Regular Session - May 1, 2000

                                                              2606



                           NEW YORK STATE SENATE





                          THE STENOGRAPHIC RECORD









                             ALBANY, NEW YORK

                                May 1, 2000

                                 3:12 p.m.





                              REGULAR SESSION







                 SENATOR RAYMOND A. MEIER, Acting President

                 STEVEN M. BOGGESS, Secretary

















                                                          2607



                           P R O C E E D I N G S

                            ACTING PRESIDENT MEIER:    The

                 Senate will come to order.

                            Will everyone present please rise

                 and join with me in reciting the Pledge of

                 Allegiance to the Flag.

                            (Whereupon, the assemblage recited

                 the Pledge of Allegiance to the Flag.)

                            ACTING PRESIDENT MEIER:    In the

                 absence of clergy, may we bow our heads in a

                 moment of silence.

                            (Whereupon, the assemblage

                 respected a moment of silence.)

                            ACTING PRESIDENT MEIER:    Reading

                 of the Journal.

                            THE SECRETARY:    In Senate,

                 Sunday, April 30th, the Senate met pursuant to

                 adjournment.  The Journal of Saturday,

                 April 29th, was read and approved.  On motion,

                 Senate adjourned.

                            ACTING PRESIDENT MEIER:    Without

                 objection, the Journal stands approved as

                 read.

                            Presentation of petitions.

                            Messages from the Assembly.





                                                          2608



                            Messages from the Governor.

                            Reports of standing committees.

                            Reports of select committees.

                            Communications and reports from

                 state officers.

                            Motions and resolutions.

                            Senator Farley.

                            SENATOR FARLEY:    Thank you, Mr.

                 President.

                            On behalf of Senator Nozzolio,

                 would you please remove the sponsor's star

                 from Calendar 665.

                            ACTING PRESIDENT MEIER:    The

                 sponsor's star will be removed from Calendar

                 665.

                            SENATOR FARLEY:    Mr. President,

                 amendments are offered to the following Third

                 Reading Calendar bills:

                            Senator LaValle, Page 7, Calendar

                 143, Senate Print 2050;

                            Senator Stafford, page 12, Calendar

                 296, Senate Print 6157;

                            Senator Marcellino, page 16,

                 Calendar 389, Senate Print 4917B;

                            Senator Nozzolio, page 30, Calendar





                                                          2609



                 639, Senate Print 6445A;

                            Senator Goodman, page 34, Calendar

                 694, Senate Print 7148;

                            And Senator Bonacic, page 40,

                 Calendar 157, Senate Print 4579A.

                            And I move that these bills retain

                 their place on the Third Reading Calendar.

                            ACTING PRESIDENT MEIER:    The

                 amendments are received, and all bills will

                 retain their place on the Third Reading

                 Calendar.

                            SENATOR SKELOS:    Mr. President.

                            ACTING PRESIDENT MEIER:    Senator

                 Skelos.

                            SENATOR SKELOS:    There will be an

                 immediate meeting of the Finance Committee in

                 the Majority Conference Room.

                            ACTING PRESIDENT MEIER:

                 Immediate meeting of the Finance Committee in

                 the Majority Conference Room.

                            SENATOR SKELOS:    I believe there

                 are some substitutions to be made.

                            ACTING PRESIDENT MEIER:    Yes,

                 there are.

                            The Secretary will read the





                                                          2610



                 substitutions.

                            THE SECRETARY:    On page 16,

                 Senator Marcellino moves to discharge, from

                 the Committee on Energy and

                 Telecommunications, Assembly Bill Number 9090A

                 and substitute it for the identical Senate

                 Bill 4917B, Third Reading Calendar 389.

                            On page 34, Senator Paterson moves

                 to discharge, from the Committee on Cities,

                 Assembly Bill Number 4368A and substitute it

                 for the identical Senate Bill 3473A, Third

                 Reading Calendar 692.

                            And on page 36, Senator Hannon

                 moves to discharge, from the Committee on

                 Health, Assembly Bill Number 5100 and

                 substitute it for the identical Senate Bill

                 2302, Third Reading Calendar 714.

                            ACTING PRESIDENT MEIER:

                 Substitutions ordered.

                            Senator Skelos.

                            SENATOR SKELOS:    Mr. President,

                 there's a privileged resolution at the desk,

                 2784, by Senator Farley.  This resolution was

                 previously adopted by the Senate on

                 January 19th.  May we please have it read in





                                                          2611



                 its entirety at this time.

                            ACTING PRESIDENT MEIER:    The

                 Secretary will read the privileged resolution

                 in its entirety.

                            THE SECRETARY:    By Senator

                 Farley, Legislative Resolution Number 2784,

                 congratulating the Union College Football Team

                 on their outstanding season and ECAC Northwest

                 Championship Title.

                            "WHEREAS, Excellence and success in

                 competitive sports can be achieved only

                 through strenuous practice, team play, and

                 team spirit, nurtured by dedicated coaching

                 and strategic planning; and

                            "WHEREAS, Athletic competition

                 enhances the moral and physical development of

                 the young people of this State, preparing them

                 for the future by instilling in them the value

                 of teamwork, encouraging a standard of healthy

                 living, imparting a desire for success and

                 developing a sense of fair play and

                 competition; and

                            "WHEREAS, The Union College

                 Football Team, lead by Head Coach John Audino,

                 completed the 1999 regular season with a





                                                          2612



                 record of 8 and 2.  The team completed their

                 winning ways by defeating Ithaca to claim the

                 ECAC Northwest Championship Title, their first

                 win over Ithaca in four games.

                            "The 1999 team ranked second in the

                 country at the Division III level in overall

                 defense.  They were Number 1 against the pass,

                 Number 5 against the run, and Number 10 in

                 scoring defense.

                            "During the decade of the 1990s,

                 the Union College Football Team achieved a

                 record of 82 and 18, the tenth best among more

                 than 200 Division III NCAA football-playing

                 schools; and

                            "WHEREAS, The athletic talent

                 displayed by this team is due in great part to

                 the efforts of Head Coach John Audino, who is

                 respected for his ability to develop potential

                 into excellence.

                            "The hallmarks of the Union College

                 Football Team, from the opening game of the

                 season to participation in the ECAC Northwest

                 Championship Title game, were a brotherhood of

                 athletic ability and good sportsmanship.

                            "The team's overall record is





                                                          2613



                 outstanding, and the team members were loyally

                 and enthusiastically supported by family,

                 fans, friends and the community at large; and

                            "WHEREAS, Sports competition

                 instills the values of teamwork, pride and

                 accomplishment, and Head Coach John Audino and

                 his assistant coaches and their outstanding

                 athletes have clearly made a contribution to

                 the spirit of excellence which is a tradition

                 of their school; now, therefore, be it

                            "RESOLVED, That this Legislative

                 Body pause in its deliberations to

                 congratulate the Union College Football Team

                 and Head Coach John Audino on their

                 outstanding season and overall team record;

                 and be it further

                            "RESOLVED, That copies of this

                 Resolution, suitably engrossed, be transmitted

                 to the Union College Football Team and Head

                 Coach John Audino."

                            ACTING PRESIDENT MEIER:    Senator

                 Farley.

                            SENATOR FARLEY:    Thank you, Mr.

                 President.

                            Let me just say how pleased we are





                                                          2614



                 to have with us today in the gallery the

                 football team and the coach from Union

                 College, my neighbor.

                            Incidentally, also seated up there

                 is a very distinguished Assemblyman by the

                 name of James Tedisco, who was an

                 All-American -- stand up, Jim.

                            ASSEMBLYMAN TEDISCO:    I am

                 standing.

                            (Laughter.)

                            SENATOR FARLEY:    He was an

                 All-American basketball player for Union

                 College.

                            And let me just say how proud we

                 are of the academic excellence of Union

                 College, but also of their athletic

                 excellence.  This is a remarkable

                 accomplishment for a Division III school.

                 Nationally recognized.  We're very, very proud

                 of them.

                            And, you know, Union College not

                 only scores well, as I said, athletically, but

                 all of these young men are scholars which go

                 to one of finest academic institutions in the

                 nation.





                                                          2615



                            And of course their coach, who's

                 really done an outstanding job, is with us,

                 John Audino.

                            And, Mr. President, if you would

                 please extend the courtesies of this house and

                 congratulations.

                            And I'd ask the team to stand to

                 the applause of my colleagues, if you would.

                            (Applause.)

                            ACTING PRESIDENT MEIER:    Coach

                 and members of the team, on behalf of the

                 Senate we extend to you the courtesies of the

                 chamber today.  And we congratulate you.

                            We wish you well in all your future

                 endeavors, whether they're academic, athletic,

                 or otherwise.  Thank you for visiting us.

                            Senator Skelos.

                            SENATOR SKELOS:    Mr. President,

                 if we could take up the noncontroversial

                 calendar.

                            ACTING PRESIDENT MEIER:    The

                 Secretary will read the noncontroversial

                 calendar.

                            THE SECRETARY:    Calendar Number

                 185, by Senator Meier, Senate Print 6272A, an





                                                          2616



                 act in relation to adjusting certain state aid

                 payments.

                            SENATOR DOLLINGER:    Lay it aside,

                 please.

                            ACTING PRESIDENT MEIER:    Lay the

                 bill aside.

                            THE SECRETARY:    Calendar Number

                 187, by Senator Bonacic, Senate Print 6297A,

                 an act in relation to adjusting.

                            SENATOR PATERSON:    Lay it aside.

                            ACTING PRESIDENT MEIER:    Lay the

                 bill aside.

                            THE SECRETARY:    Calendar Number

                 389, substituted earlier today by the Assembly

                 Committee on Rules, Assembly -

                            SENATOR SCHNEIDERMAN:    Lay it

                 aside.

                            ACTING PRESIDENT MEIER:    Lay the

                 bill aside.

                            THE SECRETARY:    Calendar Number

                 422, by Senator Leibell, Senate Print 4529, an

                 act to amend the Penal Law.

                            SENATOR LACHMAN:    Lay the bill

                 aside.

                            ACTING PRESIDENT MEIER:    Lay the





                                                          2617



                 bill aside.

                            THE SECRETARY:    Calendar Number

                 486, by Senator Libous, Senate Print 6919, an

                 act to amend the Mental Hygiene Law.

                            SENATOR DOLLINGER:    Lay it aside.

                            ACTING PRESIDENT MEIER:    Lay it

                 aside.

                            THE SECRETARY:    Calendar Number

                 495, by Senator Velella, Senate Print 6545A,

                 an act to amend the Insurance Law.

                            SENATOR PATERSON:    Lay it aside.

                            ACTING PRESIDENT MEIER:    Lay the

                 bill aside.

                            THE SECRETARY:    Calendar Number

                 512, by Senator LaValle, Senate Print 2459, an

                 act to amend the General Municipal Law.

                            SENATOR DOLLINGER:    Lay the bill

                 aside.

                            ACTING PRESIDENT MEIER:    Lay it

                 aside.

                            THE SECRETARY:    Calendar Number

                 515, by Senator Stafford, Senate Print 4393,

                 an act to amend the General Municipal Law.

                            SENATOR DOLLINGER:    Lay it aside.

                            ACTING PRESIDENT MEIER:    Lay the





                                                          2618



                 bill aside.

                            THE WITNESS:    Calendar Number

                 537, by Senator Padavan, Senate Print 1400, an

                 act to amend the Penal Law.

                            SENATOR HEVESI:    Lay it aside.

                            ACTING PRESIDENT MEIER:    Lay the

                 bill aside.

                            THE SECRETARY:    Calendar Number

                 543, by Senator Volker, Senate Print 3993, an

                 act to amend the Penal Law.

                            SENATOR HEVESI:    Lay it aside,

                 please.

                            ACTING PRESIDENT MEIER:    Lay the

                 bill aside.

                            THE SECRETARY:    Calendar Number

                 556, by Senator Morahan, Senate Print 6938A,

                 an act to amend the Real Property Tax Law.

                            SENATOR DUANE:    Lay it aside,

                 please.

                            ACTING PRESIDENT MEIER:    Lay the

                 bill aside.

                            THE SECRETARY:    Calendar Number

                 560, by Senator Larkin, Senate Print 5676A -

                            SENATOR SKELOS:    Lay it aside for

                 the day.





                                                          2619



                            ACTING PRESIDENT MEIER:    Lay the

                 bill aside for the day.

                            THE SECRETARY:    Calendar Number

                 640, by Senator Kuhl, Senate Print 6740, an

                 act to amend the Highway Law.

                            SENATOR MONTGOMERY:    Lay that

                 aside.

                            ACTING PRESIDENT MEIER:    Lay the

                 bill aside.

                            THE SECRETARY:    Calendar Number

                 675, by Senator Seward, Senate Print 6820A, an

                 act making certain findings.

                            SENATOR DOLLINGER:    Lay it aside.

                            ACTING PRESIDENT MEIER:    Lay the

                 bill aside.

                            THE SECRETARY:    Calendar Number

                 698, by Senator Skelos, Senate Print 5821A, an

                 act authorizing the assessor.

                            SENATOR DOLLINGER:    Lay it aside,

                 please.

                            ACTING PRESIDENT MEIER:    Lay the

                 bill aside.

                            THE SECRETARY:    Calendar Number

                 699, by Senator Volker, Senate Print 6356, an

                 act to amend the Local Finance Law.





                                                          2620



                            SENATOR PATERSON:    Lay it aside.

                            ACTING PRESIDENT MEIER:    Lay the

                 bill aside.

                            THE SECRETARY:    Calendar Number

                 700, by Senator Hannon, Senate Print 6546, an

                 act authorizing the assessor.

                            SENATOR DUANE:    Lay it aside,

                 please.

                            ACTING PRESIDENT MEIER:    Lay the

                 bill aside.

                            THE SECRETARY:    Calendar Number

                 702, by Senator Balboni, Senate Print 6850, an

                 act in relation to authorizing.

                            SENATOR DOLLINGER:    Lay it aside,

                 please.

                            ACTING PRESIDENT MEIER:    Lay the

                 bill aside.

                            THE SECRETARY:    Calendar Number

                 707, by Senator Trunzo, Senate Print 6869, an

                 act to authorize Glory Zone Ministries.

                            SENATOR DOLLINGER:    Lay it aside,

                 please.

                            ACTING PRESIDENT MEIER:    Lay the

                 bill aside.

                            THE SECRETARY:    Calendar Number





                                                          2621



                 735, by Senator Bruno, Senate Print 7147, an

                 act to authorize the Office of General

                 Services.

                            SENATOR DOLLINGER:    Read the last

                 section.

                            ACTING PRESIDENT MEIER:    Read the

                 last section.

                            THE SECRETARY:    Section 5.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MEIER:    Call the

                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 52.

                            ACTING PRESIDENT MEIER:    The bill

                 is passed.

                            Senator Skelos, that completes the

                 reading of the noncontroversial calendar.

                            SENATOR SKELOS:    Thank you, Mr.

                 President.

                            There will be an immediate meeting

                 of the Children and Families Committee in the

                 Majority Conference Room.

                            ACTING PRESIDENT MEIER:

                 Immediate meeting of the Children and Families

                 Committee in the Majority Conference Room.





                                                          2622



                            SENATOR SKELOS:    Mr. President,

                 if we could return to reports of standing

                 committees, I believe there's a report of the

                 Finance Committee at the desk.  I ask that it

                 be read.

                            ACTING PRESIDENT MEIER:    Reports

                 of standing committees.

                            The Secretary will read.

                            THE SECRETARY:    Senator Stafford,

                 from the Committee on Finance, reports the

                 following bill direct to third reading:

                            Senate Print 7789, by the Senate

                 Committee on Rules, an act making

                 appropriations for the support of government.

                            ACTING PRESIDENT MEIER:    Senator

                 Skelos.

                            I'm sorry.  Without objection,

                 directly to third reading.

                            Senator Skelos.

                            SENATOR SKELOS:    May we please

                 take up Calendar Number 739, Senate 7789.

                            ACTING PRESIDENT MEIER:    The

                 Secretary will read.

                            THE SECRETARY:    Calendar Number

                 739, by the Senate Committee on Rules, Senate





                                                          2623



                 Print 7789, an act making appropriations for

                 the support of government.

                            SENATOR SKELOS:    Mr. President.

                            ACTING PRESIDENT MEIER:    Senator

                 Skelos.

                            SENATOR SKELOS:    Is there a

                 message of appropriation at the desk?

                            ACTING PRESIDENT MEIER:    There is

                 a message of necessity and appropriation at

                 the desk.

                            SENATOR SKELOS:    Move to accept.

                            ACTING PRESIDENT MEIER:    I'm

                 sorry.  There is a message of appropriation at

                 the desk.

                            The question is on accepting the

                 message of appropriation.  All those in favor

                 signify by saying aye.

                            (Response of "Aye.")

                            ACTING PRESIDENT MEIER:    Opposed,

                 nay.

                            (No response.)

                            ACTING PRESIDENT MEIER:    The

                 message is accepted.

                            Read the last section.

                            THE SECRETARY:    Section 46.  This





                                                          2624



                 act shall take effect immediately.

                            ACTING PRESIDENT MEIER:    Call the

                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 52.

                            ACTING PRESIDENT MEIER:    The bill

                 is passed.

                            Senator Skelos.

                            SENATOR SKELOS:    Mr. President,

                 if we could now go to the controversial

                 calendar.

                            ACTING PRESIDENT MEIER:    The

                 Secretary will read the controversial

                 calendar.

                            THE SECRETARY:    Calendar Number

                 185, by Senator Meier, Senate Print 6272A, an

                 act in relation to adjusting certain state aid

                 payments.

                            SENATOR DOLLINGER:    Explanation,

                 Mr. President.

                            ACTING PRESIDENT MEIER:    If you'd

                 give me a chance to change my hat.

                            ACTING PRESIDENT MARCELLINO:

                 Senator Meier, an explanation has been

                 requested.  If you need a moment, just take





                                                          2625



                 it, please.

                            SENATOR MEIER:    Thank you, Mr.

                 President.

                            Mr. President, this is a fairly

                 routine piece of legislation, the like of

                 which we frequently see here, involving the

                 Brasher Falls School District, a small school

                 district located in my district in St.

                 Lawrence County.

                            During the 1996-'97 school year,

                 New York State overpaid the state aid to

                 education to that district in an amount of

                 some $485,000.  The amount was not caught

                 until much later, as the result of an audit.

                            This bill will permit the school

                 district to repay that amount over the course

                 of a period of six years, so as to not bring

                 about a financial hardship by paying it back

                 in one fell swoop.

                            ACTING PRESIDENT MARCELLINO:

                 Senator Dollinger.

                            SENATOR DOLLINGER:    Will Mr.

                 President yield to a couple of questions?

                            ACTING PRESIDENT MARCELLINO:

                 Senator, do you yield?





                                                          2626



                            SENATOR MEIER:    Yes, I do.

                            ACTING PRESIDENT MARCELLINO:

                 The Senator yields.

                            SENATOR DOLLINGER:    What is the

                 size of the budget -- through you, Mr.

                 President, what is the size of the budget that

                 this $458,000 is predicated on, the repayment?

                 Do you know what the size of the annual

                 operating budget is?

                            SENATOR MEIER:    No, I don't.  I

                 haven't had the occasion to run for the school

                 board in Brasher Falls, Mr. President.

                            But suffice it to say I do know

                 that requiring the repayment of this amount in

                 one full year, Mr. President, would occasion

                 in itself a property tax increase of some

                 8 percent.  By itself.

                            SENATOR DOLLINGER:    Through you,

                 Mr. President, if the sponsor will continue to

                 yield for one other question.

                            ACTING PRESIDENT MARCELLINO:    Do

                 you continue to yield, Senator?

                            SENATOR MEIER:    Yes, I do, Mr.

                 President.

                            ACTING PRESIDENT MARCELLINO:    He





                                                          2627



                 yields.

                            SENATOR DOLLINGER:    Is there

                 interest on the amount that the school

                 district owes to the State of New York?

                            Because I understand, Mr.

                 President, that this payment was actually made

                 at least three years ago.  My question is, is

                 the school district going to pay back interest

                 to the State of New York as well, as any other

                 debtor would?

                            SENATOR MEIER:    Mr. President, my

                 understanding is there is no interest, no.

                            SENATOR DOLLINGER:    Okay, through

                 you, Mr. President, on the bill.

                            I appreciate Senator Meier's

                 explanation.

                            ACTING PRESIDENT MARCELLINO:

                 Senator Dollinger, on the bill.

                            SENATOR DOLLINGER:    This is a

                 problem that has plagued the school districts

                 of this state for some time, that the process

                 by which, when an overpayment is made, the

                 State Education Department demands that it be

                 repaid within a year of the time that it's

                 found.  So a school district which has been





                                                          2628



                 overpaid, just as the Brasher Falls Central

                 School District, just as the -- same exact

                 school district.  It's happened in my district

                 all the time, it happens in other places.

                            There are errors made, there are

                 overpayments made, and the policy that we have

                 in this state is that the state can recover

                 that repayment in one year.  But if it's vice

                 versa, if the State of New York shortchanges

                 the school district, like it has shortchanged,

                 I believe, the City of New York School

                 District -- Senator Hevesi would know the

                 number better, but I think it's $800 million

                 or $900 million in old claims, claims for

                 underpayments of cash -- under those

                 circumstances, they pay you back over the

                 course of six years.  Which is exactly what

                 Brasher Falls would like.

                            I congratulate Senator Meier for

                 doing this, because this is good government.

                 This is a good idea.  When a bank error -

                 when there's an overpayment made to a school

                 district, they ought to have a period of time

                 to get it back.

                            But my complaint is that this





                                                          2629



                 should not only be for Brasher Falls, this

                 should be the Brighton Central School

                 District, the Greece Central School District,

                 the Rochester City School District, the City

                 School District in the City of New York.

                            And I would just suggest that what

                 we're doing for Brasher Falls, if it's good up

                 there in Brasher Falls, it's even better -- it

                 could be even better in school districts that

                 have much larger budgets but also much larger

                 obligations to pay back.

                            The six-year payback rule, a great

                 idea.  If it's good for Brasher Falls, we

                 ought to do it elsewhere.  Let's do a

                 statewide bill that forces everybody to play

                 by the same rules.

                            I'm going to vote in favor of this

                 bill.  Senator Meier's explanation is

                 satisfactory to me.  But let's do it elsewhere

                 as well.

                            ACTING PRESIDENT MARCELLINO:

                 There is a local financial impact statement at

                 the desk.

                            Read the last section.

                            THE SECRETARY:    Section 2.  This





                                                          2630



                 act shall take effect immediately.

                            ACTING PRESIDENT MARCELLINO:

                 Call the roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 54.

                            ACTING PRESIDENT MARCELLINO:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 187, by Senator Bonacic, Senate Print 6297A,

                 an act in relation to adjusting certain state

                 aid payments.

                            SENATOR DOLLINGER:    Explanation,

                 please.

                            ACTING PRESIDENT MEIER:    Senator

                 Bonacic, an explanation has been requested of

                 Calendar 187.

                            SENATOR BONACIC:    Thank you, Mr.

                 President.

                            This is a bill that is similar to

                 Senator Meier's bill.  This is an overpayment

                 to a school district -- in this case, it was

                 the Greenville Central School District -- of a

                 building aid payment.  It was made in -- I

                 think it was '97-'98.  It was an overpayment

                 of $343,902.





                                                          2631



                            Under our existing law, that school

                 district would have to repay the state within

                 one year and would create a burden on the

                 taxpayers in that school district.  And this

                 legislation allows them to pay it back over a

                 six-year period.  And interest payments are

                 not included.  It's strictly the principal.

                            SENATOR DOLLINGER:    Through you,

                 Mr. President, if the sponsor would yield.

                            ACTING PRESIDENT MEIER:    Senator

                 Bonacic, do you yield for a question?

                            SENATOR BONACIC:    I do.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR DOLLINGER:    Senator

                 Bonacic, isn't it true that the taxpayers in

                 this school district got a $343,000 benefit in

                 one year when they got this overpayment?

                            SENATOR BONACIC:    That is true.

                            SENATOR DOLLINGER:    Under those

                 circumstances, applying the same logic, if

                 they get it in one year, shouldn't they pay it

                 back in one year?  I mean, that's the current

                 rule, statewide, is it not?

                            SENATOR BONACIC:    That is the





                                                          2632



                 present rule.

                            But what we're trying to do, as we

                 have in the past, we recognize there is a

                 hardship to school districts.  The state made

                 the error initially in sending the money out,

                 and now all the school district wants to do is

                 to -- well, technically they're not making the

                 state whole, because they've had the use of

                 the money and, you know, have not paid

                 interest on it.  But that's a break we want to

                 give the school district.

                            SENATOR DOLLINGER:    Okay.

                 Through you, Mr. President, I thank Senator

                 Bonacic for his explanation.  This too touches

                 on a point that I discussed with the previous

                 sponsor.

                            And I would again point out that

                 what's both good in Brasher Falls and good in

                 the Greenville Central School District ought

                 to be good across the state.  And I would

                 point out I don't think the argument is so

                 much that there's a detriment in paying it

                 back, because of course they already got a

                 $343,000 benefit.  And from my point of view,

                 this calls again for statewide legislation.





                                                          2633



                 Let's treat all the school districts the same.

                            And the one danger, through you,

                 Mr. President, that I would just point out is

                 that what we end up with is a group of favored

                 school districts who have Republican Senators

                 and Democratic Assemblypeople for which there

                 is one rule, and then school districts which

                 have a Democratic Senator and a Republican

                 Assemblyman, a whole other rule.

                            How can that be fair to the school

                 districts of this state when the only thing

                 that matters whether they pay it back in one

                 year or six years is who they happen to have

                 elected or who their voters might have

                 participated in electing to the New York State

                 Senate?

                            This calls for statewide

                 legislation.  We ought to do it on a statewide

                 basis, treat everybody fairly.  What's good

                 for Greenville, what's good for Brasher Falls

                 is good for everyone else.  I vote aye, Mr.

                 President.

                            SENATOR HEVESI:    Mr. President.

                            ACTING PRESIDENT MEIER:    Senator

                 Hevesi.





                                                          2634



                            SENATOR HEVESI:    Thank you, Mr.

                 President.  Would the sponsor yield for a

                 question?

                            ACTING PRESIDENT MEIER:    Senator

                 Bonacic, do you yield for a question?

                            SENATOR BONACIC:    I do.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR HEVESI:    Thank you.

                            I understand the purpose of this

                 legislation after the fact, and I understand

                 that the state made a mistake in this

                 particular instance and in all the other

                 instances -- and there have been many of them

                 this year where this particular circumstance

                 occurred.

                            My question to you is, does the

                 Greenville School District or any other school

                 district in the state, to your knowledge, have

                 a mechanism by which to catch the mistake when

                 it happens and obviate the need for this

                 entire exercise?

                            SENATOR BONACIC:    I think that

                 goes to, you know, the fiscal people that they

                 have within their school district that





                                                          2635



                 monitors these things.

                            I don't know why these mistakes

                 happen.  But it's probably not a bad idea to

                 treat all schools equally.  And I don't know

                 how frequently these mistakes are made.  I

                 know in my Senate district this is the first

                 time I've been faced with this problem.  And

                 it's a small school district.  There's no

                 doubt in my mind, for them to make this up,

                 they have to raise the tax levy.

                            And what we're trying to do is if

                 we're going to raise tax levies, let's do it

                 because we're trying to upgrade the standards

                 and, you know, promote excellence in

                 education, and not make them do it because of

                 a mistake that the state made.  That's what

                 we're asking.

                            SENATOR HEVESI:    Thank you.  Mr.

                 President, on the bill.

                            ACTING PRESIDENT MEIER:    Senator

                 Hevesi, on the bill.

                            SENATOR HEVESI:    Just briefly.

                 I'm a little bit concerned because many of

                 these school districts are not -- either not

                 catching the mistakes themselves -- and these





                                                          2636



                 are $300, $400,000, $500,000, sometimes

                 multi-million-dollar mistakes -- or they are

                 catching them and not doing anything about

                 them at the time when it occurs, and that

                 creates a problem down the road.

                            So I would suggest that although

                 certainly the burden is on the state to ensure

                 that the right amount of funding due each

                 school district is sent to each school

                 district, there does need to be some

                 accountability on the part of local school

                 districts to ensure that they are in receipt

                 of the correct amounts so that we don't have

                 this problem in the future.

                            But once this happens, certainly

                 these bills are worthy and necessary.  So I

                 vote aye.

                            ACTING PRESIDENT MEIER:    There is

                 a local fiscal impact note at the desk.

                            Read the last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MEIER:    Call the

                 roll.

                            (The Secretary called the roll.)





                                                          2637



                            SENATOR MARCHI:    May I explain my

                 vote, please.

                            ACTING PRESIDENT MEIER:    Senator

                 Marchi, to explain his vote.

                            SENATOR MARCHI:    I think that

                 there have been some good points made here on

                 both sides of that argument.  And it may lead

                 to some omnibus bill or corrective

                 legislation.

                            But we ought to reflect on the fact

                 that we have fiscally dependent districts,

                 virtually all districts in the state -- except

                 a few are fiscally independent, and perhaps

                 not as well equipped.  So I think in

                 considering legislation in the future that we

                 come down on that fact.  The fiscally

                 dependent districts are on a somewhat

                 different footing.  And that may be relevant

                 in the calculation of what we ought to do by

                 way of correction.

                            But I vote in favor of this bill.

                            ACTING PRESIDENT MEIER:    Senator

                 Marchi will be recorded in the affirmative.

                            Senator Dollinger.

                            SENATOR DOLLINGER:    Just to





                                                          2638



                 explain my vote, Mr. President, very briefly.

                            ACTING PRESIDENT MEIER:    Senator

                 Dollinger, to explain his vote.

                            SENATOR DOLLINGER:    I would

                 just -- and it was raised both by the previous

                 sponsor and by Senator Bonacic that this bill

                 is designed to prevent a tax increase.  My

                 suggestion to both of the sponsors is that's

                 not really the issue.  Because if they hadn't

                 gotten the $350,000 in the year they got it,

                 they would have had to raise taxes then to pay

                 their bills.

                            The point of this is not that it

                 causes a tax increase.  The question is an

                 issue of fairness.  And that is when the State

                 of New York overpays a district and has to be

                 paid back, it should be paid back over a

                 six-year period, the same way it is now if

                 they underpay a district.  New York State

                 ought to be a responsible debtor and a

                 responsible creditor.

                            And the thing to do is to create

                 fairness.  And I would strongly suggest that

                 what needs to be done is all the school

                 districts in this state should get the same





                                                          2639



                 benefit that Senator Bonacic wants to give to

                 Greenville, Senator Meier wants to give to

                 Brasher Falls.  Let's give everybody the same

                 fair deal.

                            ACTING PRESIDENT MEIER:    Senator

                 Dollinger will be recorded in the affirmative.

                            The Secretary will announce the

                 results.

                            THE SECRETARY:    Ayes, 56.

                            ACTING PRESIDENT MEIER:    The bill

                 is passed.

                            THE SECRETARY:    Calendar Number

                 389, substituted earlier today by the Assembly

                 Committee on Rules, Assembly Print Number

                 9090A, an act to amend the Public Service Law,

                 the Environmental Conservation Law, the State

                 Finance Law, and the Public Authorities Law.

                            SENATOR DOLLINGER:    Explanation.

                            ACTING PRESIDENT MEIER:    Senator

                 Marcellino, an explanation has been requested

                 of Calendar 389.

                            SENATOR MARCELLINO:    Thank you,

                 Mr. President.

                            I'm pleased to get up and explain

                 this particular bill, because this particular





                                                          2640



                 bill is to prevent or stop or help to prevent

                 a problem that has occurred in New York State,

                 not necessarily totally of our doing, but

                 partly of our doing.  And that's called acid

                 rain.

                            There are things called pollution

                 credits which are given to utilities by the

                 federal government which tells them how much

                 pollution they're allowed to emit to qualify

                 and fulfill their requirements within the

                 federal Clean Air Act.

                            Many utilities in New York State

                 have become very efficient and have cleaned up

                 their act so that they do not have use all

                 their pollution credits, they can keep some in

                 reserve.  As a by-product of this process,

                 they're allowed to sell these pollution

                 credits to other utilities that might not be

                 able to meet their requirements, or cannot,

                 for whatever reason.

                            The problem that we have, though,

                 is when we sell our pollution credits in New

                 York State that are generated by our clean

                 utilities to out-of-state utilities in some

                 Midwestern states -- and we've identified 14





                                                          2641



                 of those states in the legislation.  When they

                 burn high-sulfur fuel, the emissions from

                 their stacks, because of the direction the

                 wind blows, it literally doesn't land on them,

                 it lands on us.

                            So our utilities are spending money

                 to clean up their sites and their processing.

                 They then sell the benefits of that -- by the

                 way, passing the costs on to the ratepayer -

                 they then sell those credits in some cases to

                 these Midwestern utilities that burn cheaper

                 fuel, high-sulfur burning fuel, which emits

                 greater pollution into the atmosphere, which

                 then blows back and lands back on us.  We get

                 the negative result of acid rain.

                            That negative result has cost

                 certain -- several mountains -- certain lakes

                 and rivers in the Adirondacks, and certain

                 mountainsides, and literally forests to be

                 just taken down.  Because of the acidity,

                 these lakes and rivers do not and cannot

                 foster and support life as a result, which is

                 a negative impact on those areas.  You cannot

                 use these rivers.

                            We on Long Island drink the





                                                          2642



                 groundwater beneath our feet.  When this stuff

                 lands on the ground, percolates its way

                 through as the water is recharging, this fouls

                 our water and causes our aquifers to become

                 problematic and less capable of supporting our

                 drinking water needs on Long Island.

                            This is a problem for all of us.

                 It's time, as the guy said in the movie, that

                 we stand up and basically say we're mad as

                 heck and we're not going to take it anymore.

                            The federal government, frankly,

                 should be doing something about this.  They

                 have not.  There is a bill in Washington, the

                 Moynihan-Boehlert-Sweeney legislation,

                 supported by every member of our federal

                 delegation.  If that bill were to pass, the

                 federal government would take the proper

                 corrective actions on these Midwestern

                 utilities and require them to meet clean air

                 standards that would protect us in their

                 downwind areas.  The federal government has

                 not acted.  Why, anybody can guess.  There's

                 probably a host of reasons.  They have not.

                            New York has taken the lead.

                 Governor Pataki has negotiated a deal with





                                                          2643



                 then LILCO, now LIPA, to voluntarily do this

                 sort of thing, voluntarily sign a covenant and

                 a contract with us not to sell their pollution

                 credits to these out-of-state areas, these

                 upwind locations.

                            We had hoped at the time that other

                 utilities would do this and join us in this

                 action.  They have not to date.  So New York

                 State is taking its action.  The Attorney

                 General is suing these areas.  The Governor

                 has imposed harsher standards.

                            We are now taking a step in order

                 to protect ourselves, the last step that New

                 York can take to protect ourselves.  We are

                 urging other states in the region -- we've

                 gotten positive contact from other states in

                 the Northeast, basically along the same lines,

                 to take this legislation, use it as a model,

                 pass it to protect themselves so that we do

                 not have this problem of acid rain anymore.

                            Some have suggested problems with

                 this, that it could cause all kinds of dire

                 things such as negative financial incentives

                 and so forth.  We don't see any of the

                 negativity in this thing.  We see only





                                                          2644



                 positive moves in this particular piece of

                 legislation.

                            If this is passed, we will be

                 protecting ourselves.  Ladies and gentlemen,

                 my colleagues, even the Hatfields knew enough

                 not to sell their extra bullets to the McCoys.

                 By doing this, we will stop the unnecessary

                 burden on our people, on New York.

                            We would prefer and we hope that

                 the federal government will go do the right

                 thing, pass the bill that's out there now and

                 protect all the states in the region and make

                 these Midwestern utilities behave, clean up

                 their act, burn cleaner fuel, and put them on

                 an even playing field with our Northeastern

                 utilities.

                            Because by being able to burn

                 cheaper fuel, they have lesser costs.  They

                 have not engendered the costs that our

                 utilities have.  So therefore, selling energy

                 in those utilities is cheaper.  They have an

                 unfair advantage on our utilities in selling

                 power.  We want to put that on an even playing

                 field and keep that positive effect.

                            So we want to encourage clean





                                                          2645



                 utilities, we want to encourage clean air, and

                 we want to discourage the burning of

                 high-sulfur fuel and the dumping, literally

                 dumping of this rain of death on the citizens

                 of New York State.

                            ACTING PRESIDENT MEIER:    Senator

                 Schneiderman.

                            SENATOR SCHNEIDERMAN:    Mr.

                 President, through you, if the sponsor will

                 yield to a few questions.

                            ACTING PRESIDENT MEIER:    Senator

                 Marcellino, do you yield for a question?

                            SENATOR MARCELLINO:    Yes.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR SCHNEIDERMAN:    Thank you.

                            The Senate has already acted, I

                 believe, on this issue and passed a bill

                 similar to this but not exactly the same as

                 it.  I would request if the sponsor could

                 explain the difference between this bill and

                 the bill we've already passed on this issue.

                            SENATOR MARCELLINO:    Last year or

                 last session we passed legislation that is

                 probably 99 percent the same as the bill we're





                                                          2646



                 looking at.  The difference is there was a

                 date of 2003 in the previous legislation when

                 the bill would take effect.  That bill was

                 amended to 2001, at one point in time.  You'll

                 notice there are multiple versions on this.

                            We've been in contact with the

                 Assembly on this.  We've been negotiating

                 almost by amendment along these lines.  The

                 Assembly, after we matched our bill to their

                 bill with the 2001 deadline, a few days later

                 changed it by striking the date clause out

                 entirely, thereby allowing us to capture

                 credits that go back to 1995 when these were

                 initially enacted, when this act was initially

                 produced.  We can, by that act, take into

                 consideration some 300,000 -- I'm sorry, some

                 600,000 tons of outstanding pollution credits.

                            We had our attorneys look at this.

                 Counsel reported back that we could do this

                 legally, that we were able to handle this

                 particular piece.  So now we have taken the

                 Assembly's bill -- which is our bill, in

                 effect -- and substituted it so we're going to

                 pass it so there is unanimity, and hopefully

                 get law.





                                                          2647



                            SENATOR SCHNEIDERMAN:    Thank you.

                 Through you, Mr. President.

                            So am I correct, then, in my

                 understanding that this bill improves on the

                 bill we passed last year, because this will

                 enable us to prevent the sale of these credits

                 to utilities that might use the credits to

                 further pollute our air, the credits that are

                 in the bank right now?  Not just we don't have

                 to wait to some point in the future, but there

                 are credits in the bank right now, we can

                 start today preventing this excess pollution

                 coming from the Midwest and blowing into New

                 York State?

                            SENATOR MARCELLINO:    You're

                 absolutely correct, Senator.

                            And you also have to recognize that

                 each and every year from now forth, more

                 credits are issued to these utilities.  This

                 will prevent literally millions of tons,

                 potentially millions of tons of pollution from

                 coming back to us in New York State.  Of our

                 own making.

                            SENATOR SCHNEIDERMAN:    Thank you.

                            Through you, Mr. President, one





                                                          2648



                 additional question.

                            ACTING PRESIDENT MEIER:    Senator

                 Marcellino, do you continue to yield?

                            SENATOR MARCELLINO:    I'll be

                 pleased to.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR SCHNEIDERMAN:    One of the

                 issues that's concerned some of us is that

                 we're taking this action unilaterally in New

                 York.  There is some concern that some of

                 these Midwestern utilities may just buy

                 pollution credits from other states.

                            And I'm wondering if any

                 consideration has been given to attempting to

                 impose some sort of requirement on utilities

                 that do business in New York but also have

                 credits available from their operations in

                 other states that would also prohibit them

                 from using those credits.

                            SENATOR MARCELLINO:    Senator, as

                 you know, this law would put a covenant

                 restriction on the existing pollution credits

                 to prevent them from ever being sold to one of

                 these 14 states specifically identified in the





                                                          2649



                 bill.  It would be like a covenant on a piece

                 of land, a restriction that will travel with

                 that land forever.

                            This will travel with that credit

                 until that particular credit is either used or

                 retired.  As long as it was being traded, it

                 could not be traded in any way to one of those

                 states.  If it ever was, this state would have

                 action, by virtue of the contract law, to

                 enforce that contract and make sure that they

                 recovered the amount of money that was

                 acquired by that particular company from the

                 sale of this particular pollution credit or

                 group of pollution credits.

                            Your question relating to other -

                 you can't even go -- this would prevent you

                 from going through a third party and trying to

                 circumvent our rules.

                            The idea of taking action against

                 these utilities, quite frankly, Senator,

                 that's where the Clinton administration has

                 to -- Clinton-Gore administration has to step

                 up to the plate.  They have to take action to

                 make this a cleaner nation with respect to

                 this trading.





                                                          2650



                            We have a system that was designed

                 with the best of intentions, to encourage

                 utilities to clean up their act.

                 Unfortunately, it hasn't worked the way it was

                 intended to work.  It needs some adjusting.

                 In some parts of the country, this has been

                 very good.  There has been an overall

                 improvement in air quality.  But not

                 everywhere.  And we're one of those areas that

                 is negatively impacted.

                            What we're saying is tweak the law,

                 change it a little bit so that we don't get

                 dumped on.  We're not second-class citizens

                 here in the Northeast to the rest of this

                 nation.  And we're just saying to the federal

                 government, Fix it, don't destroy it.  It's a

                 good program, this trading business.  But make

                 it work for everybody in a positive way.

                            We think this is the way to go.  We

                 think the federal legislation which is out

                 there and should be passed if put to the floor

                 is the way to go.  If the Clinton and Gore

                 administration would get on board on that,

                 we'd be happy to help them.

                            SENATOR SCHNEIDERMAN:    Thank you,





                                                          2651



                 Mr. President.  On the bill.

                            ACTING PRESIDENT MEIER:    Senator

                 Schneiderman, on the bill.

                            SENATOR SCHNEIDERMAN:    I thank

                 the sponsor for the detailed explanation of

                 what I think is an excellent piece of

                 legislation.

                            And I realize that in a situation

                 when something good is about to happen,

                 there's always efforts of anyone who was

                 involved at all to claim credit.  And we had a

                 bill and the Assembly changed the bill, now we

                 have something that's like their bill.  I

                 would like to claim credit too.  I think I was

                 in a bar with Mr. Brodsky three or four years

                 ago and I had this idea.

                            (Laughter.)

                            SENATOR SCHNEIDERMAN:    But, look,

                 when you get good work done, there's enough

                 credit to go around.  Clearly the Senate moved

                 first on this.  We passed a bill last year.

                 This bill is better than the bill we passed

                 last year.  And I think that -- I don't know

                 who the Hatfields and McCoys are, but I know

                 that the Crips are smart enough not to sell





                                                          2652



                 the Bloods their used razor blades.

                            So I am in agreement with Senator

                 Marcellino on the basic principle involved

                 here.  And I think that we will look forward

                 to further improvements in the federal system

                 once we elect the finest environmentalist ever

                 to run for the Presidency this fall.

                            Thank you, Mr. President.

                            ACTING PRESIDENT MEIER:    Senator

                 Onorato.

                            SENATOR ONORATO:    Mr. President,

                 will the sponsor yield?

                            ACTING PRESIDENT MEIER:    Senator

                 Marcellino, do you yield for a question?

                            SENATOR MARCELLINO:    It will be

                 my pleasure to yield to Senator Onorato.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR ONORATO:    Senator

                 Marcellino, would you explain to me, under the

                 current law can a utility or a polluter in the

                 State of New York currently sell some of their

                 tax credits to existing utility plants that

                 are operating in the state of New York who do

                 not meet the Clean Air/Clean Water Act because





                                                          2653



                 they were grandfathered in when they passed

                 that law?

                            SENATOR MARCELLINO:    It's my

                 understanding under existing law that that

                 would be true.  You could even sell to one of

                 your own sub -- one of your own portions of

                 your own company.  So that's true.  Under the

                 law as it is today.

                            SENATOR ONORATO:    Again, through

                 you, Mr. President, if the sponsor will

                 continue to yield.

                            ACTING PRESIDENT MEIER:    Do you

                 continue to yield, Senator Marcellino?

                            SENATOR MARCELLINO:    Yes.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR ONORATO:    Last year we

                 passed the deregulation for siting new power

                 plants.  Currently there is contemplation and

                 applications in, especially down in the City

                 of New York, for an additional seven power

                 plants adjacent to current power plants which

                 have been identified as some of the worst

                 polluting plants in the State of New York;

                 namely, the New York Power Authority's Poletti





                                                          2654



                 plant located in Astoria.

                            There are two plants now being

                 contemplated being built right alongside of

                 those existing plants who do not meet the

                 current standards.  How will this legislation

                 affect them?  And if it doesn't, what can we

                 do to bring them up to compliance within our

                 own state?

                            SENATOR MARCELLINO:    I don't

                 believe this legislation will impact the

                 siting of any particular power plant at all.

                 What we can do -- because it's not aimed at

                 that at all.  It's aimed at the credits and

                 the trading of credits with out-of-state

                 markets or any other group.

                            What we produce in this state blows

                 to some other state.  If I lived in New

                 Hampshire, I would be very upset if my

                 company -- my utility was selling pollution

                 credits to a New York State utility, because

                 it would end up on me.  So it behooves New

                 Hampshire, which is downwind of New York

                 State, to go along with legislation like this.

                            With respect to siting, now we come

                 up to federal regulations and state





                                                          2655



                 regulations as to siting.  Every utility

                 that's put up has to meet those clean air

                 standards, must be given -- they're given

                 limited numbers of these pollution credits

                 each year by the federal EPA.  If they're not

                 in compliance, they have to be closed or they

                 have to come down on them.

                            Our problem in this state is power.

                 Our problem is power.  We do need it.  There

                 are locations that are browned out routinely.

                 The city of New York is one of them.  There's

                 a severe power shortage at certain points in

                 time as the demand -- you need peak power, and

                 you've got to supply it.  We've got places on

                 Long Island that cannot meet the needs during

                 peak seasons when power is in demand.  Those

                 needs have to be met; we have to supply them.

                            We need conservation, which must be

                 encouraged and is encouraged.  We need

                 programs like this which restrict the kind of

                 pollution that dumps on us.  And we need very

                 strict enforcement of the rules.

                            If a plant is not meeting its

                 goals, if it's not meeting its rules and it's

                 through negligence, through not caring,





                                                          2656



                 through not performing what they're supposed

                 to do, then the force of government should go

                 on top and lean on them and make them produce

                 the way they're supposed to, make them clean

                 up their act, so to speak.  I have no problem

                 with that, Senator.

                            SENATOR ONORATO:    Again, on the

                 bill.

                            ACTING PRESIDENT MEIER:    Senator

                 Onorato, on the bill.

                            SENATOR ONORATO:    Basically, I'm

                 completely in favor of this here.  But I would

                 really love for us to go a step further,

                 again, in view of the fact that there are

                 additional plants coming on line, which will

                 be coming on line.  And there's no question in

                 my mind that the newer plants will be in much

                 better condition to service our community in a

                 much cleaner fashion.

                            But the problem exists that they

                 will -- they're still going to be emitting

                 pollution.  And my greatest problem is that

                 they're adding to the pollution that's

                 currently being produced by the plants that

                 they're going to be located right next to,





                                                          2657



                 adding more pollution to the air.  And they

                 would be in a position to sell credits to the

                 polluters that are located right next door to

                 them, without them cleaning up their act.  So

                 basically we'll result in a plus no matter how

                 you look at it.

                            So I'd really like to see

                 legislation -- I am introducing legislation

                 which is very, very simple in its content.  It

                 basically says that when a new plant comes on

                 line in the city of New York which has a

                 population of over one million, that before

                 that plant can go on line, the adjacent plant

                 must come up to the government's federal Clean

                 Air Act or shut down.

                            Because we cannot afford some of

                 our areas -- especially in New York City,

                 which has not met the Clean Air and Clean

                 Water Attainment Act.  So you're going to be

                 adding on more pollution to the city of New

                 York, which has almost 8 million inhabitants

                 and is currently suffering from the worst

                 scenario of lung-related diseases in the

                 entire United States.

                            So I hope that we'll see the light





                                                          2658



                 of day and allow that particular bill to come

                 onto this floor for a vote.  Thank you.

                            ACTING PRESIDENT MEIER:    Senator

                 Oppenheimer.

                            SENATOR OPPENHEIMER:    If the

                 sponsor would yield to a -

                            ACTING PRESIDENT MEIER:    Senator

                 Marcellino, do you yield for a question?

                            SENATOR MARCELLINO:    Yes, I do.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR OPPENHEIMER:    Well, I

                 have two questions.

                            SENATOR MARCELLINO:    I yield

                 twice, Senator.

                            SENATOR OPPENHEIMER:    What was

                 that, Carl?

                            SENATOR MARCELLINO:    I said I

                 yield twice.

                            SENATOR OPPENHEIMER:    Oh, thank

                 you.  Okay.

                            The first one is, you know, I've

                 never appreciated sulfur dioxide credits.  And

                 so if you would just give a -- I'll ask both

                 questions together -- give me a philosophic





                                                          2659



                 reason why you support them.  Because I can't

                 see why, if you're cleaning up your act here,

                 you should -- I mean, I never understood this

                 from the very beginning -- why you should be

                 able to sell it to someone else so that they

                 can dirty up their atmosphere and then blow it

                 back at you.  That's the first question.

                            The second question relates more to

                 what Senator Onorato just questioned, which

                 was if you have an older plant prior to, what

                 is it, 1974, and it hasn't -- I forget the

                 date, but something like that -- and it is not

                 meeting the standards, then this wouldn't

                 apply anyway, because it isn't under any

                 mandate to improve to meet the current

                 standards and so there would be no need for it

                 to purchase the tax credits.

                            So one is just straightening up a

                 confusion, and the other is questioning a

                 philosophy.

                            SENATOR MARCELLINO:    The

                 philosophy, Senator, is simply designed that

                 this -- this program was designed to encourage

                 utilities all over the country to clean up

                 their act and to give them a financial





                                                          2660



                 incentive for doing so.  The negative impact

                 was not foreseen, in effect.  A good program

                 was set up with the best of intentions, to

                 clean the air and to encourage utilities to

                 clean up their sites.

                            Unfortunately, certain parts of the

                 country don't necessarily benefit, because of

                 the way nature works.  The wind blows in our

                 direction, and this stuff comes here.

                            What we're saying, by this

                 legislation, to the federal government is make

                 them clean up their act.  Make them burn the

                 same -- or make them come under the same

                 requirements as the Northeastern utilities,

                 because they're adding to our problem.  And

                 you've got to stop treating us as second-class

                 citizens.

                            The federal government understands

                 what we're saying.  The EPA gives us lip

                 service.  They tell us we're absolutely

                 correct.  Study after study after study after

                 study has shown that we're absolutely correct,

                 we're not making this acid rain business up.

                 It's perfectly true.  Yet we can't get federal

                 action.





                                                          2661



                            Now, we're trying to put pressure

                 on the feds.  We're hoping that the

                 Northeastern states -- and as I said before,

                 I've circulated this legislation to other

                 legislators in our neighboring states.  New

                 Hampshire is looking at it.  Maine is looking

                 at it.  Others will take a look at it and

                 hopefully pass it, so that regionally we will

                 tell the federal government, this is where we

                 stand on this.  We don't want this stuff

                 anymore.  We're going to deny these people as

                 many credits as we can deny them.

                            Currently this bill will deny them

                 600,000 credits that have been amassed under

                 New York State utilities since 1995 that have

                 not been sold, that are being held.  If we can

                 deny them those credits plus the exponentially

                 increasing numbers that the federal government

                 keeps on adding on each and every year, we

                 will protect ourselves and regionally protect

                 the entire region by literally millions of

                 tons of potential pollution which we can

                 prevent.

                            That's less asthma.  That's less

                 health effects and less respiratory problems,





                                                          2662



                 less problems all over the place.  Less water

                 problems, less problems in our lakes, rivers

                 and streams.

                            So that's the reasoning behind

                 this.  I do think that the concept, the idea

                 of pollution credits, is a good one.  I do

                 believe that we should encourage these.  We

                 need a financial incentive to get people to

                 move under any circumstances.  We tried the

                 hammer for many years, and that doesn't seem

                 to work.  They can always avoid it.  They can

                 put up shields.  They have expensive attorneys

                 that can defend them in the courts.  This

                 incentive has worked.  There has been a

                 general drop in air pollution nationwide.

                            What we're suggesting, what we're

                 saying is we in this region, we in this state

                 in particular, have not gotten the full

                 benefit of the program.  We feel it has to be

                 adjusted so that we get the full benefit of

                 that program.  That's why we're doing what

                 we're doing here today.

                            And I congratulate our colleagues

                 in the Assembly for doing the right thing, for

                 coming up and passing the bill and sending it





                                                          2663



                 to the Senate -- and the Senate has passed it

                 earlier this year -- so we can pass it at this

                 point in time, and we'll hopefully get law on

                 that basis.

                            With respect to older plants being

                 grandfathered in other situations, you're in a

                 catch-22, Senator.  I heard from Senator

                 Onorato you want to close down some plants if

                 they don't meet the standards.  That's good to

                 say.  But if half of Queens blacks out one

                 night, tell them that that's because we shut

                 that plant down, if they black out.

                            So you've got to find a mechanism

                 to get those plants to clean up their act.  If

                 it's legislative, that's one thing.  If it's

                 the federal government has to come in and do

                 it, if it's the Public Service Commission that

                 has to come in and do it, if it's the DEC or

                 the EPA, I don't really care.  I don't think

                 any of us do.  We would like to see their act

                 cleaned up and force them to do the right

                 thing and clean up their act, whether they

                 were grandfathered or not.

                            The new plants coming on line will

                 have to meet very stringent standards, very





                                                          2664



                 stringent standards.  And they will not add,

                 you know, tremendously or deal with totally -

                 you know, in a terrible way to our air

                 problems.  But we do have in this state and in

                 this region an energy problem.  We have a lot

                 of people -- we have 8 million in the city of

                 New York, we've got almost 3 million on Long

                 Island.  We've got power shortage concerns and

                 power needs.

                            Conservation goes so far.  We need

                 to supply power.  Otherwise, you know, it

                 stops.  And the job creation stops and

                 industries stop and businesses stop and

                 economically we grind to a halt.  Energy is

                 the root of it all.  So clean energy is the

                 preference, obviously.

                            We're taking one small step in this

                 legislation towards that goal.  There's many

                 other steps in the process.

                            SENATOR OPPENHEIMER:    If I could

                 just have clarification of something, through

                 you, Mr. President.

                            ACTING PRESIDENT MEIER:    Senator

                 Marcellino, do you continue to yield?

                            SENATOR MARCELLINO:    Sure.





                                                          2665



                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR MARCELLINO:    I don't

                 guarantee to clarify.

                            SENATOR OPPENHEIMER:    You usually

                 do.

                            The question is, there would be no

                 need for these grandfathered power plants to

                 buy the pollution tax -- the credits because

                 they're already grandfathered, so they don't

                 need to purchase the credits.  Is that not

                 correct?

                            SENATOR MARCELLINO:    Right,

                 you're correct.  They wouldn't necessarily

                 need it.

                            SENATOR OPPENHEIMER:    Thank you,

                 and I appreciate your answer.

                            I am very supportive of the bill.

                 I'm on the bill now.  I'm very supportive of

                 this bill.  It's just that I think years ago,

                 when the feds decided to do this, I felt that

                 it was something that was more appropriately

                 handled through some kind of subsidy.  Not a

                 stick, because the stick hadn't worked, but a

                 carrot, some kind of financial assistance to





                                                          2666



                 those power plants that were cleaning up their

                 act.

                            Because it -- I found it sort of

                 working against our goals to be able to sell

                 the pollution credits to another power

                 facility that was polluting more than it

                 should.  It wasn't in general, in total,

                 cleaning up the entire environment; it was

                 simply selling what was bad in one area to

                 another area.  And philosophically, that

                 bothered me, and I thought there might have

                 been another way.

                            But I agree with you, it has

                 improved the environment, the air in most of

                 our nation.  And so I think your bill is an

                 excellent one, Carl.

                            ACTING PRESIDENT MEIER:    Senator

                 Dollinger.

                            SENATOR DOLLINGER:    Mr.

                 President, will the sponsor yield to a couple

                 of questions?

                            ACTING PRESIDENT MEIER:    Senator

                 Marcellino, do you yield for a question?

                            SENATOR MARCELLINO:    Yes, I will.

                            ACTING PRESIDENT MEIER:    The





                                                          2667



                 sponsor yields.

                            SENATOR DOLLINGER:    Through you,

                 Mr. President.

                            Senator, how did you get the

                 definition of the acid precipitation source

                 states?  And I'll cut right to the chase.  Why

                 is it that there are only states that are east

                 of the Mississippi on the list when you can

                 build a power plant on the western shore of

                 the Mississippi River in Iowa or Missouri and

                 have the exact same effect on acid rain in New

                 York State?

                            SENATOR MARCELLINO:    Basically,

                 the program comes from the scientists who tell

                 us where the predominant amount of emissions

                 are coming from.

                            They are in fact coming from the

                 states that we've identified in the

                 legislation.  If they're east of the

                 Mississippi, so be it.  But that's where

                 90 percent of our acid rain is coming from.

                            SENATOR DOLLINGER:    Okay.  Again,

                 through you, Mr. President, just so I

                 understand it.

                            If you build a plant in Missouri,





                                                          2668



                 across the river from Illinois, they're not

                 affected by this.  But if you build one on the

                 eastern shore of the Mississippi River, which

                 is in Illinois, they'd be within the

                 precipitation area.

                            SENATOR MARCELLINO:    All I can

                 say is repeat the same answer, Senator.  These

                 scientists and those who have studied the

                 issue have identified this.  It's been

                 consistent over and over again, the same

                 states are mentioned.  They're mentioned in

                 the federal legislation as well as our

                 legislation, that most if not all of that

                 pollution that emanates comes from probably

                 five major states in core, but there are

                 others that we can bring into it.

                            The total comes to about 14 states,

                 both south and east of us, where the

                 prevailing winds bring the pollution.  And

                 those are the states that generate the most

                 emissions.

                            If the state has minimal population

                 with a minimal utility, a small utility that

                 is not going to dump that much on us, it's not

                 going to have that big an impact, so it might





                                                          2669



                 not record.

                            But in this situation, these are -

                 these are Ohio, Pennsylvania, Michigan,

                 Illinois.  These are heavy production states,

                 industrial states.  And one would expect their

                 emissions to be much more intense and greater

                 in the older plants, because those were built

                 many, many years ago.

                            SENATOR DOLLINGER:    Through you,

                 Mr. President, if the sponsor will again yield

                 to a question.

                            ACTING PRESIDENT MEIER:    Senator

                 Marcellino, do you continue to yield?

                            SENATOR MARCELLINO:    Certainly.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR DOLLINGER:    Your comment,

                 Senator, leads me to the question that I'm

                 most interested in.

                            What about the state of Texas,

                 which is one of those big industrial states?

                 Which, according to a lot of commentary, in

                 view of the presidential campaign that's going

                 on, where lots of the people have said that

                 Texas is the dirtiest air polluting state in





                                                          2670



                 the nation.  In fact, it has the city of

                 Houston, which has the worst air quality in

                 the nation.

                            Why shouldn't Texas be included in

                 this list if it's one of those big industrial

                 states that could get into our airwaves and

                 pump acid rain into our state?

                            SENATOR MARCELLINO:    Senator, my

                 colleague Senator Schneiderman said that once

                 the election in November is settled and the

                 greatest environmentalist that will take

                 office in the history of this nation -- that

                 will namely be George W. Bush.  This is the

                 governor of the state of Texas that has

                 cleaned up that state more than any other

                 governor in the history of that state.

                            That being said, the wind just

                 doesn't blow on New York State from Texas.  It

                 lands in other places, perhaps, but it doesn't

                 blow on us.  I represent the people of New

                 York State and the people specifically of the

                 5th Senate District.  That's my primary

                 concern.  I am not on the federal level, I'm

                 on the local -- I'm a state senator.

                            So I'm trying to protect my





                                                          2671



                 constituency and my state against what happens

                 in other states where I can impact.  If a

                 state does not impact us, then this

                 legislation won't impact them.

                            SENATOR DOLLINGER:    Through you,

                 Mr. President, if Senator Marcellino will

                 continue to yield.

                            ACTING PRESIDENT MEIER:    Senator

                 Marcellino, do you yield to yield?

                            SENATOR MARCELLINO:    Sure.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR DOLLINGER:    That raises

                 the other question that I had.

                            If we don't want acid rain from

                 anywhere, be it from Texas, a state like

                 Texas, a big industrial state, it's had

                 pollution problems, and we don't want it from

                 Ohio, which is a big industrial state that

                 burns too much fossil fuels and has too much

                 sulfur dioxide in the air -- if that's the

                 case, that we don't want any of that

                 pollution, why doesn't New York State do the

                 real responsible thing and buy the credits

                 itself and retire the credits so that no one





                                                          2672



                 in this state has to face the additional acid

                 rain obligation or threat to health that I

                 think you so accurately described?

                            SENATOR MARCELLINO:    Well,

                 Senator, in fact that was a consideration that

                 we had at one point in time in the workings of

                 this bill.

                            However, like all things, there's a

                 certain amount of money involved.  It would be

                 ideal if we could buy up all the credits and

                 retire them, but they keep coming back each

                 and every year.  New ones.

                            So we couldn't -- this is not a

                 one-shot deal.  If we bought up the 600,000

                 credits which we know are out there, that

                 would be fine.  600,000 -- you do the math:

                 600,000 times 150.  Nice piece of change.  If

                 we did that, one shot, what happens the next

                 year when -- when hundreds of thousands more

                 are added to the mix, and the following year

                 after that?  Is the State of New York prepared

                 to carry that off in perpetuity?  I don't

                 think so.

                            So therefore, we take the next best

                 action.  Ideally, it would be great.  If we





                                                          2673



                 could afford it, I would say do it.  I don't

                 think we can responsibly afford that burden on

                 the taxpayers of this state.

                            However, that being said, this act

                 costs us nothing.

                            SENATOR DOLLINGER:    Again,

                 through you, Mr. President.

                            ACTING PRESIDENT MEIER:    Senator

                 Marcellino, do you continue to yield?

                            SENATOR MARCELLINO:    Certainly.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR DOLLINGER:    That leads to

                 my next question.  Obviously there is a

                 cost -

                            SENATOR MARCELLINO:    You've got

                 to give me a question that doesn't lead to the

                 next one, Senator, so I'll figure out the

                 answer to that.

                            SENATOR DOLLINGER:    I appreciate

                 your answers.  They segued into my questions.

                            My question is, obviously, if the

                 State of New York doesn't want to pay for

                 these, we're willing to mandate that

                 ratepayers pay for them by giving up a





                                                          2674



                 valuable asset; isn't that correct?

                            SENATOR MARCELLINO:    Senator -

                 Senator, the ratepayers are paying for it

                 right now.  Let's not fool ourselves.  Every

                 time a utility upgrades and spends money, you

                 don't think, out of the goodness of the

                 stockholders, that they keep this thing to

                 themselves.  That gets passed directly on to

                 you.

                            Every time somebody develops asthma

                 and has a medical problem, the ratepayers pay

                 for that.  We pay for the medical bills, we

                 pay for the increased electric costs, we pay

                 for the cost of repainting our homes more

                 frequently than we would otherwise because

                 this acid rain is eating away at the finish on

                 our houses.

                            We pay for the infrastructure that

                 this acid rain is destroying.  We pay for the

                 statuary which is being corroded and literally

                 dissolved away by this acid rain.  We pay for

                 the forests that are being destroyed

                 constantly by the trees that are being

                 denuded.

                            There is an increase in tree death





                                                          2675



                 in this area that has been directly related to

                 acid rain, and we can verify that and that's

                 been shown.  Talk to the members of the

                 Adirondack Council.  Talk to the people who

                 live in this area, the sportspeople who can't

                 go in certain areas, the fishermen who can't

                 fish certain lakes, rivers and streams because

                 they're dead of life because of this stuff.

                            What's the economic cost to this

                 state?  It's untold, uncountable, billions the

                 way it is now.  I would rather spend a few

                 bucks cleaning up a couple of utilities and

                 reduce the cost of asthma and respiratory

                 diseases on the people of this state.  I think

                 you would too, Senator.

                            SENATOR DOLLINGER:    I couldn't

                 agree with you more.

                            On the bill, Mr. President.  I'll

                 be brief.

                            ACTING PRESIDENT MEIER:    Senator

                 Dollinger, on the bill.

                            SENATOR DOLLINGER:    I appreciate

                 Senator Marcellino's passion about the issues

                 and the consequences of acid rain and

                 environmental problems.  And I do agree with





                                                          2676



                 Senator Marcellino.

                            My only question is, isn't the

                 right thing to do to solve this problem to

                 take the enormous cost of acid rain -- be it

                 asthma, be it degradation of the environment,

                 whatever that cost is -- and it is enormous,

                 Senator, I don't deny that.  But wouldn't it

                 make better sense for State of New York to

                 just buy these credits, retire them forever,

                 and ensure that it's not -- we're not just

                 exporting our acid rain problem but we're

                 actually getting rid of it?

                            I would suggest, Senator

                 Marcellino -- I'm going to vote in favor of

                 this bill, because I think it's a good step.

                 But the better thing to do is put our money

                 where our mouth is.  Buy these credits

                 ourselves so that no one in this state, in

                 this nation, on this planet has to run into

                 the kind of problem that you describe.

                            Your description is, it's perfectly

                 okay for somebody else to get it if we sell

                 these credits to California or Wyoming or

                 Washington.  It's okay if there's acid rain in

                 the Rockies, but we shouldn't have it here.





                                                          2677



                            I would just suggest that the real

                 responsible thing to do is buy these credits

                 ourselves -- if it costs 900 million, if it

                 costs 90 million, if it costs 150 million,

                 whatever that cost is.

                            Senator Marcellino, I agree with

                 you.  Reduction in asthma, an improvement in

                 health care, reviving the quality of our

                 forests up in the Adirondacks, all those

                 things would be well worth that cost.  Let's

                 do the right thing next time around.

                            ACTING PRESIDENT MEIER:    Senator

                 Marcellino.

                            SENATOR MARCELLINO:    Mr.

                 President, to close, hopefully, on this issue.

                            I agree with the Senator's

                 comments.  It would be great and it would be

                 fine to do all that.  We can get all that.

                 But we need the federal government to step up

                 to the plate.  We need the Clinton-Gore

                 administration to step up to the plate and do

                 the right thing.

                            They haven't done the right thing

                 on acid rain.  They didn't do the right thing

                 on MTBE.  We had to pass that legislation in





                                                          2678



                 this house and in this state to protect

                 ourselves because the federal government

                 wouldn't do what they were supposed to do, and

                 that's protect us overall.

                            So in that case, we'll be happy -

                 I'm glad that this is going to move, and

                 hopefully when we pass this bill it will be

                 signed into law and New York State will have

                 done the right thing.

                            And I thank my colleagues for their

                 support.  And I also would like to thank the

                 Governor of this state, because he negotiated

                 and started this process which is the image of

                 this bill and the mirror for this particular

                 bill.  That was the voluntary deal with LILCO.

                            And I would like to thank Senator

                 Bruno for his encouragement and his

                 willingness to put this bill on the floor and

                 on the table because he recognizes the import

                 to the people of this state.

                            ACTING PRESIDENT MEIER:    Read the

                 last section.

                            THE SECRETARY:    Section 7.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MEIER:    Call the





                                                          2679



                 roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MEIER:    Senator

                 Schneiderman, to explain his vote.

                            SENATOR SCHNEIDERMAN:    Thank you,

                 Mr. President.

                            I disagree with Senator Marcellino

                 about one aspect of this, which is he said

                 earlier that this is a very small step.  I

                 don't think this is a small step.  I think

                 this is a big step.  And I see another big

                 step, shaking hands with Assemblyman Brodsky

                 on the way out, which is also good.

                            This is -- and I want to mention,

                 in response to comments made by Senator

                 Dollinger, the five biggest importers of these

                 credits are all states that will be covered

                 under this legislation:  Illinois, Indiana,

                 Ohio, Pennsylvania, Kentucky.

                            This is a huge step.  It will

                 potentially protect us from 6 million tons of

                 pollution over the next twenty years.  And I

                 think, in addition to everyone else who's

                 already been thanked, we have to acknowledge

                 the work of the Attorney General, Eliot





                                                          2680



                 Spitzer, on this, who brought a lawsuit about

                 it.

                            And I'm very pleased that we were

                 able to take action on this important issue.

                 This is, in my view, one of our finest

                 accomplishments this year.  Congratulations.

                            ACTING PRESIDENT MEIER:    Senator

                 Schneiderman will be recorded in the

                 affirmative.

                            The Secretary will announce the

                 results.

                            THE SECRETARY:    Ayes, 59.

                            ACTING PRESIDENT MEIER:    The bill

                 is passed.

                            The Secretary will continue to

                 read.

                            THE SECRETARY:    Calendar Number

                 422, by Senator Leibell, Senate Print 4529, an

                 act to amend the Penal Law, in relation to

                 unlawful defilement.

                            SENATOR LACHMAN:    Explanation.

                            ACTING PRESIDENT MEIER:    Senator

                 Leibell, an explanation has been requested of

                 Calendar 422 by Senator Lachman.

                            SENATOR LEIBELL:    Yes, Mr.





                                                          2681



                 President.  This bill would establish a new

                 article of -- 270.08 of the Penal Law, to

                 create a new crime of unlawful defilement of a

                 water supply.

                            Pursuant to this bill, a person

                 would be guilty of this new crime if he

                 intentionally introduces, places, or causes to

                 be introduced or placed into the water supply

                 a defiling agent, with the intent to cause

                 sickness, physical injury, severe

                 disfigurement or death of another human being,

                 or with the reckless disregard of causing the

                 sickness, physical injury, severe

                 disfigurement or death of another human being,

                 or with the intent to cause irreparable harm

                 to such water supply or to disturb the public

                 peace.

                            ACTING PRESIDENT MEIER:    Senator

                 Lachman.

                            SENATOR LACHMAN:    Mr. President,

                 through you, will the distinguished sponsor of

                 the legislation yield for a question?

                            ACTING PRESIDENT MEIER:    Senator

                 Leibell, do you yield for a question?

                            SENATOR LEIBELL:    Yes, I





                                                          2682



                 certainly do.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR LACHMAN:    The explanation

                 was quite clear.  Except the title of the

                 legislation is a little unclear in terms of

                 its language.  How does one differentiate the

                 crime of unlawful defilement of the water

                 supply to the crime of lawful defilement of

                 the water supply?

                            SENATOR LEIBELL:    Well, the use

                 of the terminology "unlawful defilement" is to

                 emphasize that it would be an unlawful act.

                 It's conceivable that you could have something

                 that would in some way defile the water supply

                 that might not be unlawful; for instance,

                 fluoridation.

                            So in order that there be no

                 inconsistencies, and to make sure it's as

                 clear as possible, that was the reason for the

                 use of the terminology there.  It might seem

                 redundant, but it was felt to be necessary.

                            ACTING PRESIDENT MEIER:    Senator

                 Stavisky.

                            SENATOR STAVISKY:    Mr. President,





                                                          2683



                 if the sponsor would yield for a question.

                            SENATOR LEIBELL:    Yes.

                            ACTING PRESIDENT MEIER:    Senator

                 Leibell, do you yield for a question from

                 Senator Stavisky?

                            SENATOR LEIBELL:    Yes, Mr.

                 President.

                            SENATOR STAVISKY:    Through you,

                 Mr. President.  Is it now permitted for an

                 individual to defile our water supply?

                            SENATOR LEIBELL:    No, it

                 certainly would not be.

                            What we are attempting to do here

                 is to bring this crime up to a level of public

                 safety, where it should be.

                            SENATOR STAVISKY:    In other

                 words, if I were to go -- Mr. President, if

                 the sponsor would continue to yield.

                            ACTING PRESIDENT MEIER:    Senator

                 Leibell, do you continue to yield?

                            SENATOR LEIBELL:    Yes.

                            SENATOR STAVISKY:    If I were to

                 go to Croton, for example, and dump some PCBs

                 or whatever into the water supply, I would not

                 be prosecuted?





                                                          2684



                            SENATOR LEIBELL:    It might be a

                 criminal tampering, which would be a D felony.

                 This is a B felony.

                            So yes, it would still be a

                 criminal act, but this raises it.

                            SENATOR STAVISKY:    Mr. President,

                 one more question.

                            ACTING PRESIDENT MEIER:    Senator

                 Leibell, do you continue to yield?

                            SENATOR LEIBELL:    Yes.

                            SENATOR STAVISKY:    Would this be

                 a violent felony?

                            SENATOR LEIBELL:    No, it would be

                 a crime against property.

                            SENATOR STAVISKY:    Thank you, Mr.

                 President.

                            ACTING PRESIDENT MEIER:    Read the

                 last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect on the first day of

                 November.

                            ACTING PRESIDENT MEIER:    Call the

                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 59.





                                                          2685



                            ACTING PRESIDENT MEIER:    The bill

                 is passed.

                            THE SECRETARY:    Calendar Number

                 486, by Senator Libous, Senate Print 6919, an

                 act to amend the Mental Hygiene Law, in

                 relation to including persons.

                            SENATOR DOLLINGER:    Explanation,

                 please.

                            SENATOR SKELOS:    Lay it aside

                 temporarily.

                            ACTING PRESIDENT MEIER:    Lay the

                 bill aside temporarily.

                            The Secretary will continue to

                 read.

                            THE SECRETARY:    Calendar Number

                 495, by Senator Velella, Senate Print 6545A,

                 an act to amend the Insurance Law, in relation

                 to health insurance coverage.

                            SENATOR LACHMAN:    Explanation.

                            ACTING PRESIDENT MEIER:    Senator

                 Velella, an explanation has been requested of

                 Calendar 495 by Senator Lachman.

                            SENATOR VELELLA:    Yes, Mr.

                 President.  This is a follow-up bill to a bill

                 that we did last year which was signed into





                                                          2686



                 law that provides for the -- in the event that

                 a student who is presently enrolled under

                 their parents' plan, like a member of the

                 Legislature may have a student who has

                 continued on with their health benefits, that

                 they withdraw from school because of an

                 illness -- should they withdraw and they be

                 over the age limit that they normally would

                 have been covered, they're only being covered

                 because they're a student, a full-time

                 student, if they withdrew because of illness,

                 they would be dropped from your policy.

                            Last year we changed that so that

                 if it was medically necessary that they

                 withdraw from school, they would be continued

                 for one year.

                            As a result of that bill, some

                 questions were raised as to interpretation.

                 And there are several areas that this bill

                 clarifies.  And the purpose of this bill is

                 merely to supplement what we did last year and

                 clarify the situation.

                            ACTING PRESIDENT MEIER:    Senator

                 Lachman.

                            SENATOR LACHMAN:    Mr. President,





                                                          2687



                 will the distinguished Senator yield for a

                 question?

                            ACTING PRESIDENT MEIER:    Senator,

                 do you continue to yield?

                            SENATOR VELELLA:    I will begin

                 to, not continue.  I was asked to explain.

                 And if I'm asked for a question, yes, I'll

                 yield.

                            ACTING PRESIDENT MEIER:    Senator

                 Velella will yield for a question.

                            SENATOR LACHMAN:    I believe that

                 this bill does clarify the provisions of

                 Chapter 574 of the Laws of 1999 in a positive

                 sense.

                            The question I have is, does this

                 bill clarify the rate charge for the

                 continuing coverage of a medically dependent

                 full-time students at all levels of his or her

                 university career?

                            Should I explain my -- let me

                 explain my question.

                            SENATOR VELELLA:    I'm not sure

                 what the question is.

                            SENATOR LACHMAN:    Let me explain

                 my question.





                                                          2688



                            In community college and as an

                 undergraduate, students attend college on a

                 full-time basis or a part-time basis.  But

                 when you attend, for example, Stony Brook or

                 Binghamton or Albany or the Graduate Center of

                 CUNY, you have doctoral students who are

                 working on their Ph.D. degrees or E.D. degrees

                 on a permanent basis and are considered, to

                 all intents and purposes, of being full-time

                 students, even though they do not take the

                 credits of undergraduate students.

                            Will this important measure also

                 include these doctoral students who will be,

                 in the future, important members of our

                 society and contributors to the growth of our

                 economy?

                            SENATOR VELELLA:    That's a very

                 good question.  And let me say that this bill

                 does not get into the issue of who will be

                 covered at what point in their academic

                 career.

                            What this bill says is that if you

                 are covered as a full-time student and have to

                 leave because of an illness, you will be

                 continued coverage for one year.  And whether





                                                          2689



                 or not you initially get that coverage will be

                 dependent on the particular policy

                 circumstances and facts -- if you're not a

                 full-time student, if it's not an accredited

                 college.  Each different policy, each

                 different program will determine whether or

                 not you're eligible.

                            However, if you are eligible and

                 you get sick and you lose your status as a

                 full-time student simply because of the

                 illness, when your doctor gives you a note you

                 will then be covered for one year.

                            So we don't go back to ab initio,

                 the very beginning of the policy, and

                 renegotiate the policy.  What we do do is say

                 that if you are covered, you won't lose that

                 coverage, because of the fact that you happen

                 to be ill and can't attend school, for one

                 year.

                            ACTING PRESIDENT MEIER:    Senator

                 Lachman.

                            SENATOR LACHMAN:    Through you,

                 Mr. President, will the Senator continue to

                 yield to another question in this area?

                            ACTING PRESIDENT MEIER:    Senator





                                                          2690



                 Velella, do you yield for another question?

                            SENATOR VELELLA:    Yes.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR LACHMAN:    Fine.  What I

                 was referring to were the different tiers of

                 college or university education.  And there's

                 a distinct demarcation from those students who

                 are working on their doctorates, in whatever

                 area, as against those students who are

                 undergraduates and who are community college

                 students or undergraduate, four-year-college

                 students.

                            I was happy to hear the candor of

                 my distinguished colleague that he wasn't

                 sure, I gather, that this would cover doctoral

                 students who might not be attending on a

                 full-time basis.

                            If it does not, can we further

                 clarify this and improve this important piece

                 of legislation in the future to include all

                 levels or all tiers of university education?

                            SENATOR VELELLA:    Yes.

                            SENATOR LACHMAN:    Thank you.

                            ACTING PRESIDENT MEIER:    Senator





                                                          2691



                 Duane.

                            SENATOR DUANE:    If the sponsor

                 would continue to yield, Mr. President.

                            ACTING PRESIDENT MEIER:    Senator

                 Velella, do you yield for a question from

                 Senator Duane?

                            SENATOR VELELLA:    Yes.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR DUANE:    Thank you.  Under

                 this bill, there's a provision that you can

                 still age out of the policy; isn't that

                 correct?

                            SENATOR VELELLA:    I'm sorry,

                 what?

                            SENATOR DUANE:    This bill

                 contains a provision that would make it so a

                 student could still age out of a policy; is

                 that not correct?

                            SENATOR VELELLA:    Yes.  If they

                 would have aged out before, they would still

                 age out now.

                            As I said to Senator Lachman, the

                 only provision is that this will now prevent

                 someone from being dropped from a policy





                                                          2692



                 simply because they got sick and were not a

                 full-time student, not able to attend because

                 of that very illness that you're insuring them

                 for.  It doesn't make sense.

                            SENATOR DUANE:    Through you, Mr.

                 President, if the sponsor would continue to

                 yield.

                            ACTING PRESIDENT MEIER:    Senator

                 Velella, do you continue to yield?

                            SENATOR VELELLA:    Yes.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR DUANE:    I'm wondering if

                 the sponsor thinks, though, that it's not good

                 public policy that a student could lose their

                 insurance if they age out, even if they're in

                 the middle of a serious illness like cancer.

                            In other words, they might be

                 covered for the first half of treatment for

                 their disease but, because they turn 21, lose

                 coverage and have to pay for the rest of their

                 treatment out-of-pocket.

                            SENATOR VELELLA:    What is the

                 question?  Do I think that's a good thing?

                            SENATOR DUANE:    Good public





                                                          2693



                 policy.

                            SENATOR VELELLA:    No, I think

                 it's a terrible thing when that happens.

                            SENATOR DUANE:    Through you, Mr.

                 President, then.

                            ACTING PRESIDENT MEIER:    You want

                 Senator Velella to continue to yield?

                            SENATOR DUANE:    Please.

                            ACTING PRESIDENT MEIER:    Senator

                 Velella, do you continue to yield?

                            SENATOR VELELLA:    Yes, I do.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR DUANE:    Then I'm hoping

                 that the sponsor would be willing to look at

                 making it so that a person who does have a

                 catastrophic or serious illness, that they

                 could keep their insurance if their treatment

                 had started while they were insured, even if

                 their treatment was not completed at the time

                 that they aged out.

                            SENATOR VELELLA:    Is the question

                 would I look at that?  Yes, I will.

                            SENATOR DUANE:    Thank you, Mr.

                 President.





                                                          2694



                            ACTING PRESIDENT MEIER:    Read the

                 last section.

                            THE SECRETARY:    Section 3.  This

                 act shall take effect on the same date as

                 Chapter 574 of the Laws of 1999.

                            ACTING PRESIDENT MEIER:    Call the

                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 59.

                            ACTING PRESIDENT MEIER:    The bill

                 is passed.

                            THE SECRETARY:    Calendar Number

                 512, by Senator LaValle, Senate Print 2459, an

                 act to amend the General Municipal Law, in

                 relation to granting.

                            ACTING PRESIDENT MEIER:    Senator

                 Dollinger, why do you rise?

                            SENATOR DOLLINGER:    Will Senator

                 LaValle yield to just one question, brief.

                            SENATOR LAVALLE:    Yes.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR DOLLINGER:    Senator,

                 could you describe how this extra points

                 program affects the municipal obligation to





                                                          2695



                 provide funds into the benefit program and, if

                 so, what the anticipated cost of this program

                 might be to local communities?

                            SENATOR LAVALLE:    The -- first of

                 all, we should start by saying, so that

                 everyone is aware, that in 1988 we established

                 a service award program for volunteer

                 firefighters.  In that program we indicated

                 that each local community would make a

                 decision whether they would enter such a

                 program, a service award program.

                            We established under that

                 legislation that each active firefighter had

                 to earn 50 credits.  And in the legislation we

                 put specific activities in order to earn those

                 50 credits, such as answering alarms, fighting

                 fires, marching in parades, doing various

                 things around the firehouse and so forth.

                            And here, we are adding teaching

                 fire prevention classes that would be

                 requested by the fire district or the fire

                 house or the chief, and that they could only

                 accumulate up to five points.

                            So in other words, within the

                 context of the 50 points, we are now saying





                                                          2696



                 there is another activity that you could do

                 within the 50 points to achieve that, and that

                 is teaching classes in fire prevention.

                            Each fire district handles -- now,

                 to answer with specificity your question, each

                 fire district -- or, as you had indicated, it

                 could be a municipality -- takes out and funds

                 the service award program in a different way.

                 But it's basically an annuity or an annuity

                 with a specific benefit plan.  So that an

                 individual knows that if they put in 10 years,

                 they will get so much per month from the

                 service award.

                            So the cost to the municipality

                 does not change.  Whatever that cost is today,

                 it would continue.  This bill merely adds

                 another activity to qualify for the 50 points

                 in order to secure the award.

                            ACTING PRESIDENT MEIER:    Senator

                 Dollinger.

                            SENATOR DOLLINGER:    Thank you,

                 Mr. President.

                            As I understand it -- and I

                 appreciate Senator LaValle's very accurate and

                 detailed explanation -- this simply





                                                          2697



                 accelerates the process by which they get to

                 award the bonus program based on their

                 teaching fire safety or other classes.

                            I think it's a great idea.  I'll

                 vote in favor.

                            ACTING PRESIDENT MEIER:    Read the

                 last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MEIER:    Call the

                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 59.

                            ACTING PRESIDENT MEIER:    The bill

                 is passed.

                            The Secretary will continue to

                 read.

                            THE SECRETARY:    Calendar Number

                 515, by Senator Stafford, Senate Print 4393,

                 an act to amend the General Municipal Law, in

                 relation to provisions.

                            ACTING PRESIDENT MEIER:    Senator

                 Dollinger, why do you rise?

                            SENATOR DOLLINGER:    Just -- will

                 the sponsor yield to just one question, Mr.





                                                          2698



                 President?

                            ACTING PRESIDENT MEIER:    Senator

                 Stafford, will you -

                            SENATOR STAFFORD:    I will.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR DOLLINGER:    Through you,

                 Mr. President, this concept of allowing fire

                 districts to privately contract with

                 ambulances is something we've discussed on a

                 statewide basis.  Is there anything particular

                 about Clinton County that makes it appropriate

                 there?

                            And why shouldn't we do it on a

                 statewide basis when I know there are other

                 counties that have the same demographic and

                 geographic aspects that Clinton County does?

                 Shouldn't we do this on a statewide basis?

                            SENATOR STAFFORD:    I think that's

                 a very, very good point, and I'd be glad to

                 work with you on that.  There is legislation

                 that's been suggested.

                            SENATOR DOLLINGER:    Through you,

                 Mr. President, I appreciate Senator Stafford's

                 explanation.  This too is an issue that we've





                                                          2699



                 debated on a statewide basis.

                            With the declining number of

                 volunteers and greater pressure on our

                 volunteer ambulance corps, the question of

                 whether we should allow them, the fire

                 districts, to contract with private ambulance

                 services is, I think, a critically important

                 one.

                            I understand the exigencies of

                 Clinton County, how it drives you to do this.

                 But I think this bill ought to be done on a

                 statewide basis, or at least have a statewide

                 debate about it, whether rural communities

                 need it and urban communities don't.

                            I think that should be a part of

                 our discussion, and I hope Senator Stafford

                 will lead the charge in making this happen, or

                 at least considering it on a statewide basis.

                            ACTING PRESIDENT MEIER:    There's

                 a home rule message at the desk.

                            Read the last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MEIER:    Call the

                 roll.





                                                          2700



                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 59.

                            ACTING PRESIDENT MEIER:    The bill

                 is passed.

                            The Secretary will read Calendar

                 486.

                            THE SECRETARY:    Calendar Number

                 486, by Senator Libous, Senate Print 6919, an

                 act to amend the Mental Hygiene Law, in

                 relation to including persons who are

                 developmentally disabled.

                            SENATOR DOLLINGER:    May I just

                 have a brief explanation, Mr. President?

                            ACTING PRESIDENT MEIER:    Senator

                 Libous, an explanation has been requested by

                 Senator Dollinger.

                            SENATOR LIBOUS:    Thank you, Mr.

                 President.  I knew when I introduced this bill

                 that it would be extremely controversial and

                 that someone of Senator Dollinger's character

                 might ask for an explanation.  I'd be happy to

                 give it to him.

                            Basically, Mr. President, this is a

                 bill that adds a provision to Article 15 of

                 the Mental Hygiene Law to clarify that Article





                                                          2701



                 15 refers not only to persons who are mentally

                 retarded -- and I apologize for the

                 hesitation, I have a bit of a sore throat and

                 laryngitis -- but also to persons who are

                 developmentally disabled.

                            And that's basically what we're

                 doing here, Mr. President.

                            ACTING PRESIDENT MEIER:    Senator

                 Dollinger.

                            SENATOR DOLLINGER:    Through you,

                 Mr. President, if the sponsor will just yield

                 to one question.

                            ACTING PRESIDENT MEIER:    Senator

                 Libous, will you yield for a question?

                            SENATOR LIBOUS:    Absolutely, Mr.

                 President.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR DOLLINGER:    There's a

                 reference in the bill memo to the settling of

                 a class action, a federal class action.  Would

                 you just explain to me how this bill will

                 affect the settlement of that action or

                 accommodate that action?

                            SENATOR LIBOUS:    Learned counsel





                                                          2702



                 here, Mr. President, tells me without the

                 authority in statute that the judge will not

                 let them proceed with the referral.

                            ACTING PRESIDENT MEIER:    Senator

                 Dollinger.

                            SENATOR DOLLINGER:    Mr.

                 President, if the sponsor will just continue

                 to yield.

                            Is it the passage of this

                 legislation -

                            ACTING PRESIDENT MEIER:    Whoa,

                 whoa.  Wait.  Senator Libous, do you yield for

                 a question?

                            SENATOR LIBOUS:    Absolutely.

                            ACTING PRESIDENT MEIER:    Now,

                 Senator Dollinger.

                            SENATOR DOLLINGER:    Is the

                 passage of this legislation an ingredient, a

                 condition of that settlement of that class

                 action lawsuit that we're given the power to

                 make those referrals?

                            SENATOR LIBOUS:    I don't believe

                 so.

                            But at the same time, this

                 definition needs to be included in the law.





                                                          2703



                 Because if you look at the definition, Mr.

                 President, of mental retardation and

                 developmental disability, that it's important

                 that this clarification be in there for just

                 total clarification of this particular

                 article.  But it would also help in that

                 particular class action suit.

                            SENATOR DOLLINGER:    Explanation

                 satisfactory, Mr. President.

                            ACTING PRESIDENT MEIER:    Read the

                 last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MEIER:    Call the

                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 59.

                            ACTING PRESIDENT MEIER:    The bill

                 is passed.

                            THE SECRETARY:    Calendar Number

                 537, by Senator Padavan, Senate Print 1400, an

                 act to amend the Penal Law, in relation to

                 possession of gambling devices.

                            SENATOR HEVESI:    Explanation.

                            ACTING PRESIDENT MEIER:    Senator





                                                          2704



                 Padavan, an explanation has been requested of

                 Calendar 537 by Senator Hevesi.

                            SENATOR PADAVAN:    Mr. President,

                 thank you.  I'm going to read the memorandum

                 in support from the City of New York which

                 describes the bill in detail.

                            "This bill would amend Penal Law

                 Article 225 to impose realistic penalties upon

                 those who profit from unlawful gambling

                 activity.  It would create two degrees of the

                 crime of possession of gambling devices, with

                 the top charge constituting a Class E felony

                 where five or more devices are possessed.

                            "The bill would also amend the

                 Penal Law with respect to the crime of

                 promoting gambling, by making it a Class E

                 felony to profit from gambling activities,

                 such as casino-type gambling, where the take

                 is more than $5,000 in any one day.

                            "Penal Law 225.32, possession of a

                 gambling device, would be amended to reflect

                 the creation of the new crime.  The bill would

                 also make two conforming amendments to the

                 Real Property Law and to the Real Property

                 Actions and Proceedings Law, to add the newly





                                                          2705



                 created crime of possession of a gambling

                 device in the first degree to the list of

                 crimes which are deemed presumptive evidence

                 that illegal activities are occurring in a

                 leased building or apartment, which form the

                 basis for legal proceedings to evict the

                 tenants conducting such activities.

                            "At present, notwithstanding how

                 many gambling devices a person possesses or

                 how much cash is received through running an

                 illegal gambling casino, the top charges

                 available are misdemeanors.  This bill would

                 remedy that anomaly by making a degree of

                 charge reflective of the degree to which a

                 person profits from illegal activity.

                            "In the case of possessing slot

                 machines or coin-operated gambling devices, a

                 person could presently possess 1,000 such

                 devices and he or she would still only be

                 guilty of a misdemeanor.  An enhanced penalty

                 for possession of five or more reasonably

                 addresses the aggravated nature of the offense

                 and should have a salutary deterrent effect."

                            SENATOR HEVESI:    Mr. President.

                            ACTING PRESIDENT MEIER:    Senator





                                                          2706



                 Hevesi.

                            SENATOR HEVESI:    Would the

                 sponsor yield to a few questions, please?

                            ACTING PRESIDENT MEIER:    Senator

                 Padavan, do you yield for a question?

                            SENATOR PADAVAN:    Yes.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR HEVESI:    Mr. President, I

                 was wondering if Senator Padavan could tell us

                 whether the bill that we're looking at is an

                 amended print or Print 1400 not amended.

                            SENATOR PADAVAN:    This is 1400

                 not amended.

                            SENATOR HEVESI:    Thank you.

                            Through you, Mr. President, if the

                 sponsor would continue to yield.

                            ACTING PRESIDENT MEIER:    Senator

                 Padavan, do you continue to yield?

                            SENATOR PADAVAN:    Yes.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR HEVESI:    Senator Padavan,

                 I don't see where the Real Property Law is

                 amended in this print.  Could you point that





                                                          2707



                 out, please?

                            SENATOR PADAVAN:    Bear with me

                 just a moment.

                            Well, Senator, I'm not sure what

                 part you're looking for, but the bill stands

                 as it is.  The memo that I read is based on

                 Senate 1400, the memo in support from the City

                 of New York.  Maybe you could be more specific

                 as to what part of the bill before us you have

                 a question on.

                            SENATOR HEVESI:    Mr. President,

                 the conforming sections that involve the Real

                 Property Tax Law, as stated in the sponsor's

                 memo and the city's memo, I don't see where

                 the legislation amends that section of law.

                            And if we're going to be asked to

                 vote on it, I would just like to have it

                 pointed out to me, if you would, where it does

                 that.  Or if the memos are indeed flawed.  And

                 then we can move on.

                            SENATOR PADAVAN:    The memo must

                 be flawed.  The bill is as you see it.

                            SENATOR HEVESI:    Okay, thank you.

                            Mr. President, would the sponsor

                 continue to yield?





                                                          2708



                            SENATOR PADAVAN:    Yes.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR HEVESI:    Senator Padavan,

                 I believe that this is -- I like the direction

                 in which this legislation moves.

                            My question for you is, in creating

                 two different offenses for possession of a

                 gambling device, one in the second degree and

                 a more stringent penalty in the first degree

                 if the individual possesses more than five

                 gambling devices, my question to you is if

                 someone continues to possess -- is convicted

                 of more than one misdemeanor offense in the

                 second degree, are there escalating penalties

                 for that individual?

                            SENATOR PADAVAN:    Not to my

                 knowledge.  Not in this bill.

                            SENATOR HEVESI:    Okay.  Mr.

                 President, would the sponsor yield to another

                 question, please?

                            SENATOR PADAVAN:    Yes.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR HEVESI:    If I can turn





                                                          2709



                 your attention to Section 4 of your bill,

                 which amends Section 225.10 of the Penal Law,

                 your -- let me also draw to your attention the

                 next bill that is coming up on calendar, which

                 is Senator Volker's legislation.

                            There is a fundamental conflict

                 between your legislation and Senator Volker's

                 legislation, in that Senator Volker's

                 legislation would amend Subsection 1 and 2 of

                 Section 225.10, which you then address.

                 But -

                            SENATOR PADAVAN:    Since he comes

                 after me, you'd better address that to him.

                 Right now we're dealing with this bill.

                            SENATOR HEVESI:    Well, Senator,

                 you and he both add a Subsection 3 of the same

                 section.

                            SENATOR PADAVAN:    Well, then,

                 you'll have to discuss that with him.  Ask me

                 about this bill.

                            SENATOR HEVESI:    Okay, let me ask

                 you about this bill.

                            SENATOR PADAVAN:    Okay.

                            SENATOR HEVESI:    Presuming that

                 Senator Volker's bill passes -





                                                          2710



                            SENATOR PADAVAN:    I will make no

                 such presumption, Senator.  Ask me about this

                 bill.

                            SENATOR HEVESI:    Okay.  Your

                 Subsection 3 that you choose to add would

                 provide a qualifying offense or circumstance

                 under which somebody is guilty of promoting

                 gambling in the first degree if they receive

                 from any unlawful gambling activities more

                 than $5,000 in any one day; is that correct?

                            SENATOR PADAVAN:    Right.

                            SENATOR HEVESI:    Okay.  Senator

                 Volker's bill, Senator Padavan, reduces the

                 threshold for Subsection 1 of 225.10 down to

                 $2,500 and Subsection 2 from 500 to $250.

                            I believe that we should enact the

                 more stringent threshold, the lower threshold.

                 Your bill fails to do that.

                            And in the event that Senator

                 Volker's bill passes, there will be an

                 inconsistency within the same section where

                 the legislation you have just added,

                 Subsection 3, is much less stringent than

                 Senator Volker's.  And my question to you is,

                 is that the situation that you had intended?





                                                          2711



                            SENATOR PADAVAN:    Senator, I will

                 answer the question again.  We are dealing

                 with the current bill before us.  I am not in

                 a position to comment on the efficacy of a

                 bill to follow, with due respect to my

                 esteemed colleague Senator Volker, chairman of

                 the Codes Committee, wherever he is.

                            Let us deal with this bill.  Now,

                 the penalty of $5,000 is obviously a

                 subjective one.  You could make it ten, you

                 could make it twenty.  We think $5,000 is a

                 deterrent, and a reasonable deterrent, and one

                 that could be enforced.  And the City of New

                 York and the New York City Police Department

                 feels it's an appropriate level to be at.

                            SENATOR HEVESI:    On the bill, Mr.

                 President.

                            ACTING PRESIDENT MEIER:    Senator

                 Hevesi, on the bill.

                            SENATOR HEVESI:    Mr. President, I

                 appreciate the efforts to combat illegal

                 gamble and crack down in this area.  But it's

                 quite obvious -- and I have the highest

                 respect for Senator Padavan and Senator

                 Volker -- that they never discussed the





                                                          2712



                 legislation that they have both introduced,

                 that are both active today, and that are

                 absolutely contradictory.

                            And I believe, since I know both of

                 them to be firm believers in creating a more

                 stringent environment to create a greater

                 deterrent to criminal activity, that this

                 inconsistency is one which was unintended by

                 both sponsors.

                            And just in the questions that I

                 have posed to Senator Padavan, there are three

                 technical problems to this legislation.  And I

                 don't know -- I'm very loath to support or to

                 vote in favor of flawed legislation.

                            And I understand Senator Padavan

                 doesn't want to get into the specifics of

                 Senator Volker's bill.  But the fact is, every

                 bill that's come active this year that has not

                 been laid aside for the day has passed.  And

                 so I have every expectation that Senator

                 Volker's bill will pass this house and Senator

                 Padavan's bill will pass this house.

                            And Senator Padavan I disagree with

                 in a number of areas on his legislation,

                 because of Senator Volker's bill, because





                                                          2713



                 Senator Padavan's bill will be less stringent.

                 I believe that the threshold should not be

                 $5,000, it should be $2,500 -- even lower,

                 perhaps.  Particularly if we're amending the

                 same sections of the same law creating for

                 lower thresholds.

                            In addition, there are other

                 sections of this legislation that I think need

                 strengthening, particularly dividing the

                 offense of possessing five or more gaming

                 devices to a first and a second degree, making

                 the first degree more stringent.  That's

                 terrific.  But it doesn't address the

                 underlying fact that if you traffic in under

                 five gaming machines, you can do it 10, 15, 20

                 times and only get hit with misdemeanor

                 offenses.  It's lenient.

                            And I would suggest that we amend

                 Senator Padavan's legislation to include

                 another category for possession of gaming

                 devices in the first degree, the E felony

                 degree, if someone has committed possession in

                 the second degree and commits it and has

                 committed the same offense, possession in the

                 second degree, within the past five years.





                                                          2714



                            So, frankly, I think Senator

                 Padavan's legislation is weak.  Not tough on

                 crime, weak.  And I would prefer a more

                 stringent measure.

                            However, I don't know which of

                 these two measures, if they both pass, will

                 become law.  And since both of them on their

                 own are acceptable, I'm going to vote in

                 favor, but understanding that I have

                 reservations.

                            Because if both of these were to

                 become law, I don't know what would occur.

                 Aside from the fact that we would have an

                 inconsistent section of the Penal Law,

                 particularly as it pertains to the creation of

                 two Subsections 3s of Section 225.10 that are

                 completely different.  And I don't even know

                 as a matter of law what happens in that

                 circumstance.

                            So I will vote yes on this

                 individual piece of legislation with those

                 reservations.

                            ACTING PRESIDENT MEIER:    Senator

                 Malcolm Smith.

                            SENATOR MALCOLM SMITH:    Thank





                                                          2715



                 you, Mr. President.  Will the sponsor yield

                 for a question?

                            ACTING PRESIDENT MEIER:    Senator

                 Padavan, do you yield?

                            SENATOR PADAVAN:    Yes.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR MALCOLM SMITH:    Senator

                 Padavan, if you can explain what -

                            SENATOR PADAVAN:    I'm sorry,

                 Senator Smith, you'll have to speak louder.

                 I'm having trouble hearing.

                            SENATOR MALCOLM SMITH:    I seem to

                 have a problem with this mike here.

                            SENATOR PADAVAN:    I know.  That's

                 why you have to speak louder.

                            SENATOR MALCOLM SMITH:    I

                 understand my predecessor had the same

                 problem.  So I'll do the best I can.

                            In the legislation, it talks about

                 devices.  Could you please explain what

                 devices you're talking about?  What does that

                 mean?

                            SENATOR PADAVAN:    What kind of

                 devices?  Slot machines, Joker Poker machines,





                                                          2716



                 that sort of thing.

                            SENATOR MALCOLM SMITH:    Is it

                 specifically -- Mr. President, through you.

                            ACTING PRESIDENT MEIER:    Senator

                 Padavan, do you continue to yield?

                            SENATOR PADAVAN:    Yes.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR MALCOLM SMITH:    Are we

                 specifically talking about mechanical devices

                 only, Mr. President?

                            SENATOR PADAVAN:    I'm sorry,

                 would you repeat that?

                            SENATOR MALCOLM SMITH:    Are we

                 talking about mechanical devices only?

                            SENATOR PADAVAN:    Well, it says

                 here, right on -- if you take a look at the

                 bill, beginning on line 9, "a slot machine or

                 any other gambling device, believing that the

                 same is to be used in the advancement of

                 unlawful gambling activity.  A coin-operated

                 gambling device with intent to use such device

                 in the advancement of unlawful gambling

                 activity."

                            SENATOR MALCOLM SMITH:    Mr.





                                                          2717



                 President -

                            SENATOR PADAVAN:    That is the

                 definition, the categorization of the kinds of

                 devices we're talking about.

                            SENATOR MALCOLM SMITH:    Mr.

                 President, through you.

                            ACTING PRESIDENT MEIER:    Does the

                 sponsor continue to yield?

                            SENATOR PADAVAN:    Yes.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR MALCOLM SMITH:    Does it

                 only refer to these two or these three items

                 and no other kind of device?

                            SENATOR PADAVAN:    It refers -

                 this bill before us refers only to the

                 definition of devices as defined in this bill.

                            SENATOR MALCOLM SMITH:    On the

                 bill, Mr. President.

                            ACTING PRESIDENT MEIER:    Senator

                 Malcolm Smith, on the bill.

                            SENATOR MALCOLM SMITH:    I also

                 believe that the bill itself, while its

                 intentions are good for specific

                 neighborhoods, such as myself, we do not -- I





                                                          2718



                 would not have a problem if the bill was a

                 little stronger.  In that there are other

                 devices that are not mechanical in nature but

                 that also provide and proliferate illegal

                 gambling, such as dice, such as 3-card monte.

                            And while that might not be a major

                 concern of the Senator from the standpoint of

                 the actual proprietary stores that I think

                 he's concerned about, I would hope that at

                 some point down the future the bill also could

                 be a little tougher.  While it does have some

                 toughness on crime, there are in some areas -

                 in particular, in my district -- that that

                 type of activity goes on and we do need some

                 help in terms of getting that stuff off the

                 street.

                            Thank you, Mr. President.

                            ACTING PRESIDENT MEIER:    Senator

                 Montgomery.

                            SENATOR MONTGOMERY:    Mr.

                 President, will the sponsor yield for -

                            SENATOR PADAVAN:    Of course.  Of

                 course.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.





                                                          2719



                            SENATOR MONTGOMERY:    Yes.  I'm

                 just -- in line with Senator Smith's question,

                 I just want to make sure that we're not

                 talking about the people who have their

                 little -- their little dice game going -

                            SENATOR PADAVAN:    Little dice

                 game?  How would you know about that, Senator?

                            (Laughter.)

                            SENATOR MONTGOMERY:    And the

                 dominos.  You know, there's a lot of people

                 who play a little dominos in -

                            SENATOR PADAVAN:    Oh, dominos.

                            SENATOR MONTGOMERY:    -- and

                 little tabletop games that they may -- they

                 may, you know -

                            SENATOR PADAVAN:    No, no, we're

                 not interfering with those folks at all.

                            SENATOR MONTGOMERY:    They're not

                 big-time gamblers, they're just people in the

                 park.

                            SENATOR PADAVAN:    No, we're not

                 interested in those kinds of people -

                            SENATOR MONTGOMERY:    No, we're

                 not talking about those people.

                            SENATOR PADAVAN:    -- or those





                                                          2720



                 activities at all, Senator.

                            SENATOR MONTGOMERY:    Okay.  I

                 just -- Mr. President, I'm supporting this

                 legislation based on the fact that Senator

                 Padavan is on the record that he is not

                 meaning to come into my district and sweep up

                 the little-domino-game people, et cetera, and

                 haul them off to upstate, to Senator Volker's

                 district.

                            (Laughter.)

                            SENATOR MONTGOMERY:    Thank you.

                            ACTING PRESIDENT MEIER:    Thank

                 you, Senator Montgomery.

                            Read the last section.

                            THE SECRETARY:    Section 5.  This

                 act shall take effect on the first day of

                 November.

                            ACTING PRESIDENT MEIER:    Call the

                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 59.

                            ACTING PRESIDENT MEIER:    The bill

                 is passed.

                            THE SECRETARY:    Calendar Number

                 543, by Senator Volker, Senate Print 3993, an





                                                          2721



                 act to amend the Penal Law, in relation to

                 gambling.

                            SENATOR CONNOR:    Read the last

                 section.

                            ACTING PRESIDENT MEIER:    Read the

                 last section.

                            THE SECRETARY:    Section 8.  This

                 act shall take effect on the first day of

                 November.

                            ACTING PRESIDENT MEIER:    Call the

                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 59.

                            ACTING PRESIDENT MEIER:    The bill

                 is passed.

                            THE SECRETARY:    Calendar Number

                 556, by Senator Morahan, Senate Print 6938A,

                 an act to amend the Real Property Tax Law, in

                 relation to making Gold Star Parents eligible.

                            ACTING PRESIDENT MEIER:    Read the

                 last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MEIER:    Call the

                 roll.





                                                          2722



                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 59.

                            ACTING PRESIDENT MEIER:    The bill

                 is passed.

                            THE SECRETARY:    Calendar Number

                 640, by Senator Kuhl, Senate Print 6740, an

                 act to amend the Highway Law, in relation to

                 designating.

                            ACTING PRESIDENT MEIER:    Read the

                 last section.

                            THE SECRETARY:    Section 3.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MEIER:    Call the

                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 59.

                            ACTING PRESIDENT MEIER:    The bill

                 is passed.

                            THE SECRETARY:    Calendar Number

                 675, by Senator Seward, Senate Print 6820A, an

                 act making certain findings and determinations

                 with respect to certain bond anticipation

                 notes.

                            ACTING PRESIDENT MEIER:    There is

                 a home rule message at the desk.





                                                          2723



                            SENATOR CONNOR:    Read the last

                 section.

                            ACTING PRESIDENT MEIER:    Read the

                 last section.

                            THE SECRETARY:    Section 5.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MEIER:    Call the

                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 59.

                            ACTING PRESIDENT MEIER:    The bill

                 is passed.

                            THE SECRETARY:    Calendar Number

                 698, by Senator Skelos, Senate Print 5821A, an

                 act authorizing the assessor of the County of

                 Nassau.

                            ACTING PRESIDENT MEIER:    Read the

                 last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MEIER:    Call the

                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 59.  Nays,

                 1.  Senator Dollinger recorded in the





                                                          2724



                 negative.

                            ACTING PRESIDENT MEIER:    The bill

                 is passed.

                            THE SECRETARY:    Calendar Number

                 699, by Senator Volker, Senate Print 6356, an

                 act to amend the Local Finance Law, in

                 relation to the sale of municipal obligations.

                            ACTING PRESIDENT MEIER:    There is

                 a home rule message at the desk.

                            Read the last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MEIER:    Call the

                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 59.

                            ACTING PRESIDENT MEIER:    The bill

                 is passed.

                            THE SECRETARY:    Calendar Number

                 700, by Senator Hannon, Senate Print 6546, an

                 act authorizing the assessor of -

                            SENATOR DUANE:    Lay it aside,

                 please.

                            ACTING PRESIDENT MEIER:    Lay the

                 bill aside.





                                                          2725



                            SENATOR MARCELLINO:    Lay it aside

                 for the day.

                            ACTING PRESIDENT MEIER:    Lay the

                 bill aside for the day.

                            THE SECRETARY:    Calendar Number

                 702, by Senator Balboni, Senate Print 6850, an

                 act in relation to authorizing.

                            ACTING PRESIDENT MEIER:    Read the

                 last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MEIER:    Call the

                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 58.  Nays,

                 1.  Senator Dollinger recorded in the

                 negative.

                            ACTING PRESIDENT MEIER:    The bill

                 is passed.

                            THE SECRETARY:    Calendar Number

                 707, by Senator Trunzo, Senate Print 6869, an

                 act to authorize Glory Zone Ministries.

                            ACTING PRESIDENT MEIER:    Read the

                 last section.

                            THE SECRETARY:    Section 2.  This





                                                          2726



                 act shall take effect immediately.

                            ACTING PRESIDENT MEIER:    Call the

                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 58.  Nays,

                 1.  Senator Dollinger recorded in the

                 negative.

                            ACTING PRESIDENT MEIER:    The bill

                 is passed.

                            Senator Marcellino, that completes

                 the reading of the controversial calendar.

                            SENATOR MARCELLINO:    Thank you,

                 Mr. President.

                            Is there any housekeeping at the

                 desk?

                            ACTING PRESIDENT MEIER:    Yes,

                 there is.

                            SENATOR MARCELLINO:    Take care of

                 it, please.

                            ACTING PRESIDENT MEIER:    Senator

                 McGee.

                            SENATOR McGEE:    Thank you, Mr.

                 President.

                            On behalf of Senator Bonacic,

                 please place a sponsor star on Calendar Number





                                                          2727



                 686.

                            On behalf of Senator Fuschillo,

                 please place a sponsor star on Calendar Number

                 503.

                            Thank you, Mr. President.

                            ACTING PRESIDENT MEIER:    So

                 ordered, with regard to both bills.

                            Senator Alesi.

                            SENATOR ALESI:    Mr. President, on

                 page 30 I offer the following amendments to

                 Calendar Number 636, Senate Print 4117A, and

                 ask that said bill retain its place on the

                 Third Reading Calendar.

                            ACTING PRESIDENT MEIER:    The

                 amendments are received, and the bill will

                 retain its place on the Third Reading

                 Calendar.

                            The desk is clean, Senator

                 Marcellino.

                            SENATOR MARCELLINO:    Thank you,

                 Mr. President.

                            There being no further business to

                 come before the Senate, I move we adjourn

                 until Tuesday, May 2nd, at 3:00 p.m. sharp.

                            ACTING PRESIDENT MEIER:    On





                                                          2728



                 motion, the Senate stands adjourned until

                 Tuesday, May 2nd, at 3:00 p.m.

                            (Whereupon, at 5:00 p.m., the

                 Senate adjourned.)