3. This
act shall take effect on the 90th day.
3100
THE PRESIDENT: Call the roll.
(The Secretary called the roll.)
THE SECRETARY: Ayes, 43.
THE PRESIDENT: The bill is
passed.
THE SECRETARY: Calendar Number
653, by Senator Fuschillo, Senate Print 4143,
an act to amend the General Business Law, in
relation to the use of courier pickup and
delivery services.
THE PRESIDENT: Read the last
section.
THE SECRETARY: Section 2. This
act shall take effect July 1st.
THE PRESIDENT: Call the roll.
(The Secretary called the roll.)
THE SECRETARY: Ayes, 43.
THE PRESIDENT: The bill is
passed.
THE SECRETARY: Calendar Number
659, by Senator Seward, Senate Print 3559, an
act to amend the Insurance Law, in relation to
individual life insurance policies.
THE PRESIDENT: Read the last
section.
3101
THE SECRETARY: Section 5. This
act shall take effect immediately.
THE PRESIDENT: Call the roll.
(The Secretary called the roll.)
THE SECRETARY: Ayes, 43.
THE PRESIDENT: The bill is
passed.
THE SECRETARY: Calendar Number
684, by Senator Marchi, Senate Print 3530, an
act to amend the Public Authorities Law, in
relation to expanding.
THE PRESIDENT: Read the last
section.
THE SECRETARY: Section 2. This
act shall take effect immediately.
THE PRESIDENT: Call the roll.
(The Secretary called the roll.)
THE SECRETARY: Ayes, 43.
THE PRESIDENT: The bill is
passed.
THE SECRETARY: Calendar Number
726, by Senator Balboni, Senate Print 4557, an
act authorizing the assessor of the County of
Nassau to accept applications.
THE PRESIDENT: Read the last
3102
section.
THE SECRETARY: Section 2. This
act shall take effect immediately.
THE PRESIDENT: Call the roll.
(The Secretary called the roll.)
THE SECRETARY: Ayes, 42. Nays,
1. Senator Dollinger recorded in the
negative.
THE PRESIDENT: The bill is
passed.
THE SECRETARY: Calendar Number
727, by Senator Hannon, Senate Print 4560, an
act in relation to permitting the Church of
the New Life to file an application.
THE PRESIDENT: Read the last
section.
THE SECRETARY: Section 2. This
act shall take effect immediately.
THE PRESIDENT: Call the roll.
(The Secretary called the roll.)
THE SECRETARY: Ayes, 42. Nays,
1. Senator Dollinger recorded in the
negative.
THE PRESIDENT: The bill is
passed.
3103
THE SECRETARY: Calendar Number
733, by Senator Larkin, Senate Print 1066A, an
act to amend the Penal Law, in relation to
trespass.
THE PRESIDENT: Read the last
section.
THE SECRETARY: Section 3. This
act shall take effect immediately.
THE PRESIDENT: Call the roll.
(The Secretary called the roll.)
THE SECRETARY: Ayes, 46. Nays,
1. Senator Duane recorded in the negative.
THE PRESIDENT: The bill is
passed.
THE SECRETARY: Calendar Number
737, by Senator Saland, Senate Print 1831, an
act to amend the Criminal Procedure Law.
THE PRESIDENT: Read the last
section.
THE SECRETARY: Section 3. This
act shall take effect on the first day of the
calendar month next.
THE PRESIDENT: Call the roll.
(The Secretary called the roll.)
THE SECRETARY: Ayes, 47.
3104
THE PRESIDENT: The bill is
passed.
THE SECRETARY: Calendar Number
744, by Senator Rath, Senate Print 3468, an
act to amend the Penal Law, in relation to
aggravated harassment.
THE PRESIDENT: Read the last
section.
THE SECRETARY: Section 2. This
act shall take effect on the first day of
September.
THE PRESIDENT: Call the roll.
(The Secretary called the roll.)
THE SECRETARY: Ayes, 47.
THE PRESIDENT: The bill is
passed.
THE SECRETARY: Calendar Number
763, by Senator Trunzo, Senate Print 4295, an
act to amend Chapter 591 of the laws of 1996.
THE PRESIDENT: Read the last
section.
THE SECRETARY: Section 2. This
act shall take effect immediately.
THE PRESIDENT: Call the roll.
(The Secretary called the roll.)
3105
THE SECRETARY: Ayes, 47.
THE PRESIDENT: The bill is
passed.
THE SECRETARY: Calendar Number
840, by Senator Padavan, Senate Print 1893, an
act to amend the General Business Law, in
relation to the possession and sale of
drug-related.
THE PRESIDENT: Read the last
section.
THE SECRETARY: Section 2. This
act shall take effect immediately.
THE PRESIDENT: Call the roll.
(The Secretary called the roll.)
THE SECRETARY: Ayes, 45. Nays,
2. Senators Duane and Sampson recorded in the
negative.
THE PRESIDENT: The bill is
passed.
THE SECRETARY: Calendar Number
842, by Senator Libous, Senate Print 2463C, an
act to amend the General Business Law, in
relation to enacting.
SENATOR DOLLINGER: Lay the bill
aside.
3106
THE PRESIDENT: The bill is laid
aside, Senator.
THE SECRETARY: Calendar Number
845, by Senator Lack, Senate Print 4717, an
act to amend the General Business Law, in
relation to optical disks.
THE PRESIDENT: Read the last
section.
THE SECRETARY: Section 2. This
act shall take effect January 1st.
THE PRESIDENT: Call the roll.
(The Secretary called the roll.)
THE SECRETARY: Ayes, 47.
THE PRESIDENT: The bill is
passed.
THE SECRETARY: Calendar Number
901, by Senator Spano, Senate Print 2261, an
act to amend the General Municipal Law.
THE PRESIDENT: There's a home
rule message at the desk.
Read the last section.
THE SECRETARY: Section 2. This
act shall take effect immediately.
THE PRESIDENT: Call the roll.
(The Secretary called the roll.)
3107
THE SECRETARY: Ayes, 50.
THE PRESIDENT: The bill is
passed.
THE SECRETARY: Calendar Number
916, by Senator Johnson, Senate Print 4838, an
act to authorize the Salvation and Deliverance
Church to file an application.
THE PRESIDENT: Read the last
section.
THE SECRETARY: Section 2. This
act shall take effect immediately.
THE PRESIDENT: Call the roll.
(The Secretary called the roll.)
THE SECRETARY: Ayes, 49. Nays,
1. Senator Dollinger recorded in the
negative.
THE PRESIDENT: The bill is
passed.
THE SECRETARY: Calendar Number
1006, by Senator Wright, Senate Print 1231A,
an act to amend the Tax Law.
THE PRESIDENT: Read the last
section.
THE SECRETARY: Section 2. This
act shall take effect on the 30th day.
3108
THE PRESIDENT: Call the roll.
(The Secretary called the roll.)
THE SECRETARY: Ayes, 50.
THE PRESIDENT: The bill is
passed.
THE SECRETARY: Calendar Number
1018, by Senator Goodman, Senate Print 4039,
an act to amend the Alcoholic Beverage Control
Law.
THE PRESIDENT: Read the last
section.
THE SECRETARY: Section 2. This
act shall take effect on the 30th day.
THE PRESIDENT: Call the roll.
(The Secretary called the roll.)
THE SECRETARY: Ayes, 49. Nays,
1. Senator Padavan recorded in the negative.
THE PRESIDENT: The bill is
passed.
THE SECRETARY: Calendar Number
1025, by Senator Goodman, Senate Print 4282,
an act to amend the Alcoholic Beverage Control
Law.
THE PRESIDENT: Read the last
section.
3109
SENATOR DOLLINGER: Explanation,
please.
THE PRESIDENT: The bill is laid
aside.
THE SECRETARY: Calendar Number
1033, by Senator Maziarz, Senate Print 5373,
an act to amend the General Business Law.
THE PRESIDENT: Read the last
section.
THE SECRETARY: Section 2. This
act shall take effect immediately.
THE PRESIDENT: Call the roll.
(The Secretary called the roll.)
THE SECRETARY: Ayes, 50.
THE PRESIDENT: The bill is
passed.
THE SECRETARY: Calendar Number
1073, by Senator Libous, Senate Print 3312B,
an act to amend Chapter 649 of the laws of
1996.
THE PRESIDENT: Read the last
section.
THE SECRETARY: Section 2. This
act shall take effect immediately.
THE PRESIDENT: Call the roll.
3110
(The Secretary called the roll.)
THE SECRETARY: Ayes, 50.
THE PRESIDENT: The bill is
passed.
Senator Skelos, that completes the
reading of the noncontroversial calendar.
SENATOR SKELOS: Madam President,
at this time I'd ask that we recall Calendar
Number 1006 and reconsider the vote by which
it passed.
THE PRESIDENT: The Secretary
will read.
THE SECRETARY: Calendar Number
1006, by Senator Wright, Senate Print 1231A,
an act to amend the Tax Law.
THE PRESIDENT: Call the roll
upon reconsideration.
(The Secretary called the roll.)
THE SECRETARY: Ayes, 50.
THE PRESIDENT: The bill is laid
aside.
Senator Skelos, that completes the
reading of the noncontroversial calendar.
SENATOR SKELOS: Madam President,
at this time if you would please recognize
3111
Senator Breslin and then -- or Senator Waldon
and then Senator Breslin.
SENATOR WALDON: Thank you very
much, Madam President.
THE PRESIDENT: Senator Waldon,
go ahead.
SENATOR WALDON: Thank you,
Senator Skelos.
Madam President, my colleagues, we
have two very distinguished people in our
chamber today representing the great nation of
Uganda.
As many of you know, Uganda gained
its independence from Britain in 1962 and has
for that length of time worked towards
becoming a very viable partner of the great
nations of this earth.
Each of us who are participating in
a program today with the representatives of
the parliament of Uganda were assigned a
person that we were to show, as best as we
can, what our government is all about. I was
fortunate indeed to have assigned to me a
research officer. His name is Francis Kintu.
And he is here in this area of the chamber.
3112
I would ask that he stand and I
would ask that we recognize him.
And Senator Breslin also has a
similar statement to make.
THE PRESIDENT: Senator Breslin.
SENATOR BRESLIN: Thank you,
Madam President.
I too have someone mentoring my
performance here today, a research officer
from the country of Uganda, Elizabeth
Bakibinga, who has been very impressed with
the collegiality of this house and the
democratic principles that she's viewed and
witnessed during this day.
Thank you very much, Elizabeth.
SENATOR WALDON: Why don't you
all stand up.
(Applause.)
SENATOR WALDON: Thank you, Madam
President.
THE PRESIDENT: Senator Skelos.
SENATOR SKELOS: Madam President,
if we could take up the controversial
calendar, please.
THE PRESIDENT: The Secretary
3113
will read.
THE SECRETARY: Calendar Number
842, by Senator Libous, Senate Print 2463C, an
act to amend the General Business Law, in
relation to enacting the Motor Vehicle Renters
Responsibility and Protection Act.
SENATOR PATERSON: Explanation,
please.
THE PRESIDENT: Senator Libous,
an explanation has been requested by Senator
Dollinger and Senator Paterson.
SENATOR LIBOUS: Thank you, Madam
President.
The bill before us actually changes
the law to assist those who are renting motor
vehicles in New York State. Presently, under
the General Business Law, if a person rents a
motor vehicle in New York State and that motor
vehicle is totaled, they are responsible for
only up to a hundred dollars.
What that has done over the years,
Madam President, is put a tremendous burden on
the businesses in this state that are in the
business of renting automobiles to
individuals. As a matter of fact, we have
3114
seen a decrease in that business over the past
several years, from over 500 companies to down
to about 300 companies.
The dollars that go along with that
are quite staggering also, because we see that
the car industry, the automobile industry in
this state has lost hundreds of millions of
dollars since many of those companies have
gone out of business. At one time, over a
billion dollars in automobiles were purchased
in this state, and that's now down to about
600 million. We've seen significant tax
revenues disappear.
What this would do is it would
clean up the inequity in the law and conform
with the other 49 states that would basically
require insurance purchased at the time that
you rent a motor vehicle or, if you have a
personal policy, you would be covered under
your personal policy, or if you have a credit
card and your credit card has coverage, you
would be covered under your credit card
coverage.
So what we're doing here is I think
legislation that creates fairness, legislation
3115
that conforms us with every other state in the
country, and one that also at the same time
helps to promote business and industry in this
state.
THE PRESIDENT: Read the last
section.
SENATOR PATERSON: Madam
President, we have some questions.
THE PRESIDENT: Senator
Dollinger.
SENATOR DOLLINGER: Would the
sponsor yield for a couple of -- I'll yield to
Senator Breslin, if I may.
THE PRESIDENT: Senator Breslin,
do you wish to be heard at this time?
SENATOR BRESLIN: Yes, Madam
President. Would the sponsor yield to a
couple of questions?
THE PRESIDENT: Senator Libous,
will you yield -
SENATOR LIBOUS: Madam President,
I would be honored to yield to the Senator.
SENATOR BRESLIN: Senator Libous,
is there any empirical data -- you indicated
there's been a significant reduction in car
3116
rental companies. Is there any empirical data
that might indicate that there are other
reasons for the lessening of companies in that
area?
SENATOR LIBOUS: We have
information provided us, Madam President, that
basically says the number of passenger rental
car companies has decreased from 572 to 319
locations, a decrease of about 46 percent in
the industry. And that information comes from
the New York State County Business Patterns,
and it basically is from the industry itself.
SENATOR BRESLIN: Again, through
you, Madam President.
Is there any data that would
suggest that this particular piece of
legislation, which we enacted in the late
'80s, is responsible for the diminution of
those companies?
SENATOR LIBOUS: In the number of
businesses that have gone out of business, in
the meetings that I've had over the past three
or four years I have seen, you know,
instances, financial statements from losses
basically due to the fact that they would have
3117
a car that was worth, to them, $20,000, they
would owe on that car, the car would be
totaled. The liability to the consumer was
only a hundred dollars. And then, of course,
under New York State then the private policy
would not kick in under present law.
And because of that data, that
information provided to me by a number of
companies, it was pretty clear to me that the
reason is because of the losses under this law
that they then went out of business.
SENATOR BRESLIN: Again, through
you, Madam President.
THE PRESIDENT: Senator Libous,
do you continue to yield to Senator Breslin?
SENATOR LIBOUS: I'll be more
than happy, Madam President.
THE PRESIDENT: Go ahead,
Senator.
SENATOR BRESLIN: Don't we then
take the company, which is in the best
position to insure its own vehicles and be
responsible for the losses, which they pass on
to the consumer as a way of doing business -
don't we then pass on that to the entire
3118
insurance community, the insureds throughout
the state, as opposed to just those who rent
cars?
SENATOR LIBOUS: Right now,
unfortunately, Madam President, if you have a
policy -- like myself -- and if you rent a car
under present law in New York State, again,
you are only liable up to a hundred dollars.
Or if I use my credit card, my American
Express card, which also has coverage under
that, at the present time it only covers up to
a hundred dollars.
I think this is an inequity in the
law. And, Madam President, certainly if you
look, people can purchase the insurance. If
this law passes, they will be able to purchase
the insurance. It will be anywhere from up to
$9 a day, on a vehicle of $30,000 in value,
and could be up to $12 a day on any vehicle
over that.
So then the insurance can be
purchased at the time by the individual if
they do not have a personal policy or if they
do not have a credit card that covers that.
So indeed, that can be purchased at the place
3119
of rental.
SENATOR BRESLIN: Thank you very
much, Madam President, Senator Libous.
On the bill.
THE PRESIDENT: Senator Breslin
on the bill.
SENATOR BRESLIN: This bill
passed in the late '80s to make sure that our
renting public was protected, protected by -
from possible abuses from an unsuspecting
public. And what it did was -- is it placed
the responsibility for collision on the people
who own the vehicles, the car rental agencies.
And the car rental agencies had the ability to
pass it on to the renter as a cost of doing
business.
That law has worked fine. It's
worked without problems. And now we're
suggesting that it's up to the individual who
rents -- and we've all rented vehicles, and
I'm sure everyone in this house has read
thoroughly that contract that's placed before
us. With the law that we've had, we've been
secure that we've had insurance. I'm not so
sure that's the case with this law.
3120
This law goes to -- not to protect
the consumer, but to protect the car rental
agency, the agency that's best able to insure
that vehicle through its fleet coverage -
fleet coverages that are estimated at times at
$25 a year per vehicle, yet this legislation
would pass on a per-diem rate to have the car
rental agency take the insurance of $12.
Multiply $12 times the number of days in a
year, and compare that to a fleet rate of $25.
It's a hidden profit-maker.
And what about the people in our
state who don't own vehicles, who go to a car
rental place and are placed in a position
where they must get their own insurance or be
subject to that per diem? I think this is
patently unfair. It's bad for our consumers,
and it's bad for our state. And I urge my
colleagues on both sides of the aisle to vote
no.
Thank you very much, Madam
President.
THE PRESIDENT: Senator
Dollinger.
SENATOR DOLLINGER: Would the
3121
sponsor yield to a couple of questions, Madam
President?
THE PRESIDENT: Senator Libous,
will you yield?
SENATOR LIBOUS: Absolutely,
Madam President. I'll be happy to yield to
Senator Dollinger.
SENATOR DOLLINGER: Thank you,
Senator Libous -
THE PRESIDENT: Thank you,
Senator Libous.
Senator Dollinger, you may proceed
with a couple of questions.
SENATOR DOLLINGER: Thank you
very much, Madam President.
THE PRESIDENT: You're welcome.
SENATOR DOLLINGER: Senator
Breslin asked you a couple of questions about
the size of the industry. My question is, do
you have any evidence that the imposition of
the law in 1988 has resulted in a greater loss
occurrence among rental car companies here in
New York? Is there evidence that there have
been greater losses that the industry has
suffered -- or, for that matter, that there
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have been a higher number of claims than in
other states?
SENATOR LIBOUS: Yes.
SENATOR DOLLINGER: Tell me what
they -
SENATOR LIBOUS: We have had
greater losses here in New York State. If you
compare that with other states, and if you can
compare it with the number of companies that
have gone out of business, there's no
question -- because the law has not been
changed, Madam President, in New York -- that
those losses exist.
SENATOR DOLLINGER: Again,
through you, Madam President.
Could you make available some of
that information that demonstrates that
because collision damage waivers are not
permitted in New York that somehow this has
caused greater loss ratios or greater damage
to the rental car companies here in this
state? Are there more claims here in New York
State because of the absence of collision
damage waivers?
SENATOR LIBOUS: There are two
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indicators, Madam President, that are pretty
clear to me. The fact that 46 percent of the
businesses went out of business, that's very
clear. And then also the amount of theft that
took place, documented to me by the industry.
SENATOR DOLLINGER: Again,
through you, Madam President.
Senator Breslin asked a question
about the pressures in this industry. I would
daresay since 1988 probably a half of our
furniture stores and half of our family-owned
bookstores have gone out of business, all part
of the changing times and the consolidations,
the advantages of large-scale businesses, cost
advantages.
Do you have anything -- and again,
I'll ask -- repeat the question of Senator
Breslin. Do you have any specific evidence
that says that the outlawing of CDWs,
collision damage waivers, that that was the
cause for this consolidation in the rental car
business?
SENATOR LIBOUS: There's no
question about it, in my mind, that the
information provided by the industry -- and I
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can go over -- let me go on here. Let me read
you some numbers and figures, just the decline
and the effect that it's had in New York
State, for instance.
At one time the industry purchased,
as I said earlier, over a billion dollars in
automobiles right here in New York State.
That purchase is down to about $600 million.
The amount of revenue that was collected here
in New York State has been off.
Now, certainly, Madam President,
the Senator could question that other
businesses and industries are down. But I
would say that if any other business or
industry was down 46 percent, almost 50
percent, that they would have come to this
body, Madam President, and asked for some sort
of disaster aid or help.
Now, certainly we have seen a
number of businesses decline. But I would
say, Madam President, that from the
information provided us here, looking at the
total amount of automobiles purchased down in
New York State, looking at the number of
claims up, looking to see the evidence from
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the other states versus New York in liability,
I think, Madam President and Senator
Dollinger, that it's pretty clear to me -- the
loss in sales tax revenue -- that this
industry has been hurt tremendously because of
basically this law that needs to be changed.
SENATOR DOLLINGER: Again,
through you, Madam President.
Just so I make sure I understand
this, Senator Libous. Is there evidence of
claims data that there were more claims and
more payouts on rental cars in this state than
in other states because of the absence of CDWs
in this state?
SENATOR LIBOUS: Madam President,
Senator Dollinger, I can give you one example.
From 1988 to 1995, the number of third-party
liability claims per 100 hundred cars in a
fleet increased by 109 percent. That is
information available to us here in New York
State. And then, since 1988, the accident
frequency from New York rental agencies has
increased by as much as 250 percent.
The other factor which is pretty
clear to me, and I don't have to be a graduate
3126
of the Wharton School to figure this out, when
I sit and meet with individuals who went out
of business and they show me the value of the
cars that they had in their fleet and then
they show me the value of the damages to those
cars and what they were liable for, those
numbers are pretty clear. And that's -
that's why they went out of business.
SENATOR DOLLINGER: Again,
through you, Madam President.
Just so I make sure I understand.
If you're in the automobile rental car
industry, don't you have fleet insurance that
covers the cost of damage to -- these are
collision, I understand this is just collision
damage -- to any car in the fleet? Isn't that
correct, that if I had a fleet of trucks or a
fleet of cars, I would need to have collision
damage for my fleet? Isn't that correct?
SENATOR LIBOUS: Madam President,
that may be true for some of the bigger
companies. But the smaller companies have
difficulty in achieving it, and we believe
that it is harder and harder to achieve today.
SENATOR DOLLINGER: Harder and
3127
harder to achieve -
SENATOR LIBOUS: Harder and
harder to receive that type of coverage today.
SENATOR DOLLINGER: Again,
through you, Madam President.
Do you have any data that show the
increase in the fleet premiums between 1988
and 1999, an 11-year period? Has the cost of
fleet insurance gone up?
SENATOR LIBOUS: Madam President,
I don't have that data because that -- we are
not talking about fleet insurance in this
bill. We're talking particularly to the
rental car industry.
And that subject, Senator
Dollinger, would have to be researched
elsewhere. That information is not available,
at least to me on the floor at this time.
SENATOR DOLLINGER: Right. And
again, through you, Madam President.
The reason why I asked that
question, Senator -
THE PRESIDENT: Senator Libous,
do you continue to yield?
SENATOR LIBOUS: I am pleased to
3128
continue to yield, Madam President.
SENATOR DOLLINGER: Thank you.
THE PRESIDENT: Go ahead, Senator
Dollinger.
SENATOR DOLLINGER: -- is because
it would seem to me, since the fleet insurance
covers the cost of the protection of the
rental fleet, if you abolished CDWs, as we
did, and you eliminated collision damage
waivers 11 years ago, you would have seen a
significant rise in the exposure to fleet
insurance, and there would be dramatic
increases somewhere for fleet insurance to
cover the greater risk associated with
vehicles for which there is now a limitation
on collision costs to a hundred dollars.
SENATOR LIBOUS: Madam President,
Senator Dollinger. I want to get that
information for you. So for the time being,
I'm going to lay the bill aside, and we'll
bring this up at another time.
SENATOR DOLLINGER: Thank you,
Madam President.
THE PRESIDENT: The bill is laid
aside.
3129
The Secretary will read.
THE SECRETARY: Calendar Number
1025, by Senator Goodman, Senate Print 4282,
an act to amend the Alcoholic Beverage Control
Law.
SENATOR PADAVAN: Explanation.
THE PRESIDENT: An explanation
has been requested.
Senator Velella.
SENATOR SKELOS: Madam President.
THE PRESIDENT: Senator Skelos.
SENATOR SKELOS: If we could lay
aside Calendar Number 1025.
THE PRESIDENT: The bill is laid
aside, Senator.
SENATOR SKELOS: Is there any
housekeeping at the desk?
THE PRESIDENT: There is one
motion.
Senator Fuschillo.
SENATOR FUSCHILLO: Madam
President, on page 10 I offer the following
amendments to Calendar Number 248, Senate
Print Number 3162B -
THE PRESIDENT: Go ahead,
3130
Senator.
SENATOR FUSCHILLO: Thank you,
Madam President.
-- and ask that said bill retain
its place on the Third Reading Calendar.
THE PRESIDENT: The amendment is
received, and the bill will retain its place
on Third Reading Calendar.
Senator Fuschillo.
SENATOR FUSCHILLO: Thank you,
Madam President.
THE PRESIDENT: Thank you.
SENATOR FUSCHILLO: On page 40, I
offer the following amendments to Calendar
Number 821, Senate Print Number 4537, and ask
that said bill retain its place on the Third
Reading Calendar.
THE PRESIDENT: The amendment is
received, Senator Fuschillo, and the bill will
retain its place on Third Reading Calendar.
Senator Skelos.
SENATOR SKELOS: There being no
further business, Madam President, I move we
adjourn until Wednesday, May 19, at 11:30 a.m.
11:30 a.m., Senator Duane.
3131
THE PRESIDENT: On motion, the
Senate stands adjourned until Wednesday,
May 19th, at 11:30 a.m.
(Whereupon, at 3:39 p.m., the
Senate adjourned.)