Regular Session - March 21, 2000

                                                              1491



                           NEW YORK STATE SENATE





                          THE STENOGRAPHIC RECORD









                             ALBANY, NEW YORK

                              March 21, 2000

                                 3:07 p.m.





                              REGULAR SESSION







                 SENATOR THOMAS P. MORAHAN, Acting President

                 STEVEN M. BOGGESS, Secretary

















                                                          1492



                           P R O C E E D I N G S

                            ACTING PRESIDENT MORAHAN:    The

                 Senate will come to order.

                            Pledge of Allegiance.

                            (Whereupon, the assemblage recited

                 the Pledge of Allegiance to the Flag.)

                            ACTING PRESIDENT MORAHAN:    In the

                 absence of any clergy, we will bow our heads

                 in a moment of silence.

                            (Whereupon, the assemblage

                 respected a moment of silence.)

                            ACTING PRESIDENT MORAHAN:    The

                 reading of the Journal.

                            THE SECRETARY:    In Senate,

                 Monday, March 20th, the Senate met pursuant to

                 adjournment.  The Journal of Sunday,

                 March 19th, was read and approved.  On motion,

                 Senate adjourned.

                            ACTING PRESIDENT MORAHAN:

                 Without objection, the Journal stands approved

                 as read.

                            Presentation of petitions.

                            Messages from the Assembly.

                            Messages from the Governor.

                            Reports of standing committees.





                                                          1493



                            The Secretary will read.

                            THE SECRETARY:    Senator

                 Fuschillo, from the Committee on Consumer

                 Protection, reports:

                            Senate Print 902C, by Senator

                 Skelos, an act to amend the General Business

                 Law;

                            4499, by Senator Bonacic, an act to

                 amend the General Business Law;

                            4744, by Senator Fuschillo, an act

                 to amend the General Business Law;

                            6242, by Senator Skelos, an act to

                 amend the General Business Law;

                            And 6243, by Senator Johnson, an

                 act to amend the General Business Law.

                            Senator Trunzo, from the Committee

                 on Transportation, reports:

                            Senate Print 1105A, by Senator

                 Goodman, an act to amend the Vehicle and

                 Traffic Law;

                            4412C, by Senator Trunzo, an act to

                 amend the Vehicle and Traffic Law;

                            4413, by Senator Trunzo, an act to

                 amend the Public Authorities Law;

                            4491, by Senator Trunzo, an act to





                                                          1494



                 amend the Public Authorities Law;

                            5412A, by Senator Marcellino, an

                 act to amend the Vehicle and Traffic Law;

                            And 6868, by Senator Trunzo, an act

                 to amend the Vehicle and Traffic Law.

                            Senator Kuhl, from the Committee on

                 Education, reports:

                            Senate Print 6241A, by Senator

                 Velella, an act to amend the Education Law;

                            6584, by Senator Kuhl, an act to

                 amend the Education Law;

                            6669, by Senator Farley, an act in

                 relation to adjusting certain state aid

                 payments;

                            6711, by Senator Bonacic, an act in

                 relation to legalizing, validating, ratifying

                 and confirming actions of the Liberty Central

                 School District;

                            7002, by Senator Kuhl, an act to

                 amend the Education Law;

                            And 7020, by Senator McGee, an act

                 to amend a chapter of the Laws of 2000.

                            All bills ordered direct to third

                 reading.

                            ACTING PRESIDENT MORAHAN:





                                                          1495



                 Without objection, all bills reported direct

                 to third reading.

                            Reports of select committees.

                            Communications and reports from

                 state officers.

                            Motions and resolutions.

                            Senator Balboni.

                            SENATOR BALBONI:    Mr. President,

                 on page 26 I offer the following amendments to

                 Calendar Number 408, Print Number 1564, and

                 ask that said bill retain its place on the

                 Third Reading Calendar, if you please.

                            Thank you.

                            ACTING PRESIDENT MORAHAN:    The

                 amendments are received.  The bill will retain

                 its place on the calendar.

                            Senator Skelos, we have a

                 substitution.

                            SENATOR SKELOS:    Please make the

                 substitution.

                            ACTING PRESIDENT MORAHAN:    The

                 Secretary will read.

                            THE SECRETARY:    On page 29,

                 Senator Trunzo moves to discharge, from the

                 Committee on Transportation, Assembly Bill





                                                          1496



                 Number 2189 and substitute it for the

                 identical Senate Bill Number 2869, Third

                 Reading Calendar 442.

                            ACTING PRESIDENT MORAHAN:    The

                 substitution is ordered.

                            Senator Skelos.

                            SENATOR SKELOS:    Mr. President,

                 if we could adopt the Resolution Calendar in

                 its entirety.

                            ACTING PRESIDENT MORAHAN:    All

                 those in favor of adopting the Resolution

                 Calendar signify by saying aye.

                            (Response of "Aye.")

                            ACTING PRESIDENT MORAHAN:

                 Opposed, nay.

                            (No response.)

                            ACTING PRESIDENT MORAHAN:    The

                 Resolution Calendar is adopted.

                            Senator Skelos.

                            SENATOR SKELOS:    At this time if

                 we could take up the noncontroversial

                 calendar.

                            ACTING PRESIDENT MORAHAN:    The

                 Secretary will read.

                            THE SECRETARY:    Calendar Number





                                                          1497



                 19, by Senator Maziarz, Senate Print 3665A, an

                 act to amend the Vehicle and Traffic Law, in

                 relation to authorizing villages and towns.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 3.  This

                 act shall take effect on the 30th day.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 36.  Nays,

                 1.  Senator Kuhl recorded in the negative.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 20, by Senator Trunzo, Senate Print 4408A, an

                 act to amend the Public Authorities Law, in

                 relation to the recovery of lost toll revenue.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 4.  This

                 act shall take effect on the 90th day.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)





                                                          1498



                            THE SECRETARY:    Ayes, 40.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 37, by Senator Rath, Senate Print 5787A -

                            SENATOR SKELOS:    Lay it aside for

                 the day.

                            ACTING PRESIDENT MORAHAN:    Lay it

                 aside for the day.

                            THE SECRETARY:    Calendar Number

                 54, by Senator Alesi, Senate Print 4124B, an

                 act to amend the Workers' Compensation Law, in

                 relation to liability for compensation.

                            SENATOR PATERSON:    Lay it aside.

                            ACTING PRESIDENT MORAHAN:    Lay it

                 aside.

                            THE SECRETARY:    Calendar Number

                 71, by Senator Volker, Senate Print 3537A, an

                 act to amend the Criminal Procedure Law, in

                 relation to verdict sheets.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            SENATOR PATERSON:    Lay it aside,

                 please.

                            ACTING PRESIDENT MORAHAN:    Lay it





                                                          1499



                 aside.

                            THE SECRETARY:    Calendar Number

                 89, by Senator LaValle, Senate Print 5857, an

                 act to amend the Education Law, in relation to

                 removing provisions.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 3.  This

                 act shall take effect on the first day of

                 January.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 40.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 208, by Senator Saland, Senate Print 3815B, an

                 act to amend the Family Court Act, in relation

                 to dispositions.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 5.  This

                 act shall take effect on the first day of

                 November.





                                                          1500



                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 40.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 216, by Senator Bonacic, Senate Print 3908B,

                 an act to amend the Public Authorities Law, in

                 relation to the power of the State of New York

                 Mortgage Agency.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 5.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 40.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 224, by Senator Bonacic, Senate Print 3664, an

                 act to amend the Private Housing Finance Law,

                 in relation to the powers of the New York





                                                          1501



                 State Housing Finance Agency.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            I'm sorry, read the last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 42.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 230, by Senator Balboni, Senate Print 858, an

                 act to amend the Insurance Law, in relation to

                 eliminating the examination fee.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 6.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 42.

                            ACTING PRESIDENT MORAHAN:    The





                                                          1502



                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 238, by Senator Saland, Senate Print 2722, an

                 act to amend the Family Court Act, in relation

                 to evidence of child neglect.

                            SENATOR PATERSON:    Lay it aside.

                            ACTING PRESIDENT MORAHAN:    Lay it

                 aside.

                            THE SECRETARY:    Calendar Number

                 241, by Senator Skelos, Senate Print 4439A, an

                 act to amend the Social Services Law, in

                 relation to the charging of a fee.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect on the first day of

                 November.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 42.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 373, by Senator Marchi, Senate Print 6484, an





                                                          1503



                 act to amend the Vehicle and Traffic Law, in

                 relation to providing for a distinctive

                 foreign organization license plate.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 42.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 425, by Senator Rath -

                            SENATOR SKELOS:    Lay it aside for

                 the day.

                            ACTING PRESIDENT MORAHAN:    Lay it

                 aside for the day.

                            THE SECRETARY:    Calendar Number

                 432, by Senator Larkin, Senate Print 3035A, an

                 act to amend the General Municipal Law, in

                 relation to the operation of games of chance.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.





                                                          1504



                            THE SECRETARY:    Section 6.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 41.  Nays,

                 1.  Senator Padavan recorded in the negative.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 465, by Senator Johnson, Senate Print 7003 -

                            SENATOR SKELOS:    Lay it aside for

                 the day.

                            ACTING PRESIDENT MORAHAN:    Lay it

                 aside for the day.

                            Senator Duane.

                            SENATOR DUANE:    I'd like

                 unanimous consent to be recorded in the

                 negative on Calendar Number 238, please.

                            ACTING PRESIDENT MORAHAN:

                 Without objection, you will be recorded in the

                 negative.

                            Senator Larkin.

                            SENATOR LARKIN:    Mr. President, I

                 request permission to be recorded in the





                                                          1505



                 negative on Calendar Number 19, Senate Bill

                 3665A.

                            ACTING PRESIDENT MORAHAN:

                 Without objection, you will be recorded in the

                 negative.

                            Senator Duane, Calendar Bill 238

                 did not pass.  Senator Duane.

                            SENATOR DUANE:    (Nodding.)

                            ACTING PRESIDENT MORAHAN:

                 Senator Skelos.

                            SENATOR SKELOS:    Mr. President,

                 if we could take up the controversial

                 calendar, please.

                            ACTING PRESIDENT MORAHAN:    The

                 Secretary will read.

                            THE SECRETARY:    Calendar Number

                 54, by Senator Alesi, Senate Print 4124B, an

                 act to amend the Workers' Compensation Law, in

                 relation to liability for compensation.

                            SENATOR PATERSON:    Explanation.

                            ACTING PRESIDENT MORAHAN:

                 Senator Alesi.

                            SENATOR ALESI:    I couldn't quite

                 hear.  Was I asked for an explanation?

                            Thank you.





                                                          1506



                            Mr. President, this bill, as you

                 know, was introduced a few weeks back.  And

                 what it does today is slightly different from

                 what it did a few weeks ago when it was passed

                 in this house.  And that is it recognizes that

                 anybody who is injured on the job as a result

                 of an illegal activity would not be entitled

                 to workers' compensation.

                            Thank you very much, Mr. President.

                            ACTING PRESIDENT MORAHAN:    Thank

                 you, Senator.

                            Senator Paterson.

                            SENATOR PATERSON:    Mr. President,

                 I want to thank Senator Alesi for that brief

                 but informative explanation.  And if he would

                 yield for a question, Mr. President, I have a

                 few that I'd like to ask.

                            ACTING PRESIDENT MORAHAN:

                 Senator Alesi, do you yield?

                            SENATOR ALESI:    Gladly.

                            ACTING PRESIDENT MORAHAN:    The

                 Senator yields.

                            SENATOR PATERSON:    Senator, the

                 illegal conduct for which the employee is

                 convicted, either as a misdemeanor or felony,





                                                          1507



                 in your bill, as I understand it, would not

                 necessarily relate to the conduct that caused

                 the employee to be injured.

                            So in other words, it's not like an

                 employee that's speeding in an employer's car

                 that sustains an accident and then is

                 convicted for some speeding or some vehicular

                 offense, perhaps a car hitting another car,

                 and then that would deny the workers'

                 compensation.

                            In this case, it could be an

                 employee working in a bank that embezzles

                 money, where the ceiling of the bank falls on

                 the employee's head, and because of the

                 conviction for the embezzlement, the employee

                 would be denied workers' compensation.  Do I

                 understand that right?

                            SENATOR ALESI:    Through you, Mr.

                 President.

                            You understand that correctly.  And

                 I might add that the amendment in this bill is

                 to some extent owed in part to your compelling

                 and impassioned debate when we originally

                 introduced it.  And so that by making it

                 clearer for those who are opposed to it to





                                                          1508



                 understand, I am hopeful that you'll fully

                 embrace it this time around.

                            SENATOR PATERSON:    Senator, I

                 have one more question.

                            ACTING PRESIDENT MORAHAN:

                 Senator Paterson.

                            SENATOR PATERSON:    And based on

                 that answer, it will make me know whether or

                 not I can embrace you.

                            ACTING PRESIDENT MORAHAN:

                 Senator, do you yield to another question?

                            SENATOR ALESI:    I yield, Mr.

                 President.

                            SENATOR PATERSON:    Mr. President,

                 my question is if the employer also breaks the

                 law in the same situation -- say you have a

                 situation where an employer is in violation of

                 OSHA requirements by exposing the employee to

                 toxic waste; say, mercury or something -- and

                 the employee sustains injury as a result of

                 the illegality of the employer's action, would

                 the employee still be denied workers'

                 compensation because at some other point the

                 employee was convicted of a criminal

                 violation?





                                                          1509



                            SENATOR ALESI:    No.

                            SENATOR PATERSON:    No, they would

                 not be denied?

                            SENATOR ALESI:    No, they would

                 not be.

                            SENATOR PATERSON:    So the two

                 criminal violations in a sense cancel each

                 other out?

                            SENATOR ALESI:    Mr. President,

                 through you.

                            This deals specifically with the

                 illegal act of an employee.  But it stands to

                 reason, although it's not visited in this

                 particular bill, that an employee who is

                 injured as a result of anybody else's

                 activities, whether illegal or legal, would

                 still be entitled to workers' comp.  Provided

                 they were injured on the job.

                            ACTING PRESIDENT MORAHAN:

                 Senator Paterson.

                            SENATOR PATERSON:    Mr. President,

                 if I could ask a question one more time, I

                 just want to try to clarify it for Senator

                 Alesi.

                            ACTING PRESIDENT MORAHAN:





                                                          1510



                 Senator, do you yield?

                            SENATOR ALESI:    Yes, Mr.

                 President.

                            ACTING PRESIDENT MORAHAN:    The

                 Senator yields.

                            SENATOR PATERSON:    Mr. President,

                 I'm taking the circumstances that Senator

                 Alesi is setting forth in this bill, that the

                 employee is convicted of a felony, let's say.

                 However, the workers' compensation claim is

                 made as a result of illegal activity on the

                 part of the employer.

                            So now, since both the employer and

                 the employee are in violation of the law, does

                 the employer escape the coverage of workers'

                 compensation even though it would be barred

                 based on the passage of this legislation?

                            SENATOR ALESI:    Through you, Mr.

                 President.

                            As I mentioned earlier, this

                 particular bill deals specifically with the

                 illegal acts of the employee.

                            ACTING PRESIDENT MORAHAN:

                 Senator Paterson.

                            SENATOR PATERSON:    Thank you, Mr.





                                                          1511



                 President.

                            I think I have to give Senator

                 Alesi's bill a little more consideration.

                 Perhaps he will be as gracious and willing as

                 he was last year to revisit the legislation.

                            Specifically because I think that

                 we should not allow the employer, based on the

                 illegal acts of the employee, to escape

                 responsibility based on illegal acts that the

                 employer might trigger the workers'

                 compensation claim.  Thank you.

                            ACTING PRESIDENT MORAHAN:    Thank

                 you, Senator Paterson.

                            SENATOR ALESI:    Mr. President, if

                 I just may comment on the bill, I'd like to

                 thank -

                            ACTING PRESIDENT MORAHAN:    On the

                 bill, Senator Alesi.

                            SENATOR ALESI:    I'd like to thank

                 Senator Paterson for his input a few weeks

                 ago.  And we acceded to his wishes.

                            And I would like to -- in response

                 to the last point that he made, the injured

                 employee still has recourse against the

                 employer.  So maybe the Senator would like to





                                                          1512



                 reconsider his vote.

                            ACTING PRESIDENT MORAHAN:

                 Senator Duane, do you wish to be recognized?

                            SENATOR DUANE:    Yes, please.

                            ACTING PRESIDENT MORAHAN:

                 Senator Duane.

                            SENATOR DUANE:    Thank you very

                 much.  I was wondering if the sponsor would

                 yield to a couple of questions.

                            ACTING PRESIDENT MORAHAN:

                 Senator Alesi, do you yield?

                            SENATOR ALESI:    I'd be glad to.

                            ACTING PRESIDENT MORAHAN:    The

                 Senator yields.

                            SENATOR DUANE:    As I understand

                 this bill, it seems that it's okay to take

                 away workers' comp from an employee who may

                 have committed a crime.  I'm wondering how the

                 sponsor feels about using workers' comp if you

                 are an employee who is the victim of a crime

                 at work.

                            ACTING PRESIDENT MORAHAN:

                 Senator.

                            SENATOR ALESI:    The bill, as I

                 mentioned to Senator Paterson, has little to





                                                          1513



                 do with my feelings and everything to do with

                 what's contained in this section.  And that is

                 specifically dealing with someone who is

                 injured as a result of an illegal act on the

                 job, not receiving compensation.

                            ACTING PRESIDENT MORAHAN:

                 Senator Duane.

                            SENATOR DUANE:    Through you, Mr.

                 President.

                            However, I'm wondering whether or

                 not the sponsor believes that protection

                 should be given to the victim of a crime in

                 the workplace.

                            ACTING PRESIDENT MORAHAN:

                 Senator Alesi, do you yield?

                            SENATOR ALESI:    I yield, Mr.

                 President.

                            And my response is that anyone who

                 is a victim of any crime, whether it's on the

                 workplace, in the workplace, off the

                 workplace, anywhere in the United States or

                 the state of New York, if they are a victim of

                 a crime, they should be compensated in some

                 form or another.

                            SENATOR DUANE:    Through you, Mr.





                                                          1514



                 President.

                            ACTING PRESIDENT MORAHAN:

                 Senator Duane.

                            SENATOR DUANE:    Through workers'

                 compensation or -

                            ACTING PRESIDENT MORAHAN:    Do you

                 continue to yield, Senator Alesi?

                            SENATOR ALESI:    I continue to

                 yield.

                            SENATOR DUANE:    Does the sponsor

                 believe that should be through workers' comp,

                 or should there be another way of receiving

                 compensation through the justice system?

                            SENATOR ALESI:    Through you, Mr.

                 President.

                            I believe that anyone who is

                 victimized in any way, shape, or form should

                 be compensated through whatever vehicle is

                 available through the law.

                            ACTING PRESIDENT MORAHAN:    Thank

                 you, Senator.

                            Senator Duane.

                            SENATOR DUANE:    And one final

                 question for the sponsor, Mr. President.

                            ACTING PRESIDENT MORAHAN:    Do you





                                                          1515



                 continue to yield, Senator Alesi?

                            SENATOR ALESI:    Yes, Mr.

                 President.

                            ACTING PRESIDENT MORAHAN:    The

                 Senator yields.

                            SENATOR DUANE:    Does the sponsor

                 believe that the victim of a rape at work

                 should have to go through workers' comp, or

                 should they be permitted to have other access

                 to justice?

                            SENATOR ALESI:    Mr. President,

                 although the question is irrelevant to the

                 bill at hand, I would reiterate my response

                 earlier.  And that is that anyone who is

                 victimized anywhere should be the recipient of

                 assistance through whatever means are

                 available through the law as it exists today.

                            SENATOR DUANE:    Thank you.

                            On the bill, Mr. President.

                            ACTING PRESIDENT MORAHAN:    On the

                 bill, Senator Duane.

                            SENATOR DUANE:    Thank you.

                            Tragically, what is being discussed

                 today is taking away workers' comp for someone

                 who may have committed a crime at work and not





                                                          1516



                 letting justice take its course, but rather

                 prohibiting a judge and a jury from looking at

                 facts and making a decision.

                            What we are not doing today, but

                 which we should be doing, is to make it so

                 that a worker who is victimized by crime at

                 work -- for instance, the most recent case of

                 a woman who was viciously raped and assaulted

                 at work, and yet she has no recourse but to go

                 through workers' comp.  She's unable to get

                 redress in the court system.  She's being

                 forced to take her claim through workers'

                 comp.

                            So I fail to see why it is that

                 today we're saying it's okay to take away

                 workers' comp from someone who may have

                 committed a crime, but we are forcing a worker

                 who was raped or viciously assaulted to go to

                 workers' comp in order to get any kind of help

                 or support for the terrible thing that

                 happened.

                            I would also say that tragically,

                 when workers' comp was first created,

                 apparently there were too many men putting the

                 law together.  Because I believe very strongly





                                                          1517



                 that if men were raped at work or if men were

                 viciously assaulted at work that we would not

                 be forcing people only to go through workers'

                 comp, that we would allow people to have their

                 day in court.

                            And so in addition to taking a look

                 at this bill, which I'm not supportive of, I

                 do think what we should be looking at is

                 3955B, the Protection in the Workplace Act,

                 which would make it possible for a woman who

                 has been viciously assaulted and/or raped

                 because of negligence on the part of their

                 employer to get their day in court.

                            Thank you.

                            ACTING PRESIDENT MORAHAN:    Thank

                 you, Senator.

                            Read the last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Senator Paterson, to explain his vote.

                            SENATOR PATERSON:    Mr. President,





                                                          1518



                 I think I have to take responsibility for the

                 fact that I did suggest some changes to this

                 legislation to Senator Alesi, and that the

                 changes that I suggested were -- that my

                 issues were heard by Senator Alesi.

                            And although I just thought of this

                 other issue involving the criminality of the

                 employer right here, I'm going to support this

                 legislation and pledge myself to work with the

                 Senator, because I think it will be an issue

                 to getting it passed in both houses.  And

                 perhaps with a little further tweaking we can

                 get the Assembly to see the merit in not

                 allowing people who have committed crimes to

                 recover just on face value because they have

                 workers' compensation claims.

                            ACTING PRESIDENT MORAHAN:

                 Senator Paterson will be recognized in the

                 affirmative.

                            Announce the results.

                            THE SECRETARY:    Those recorded in

                 the negative on Calendar Number 54 are

                 Senators Connor, Dollinger, Duane, Markowitz,

                 Montgomery, Onorato, Rosado, Sampson,

                 Schneiderman, Smith, and Stavisky.





                                                          1519



                            Ayes, 43.  Nays, 11.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 71, by Senator Volker, Senate Print 3537A, an

                 act to amend the Criminal Procedure Law, in

                 relation to verdict sheets.

                            ACTING PRESIDENT MORAHAN:

                 Senator Volker.

                            SENATOR VOLKER:    Mr. President,

                 this is a bill that I believe we passed last

                 year, if I remember right, that relates to

                 verdict sheets.  And it relates to the

                 information submitted to a jury where there

                 are multiple counts and where the court

                 submits two or more counts charging offenses.

                 This would allow notations to be given to the

                 jurors as regards relevant information on the

                 verdict sheets.

                            This has been suggested by various

                 court cases.  And it has been suggested in

                 fact by a committee of the bar as a way of

                 providing a better explanation of how the

                 various counts are set up when they're

                 submitted to the jury.





                                                          1520



                            In all honesty, I can see probably

                 where this would cut both ways.  Some people

                 would argue that it might be of more advantage

                 probably to the defendant in many cases.

                            But it just seems to a lot of

                 people in the Office of Court Administration

                 that this presents a way of helping to

                 simplify a juror's decision in a court case.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 53.  Nays,

                 2.  Senators Duane and Montgomery recorded in

                 the negative.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 238, by Senator Saland, Senate Print 2722, an

                 act to amend the Family Court Act, in relation

                 to evidence of child neglect.

                            SENATOR MONTGOMERY:    Explanation.





                                                          1521



                            ACTING PRESIDENT MORAHAN:

                 Senator Montgomery has requested an

                 explanation.

                            Senator Saland, an explanation has

                 been requested.

                            SENATOR SALAND:    Thank you, Mr.

                 President.

                            Mr. President, this is a bill which

                 recognizes that under the current law, where a

                 person or respondent in an abuse or a neglect

                 proceeding may have indulged excessively in or

                 misused drugs or alcohol to the extent that

                 they no longer are considered to be in control

                 of their actions, that that person whereas

                 under the current law would be able to assert

                 as an affirmative defense voluntarily

                 participating in some type of a rehab program,

                 this bill would now say that that

                 consideration would occur at the time of

                 disposition.

                            The purpose being that far too

                 often in any number of cases, in order to stop

                 the proceeding which is underway to protect

                 the well-being of a child in a neglect or an

                 abuse proceeding, the allegation of having





                                                          1522



                 entered a drug or alcohol program effectively

                 tolls that proceeding.

                            The net result is that it's grossly

                 inefficient to have multiple applications back

                 and forth to the court before the child can be

                 properly taken care of and some arrangements

                 made to deal with the family.

                            What this bill would do would be to

                 say we would go through the hearing, we would

                 determine whether or not neglect or abuse had

                 occurred, and if the respondent had a drug or

                 alcohol problem which rose to the level of

                 making him or her unable to really control

                 their own actions, that person could then be

                 directed to a rehab program and participation

                 in that rehab program would be made part of

                 the dispositional order.

                            ACTING PRESIDENT MORAHAN:    Thank

                 you, Senator.

                            Senator Montgomery.

                            SENATOR MONTGOMERY:    Yes.  Mr.

                 President, I would like to ask if Senator

                 Saland would yield to a question or two.

                            ACTING PRESIDENT MORAHAN:

                 Senator Saland, do you yield?





                                                          1523



                            SENATOR SALAND:    Yes, Mr.

                 President.

                            ACTING PRESIDENT MORAHAN:    The

                 Senator yields.

                            SENATOR MONTGOMERY:    Senator

                 Saland, as I understand it, this bill would

                 make it so that a judge would consider a

                 person's voluntary participation in a drug

                 treatment program only after they've been

                 charged with child neglect.

                            So how does this bill justify

                 criminalizing a person's behavior while

                 they're actively seeking treatment for the

                 drug problem?

                            SENATOR SALAND:    I would very

                 sharply take issue with your reference to

                 criminalizing.  If you look at the sections of

                 the law, we're talking the Family Court.  This

                 is a civil proceeding, not a criminal

                 proceeding.

                            And what we're contending with here

                 is a child who is the subject of a petition

                 who is alleged to have been neglected or

                 abused, and that child's guardian or parent

                 comes in and says "I have a drug problem, and





                                                          1524



                 I'm checking myself into a rehab program."

                            Under the existing law, that

                 effectively terminates the ability of the

                 court to go further.  And after that has

                 happened two, three, four, five, and six

                 times, there's been no ability or little

                 ability to assist the child who is the concern

                 of the application.

                            What we're saying is if that

                 respondent genuinely is as concerned as they

                 claim to be under the existing law, and not

                 merely concerned with using this affirmative

                 defense as a tool to avoid the consequences of

                 neglect and abuse, we put it at the end of the

                 disposition, at the end of the proceeding

                 which is the disposition, and we enable to the

                 court to make the determination where that

                 person -- and the language remains basically

                 the same:  "The court shall consider whether

                 the respondent has enrolled in a recognized

                 rehabilitative program and is participating

                 therein in a regular and satisfactory manner."

                            I think it's extremely relevant

                 that they meet those qualifications and not

                 use that ability as a subterfuge, as they do





                                                          1525



                 under the existing law, to avoid being able to

                 contend with all the underlying issues that

                 are associated with a neglect or an abuse

                 proceeding.

                            ACTING PRESIDENT MORAHAN:

                 Senator Montgomery.

                            SENATOR MONTGOMERY:    Yes, Mr.

                 President.  If Senator Saland would continue

                 to yield.

                            ACTING PRESIDENT MORAHAN:

                 Senator Saland, do you continue to yield?

                            SENATOR SALAND:    Yes, Mr.

                 President.

                            SENATOR MONTGOMERY:    So, Senator

                 Saland, if, for instance, a parent is

                 abusing -- is a substance abuser of some sort

                 and that parent wants, genuinely wants to seek

                 treatment -- however, under this bill, even if

                 the person is seeking treatment, it's not an

                 affirmative defense any longer under your

                 bill; is that not correct?

                            In other words, the fact that I am

                 now seeking treatment for my sickness, you

                 will not consider -- the judge will not

                 consider that until after the treatment.





                                                          1526



                            SENATOR SALAND:    No.

                            SENATOR MONTGOMERY:    So then what

                 happens to the child in that instance?

                            ACTING PRESIDENT MORAHAN:

                 Senator Saland.

                            SENATOR SALAND:    No, no, no, no,

                 no.  Not after treatment.  The consideration

                 of the treatment comes on the disposition -

                 there's a fact-finding hearing in all of these

                 cases which determines whether or not the

                 alleged neglect has occurred.

                            Under the existing law, a person

                 who alleges that he or she is in a recognized

                 drug or alcohol rehab program has the ability,

                 as an affirmative defense, to say, in effect,

                 "The reason why I am before the court in this

                 neglect proceeding is because of that

                 condition, and I'm doing something about it."

                 They establish that by their affirmative

                 defense.

                            They then effectively terminate the

                 proceeding, only, in far too many cases, to

                 come back on any number of occasions

                 thereafter continuing to allege the same

                 affirmative defense.





                                                          1527



                            If we are thinking in terms of a

                 family, if we are thinking in terms of the

                 child, whichever unit is the unit of concern

                 to you, to permit the intervention of any type

                 of therapy or counseling or assistance either

                 to that child or to that family unit, because

                 of the subterfuge of abusing this very easily

                 accessed affirmative defense, does nothing for

                 anybody.

                            Maybe in some small number of

                 cases -- perhaps I've overstated.  Perhaps in

                 some small number of cases, there are people

                 who allege the affirmative defense and are

                 never heard from again.  In a goodly number of

                 cases, in a significant number of cases, these

                 people repeat their appearances before the

                 Family Court, alleging the same type of

                 affirmative defense.

                            If your concern is making sure that

                 somebody in effect can dodge the

                 responsibility and leave their child at risk,

                 then the existing system works well.

                            If your concern is that that person

                 who is the alcohol or drug abuser gets into a

                 program which can be monitored by a court so





                                                          1528



                 that they will see it to a successful

                 conclusion and not use it in times of perhaps

                 self-imposed need to avoid the consequences of

                 the court, and if your concern is what does

                 this mean for the best interests of the child,

                 then to treat this on disposition in the

                 civil, not criminal, proceeding is certainly a

                 far more reasonable and both child- and

                 family-oriented way of dealing with what is a

                 rather difficult problem.

                            ACTING PRESIDENT MORAHAN:    Thank

                 you, Senator.

                            Senator Montgomery.

                            SENATOR MONTGOMERY:    Yes.

                 Senator Saland, I'm just trying to figure -

                            ACTING PRESIDENT MORAHAN:

                 Senator Saland, do you continue to yield?

                            SENATOR SALAND:    Yes, Mr.

                 President.

                            ACTING PRESIDENT MORAHAN:    The

                 Senator yields.

                            SENATOR MONTGOMERY:    At what

                 point does the disposition take place, and

                 under what circumstances?  I mean, what in

                 fact happens between the charge of neglect and





                                                          1529



                 the disposition as you see it?

                            SENATOR SALAND:    There has to

                 be -- the fact-finding hearing, which again is

                 a Family Court hearing, is one in which the

                 petitioner -- which will in all likelihood be,

                 in the City of New York, I would assume, HRA;

                 in the counties outside of the City of New

                 York, the Department of Social Services -

                 alleges that there has been an act of neglect

                 or abuse.  They then have the burden of

                 establishing their case by a fair

                 preponderance of the evidence in court.

                            If they've managed to establish

                 that, then the court has to make a

                 disposition, an order of disposition

                 determining what is it do we do now that we

                 have found this neglect or abuse.

                            And what this bill says is where

                 there has been an allegation that a respondent

                 is in a drug program or an alcohol abuse

                 program, that the relevant time to consider

                 that is at the dispositional part of the

                 hearing where you can integrate services and,

                 instead of using the affirmative defense as a

                 shield to avoid the consequences of the





                                                          1530



                 intervention of services, accomplish more both

                 for that individual -- however begrudgingly

                 they're willing to participate, or perhaps

                 even voluntarily -- but particularly for the

                 child.

                            SENATOR MONTGOMERY:    Thank you.

                            Thank you, Senator Saland.

                            ACTING PRESIDENT MORAHAN:    Thank

                 you, Senator Saland.

                            SENATOR MONTGOMERY:    Mr.

                 President, I think I certainly understand -

                            ACTING PRESIDENT MORAHAN:

                 Senator Montgomery, on the bill?

                            SENATOR MONTGOMERY:    Yes, on the

                 bill.

                            I understand Senator Saland's

                 intent, and I want to support that.

                            I'm afraid, however, that the way

                 that the legislation is set up, we may end up

                 with consequences that we had not intended.

                 And that is that we in fact discourage people

                 coming forward for treatment because they may,

                 in the disposition of their case, be charged

                 with a crime.  Rather than at the onset, when

                 the charge is made, that the requirement for





                                                          1531



                 treatment be established at that point rather

                 than at the final stage, when it may be a

                 little late for intervention.

                            So I'm going to be voting no on the

                 legislation.

                            ACTING PRESIDENT MORAHAN:    Thank

                 you, Senator Montgomery.

                            Senator Duane.

                            SENATOR DUANE:    Thank you.  Would

                 the sponsor yield to some questions, please?

                            ACTING PRESIDENT MORAHAN:

                 Senator Saland, do you yield?

                            SENATOR SALAND:    Yes, Mr.

                 President.

                            ACTING PRESIDENT MORAHAN:    The

                 Senator yields.

                            SENATOR DUANE:    Thank you very

                 much, Mr. President.

                            The sponsor has alluded to cases of

                 moms repeatedly going to the Family Court to

                 stop the petition to remove their children.

                 I'm wondering if he could give more specific

                 facts on the number of those cases.

                            ACTING PRESIDENT MORAHAN:

                 Senator Saland.





                                                          1532



                            SENATOR SALAND:    The information

                 is not information that's catalogued.  It's

                 the information that's been provided to me and

                 to my staff, I would say, anecdotally.

                            SENATOR DUANE:    Through you, Mr.

                 President.

                            ACTING PRESIDENT MORAHAN:

                 Senator Saland, do you continue to yield?

                            SENATOR SALAND:    Yes, Mr.

                 President.

                            SENATOR DUANE:    Is it not the

                 case that drug treatment programs which are

                 sanctioned by the courts actually have built

                 into their program ways to deal with relapse?

                 And is it not also true that a program that

                 has enrolled a mom who's at risk of losing her

                 child to neglect because of substance abuse

                 and other reasons would not be very careful to

                 not be even more -- what's the word I'm

                 looking for -- to be very, you know,

                 supervisory, to make sure that the mom did not

                 relapse, or, if she did relapse, to do

                 everything in their power to make sure that

                 the child would not be endangered?

                            Do we not have that kind of faith





                                                          1533



                 in drug treatment programs in the State of New

                 York?

                            ACTING PRESIDENT MORAHAN:

                 Senator Saland.

                            SENATOR SALAND:    Mr. President,

                 in the bill what we're talking about, by

                 definition, is a person that repeatedly

                 misuses a drug or drugs or alcoholic

                 beverages.

                            Certainly in my responses to

                 Senator Montgomery I indicated that there may

                 well be situations, any number of situations

                 in which somebody who voluntarily participates

                 in a rehab program gets the benefit of that

                 program and hopefully goes on to act in a

                 manner that's responsible and not one which

                 results in their being charged in any fashion

                 under Article 10 of the Family Act.

                            Notwithstanding that, we do know

                 that there are any number of circumstances in

                 which people have availed themselves of an

                 affirmative defense, basically as a shield to

                 avoid the consequences of dealing with the

                 issues that underlie a neglect proceeding, and

                 have effectively clothed themselves in alcohol





                                                          1534



                 or drug abuse as a means to avoid the outcome

                 of the proceeding.

                            All we are saying is all of those

                 souls who engage or participate in these

                 programs certainly will have the ability to

                 participate in those programs.  And whether

                 they will succeed I think will be amplified by

                 doing it at the disposition stage, when there

                 will be a far greater degree of court control,

                 where it can't be used as a means to just

                 merely avoid whatever the consequences of the

                 court proceeding are.

                            It certainly is an approach which I

                 think is far more holistic, therapeutic, any

                 other term of that nature that you would like

                 to use, with respect to dealing with the child

                 and the issues surrounding why that family,

                 that parent, that guardian is in court with

                 that child.

                            SENATOR DUANE:    Through you -

                            ACTING PRESIDENT MORAHAN:    Thank

                 you, Senator.

                            Senator Duane.

                            SENATOR DUANE:    Mr. President,

                 for a final question.





                                                          1535



                            ACTING PRESIDENT MORAHAN:

                 Senator Saland, do you continue to yield?

                            SENATOR SALAND:    Yes, Mr.

                 President.

                            ACTING PRESIDENT MORAHAN:

                 Senator Duane.

                            SENATOR DUANE:    Thank you.

                            But still, the whole justification

                 for this legislation, which will really change

                 the weight and the affirmative nature of

                 entering into a drug treatment program, is

                 actually based upon anecdotal evidence that

                 this may have happened in a few cases.

                            So we're changing an entire section

                 of the Family Law based on anecdotes and not

                 on any hard evidence.

                            ACTING PRESIDENT MORAHAN:

                 Senator Saland.

                            SENATOR SALAND:    If that's a

                 question, I would merely say that for anybody

                 who is engaged in such a program, if their

                 desire is to successfully go through the

                 program, as distinguished from participating

                 in fits and spurts, if their desire is a

                 concern to do something that will benefit





                                                          1536



                 their child, if their desire is a concern to

                 not only enhance the welfare of their child or

                 the best interests of their child but to do

                 something about reunifying with their child,

                 then why in the world, under what

                 justification, would they object to a program

                 that the court could monitor and determine

                 whether they in fact were appropriately

                 participating, as distinguished from merely

                 using it as a subterfuge to avoid the

                 consequences of dealing with the charges that

                 have been levied against them in the court?

                            Anybody who in good faith either

                 has their own well-being, because of their

                 addiction or their need for rehab, or the

                 concerns for their child at heart could not

                 possibly justify objecting to this change in

                 the law.

                            ACTING PRESIDENT MORAHAN:    Thank

                 you, Senator Saland.

                            SENATOR DUANE:    On the bill, Mr.

                 President.

                            ACTING PRESIDENT MORAHAN:

                 Senator Duane, on the bill.

                            SENATOR DUANE:    I actually am





                                                          1537



                 going to justify being opposed to this change

                 in the law.

                            I believe that what we need to be

                 doing is to make sure and continue to make

                 sure that regular and voluntary participation

                 in a drug and/or alcohol rehabilitation

                 program is an affirmative defense in a child

                 neglect proceeding.  I think that we have to

                 keep that as an affirmative defense.

                            I've not been compelled by the

                 evidence that we should be changing that.  I

                 think that's a very, very dangerous thing to

                 do, to make involvement in a drug treatment

                 program a neutral thing for a judge or a court

                 to look at.

                            I also believe that drug

                 rehabilitation programs -- whether they are

                 freestanding, whether they are

                 hospital-based -- when they're licensed by the

                 State of New York, when they're sometimes even

                 funded by members of the Legislature, are

                 doing a good job, do have the best interests

                 of children at heart, would not frivolously

                 threaten the life or the well-being of a

                 child.  There would be no rational reason for





                                                          1538



                 doing that.

                            And yet we are throwing all that

                 away based on evidence which, as I say, has

                 not been shown at all to us that there may be

                 a parent who is using that they're going into

                 a drug treatment program as a way to save

                 their child.

                            I actually believe that most moms

                 will do everything they can to keep custody of

                 their children.  That's true, and I would

                 expect no less of them.  And in fact I even

                 think that's a good thing in many cases,

                 though sometimes a mom will know that they're

                 too overwhelmed or unable for whatever

                 reason -- drug abuse or whatever -- to keep

                 their child.

                            But I also believe that they do

                 that, because those moms also will do what's

                 in the best interests of their children,

                 including giving them up if that's what they

                 have to do to provide the best possible life

                 for their child.

                            But I absolutely believe that a mom

                 or a parent who voluntarily goes into a drug

                 treatment program -- even if it doesn't take





                                                          1539



                 the first time, even if it takes a couple of

                 times to go through a drug rehab program -

                 absolutely should be entitled to have that

                 count in their favor.

                            And in fact, instead of doing this

                 kind of punitive legislation, which takes away

                 the affirmativeness of going into a drug rehab

                 program, maybe what we should be looking at

                 are more drug rehab programs where a mom could

                 actually be with her children.  Because now

                 there's a tremendous lack of beds available

                 for moms who are addicted to alcohol or drugs

                 to be able to actually live in a community

                 with their family while they're undergoing

                 treatment.

                            And, in fact, the isolation of

                 being away from one's family is one of the

                 things that makes it difficult for some

                 women -- not all women, but for some women to

                 recover.  Some do have to be removed from the

                 stresses of what's happening in their home.

                 But for others, the pain of not being able to

                 be near or take care of their children in a

                 monitored atmosphere is a very, very bad and

                 negative thing.





                                                          1540



                            But the bottom line here is I don't

                 think we should be doing anything in this

                 legislative body to ever make it that

                 voluntary participation in a drug or alcohol

                 rehabilitation setting is anything but a

                 positive thing.  It's not -- it certainly

                 shouldn't be something which risks further

                 criminalization.  And it's not neutral to go

                 into a drug rehabilitation program.  It is a

                 positive step, and the law should recognize it

                 as such.

                            Thank you.

                            ACTING PRESIDENT MORAHAN:    Thank

                 you, Senator Duane.

                            Read the last section.

                            THE SECRETARY:    Section 4.  This

                 act shall take effect in 120 days.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Those recorded in

                 the negative on Calendar Number 238 are

                 Senators Duane, Montgomery, and Paterson.

                 Ayes, 52.  Nays, 3.

                            ACTING PRESIDENT MORAHAN:    The





                                                          1541



                 bill is passed.

                            Senator Hoffmann.

                            SENATOR HOFFMANN:    I was out of

                 the chamber when Calendar 19 was taken up, Mr.

                 President.  I would request unanimous consent

                 to be recorded in the negative.

                            ACTING PRESIDENT MORAHAN:

                 Without objection, Senator Hoffmann, you will

                 be so recorded in the negative on Calendar

                 Number 19.

                            Senator Seward.

                            SENATOR SEWARD:    Mr. President,

                 likewise, I was at a meeting when Calendar

                 Number 19 passed earlier today, and I would

                 ask unanimous consent to be recorded in the

                 negative on Calendar Number 19.

                            ACTING PRESIDENT MORAHAN:

                 Without objection, you are recorded in the

                 negative.

                            Senator Dollinger.

                            SENATOR DOLLINGER:    Mr.

                 President, could I have unanimous consent to

                 be recorded in the negative on Calendar Number

                 432.

                            ACTING PRESIDENT MORAHAN:





                                                          1542



                 Without objection, you will be recorded in the

                 negative.

                            SENATOR DOLLINGER:    Thank you,

                 Mr. President.

                            ACTING PRESIDENT MORAHAN:

                 Senator Montgomery.

                            SENATOR MONTGOMERY:    Yes, Mr.

                 President.  I would like unanimous consent to

                 be recorded in the negative on Calendar Number

                 241.

                            ACTING PRESIDENT MORAHAN:

                 Without objection, Senator Montgomery will be

                 recorded in the negative.

                            Senator Skelos, that completes -

                            SENATOR SKELOS:    Mr. President,

                 is there any housekeeping at the desk?

                            ACTING PRESIDENT MORAHAN:    -- the

                 reading of the controversial calendar.

                            There is no housekeeping.

                            Senator Hevesi.

                            SENATOR HEVESI:    Thank you, Mr.

                 President.  I believe there's a motion to

                 discharge at the desk.  I'd like to call it

                 up, please.

                            ACTING PRESIDENT MORAHAN:    The





                                                          1543



                 Secretary will read.

                            THE SECRETARY:    Senate Bill

                 Number 4401A, by Senator Hevesi, an act to

                 amend the Education Law, in relation to

                 adjustment of state aid for prior school

                 years.

                            ACTING PRESIDENT MORAHAN:

                 Senator Hevesi.

                            SENATOR HEVESI:    Thank you, Mr.

                 President.

                            The motion to discharge that's

                 before us, Senate Print 4401, is a piece of

                 legislation that addresses in some small

                 fashion the much more global and widespread

                 problem of prior-year school aid claims that

                 the Senate Democratic Conference and myself

                 have been discussing for some time now.

                            And this is only a partial remedy,

                 but it's important that we address this

                 problem even in the smallest scope possible,

                 in the name of equity, particularly in a

                 fiscal climate where if no action comes now on

                 this issue, then there really is just never

                 going to be a chance or an opportunity where

                 we're truly going to see a commitment on the





                                                          1544



                 part of the state to remedy this problem.

                            So just a quick refresher for

                 everyone, and to remind everyone in this body

                 that this is an issue that not only affects

                 legislators from New York City, but

                 legislators in almost every school district in

                 the entire state of New York that are owed

                 millions of dollars -- and it really is

                 millions -- in prior-year school aid claims.

                            But the biggest problem, the most

                 acute problem, focuses on the City of New

                 York, which, because of a unique set of

                 circumstances, has totaled up roughly $600 to

                 $800 million, depending on how you calculate

                 it, in claims right now that are before the

                 state, pending before the state, in legitimate

                 school aid claims that have never been paid.

                 And, because of the backlog, there are claims

                 which have not been submitted totaling

                 additional hundreds of millions of dollars.

                            And this is money that not just New

                 York City schoolkids, but schoolkids in every

                 other district that is owed money under this

                 prior-year school aid claim problem -- they

                 are being cheated, absolutely cheated.





                                                          1545



                            In the case of New York City, just

                 to show you why this problem has existed,

                 because there have been some who have

                 suggested -- some of my colleagues have

                 suggested that it might have been the fault of

                 the City of New York to have racked up this

                 debt, when in fact it was about $400 million

                 in building aid claims that are due the City

                 of New York because the state created the

                 School Construction Authority in 1988 but

                 didn't create authorizing legislation which

                 would have facilitated payment for building

                 aid claims until 1995.  And in that time,

                 $400 million or so became owed to the City of

                 New York.

                            In addition, high-cost aid of about

                 $200 million to New York City was owed, and

                 the state never passed authorizing legislation

                 to facilitate the allocation of those

                 resources.

                            And finally, because of retroactive

                 tax certiorari claims, which had the impact of

                 reducing property taxes in New York City,

                 which then kicked in the wealth factor

                 component of state law, thereby increasing the





                                                          1546



                 money owed to New York City -

                            ACTING PRESIDENT MORAHAN:    Excuse

                 me, Senator.

                            Could we have a little order in the

                 chamber, please.

                            Thank you, Senator.

                            SENATOR HEVESI:    Thank you.

                            -- because of that, several hundred

                 million additional dollars were owed to New

                 York City.

                            So that's why the problem exists,

                 and it exists with other school districts

                 throughout the state for varying reasons.

                            And I'll remind everybody that this

                 legislative body has in the past -- certainly

                 did last session -- passed legislation which

                 specifically reimbursed school districts other

                 than the City of New York for school aid that

                 was owed based on claims which had been

                 submitted not in the current fiscal year but

                 in previous fiscal years.  So there is a

                 commitment to addressing this, but not in an

                 equitable fashion.

                            So here's the problem, and here's

                 one of the remedies that we're going to ask





                                                          1547



                 you to vote on today.  And I believe that this

                 is a really reasonable approach.  Because

                 there is a fundamental inequity in the law

                 which says that whatever amount of money you

                 allocate for prior-year school aid claims,

                 that no school district can receive more than

                 40 percent of that allocation in any one year,

                 irrespective of any other consideration.  So

                 if there's $10 million allocated for

                 prior-year school aid claims, regardless of

                 who's owed what, nobody gets more than

                 $4 million, 40 percent of the 10 million.

                 That is New York State Education Law, Section

                 3602.

                            The motion to discharge that's

                 before us right now and that everyone is going

                 to have to cast a vote on would simply

                 eliminate that provision.  And there is really

                 no compelling reason why that provision should

                 be in the law right now when you look at the

                 following situation.  The situation exists

                 that New York City is owed upwards of

                 90 percent, 90 percent of all of the

                 outstanding claims, yet is capped at

                 40 percent of whatever meager -- I'll make a





                                                          1548



                 commentary here -- meager allocations the

                 state has deemed necessary to provide in the

                 past few years.

                            So that's what this motion to

                 discharge would do.  But I'd like to point out

                 before I conclude here that this would not

                 have a terribly negative impact on other

                 school districts throughout the state that are

                 also owed money, and it's a reason why we need

                 to address this problem in the long term.

                            This is not a problem that is

                 exclusive to New York City.  There are

                 currently $111 million in outstanding claims

                 for school districts outside the City of New

                 York.  And according to the Governor's

                 Executive Budget, only about 25 percent of

                 those outstanding claims would be paid if the

                 Governor's Executive Budget passed as he has

                 presented it to the Legislature.

                            So here's the situation as it

                 exists right now.  Last year the Governor

                 recommended $40 million for the state,

                 statewide, to repay prior-year school aid

                 claims.  Because of the 40 percent cap,

                 New York City got 16 percent.  We then went





                                                          1549



                 back in and added $24.3 million for the city,

                 exclusively for the city, which brought the

                 total amount that the city would get up to

                 about 58 percent -- more than the 40, because

                 we created a special pot of money for it.

                            The problem is that right now,

                 here's the situation in terms of what is owed.

                 New York City has 73 percent of the approved

                 claims that have been approved by the State

                 Education Department:  $298 million out of 410

                 statewide, 73 percent.  But we would only get

                 58 percent under the proposal.  We have

                 82 percent of all the submitted claims, those

                 not yet approved.  And we have over 90 percent

                 of all of the claims outstanding, those not

                 even yet submitted.

                            So in addition to the amendment

                 that we offered up last week as an amendment

                 to the Senate's one-house resolution, which

                 would have at least brought us up to the level

                 of funding that the state provided last year

                 in recognition of prior-year school aid

                 claims -- in addition to that, which doesn't

                 even address the more global problem that we

                 will not repay these claims for about 50





                                                          1550



                 years, at the going rate -- the motion to

                 discharge before us, Mr. President, simply

                 says if some municipality is owed 70 or

                 80 percent of those claims, you don't say

                 "We're not going to pay you what you're owed

                 in proportion to the amount of money that's

                 allocated."

                            What we do want to have happen is

                 if you have the most amount in claims, you get

                 the most amount of money.  If you have the

                 oldest claims that have been submitted, you

                 get first dibs on the claim money.

                            And not to sound bitter or sore

                 here, but such partisanship exists whereby

                 allegations of prior-year school aid claims in

                 the last couple of years did not go

                 specifically to pay the oldest claims to the

                 City of New York, they went to pay claims for

                 the school year '95-'96, because the Pataki

                 administration felt "We're not responsible for

                 what was done in 1990, '91, and '92, we're

                 only paying for claims since we've been in the

                 Governor's mansion."

                            You can't do that.  It's absolutely

                 wrong to do that.  And the reason why it's





                                                          1551



                 wrong to do that is New York City has to write

                 off 10-year-old claims for accounting

                 purposes.  So last year the kids in the City

                 of New York almost lost $40 million, which

                 would have blown a huge hole in the Board of

                 Education's budget.  Because of our advocacy,

                 our vigilancy on this issue, we got -- and I

                 applaud the Majority for their acquiescence on

                 this issue, and I'm being sincere when I say

                 that.  I'm not being sarcastic.  I really

                 applaud the Majority for sparing us that

                 crisis at a time when we have such pressing

                 problems in New York City for doing that.

                            But at the same time, this issue

                 has to be addressed.  You cannot continue to

                 only pay the minimum payment due on your

                 credit card debt.  That's exactly what we're

                 doing here.

                            So, Mr. President, I would urge all

                 of my colleagues, both sides of the aisle, to

                 support this motion to discharge on this

                 Senate bill, which is absolutely fair and

                 equitable.  And if anybody doesn't think it's

                 fair and equitable, I would sincerely urge

                 them to rise and tell me and the rest of the





                                                          1552



                 members of this house why it's not, why you

                 wouldn't remove this cap.  This cap is

                 absolutely unfair.

                            And so this legislation is

                 necessary.  I urge everybody to support it.

                            ACTING PRESIDENT MORAHAN:    Thank

                 you, Senator Hevesi.

                            Senator Lachman.

                            SENATOR LACHMAN:    It is fair and

                 equitable, Senator Hevesi.  I strongly commend

                 and support your motion to discharge, this on

                 education equity, as I did yesterday on your

                 very strong proposal to discharge a bill on

                 campaign finance reform.

                            Very briefly, within 30 seconds, if

                 we can't do this in a time of plenty, when are

                 we going to do it?  We won't do it in a time

                 of need.  Now is the time to discharge this

                 bill.

                            Furthermore, even though Senator

                 Hevesi has said the emphasis is on New York

                 City, it does impact upon the rest of the

                 state.  Who knows for whom the bell shall toll

                 tomorrow?  There might be people from Nassau,

                 Suffolk, upstate New York who have a greater





                                                          1553



                 problem than New York City has in a few years,

                 and the shoe will be on the other foot.

                            I strongly recommend and commend my

                 colleague in discharging this bill.

                            Thank you.

                            ACTING PRESIDENT MORAHAN:    Thank

                 you, Senator Lachman.

                            Senator Dollinger.

                            SENATOR DOLLINGER:    Thank you,

                 Mr. President.  I'll be very brief.

                            I also commend Senator Hevesi for

                 his diligence in bringing this to the floor.

                            This is very simple.  This is a

                 failure-to-fund mandate.  Not an unfunded

                 mandate, but a failure to fund.  This is where

                 the State of New York -- and I've been told on

                 the floor of this chamber that we ought to act

                 like a business.  Government ought to act more

                 like a business, we should do things the way

                 the free-market system does.

                            What possible free-market system

                 works with people not paying their bills?  We

                 owe the City of New York 400 million, 200

                 million, and we're going to put our cap on

                 what we're going to pay them for bills that we





                                                          1554



                 owe them?

                            Now, I get this lecture all the

                 time, that I'm one of those Democrats who's

                 out of touch with the free-market system.

                 Well, I would just challenge everybody in this

                 chamber -- though there aren't many people.

                 But I would just challenge everyone, come to

                 the floor and let's debate the issue of

                 whether we should pay our bills.

                            And I think now is the time to do

                 it.  This is the time to pay this bill.  This

                 is a failure-to-fund mandate.  Let's pay our

                 bills, let's act responsibly.  Let's pay the

                 City of New York, let's pay the City of

                 Rochester, let's pay everybody who has back

                 claims.  It's the right, free-market thing to

                 do.

                            I commend Senator Hevesi for

                 bringing it to the floor.

                            ACTING PRESIDENT MORAHAN:    Thank

                 you, Senator Dollinger.

                            All in favor of accepting the

                 motion to discharge signify by saying aye.

                            SENATOR PATERSON:    Party vote in

                 the affirmative.





                                                          1555



                            SENATOR SKELOS:    Party vote in

                 the negative.

                            ACTING PRESIDENT MORAHAN:    Party

                 vote in the negative, party vote in the

                 affirmative.

                            The Secretary will call the roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 21.  Nays,

                 36.  Party vote.

                            ACTING PRESIDENT MORAHAN:

                 Senator Skelos.

                            SENATOR SKELOS:    Is there any

                 housekeeping at the desk?

                            ACTING PRESIDENT MORAHAN:    No,

                 there's no housekeeping.  There's no further

                 business.

                            SENATOR SKELOS:    There will be an

                 immediate meeting of the Majority in the

                 Majority Conference Room.

                            ACTING PRESIDENT MORAHAN:    There

                 will be an immediate meeting of the Majority

                 in the Majority Conference Room.

                            SENATOR SKELOS:    And there being

                 no further business to come before the Senate,

                 I move we adjourn until Wednesday, March 22nd,





                                                          1556



                 at 11:00 a.m.

                            ACTING PRESIDENT MORAHAN:    So

                 ordered.

                            (Whereupon, at 4:07 p.m., the

                 Senate adjourned.)