Regular Session - January 11, 2000

                                                              66



                           NEW YORK STATE SENATE





                          THE STENOGRAPHIC RECORD









                             ALBANY, NEW YORK

                             January 11, 2000

                                 1:03 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.

                            Would 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:    In the absence of

                 clergy, could everyone please bow your heads

                 in a moment of silence.

                            (Whereupon, the assemblage

                 respected a moment of silence.)

                            THE PRESIDENT:    Reading of the

                 Journal.

                            THE SECRETARY:    In Senate,

                 Monday, January 10th, the Senate met pursuant

                 to adjournment.  The Journal of Sunday,

                 January 9th, was read and approved.  On

                 motion, Senate adjourned.

                            THE PRESIDENT:    Without

                 objection, the Journal stands approved as

                 read.

                            Senator Bruno.

                            SENATOR BRUNO:    Madam President,

                 I'd like to announce an immediate meeting of







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                 the Labor Committee in Room 332.

                            THE PRESIDENT:    There will be an

                 immediate meeting of the Labor Committee in

                 Room 332.

                            Presentation of petitions.

                            Messages from the Assembly.

                            Messages from the Governor.

                            Reports of standing committees.

                            The Secretary will read.

                            THE SECRETARY:    Senator Volker,

                 from the Committee on Codes, reports the

                 following bills:

                            Senate Print 103, by Senator

                 Volker, an act to amend the Penal Law;

                            538, by Senator DeFrancisco, an act

                 to amend the Penal Law;

                            539, by Senator DeFrancisco, an act

                 to amend the Criminal Procedure Law;

                            760, with amendments, by Senator

                 Johnson, an act to amend the Penal Law;

                            809, by Senator Volker, an act to

                 amend the Penal Law;

                            853A, by Senator Balboni, an act to

                 amend the Civil Rights Law;

                            1232A, by Senator Wright, an act to







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                 amend the Penal Law;

                            1588, by Senator Johnson, an act to

                 amend the Criminal Procedure Law;

                            2005, by Senator Padavan, an act to

                 amend the Penal Law;

                            2320, by Senator Saland, an act to

                 amend the Criminal Procedure Law and the

                 Family Court Act;

                            3689, by Senator Rath, an act to

                 amend the Civil Practice Law and Rules and the

                 Executive Law;

                            3715A, by Senator Bonacic, an act

                 to amend the Penal Law;

                            4163, with amendments, by Senator

                 Johnson, an act to amend the Penal Law;

                            4259A, by Senator Hoffmann, an act

                 to amend the Penal Law and the Criminal

                 Procedure Law;

                            5706, by Senator Bonacic, an act to

                 amend the Penal Law;

                            5787, by Senator Rath, an act to

                 amend the Penal Law;

                            And 5831, by Senator Volker, an act

                 to amend the Criminal Procedure Law.

                            Senator McGee, from the Committee







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                 on Alcoholism and Drug Abuse, reports:

                            Senate Print 971, by Senator

                 Skelos, an act to amend the Vehicle and

                 Traffic Law;

                            1014, by Senator Skelos, an act to

                 amend the Vehicle and Traffic Law;

                            4113A, by Senator McGee, an act to

                 amend the Vehicle and Traffic Law;

                            4179, by Senator McGee, an act to

                 amend the Vehicle and Traffic Law;

                            4952A, by Senator McGee, an act to

                 amend the Vehicle and Traffic Law.

                            Senator Marcellino, from the

                 Committee on Environmental Conservation,

                 reports:

                            Senate Print 2543D, by Senator

                 Marcellino, an act to amend the Environmental

                 Conservation Law;

                            4810, by Senator Maltese, an act to

                 amend the Environmental Conservation Law;

                            5401, by Senator Marcellino, an act

                 to amend the Environmental Conservation Law;

                            And 5916A, by Senator Johnson, an

                 act to amend the Environmental Conservation

                 Law.







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                            Senator Trunzo, from the Committee

                 on Transportation, reports:

                            Senate Print 860, by Senator

                 Balboni, an act to amend the Vehicle and

                 Traffic Law;

                            2765, by Senator Kuhl, an act to

                 amend the Highway Law;

                            2948, by Senator Rath, an act to

                 amend the Vehicle and Traffic Law;

                            3665, by Senator Maziarz, an act to

                 amend the Vehicle and Traffic Law;

                            4408A, by Senator Trunzo, an act to

                 amend the Public Authorities Law;

                            And 5577, by Senator Trunzo, an act

                 to amend the Public Authorities Law.

                            All bills ordered direct to third

                 reading.

                            THE PRESIDENT:    Without

                 objection, all bills reported direct to third

                 reading.

                            Reports of select committees.

                            Communications and reports from

                 state officers.

                            Motions and resolutions.

                            Senator Meier.







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                            SENATOR MEIER:    Madam President,

                 I move that the following bill be discharged

                 from its committee and be recommitted with

                 instructions to strike the enacting clause:

                 Senate 5439.

                            THE PRESIDENT:    So ordered.

                            Senator Dollinger.

                            SENATOR DOLLINGER:    Thank you,

                 Madam President.

                            I'd like to move, on behalf of

                 Senator Breslin, that the following bills be

                 discharged from their respective committees

                 and recommitted with instructions to strike

                 the enacting clause:  Senate 2846 and Senate

                 2847.

                            Thank you, Madam President.

                            THE PRESIDENT:    So ordered.

                            Senator Bruno.

                            SENATOR BRUNO:    Madam President,

                 can we at this time adopt the Resolution

                 Calendar.

                            THE PRESIDENT:    All in favor of

                 adopting the Resolution Calendar signify by

                 saying aye.

                            (Response of "Aye.")







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                            THE PRESIDENT:    Opposed, nay.

                            (No response.)

                            THE PRESIDENT:    The Resolution

                 Calendar is adopted.

                            Senator Bruno.

                            SENATOR BRUNO:    Madam President,

                 can we take up the noncontroversial calendar.

                            THE PRESIDENT:    The Secretary

                 will read.

                            THE SECRETARY:    Calendar Number

                 1, by Senator Bruno, Senate Print 7, an act to

                 amend the State Finance Law, in relation to

                 changing the state fiscal year to May 1st

                 through April 30th.

                            SENATOR PATERSON:    Lay it aside.

                            THE PRESIDENT:    The bill is laid

                 aside.

                            The Secretary will read.

                            THE SECRETARY:    Calendar Number

                 6, by Senator Bruno, Senate Print 6,

                 concurrent resolution of the Senate and

                 Assembly proposing amendments to Article 7 of

                 the Constitution.

                            THE PRESIDENT:    The Secretary

                 will call the roll on the resolution.







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                            SENATOR DOLLINGER:    Lay it aside.

                            THE PRESIDENT:    The resolution is

                 laid aside.

                            SENATOR DOLLINGER:    Thank you,

                 Madam President.

                            THE PRESIDENT:    Senator Bruno,

                 that completes the reading of the

                 noncontroversial calendar.

                            SENATOR BRUNO:    Madam President,

                 can we at this time take up the controversial

                 calendar.

                            THE PRESIDENT:    The Secretary

                 will read.

                            THE SECRETARY:    Calendar Number

                 1, by Senator Bruno, Senate Print 7, an act to

                 amend the State Finance Law, in relation to

                 changing the state fiscal year to May 1st

                 through April 30th.

                            THE PRESIDENT:    Senator Paterson.

                            SENATOR PATERSON:    Madam

                 President, might we have an explanation on

                 that bill?

                            THE PRESIDENT:    Senator Bruno, an

                 explanation has been requested.

                            SENATOR BRUNO:    Thank you, Madam







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                 President.

                            The bill before us relates to the

                 budget process here in this state, and it

                 recognizes that the people of this state are

                 tired of excuses for late budgets.  Fifteen

                 years in a row we have had late budgets in

                 this state.  The people of this state deserve

                 more.

                            So this legislation before us

                 starts the budget process in the middle of

                 November, dealing with the revenues and the

                 expenditures of major areas such as health

                 care, education.  And it designates that the

                 Governor would submit his budget by, instead

                 of the end of January, January 15th.  It

                 shortens the 30-day amendment period from 30

                 days to 15 days.

                            And it allows the deliberations to

                 go forward between the Assembly and the Senate

                 on what is available to budget.  If we can't

                 come to an agreement by March 1st, then the

                 Comptroller would establish what is available

                 for us to budget.

                            Conference committees then would

                 meet after the separate houses pass their own







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                 resolutions or their own separate budgets.  We

                 would then go to conference committee the

                 middle of March, March 15th, and that process

                 would take place.  If we come to an agreement,

                 we'll have a budget by April 1st, April 2nd.

                            If we don't come to an agreement -

                 and this is what is operative in this

                 legislation, is that by May 1st, if we can't

                 come to an agreement, the people of this state

                 would have a budget, and it would be last

                 year's budget that had been negotiated in

                 public, in an open forum, that would become

                 the budget for the people of the state until

                 we did something different.

                            It also includes, in this budget

                 reform package, establishing 5 percent of the

                 General Fund as a reserve to be responsible

                 and prudent, as a rainy day fund.  And it also

                 establishes that as a result of the

                 conference-committee approach to the budget

                 that we have a three-year fiscal plan that

                 deals with the ramifications of what we

                 legislate and create as a budget for the

                 people of this state.

                            It's an excellent proposal.  The







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                 Assembly has a proposal, they have a task

                 force that is presently out, has been studying

                 the budget process for weeks.  I talked to the

                 Speaker a short while ago, and he indicates

                 that they expect a report out in a week or

                 two.  So we look forward to working with them

                 to implement a budget reform proposal

                 together.

                            Thank you, Madam President.

                            THE PRESIDENT:    Senator Connor.

                            SENATOR CONNOR:    Thank you, Madam

                 President.

                            I'm going to vote for this.  If

                 anyone hasn't noticed -- you got me.  If

                 anyone hasn't noticed that the process is

                 broken, then they haven't been around for the

                 last 15 or 20 years.  And we do have to take

                 steps to restore credibility.

                            When I saw the original proposal, I

                 thought, aha, I can think of a great

                 amendment, because what do you do in the

                 default process if you have a projected

                 deficit?  I learned yesterday that I guess the

                 Comptroller had the same comment.

                            And to his credit, Senator Bruno







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                 has added a provision for across-the-board

                 cuts, which was going to be my proposal.

                 Because I don't think in the default process

                 there should be any policy choices.  The whole

                 point is you're not making a budget.  You want

                 to make policy choices, you want to prefer one

                 thing, you want to set priorities, that's what

                 you do when you make a budget.  If you don't

                 make a budget, you're stuck with the policy

                 choices that were made the last time out.

                            But we will be offering -- Senator

                 Dollinger will be offering an amendment, and

                 Senator Stachowski will -- and if he's not

                 here by then, I'll offer it -- to address a

                 couple of concerns.

                            One of which, I have to say, Madam

                 President, Senator Bruno's bill does something

                 that I think perhaps was unanticipated, the

                 way Majorities think around this Capitol.  But

                 it perpetuates sort of a three-men-in-a-room

                 mentality.  Because if we look at the current

                 revenue-forecasting process, all four leaders

                 and their staffs are involved in the current

                 process.

                            Under Senator Bruno's proposal,







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                 only the two Majorities and their staffs would

                 participate in the financial information

                 review, in the avails meeting in December, and

                 in the consensus forecast.  And I think that's

                 the wrong direction.

                            I mean -- and I can't speak for

                 Assemblyman Faso, but I suspect he has

                 learned, as I have, what it means to be in the

                 Minority, and that even though you participate

                 in these processes, you obviously don't call

                 the shots.  But it is important.  I think it's

                 important to the credibility of the process.

                 It's certainly important to the public

                 perception of the Legislature that all the

                 members of both houses have representation in

                 this process.

                            We have it now.  We have it now in

                 the revenue-forecasting process.  And this

                 bill would change that.  This bill would not

                 allow participation by the Minority staffs and

                 the Minority Leaders.

                            So our amendment -- and I know

                 Senator Bruno is a fair man, so this may be

                 the first time an amendment is accepted in a

                 long while -- we would simply provide for the







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                 participation of both Minorities' staffs in

                 the financial-information review in November,

                 in the December avails meeting, and in

                 preparing the consensus forecast.

                            So Senator -- I would yield to

                 Senator Dollinger -- well, oh, Senator

                 Stachowski is here.  I would yield to Senator

                 Stachowski to present his amendment.

                            THE PRESIDENT:    Senator

                 Stachowski.

                            SENATOR STACHOWSKI:    Madam

                 President, I believe I have an amendment at

                 the desk.

                            THE PRESIDENT:    Do you wish to

                 waive the reading, Senator, and explain it?

                            SENATOR STACHOWSKI:    I'll waive

                 the reading.  And a short explanation, please.

                            THE PRESIDENT:    Go ahead.

                            SENATOR STACHOWSKI:    Madam

                 President, my amendment merely, as Senator

                 Connor has mentioned, would ask that, as

                 currently is the practice, that the Minorities

                 in both houses would be part of the economic

                 forecast, and in this case also add the

                 Minorities to the economic report.







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                            It's a practice that goes on

                 currently.  I don't think that when the

                 Majority Leader drafted his bill he meant to

                 exclude the Minorities from the economic

                 forecast.  I've got to believe it was an

                 oversight.  And this amendment would take care

                 of that oversight and leave the

                 economic-forecast part of the budget process

                 as it currently is, with getting a diverse

                 view.

                            And of course, then again, the only

                 thing I can think of is maybe he took us out

                 because our forecast was the most accurate

                 just this past year.  So that could be the

                 reason.  I don't know.

                            But other than that, I just think

                 it was an oversight.  And hopefully this

                 amendment will pass, and I urge its adoption.

                            THE PRESIDENT:    On the amendment,

                 all those in favor signify by saying aye.

                            SENATOR CONNOR:    Party vote in

                 the affirmative.

                            SENATOR BRUNO:    Party vote in the

                 negative.

                            THE PRESIDENT:    The Secretary







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                 will call the roll on a party vote.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 21.  Nays,

                 33.  Party vote.

                            THE PRESIDENT:    The amendment is

                 defeated.

                            Senator Dollinger.

                            Senator Bruno first, excuse me.

                            SENATOR BRUNO:    I would like to,

                 on that amendment, just explain, Madam

                 President, that some great thoughts and some

                 great ideas come forward in this chamber as we

                 deliberate.  And as I listened, I had a great

                 idea, that the Minority be included in the

                 discussions when we get to the avail question.

                            And we're going to incorporate

                 that, and I'm going to ask the staff to put

                 together some kind of an amendment or some

                 legislation so that when this bill is amended

                 eventually, as it will be, that we incorporate

                 the thoughts that are representative in this

                 chamber.

                            Thank you, Madam President.

                            SENATOR CONNOR:    Thank you.

                            (Applause.)







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                            THE PRESIDENT:    Senator

                 Dollinger.

                            SENATOR DOLLINGER:    Thank you,

                 Madam President.

                            Is it possible after 40 years to

                 say we're on a roll?

                            (Laughter.)

                            SENATOR DOLLINGER:    No, I didn't

                 think so.

                            Madam President, I also have an

                 amendment at the desk.  I'd waive its reading

                 and ask that I be heard on the amendment.

                            THE PRESIDENT:    Go ahead,

                 Senator.

                            SENATOR DOLLINGER:    Madam

                 President, this bill that's about to roll off

                 the line here in the Senate is a good bill.

                 It has got lots of good things in it.  I just

                 have a little suggestion via this amendment

                 that would put a final little bit of spit and

                 polish on this car before we roll it over to

                 the Assembly line.  Which is I think what

                 happens, it goes from the Senate to the

                 Assembly line.

                            This is an amendment that will set







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                 up a time frame under which we trigger the

                 creation of the joint conference committees.

                 Under this amendment, 21 days prior to the

                 start of each new fiscal year, the Senate and

                 the Assembly shall adopt budget resolutions

                 indicating the preference of each house as to

                 the next fiscal year's budget.

                            The adoption of these budget

                 resolutions become the triggering event that

                 calls for the convening of the joint

                 conference committee on the budget.  It's

                 simply a technical amendment that says we

                 won't allow the failure of the houses to pass

                 budget resolutions to stall the deliberation

                 of the joint conference committee to get the

                 budget done on time.

                            Senator Bruno, I commend you, as I

                 have previously on this floor, for chartering

                 the whole concept of joint conference

                 committees.  This is something we had never

                 done before.  It was certainly not done under

                 your predecessor.  It happened when you came,

                 it has continued to happen.  In my judgment,

                 it ought to happen more frequently.  But I'm

                 pleased that it does happen.







                                                          85



                            But I think the critical thing we

                 have to do is avoid the possibility of

                 stalemate, that both sides or one side would

                 simply say, "We're not satisfied," or "We

                 don't want to put forward our budget agenda,"

                 and therefore they don't pass the budget

                 resolution.  And as a consequence, we end up

                 stalled in the creation of joint conference

                 committees because there is no budget

                 resolution from the Senate or no similar

                 budget resolution from the Assembly.

                            This bill would be self-policing.

                 Because I have no doubt that if we amended

                 this law and put in this provision, if for

                 some reason the Senate didn't pass their

                 budget on time, the Minority would be doing

                 what occasionally we do, raising perhaps a

                 suggestion that you weren't doing your

                 responsibilities on time.

                            Similarly, if the Assembly didn't

                 do it on time, I have no doubt that the

                 Minority there would provide a political check

                 to make sure that the budget process works.

                            But it won't work unless we put in

                 a trigger date that would require both houses







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                 to pass their form of budget resolution 21

                 days prior to the start of the fiscal year and

                 give the joint conference committee plenty of

                 time to iron out those issues.

                            I think this bill is a good step.

                 This is the spit and polish that will make it

                 even more appealing to our colleagues in the

                 Assembly -- and, frankly, give us the ability

                 to drive the budget process better in the

                 future.

                            I move the amendment, Madam

                 President.

                            THE PRESIDENT:    On the amendment,

                 all those in favor signify by saying aye.

                            SENATOR CONNOR:    Party vote in

                 the affirmative.

                            SENATOR BRUNO:    Party vote in the

                 negative.

                            THE PRESIDENT:    The Secretary

                 will call the roll on a party vote.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 22.  Nays,

                 34.  Party vote.

                            THE PRESIDENT:    The amendment is

                 defeated.







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                            Read the last section.

                            THE SECRETARY:    Section 11.  This

                 act shall take effect upon the effective date

                 of the amendments to the Constitution

                 contained in a concurrent resolution.

                            THE PRESIDENT:    Call the roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 56.

                            THE PRESIDENT:    The bill is

                 passed.

                            The Secretary will read.

                            THE SECRETARY:    Calendar Number

                 6, by Senator Bruno, Senate Print 6,

                 concurrent resolution of the Senate and

                 Assembly proposing amendments to Article 7 of

                 the Constitution.

                            THE PRESIDENT:    Senator Bruno.

                            SENATOR BRUNO:    Can I ask for an

                 immediate meeting of the Children's and

                 Families Committee in Room 332.

                            THE PRESIDENT:    There will be an

                 immediate meeting of the Children's and

                 Families Committee in Room 332.

                            Call the roll on the resolution.

                            SENATOR DOLLINGER:    Explanation,







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                 please.

                            THE PRESIDENT:    Senator Bruno, an

                 explanation has been requested by Senator

                 Dollinger.

                            SENATOR BRUNO:    Madam President,

                 this resolution is what establishes the budget

                 that would go into place on May 1st by

                 default.  If the Legislature, through its

                 conference process, doesn't get together by

                 that date, then the people of this state would

                 have an automatic budget that would go into

                 place on May 1st.

                            THE PRESIDENT:    Senator

                 Dollinger.

                            SENATOR DOLLINGER:    Thank you,

                 Madam President.  Just a couple of questions,

                 if I could, through you, to the sponsor.

                            THE PRESIDENT:    Senator Bruno, do

                 you yield?

                            SENATOR BRUNO:    Yes, Madam

                 President.

                            THE PRESIDENT:    You may proceed,

                 Senator Dollinger.

                            SENATOR DOLLINGER:    Thank you,

                 Madam President.







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                            Through you, was this

                 constitutional amendment submitted to the

                 Attorney General for his review and comment?

                            SENATOR BRUNO:    I believe our

                 counsels -- who are extremely capable,

                 competent, qualified, as all of our counsels

                 have been through the ages -- have talked with

                 whomever they thought was appropriate to make

                 sure this met the constitutional test.  I

                 don't know that they specifically got a

                 sign-off by the Attorney General.

                            SENATOR DOLLINGER:    Okay.

                 Through you, Madam President.

                            And, Senator Bruno, excuse me,

                 because I don't have the history in the house

                 that you do.  But is it customary that we

                 would do an amendment to the Constitution, a

                 resolution amending the Constitution, without

                 some written approval from the Attorney

                 General?

                            SENATOR BRUNO:    Senator, based on

                 your remarks and your question, we have just

                 had a sign-off by the Attorney General, who

                 says that this is the way to go.

                            Thank you, Senator.







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                            (Laughter.)

                            SENATOR BRUNO:    We aim to please,

                 Madam President.  That happens to be a matter

                 of fact.

                            Does that answer your question?

                            SENATOR DOLLINGER:    It does,

                 Madam President.

                            THE PRESIDENT:    Senator

                 Dollinger, do you wish to be heard?

                            SENATOR DOLLINGER:    Yes, Madam

                 President.

                            I'll just make one very brief

                 comment on the bill.  I made it in the Finance

                 Committee, I think, when we talked about this

                 bill.  My concern about this bill is that

                 under it we are ceding an enormous power to

                 the Governor when we allow him to take the

                 default budget and alter the operation of law

                 of certain portions of the budget.

                            The way the amendment reads -- and

                 we talked about this, I believe, in the Rules

                 Committee or the Finance Committee when we

                 reviewed it -- is that this bill authorizes

                 the Governor to modify the operation of law in

                 order to meet the requirements of the default







                                                          91



                 budget, which he has complete prerogative

                 over.

                            I would just suggest that in a

                 house which prides itself on its prerogatives

                 and which prides itself on its coequal status

                 as one of the three legs of the stool that

                 makes this government work, I would suggest

                 that two of those legs are, if they pass this

                 resolution and this constitutional amendment,

                 are ceding an enormous power to the Executive,

                 and one that I daresay, when the Executive

                 begins to modify the default budget without

                 the approval of any member of either body,

                 when he unilaterally begins to repeal and to

                 modify state law without the power and

                 approval of this body, I would suggest that

                 that's a dangerous, dangerous way to go.

                            I think that we already have one of

                 the most powerful governors in the nation in

                 terms of his prerogatives of line-item vetoes

                 and other things.  But we are giving him an

                 enormous power to unilaterally change laws

                 that are created only with the majority of

                 this house's concurrence.  And I would suggest

                 that that's a very dangerous thing to do.







                                                          92



                            This bill has some very good things

                 in it, but I think that's far too much power

                 to cede any one person.  I'll vote no.

                            THE PRESIDENT:    Senator Bruno.

                            SENATOR BRUNO:    By way of

                 information, Madam President, the Governor

                 only has that prerogative if we are in a

                 deficit situation when that budget kicks in,

                 and only if the Legislature has failed to

                 negotiate and enact a budget on its own.  So

                 that is a great compulsion for us to be

                 successful in our negotiations.

                            Thank you, Madam President.

                            THE PRESIDENT:    Senator Connor.

                            SENATOR CONNOR:    Madam President,

                 if Senator Bruno would yield to a question.

                            THE PRESIDENT:    Senator Bruno, do

                 you yield for a question?

                            SENATOR BRUNO:    Yes, Madam

                 President.

                            THE PRESIDENT:    Go ahead, Senator

                 Connor.

                            SENATOR CONNOR:    Thank you, Madam

                 President.

                            Is it true to say that under this







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                 concurrent resolution, should this become part

                 of the Constitution, the Governor would have

                 no discretion in reducing -- in going to the

                 default budget in situations where it was

                 necessary to reduce the expenditures because

                 of a forecast?  He would have no discretion,

                 it would just be an administrative thing to

                 across the board reduce it by a percentage to

                 account for the deficit?

                            SENATOR BRUNO:    As you stated, it

                 would be so.

                            THE PRESIDENT:    Senator Paterson.

                            SENATOR PATERSON:    Madam

                 President -

                            THE PRESIDENT:    Is this on the

                 bill, Senator?

                            SENATOR PATERSON:    On the bill.

                            THE PRESIDENT:    Go ahead.

                            SENATOR PATERSON:    We have a

                 quadrennial referendum on issues and

                 presumably policy when we hold elections in

                 this state.  What I'm afraid of is that a

                 change in leadership around the state would

                 give an unfair advantage to those who are in

                 position to block a budget from passing,







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                 thereby instituting this alternative

                 procedure, which then becomes a policy rather

                 than something that actually assists us.

                            Though the legislation may have

                 been intended as a stopgap maneuver to make

                 sure that our debt is paid on time, the

                 phrasing of "the failure of the Legislature to

                 pass the budget" connotes that there was

                 actually a human failure -- in other words,

                 that there was some kind of incompetence or

                 inability to actually put a budget together -

                 when actually what it is is a protracted

                 different in policy.

                            Now, I think that there are a

                 number of ways to speed up the budget process,

                 as I've said over and over, including making

                 everyone sit here until it passes, which would

                 be far preferable than putting into procedure

                 something that would actually fulfill the

                 policy needs of some and would actually hurt

                 what would be the ideological point of view of

                 others.

                            So I don't see any way that I can

                 vote for legislation such as this, because -

                 while it may disappoint some that I can't vote







                                                          95



                 for it -- the fact is that it creates a notion

                 that we are solving a problem that's being

                 caused by human failure rather than that it's

                 being caused by the inability of humans to

                 agree.

                            THE PRESIDENT:    Senator Connor.

                            SENATOR CONNOR:    Madam President,

                 I -- while I'm not firmly opposed to a default

                 provision, the way this constitutional

                 amendment is written I find rather confusing,

                 because it allows the Governor to make the

                 determination for the fiscal year that monies

                 and receipts available are less than monies

                 and receipts available for the preceding year.

                            When I thought in the reform -- in

                 the reform legislation we just did, we threw

                 the revenue in the absence of an agreed-upon

                 consensus revenue forecast.  Under Senator

                 Bruno's legislation, the Comptroller makes the

                 revenue forecast as a binding revenue

                 forecast.

                            And I would think that this

                 provision should say, instead of saying "on a

                 determination made by the Governor," it should

                 say "on a determination made by the







                                                          96



                 Comptroller that there's insufficient funds"

                 irreducibly.

                            Later the Governor is bound in

                 doing that?  Okay, it's in there.  Thank you.

                            THE PRESIDENT:    The Secretary

                 will call the roll.

                            Senator Schneiderman, excuse us.

                            SENATOR SCHNEIDERMAN:    Thank you,

                 Madam President.  If Senator Bruno would yield

                 for one final question.

                            THE PRESIDENT:    Senator, do you

                 yield?

                            SENATOR BRUNO:    Yes, Madam

                 President.

                            THE PRESIDENT:    Go ahead, Senator

                 Schneiderman.

                            SENATOR SCHNEIDERMAN:    Thank you.

                            Am I correct in understanding that

                 if there is a surplus, that money would all go

                 into a reserve fund?  The Governor would not

                 have the authority under this to raise

                 spending or have discretion to raise spending

                 in a default situation, but would have

                 authority, if there was a deficit, to cut

                 spending; is that correct?







                                                          97



                            SENATOR BRUNO:    That is correct,

                 Senator.

                            SENATOR SCHNEIDERMAN:    So in

                 essence, what we're enacting here is a one-way

                 ratchet towards smaller government which may

                 in fact be a political agenda; is that

                 correct?

                            SENATOR BRUNO:    That is

                 incorrect, Senator.

                            (Laughter.)

                            SENATOR SCHNEIDERMAN:    Well, one

                 out of two isn't bad, I suppose.

                            On the bill, Madam President.

                            Thank you, Senator Bruno.

                            On the bill -

                            THE PRESIDENT:    Go ahead,

                 Senator.  On the resolution?

                            SENATOR SCHNEIDERMAN:    On the

                 resolution, excuse me.

                            I do have the same concern about

                 ceding power to the Governor.  We've had

                 governors who were not terribly -- of both

                 parties who were not terribly cooperative with

                 the Legislature and pursued other agendas.

                            I also do have a concern that this







                                                          98



                 is -- some people believe that it's been the

                 policy of some in government to create

                 structural deficits for strategic political

                 purposes and to make it impossible to advance

                 spending on issues that some of us believe are

                 very important, on programs that we believe

                 are very important for the long-term growth

                 and social health and stability of our nation.

                 And I am concerned that there is a

                 one-way-ratchet aspect of this.

                            I think we are wrestling around

                 with very difficult issues here.  I'm going to

                 vote against the resolution.  But again, I

                 have to acknowledge that this is the most

                 serious effort to address these problems that

                 we've seen in a long time, and I do have to

                 commend Senator Bruno and the Majority for

                 that.

                            THE PRESIDENT:    Senator Duane.

                            SENATOR DUANE:    Thank you very

                 much.  Actually just on the bill, Madam

                 President.

                            It just -- it seems to me that

                 there should be some in-between, just sort of

                 a gentlepersons' agreement on the timing of







                                                          99



                 the bill and actually taking the drastic step

                 of changing the Constitution.  There are many

                 things which we could do by statute and not go

                 to the lengths of changing the Constitution.

                 But really, this is just a matter of us doing

                 our jobs.  And that's really what the issue is

                 here.

                            Thank you, Madam President.

                            THE PRESIDENT:    Senator

                 Dollinger.

                            SENATOR DOLLINGER:    I'll yield to

                 Senator Connor, Madam President.

                            THE PRESIDENT:    Senator Connor.

                            SENATOR CONNOR:    Madam President,

                 this is sort of a work in process as I think

                 this out.  But it just hit me -- and I know

                 it's difficult to come up with a default

                 budget, you know, that doesn't create

                 problems.

                            The obvious one is if one party to

                 the negotiations feels they made out

                 particularly well last year and this year is

                 going to be a tough year for whatever they

                 advocate, then stop the process and rest on

                 your laurels from the year before.







                                                          100



                            But I suppose what this really

                 says, if you think about it, is in 1994 George

                 Pataki -- had this been law when George Pataki

                 won an election -- he became governor in 1995.

                 He at least says that he then proposed a

                 budget that was radically different than in

                 the past.  Certainly we had a long budget

                 battle then.  There was clearly a change in

                 philosophy on the second floor.  Yet the

                 Democrats controlled the Assembly and weren't

                 happy with the Governor's proposals.  And

                 under this, they would have had to merely

                 stand pat and they get Mario Cuomo's last

                 budget?  No?

                            And then when you go forward, as

                 you go forward, because none of those tax cuts

                 that we just heard the Governor go on and on

                 and on about -- what is it, six pages in the

                 back of the book? -- would have ever taken

                 effect.  And by the way, I didn't agree

                 with -- I certainly opposed a lot of what

                 Governor Pataki proposed that year.  Yet it

                 was the recognition that the public had

                 elected him Governor.

                            And I think when we try and tinker







                                                          101



                 with this, it's just not as easy as we think.

                 I think particularly in that case, where

                 there's a new Governor and/or a change -- I

                 know this hasn't happened in a while, Madam

                 President, but in the theoretical possibility

                 that there's a change in control, partisan

                 control of one of the houses of the

                 Legislature, it allows the other house, if

                 it's in other hands, to just -- or the

                 Governor, or whatever, any one of the three

                 players -- to just call a halt and get the

                 benefit of their political position of a year

                 before.

                            Democrats could have stopped Pataki

                 in his tracks in '95 and gotten the benefit of

                 the choices they got under Governor Cuomo as a

                 default budget.  And if you look at that

                 year's cuts in Medicaid, in Medicaid cost

                 containment, the new tax cuts, that could have

                 all been thwarted had this been law.

                            So I commend the Majority for

                 bringing this out, but I think it requires

                 further thought.  Because that really poses

                 not just how are we going to solve the budget

                 problems, that proposes serious governmental







                                                          102



                 philosophical problems.  I daresay I don't

                 think the Majority in this house would have

                 been happy having the last Cuomo budget

                 perpetuated for another year.  At least that's

                 not what they were saying in 1995.

                            THE PRESIDENT:    Senator Onorato.

                            SENATOR ONORATO:    Madam

                 President, would Senator Bruno yield to a

                 question, please?

                            THE PRESIDENT:    Senator Bruno, do

                 you yield?

                            SENATOR BRUNO:    Yes, Madam

                 President.

                            THE PRESIDENT:    Go ahead,

                 Senator.

                            SENATOR ONORATO:    I'm a little

                 confused regarding what happens if both houses

                 agree to the budget and the Governor himself

                 rejects the resolved budget of both the

                 Assembly and the Senate and the Governor

                 rejects the budget in total.  What happens

                 then?

                            SENATOR BRUNO:    Then of course

                 our present prerogative is for us jointly to

                 override the Governor's veto.  And then you







                                                          103



                 have a budget for the people of this state.

                            But if we fail to do that, then

                 this budget would go into effect on May 1st.

                            SENATOR ONORATO:    Regardless of

                 the fact that both houses agreed to the

                 budget?

                            SENATOR BRUNO:    Yes, because we

                 won't have a budget for the people of this

                 state that is the law on behalf of the people

                 of this state.

                            But we always have the prerogative

                 of overriding the Governor's vetoes if, as you

                 describe, we all had agreed on a budget.

                            SENATOR ONORATO:    Thank you.

                            THE PRESIDENT:    Senator

                 Dollinger.

                            SENATOR DOLLINGER:    Madam

                 President, just one final question to make

                 sure that I fully understand this.  Through

                 you to the Majority Leader, if he would yield.

                            THE PRESIDENT:    Senator Bruno, do

                 you yield?

                            SENATOR BRUNO:    Yes, Madam

                 President.

                            THE PRESIDENT:    Go ahead, Senator







                                                          104



                 Dollinger.

                            SENATOR DOLLINGER:    Under this

                 proposal, if the default budget takes effect,

                 would the Legislature have the ability to cut

                 additional spending during the course of the

                 year?

                            SENATOR BRUNO:    Yes.

                            SENATOR DOLLINGER:    Where is that

                 in the amendment?

                            SENATOR BRUNO:    That's the

                 prerogative of the Legislature at any time

                 after a budget has been enacted in this state.

                            SENATOR DOLLINGER:    Would the

                 Legislature -- through you, Madam President,

                 if Senator Bruno would continue to yield.

                            Would the Legislature have the

                 prerogative of sending additional budget bills

                 to the Governor that increased spending beyond

                 the default budget?

                            SENATOR BRUNO:    With the

                 Governor's consent, yes.

                            SENATOR DOLLINGER:    Correct.

                            Just so I make sure I understand

                 it, the default budget occurs and the Governor

                 has no role in that; his only job then becomes







                                                          105



                 as an administrator to balance off his

                 revenues and his expenses as he deems fit,

                 without legislative approval.  And if there's

                 more money and then we still default, then the

                 extra money beyond last year's expenses go

                 into a fund to be used for some other day?

                            SENATOR BRUNO:    That is correct.

                 That's exactly right.  You have a great

                 understanding of this legislation.

                            SENATOR DOLLINGER:    Well, I'm

                 just trying to make sure I do.

                            But the Governor would have the

                 ability, if he vetoed both the budget bills,

                 and there were more -

                            THE PRESIDENT:    Senator, are you

                 asking the Senator to continue to yield?

                            SENATOR DOLLINGER:    Yes, I am,

                 Madam President.  Excuse me.

                            SENATOR BRUNO:    Thank you, Madam

                 President.

                            SENATOR DOLLINGER:    It's a work

                 in progress.  A thought in progress, too.

                            SENATOR BRUNO:    I thought he was

                 thinking out loud.

                            THE PRESIDENT:    Senator Bruno, do







                                                          106



                 you continue to yield?

                            SENATOR BRUNO:    Yes, I do, Madam

                 President.

                            THE PRESIDENT:    Senator

                 Dollinger, do you have a question?

                            SENATOR DOLLINGER:    I do, Madam

                 President, if Senator Bruno will continue to

                 yield.

                            THE PRESIDENT:    Go ahead.

                            SENATOR DOLLINGER:    If the

                 Governor vetoes the budget and it has

                 additional spending in it, that money goes

                 into the fund and it would be up to the

                 Legislature, then, if the Legislature could

                 send him back additional budget bills, at the

                 end of the process to spend that additional

                 money?

                            SENATOR BRUNO:    Yes.  Yes.

                            SENATOR DOLLINGER:    Madam

                 President, I spoke earlier about the bill

                 because I thought it gave the Governor too

                 much power in the process of manipulating and

                 changing laws that this body enacted.  He can

                 do it unilaterally in positions of deficit.

                            I think in the dynamics that we







                                                          107



                 just discussed, we're also giving the Governor

                 an enormous power to control us in a position

                 where we would have a surplus.  We are

                 fundamentally altering, in my judgment, the

                 power of the Legislature by this amendment.

                            That may be the Majority's intent.

                 But in the years that I've been here, I've

                 never heard that before.  This is a

                 revolutionary concession of power to the

                 Governor.  I still think it's a bad idea.

                            THE PRESIDENT:    The Secretary

                 will call the roll on the resolution.

                            (The Secretary called the roll.)

                            THE PRESIDENT:    Senator Paterson,

                 do you wish to explain your vote?

                            SENATOR PATERSON:    Madam

                 President, to explain my vote.

                            THE PRESIDENT:    Go ahead.

                            SENATOR PATERSON:    The

                 irresponsibility of this resolution, though it

                 may be intended to cure a problem, does not

                 err in its fiscal inaccuracy, but it is really

                 unfair to the voters of this state.

                            As I said before, every four years

                 we have a referendum on position and







                                                          108



                 presumably policy.  Any kind of action that we

                 would take in this Legislature which in any

                 way would diminish what would be the will of

                 the voters -- and after that, Senator Connor

                 got up and gave a very good example of it, the

                 1994 elections -- would actually be a tool

                 that would establish permanent government

                 rather than continuing government.  Which is

                 what I think we go to the polls every year to

                 aver, that we want our elected officials to

                 change with whatever would be the elements

                 that would supersede what happened the

                 previous year and to enact those changes into

                 firm policy.

                            This bill is a step in the opposite

                 direction.  It actually would negate the

                 opportunity to use any kind of flexibility for

                 that purpose, based on a presumption that we

                 can't pass a budget on time -- for which there

                 are many alternatives, none of them that would

                 conflict with our electoral process.

                            I vote no, Madam President.

                            THE PRESIDENT:    Senator Connor,

                 do you wish to be heard?

                            SENATOR CONNOR:    I'd like to







                                                          109



                 explain my vote further and just point out

                 something I forgot to mention before.

                            As I read all this, if this all

                 became law and we went to a default budget,

                 legislators would never get paid.  But nothing

                 in here obviates the law that says if we don't

                 adopt the budget -- it does?

                            SENATOR BRUNO:    Yes.

                            THE PRESIDENT:    The Secretary

                 will announce the results.

                            Senator Mendez.

                            SENATOR MENDEZ:    Madam President,

                 to explain my vote.

                            I oftentimes think that perfection

                 occurs only in heaven.  For 15 long years,

                 both houses, and the Executive branch as well,

                 have been juggling and screaming and cajoling,

                 and the end result has been a lengthy,

                 tortuous process that has not benefited the

                 residents of New York State.

                            I really -- I am not a lawyer.  All

                 these lawyers here that are constitutional

                 lawyers, so God bless them.  I suppose that

                 I'm a pragmatist, Madam President.  But I

                 believe that this is a wonderful first step.







                                                          110



                 If something goes wrong with the same three

                 activities that this change has been offered

                 to all of us, we'll go back to the drawing

                 table and redress and -- and redress whatever

                 is wrong.

                            So I for one, Madam President, I

                 want to congratulate Senator Bruno.  I am very

                 happy with this.  Because hopefully it would

                 force all the 261 legislators, okay, to really

                 get down to business and get done with the

                 work that we're supposed to get done every

                 year.

                            Thank you, Madam President.  I vote

                 yes.

                            THE PRESIDENT:    Senator

                 DeFrancisco.

                            SENATOR DeFRANCISCO:    We just

                 heard some debate that gave many, many

                 potential defects in this bill.  And they're

                 all obviously considerations that we have to

                 have.  But none of them, and all of them

                 together, don't even amount to anything close

                 to the deficit that we've experienced over the

                 last 15 years in not being able to have a

                 budget on time.







                                                          111



                            This is an excellent bill which has

                 some teeth in it so something bad happens if

                 we don't do our job.  Without that, we will

                 still go on for years to come without having

                 budgets on time.

                            Now, this bill is long overdue.

                 And what's beautiful about this bill, in my

                 judgment, is that it's a bipartisan bill.  It

                 puts the Comptroller, who happens to be a

                 Democrat at the present time, in charge of how

                 much money we have to spend.  This isn't a

                 bill concocted by Republicans to try to

                 maintain all control.  And who knows, several

                 years down the road there may be different

                 people in different parties in different

                 positions.

                            The fact of the matter is that

                 there's ample opportunity for all parties to

                 be involved in this process.  But there is

                 definitely, definitely a club hanging over all

                 of our heads if we don't do our job.

                            It's a great bill.  And there's no

                 reason that both parties should not run to the

                 Assembly to try to get the leadership there to

                 put a similar bill in place so that we could







                                                          112



                 actually have a budget process that is not

                 dysfunctional.

                            THE PRESIDENT:    Senator, you will

                 be so recorded as voting in the affirmative.

                            The Secretary will announce the

                 results.

                            THE SECRETARY:    Those recorded in

                 the negative on Calendar Number 6 are Senators

                 Connor, Dollinger, Duane, Hevesi, Onorato,

                 Paterson, Sampson, Santiago, Schneiderman,

                 Seabrook, Stachowski, Smith, and Senator

                 Stavisky.

                            Ayes, 44.  Nays, 13.

                            THE PRESIDENT:    The resolution is

                 adopted.

                            Senator Skelos.

                            SENATOR SKELOS:    Madam President,

                 if we could return to reports of standing

                 committees, I believe there's a report of the

                 Labor Committee at the desk.  I ask that it be

                 read.

                            THE PRESIDENT:    Reports of

                 standing committees.

                            The Secretary will read.

                            THE SECRETARY:    Senator Spano,







                                                          113



                 from the Committee on Labor, reports the

                 following bills:

                            Senate Print 830A, by Senator

                 Marcellino, an act to amend the Labor Law;

                            1143, by Senator Lack, an act to

                 amend the Labor Law;

                            1509, by Senator Stafford, an act

                 to amend the Labor Law;

                            2214, by Senator Farley, an act to

                 amend the Labor Law;

                            3704, by Senator Maltese, an act to

                 amend the Labor Law and the Penal Law;

                            3909, by Senator Spano, an act to

                 amend the Labor Law and the Civil Service Law;

                            4124A, by Senator Alesi, an act to

                 amend the Workers' Compensation Law;

                            And 4467A, by Senator Spano, an act

                 to amend the Labor Law.

                            Senator Alesi, from the Committee

                 on Commerce, Economic Development and Small

                 Business, reports:

                            Senate Print 550, by Senator

                 DeFrancisco, an act to amend the Economic

                 Development Law;

                            2063, by Senator LaValle, an act to







                                                          114



                 amend the Public Authorities Law;

                            3483, by Senator Alesi, an act to

                 amend the Economic Development Law and others;

                            3484, by Senator Alesi, an act to

                 amend the Economic Development Law;

                            3485, by Senator Alesi, an act to

                 amend the State Administrative Procedure Act;

                            3965, by Senator Alesi, an act to

                 amend the Economic Development Law;

                            4367, by Senator Alesi, an act to

                 amend the State Administrative Procedure Act;

                            4507, by Senator Alesi, an act to

                 amend the State Administrative Procedure Act;

                            And 4690, by Senator Alesi, an act

                 to amend the Executive Law.

                            All bills ordered direct to third

                 reading.

                            THE PRESIDENT:    Without

                 objection, all bills ordered directed to third

                 reading.

                            Senator Skelos.

                            SENATOR SKELOS:    Madam President,

                 is there any other housekeeping at the desk?

                            THE PRESIDENT:    No, there is not,

                 Senator Skelos.  We are awaiting a report of







                                                          115



                 the Children and Families Committee.

                            SENATOR SKELOS:    Yeah, there will

                 be one more committee report, and we'll stand

                 at ease pending the report of that committee.

                            THE PRESIDENT:    The Senate stands

                 at ease.

                            (Whereupon, the Senate stood at

                 ease at 1:51 p.m.)

                            (Whereupon, the Senate reconvened

                 at 1:58 p.m.)

                            SENATOR SKELOS:    Mr. President, I

                 believe there's another committee report to be

                 read at this time.

                            ACTING PRESIDENT NOZZOLIO:

                 Reports of standing committees.

                            The Secretary will read.

                            THE SECRETARY:    Senator Saland,

                 from the Committee on Children and Families,

                 reports:

                            Senate Print 587B, by Senator

                 Skelos, an act to amend the Domestic Relations

                 Law and others;

                            1031C, by Senator Saland, an act to

                 amend the Education Law;

                            1531, by Senator Johnson, an act to







                                                          116



                 amend the Domestic Relations Law;

                            And 4887, by Senator Skelos, an act

                 to amend the Domestic Relations Law.

                            All bills ordered direct for third

                 reading.

                            ACTING PRESIDENT NOZZOLIO:

                 Without objection, all bills will be

                 reported -

                            SENATOR SKELOS:    I believe there

                 were some members of the Minority that were at

                 the committee meeting that wish to vote on the

                 prior bill.

                            Senator Markowitz.

                            ACTING PRESIDENT NOZZOLIO:

                 Senator Markowitz.

                            SENATOR MARKOWITZ:    Mr.

                 President, I request approval to be recorded

                 in the negative on Calendar 6, please.

                            ACTING PRESIDENT NOZZOLIO:

                 Without objection, so recorded.

                            SENATOR MARKOWITZ:    Thank you.

                            Thank you, Dean.

                            SENATOR OPPENHEIMER:    Mr.

                 President.

                            ACTING PRESIDENT NOZZOLIO:







                                                          117



                 Senator Oppenheimer.

                            SENATOR OPPENHEIMER:    I wonder if

                 I could be recorded in the negative on

                 Resolution Number 6 today.

                            ACTING PRESIDENT NOZZOLIO:

                 Senator Oppenheimer recorded in the negative,

                 without objection.

                            SENATOR OPPENHEIMER:    Thank you.

                            ACTING PRESIDENT NOZZOLIO:

                 Senator Skelos.

                            SENATOR SKELOS:    Mr. President,

                 there being no further business, I move we

                 adjourn until Tuesday, January 18th, at

                 3:00 p.m., intervening days being legislative

                 days.

                            ACTING PRESIDENT NOZZOLIO:    On

                 motion, the Senate stands adjourned until

                 Tuesday, January 18, at 3:00 p.m., intervening

                 days being legislative days.

                            (Whereupon, at 2:00 p.m., the

                 Senate adjourned.)