Regular Session - April 17, 2001

                                                              5283



                           NEW YORK STATE SENATE





                          THE STENOGRAPHIC RECORD









                             ALBANY, NEW YORK

                              April 17, 2001

                                 3:04 p.m.





                              REGULAR SESSION







                 SENATOR RAYMOND A. MEIER, Acting President

                 STEVEN M. BOGGESS, Secretary

















                                                          5284



                           P R O C E E D I N G S

                            ACTING PRESIDENT MEIER:    The

                 Senate will come to order.

                            I ask everyone present to please

                 rise and repeat with me the Pledge of

                 Allegiance to the Flag.

                            (Whereupon, the assemblage recited

                 the Pledge of Allegiance to the Flag.)

                            ACTING PRESIDENT MEIER:    The

                 invocation will given by the Reverend Peter G.

                 Young.

                            REVEREND YOUNG:    Let us pray.

                            Dear God, we thank You for the

                 return of our airmen.

                            We're grateful for Your guidance to

                 our Senate and pray for their good health upon

                 their return from recess, so that they might

                 use their energy to be dedicated to our

                 priorities of assisting our New York State

                 citizens.

                            May Your wisdom guide them to be

                 creative in their sponsorship of legislative

                 bills that will enhance our society.

                            Amen.

                            ACTING PRESIDENT MEIER:    Reading





                                                          5285



                 of the Journal.

                            THE SECRETARY:    In Senate,

                 Monday, April 16, the Senate met pursuant to

                 adjournment.  The Journal of Friday, April 13,

                 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.

                            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 Goodman, I

                 move that the following bill be discharged

                 from its respective committee and be

                 recommitted with instructions to strike the

                 enacting clause.  That's Senate 3957.

                            ACTING PRESIDENT MEIER:    So





                                                          5286



                 ordered.

                            Senator Farley.

                            SENATOR FARLEY:    Mr. President, I

                 offer the following amendments to the

                 following Third Reading Calendar bills.

                            Senator Nozzolio, on page 11,

                 Calendar Number 55, Senate Print 218.

                            On behalf of Senator DeFrancisco,

                 on page 12, Calendar 96, Senate Print 512.

                            Senator LaValle, on page 20,

                 Calendar 210, Senate Print 1103.

                            For Senator Wright, on page 23,

                 Calendar 263, Senate Print 2503.

                            On behalf of Senator McGee, on

                 page 23, Calendar Number 269, Senate Print

                 3187.

                            On behalf of Senator Stafford, on

                 page 27, Calendar Number 324, Senate Print

                 3438.

                            And on behalf of Senator Libous, on

                 page 29, Calendar Number 111, Senate Print

                 1989.

                            I move that these bills retain

                 their place on the Third Reading Calendar.

                            ACTING PRESIDENT MEIER:    The





                                                          5287



                 amendments are received and adopted, and all

                 bills will retain their place on the Third

                 Reading Calendar.

                            Senator Skelos.

                            SENATOR SKELOS:    Mr. President, I

                 believe there's a substitution at the desk.

                 If we could make it at this time.

                            ACTING PRESIDENT MEIER:    Yes,

                 there are.  The Secretary will read the

                 substitutions.

                            THE SECRETARY:    On page 24,

                 Senator Maltese moves to discharge, from the

                 Committee on Consumer Protection, Assembly

                 Bill Number 174A and substitute it for the

                 identical Senate Bill Number 92A, Third

                 Reading Calendar 276.

                            ACTING PRESIDENT MEIER:

                 Substitution ordered.

                            Senator Skelos.

                            SENATOR SKELOS:    Mr. President,

                 if we could go to the noncontroversial

                 calendar.

                            ACTING PRESIDENT MEIER:    The

                 Secretary will read the noncontroversial

                 calendar.





                                                          5288



                            THE SECRETARY:    Calendar Number

                 164, by Senator Kuhl, Senate Print 1685, an

                 act authorizing the trustees.

                            SENATOR DOLLINGER:    Lay it aside,

                 please.

                            ACTING PRESIDENT MEIER:    Lay the

                 bill aside.

                            THE SECRETARY:    Calendar Number

                 189, by Senator Nozzolio, Senate Print 224, an

                 act to amend the Correction Law.

                            SENATOR DOLLINGER:    Lay it aside.

                            ACTING PRESIDENT MEIER:    Lay the

                 bill aside.

                            THE SECRETARY:    Calendar Number

                 218, by Senator Padavan, Senate Print 1814, an

                 act to amend the Agriculture and Markets Law.

                            SENATOR DOLLINGER:    Lay the bill

                 aside, please.

                            ACTING PRESIDENT MEIER:    Lay the

                 bill aside.

                            THE SECRETARY:    Calendar Number

                 227, by Senator Wright, Senate Print 2678, an

                 act to amend the Highway Law.

                            SENATOR DOLLINGER:    Lay that bill

                 aside.





                                                          5289



                            ACTING PRESIDENT MEIER:    Lay the

                 bill aside.

                            THE SECRETARY:    Calendar Number

                 250, by Member of the Assembly Lentol,

                 Assembly Print Number 5305, an act to amend

                 the Judiciary Law and the Penal Law.

                            SENATOR DOLLINGER:    Lay that bill

                 aside, please.

                            ACTING PRESIDENT MEIER:    Lay the

                 bill aside.

                            THE SECRETARY:    Calendar Number

                 260, by Senator Farley, Senate Print 2964, an

                 act to amend the Banking Law and others.

                            SENATOR DOLLINGER:    Lay that bill

                 aside, please.

                            ACTING PRESIDENT MEIER:    Lay the

                 bill aside.

                            THE SECRETARY:    Calendar Number

                 268, by Senator McGee, Senate Print 3089, an

                 act to amend the General City Law and others.

                            SENATOR DOLLINGER:    Lay it aside.

                            ACTING PRESIDENT MEIER:    Lay the

                 bill aside.

                            THE SECRETARY:    Calendar Number

                 288, by Member of the Assembly Magnarelli,





                                                          5290



                 Assembly Print Number 5831, an act to amend

                 the Vehicle and Traffic Law.

                            SENATOR DOLLINGER:    Lay it aside.

                            ACTING PRESIDENT MEIER:    Lay the

                 bill aside.

                            THE SECRETARY:    Calendar Number

                 301, by Senator LaValle, Senate Print 2589, an

                 act to amend Chapter 554.

                            SENATOR PATERSON:    Lay it aside.

                            ACTING PRESIDENT MEIER:    Lay the

                 bill aside.

                            Senator Morahan, that completes the

                 reading of the noncontroversial calendar.

                            Senator Trunzo.

                            SENATOR TRUNZO:    Will you please

                 put a sponsor star on Calendar Number 288,

                 Senate Bill 3527.

                            ACTING PRESIDENT MEIER:    A

                 sponsor's star will be placed on Calendar 288.

                 So ordered.

                            Senator Morahan.

                            SENATOR MORAHAN:    Mr. President,

                 now may we have the controversial reading of

                 the calendar, please.

                            ACTING PRESIDENT MEIER:    The





                                                          5291



                 Secretary will read the controversial

                 calendar.

                            THE SECRETARY:    Calendar Number

                 164, by Senator Kuhl, Senate Print 1685, an

                 act authorizing the trustees of the Steuben

                 Allegany Board of Cooperative Educational

                 Services.

                            SENATOR DOLLINGER:    Explanation,

                 please, Mr. President.

                            ACTING PRESIDENT MEIER:    Senator

                 Kuhl, an explanation has been requested of

                 Calendar 164 by Senator Dollinger.

                            SENATOR KUHL:    Thank you, Mr.

                 President.

                            This is a bill that simply would

                 allow the Southern Tier Library System to

                 lease land from the Steuben Allegany BOCES on

                 a long-term basis.

                            ACTING PRESIDENT MEIER:    Senator

                 Dollinger.

                            SENATOR DOLLINGER:    Mr.

                 President, will the sponsor yield to a

                 question?

                            ACTING PRESIDENT MEIER:    Senator

                 Kuhl, do you yield for a question?





                                                          5292



                            SENATOR KUHL:    Yes.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR DOLLINGER:    Through you,

                 Mr. President, why is it that the library

                 system needs to lease the parcel from the

                 BOCES system?  Is there a difficulty with

                 available space in the library system itself?

                            SENATOR KUHL:    The Southern Tier

                 Library System is one of those agencies

                 created at the state level that oversees and

                 coordinates the area libraries.  They don't

                 actually put books on shelves and have people

                 come and read and provide the normal library

                 services.  They're the coordinating agency

                 that kind of oversees the libraries and runs

                 the book loan program for them.

                            That operation is out of space.

                 They have a lease that ends at the end of this

                 year.  They would like to locate in a new

                 facility that will accommodate their needs.

                 And this is the most cost-efficient mechanism

                 to do that.

                            SENATOR DOLLINGER:    Through you,

                 Mr. President, if the sponsor will again yield





                                                          5293



                 for a question.

                            ACTING PRESIDENT MEIER:    Senator

                 Kuhl, do you yield for another question?

                            SENATOR KUHL:    Yes.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR DOLLINGER:    This proposal

                 would be for a 30-year lease.  And generally,

                 under the -- I think a number of areas, both

                 in the Education and the General Municipal

                 Law, we don't permit public entities to enter

                 into leases in excess of five years.  Why

                 should we make that exception in this case,

                 and why wouldn't be it be preferable just to

                 allow BOCES to sell the land to the library

                 system?

                            SENATOR KUHL:    Well, you've asked

                 several questions, not just one, Senator, but

                 let me try to answer that in the most

                 efficient way that I can.

                            And that is, the library system

                 currently is leasing from a private landowner.

                 If they were to go out and own their own

                 system, then they would in fact be expending

                 money that they wouldn't necessarily have to





                                                          5294



                 by buying property and then building.

                            This coordinated effort between the

                 BOCES and themselves, really there are a lot

                 of kind of joint operations that potentially

                 they could enter into.  And also, the land is

                 already there, it's available.  And BOCES has

                 no desire to actually sell the property that

                 they have.

                            So this was a proposal to actually

                 allow them to utilize property that's there

                 and existent, and also add them to their

                 campus so that some of their students might

                 make benefit of some of the services that they

                 can provide.

                            SENATOR DOLLINGER:    Through you,

                 Mr. President, if the sponsor will yield to a

                 final question.

                            ACTING PRESIDENT MEIER:    Senator

                 Kuhl, do you yield?

                            SENATOR KUHL:    Yes.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR DOLLINGER:    Through you,

                 Mr. President, how is the 30-year lease and

                 the construction going to be financed by the





                                                          5295



                 Southern Tier Library System?  If it is, as

                 you describe it, just a coordinating agency,

                 it wouldn't seem to have the assets or the

                 taxing authority to levy the taxes to pay for

                 this cost.  How will the cost be paid for?

                            SENATOR KUHL:    I believe they're

                 financed by you and I, Senator.  Through the

                 state budget, each one of the state library

                 systems gets funding.

                            And what they would have to do is

                 to go out and borrow money from a bank and

                 actually finance the construction and pay it

                 back over a long period of time.  And

                 certainly no financial institution is going to

                 loan anybody money that can't repay it in five

                 years without the security of having a longer

                 lease.

                            SENATOR MORAHAN:    Excuse me, Mr.

                 President.

                            ACTING PRESIDENT MEIER:    Senator

                 Morahan.

                            SENATOR MORAHAN:    There will be

                 an immediate meeting of the Racing, Gaming and

                 Wagering Committee in the Majority Conference

                 Room.





                                                          5296



                            ACTING PRESIDENT MEIER:

                 Immediate meeting of the Racing, Gaming and

                 Wagering Committee in the Majority Conference

                 Room.

                            Senator Dollinger.

                            SENATOR DOLLINGER:    Mr.

                 President, just briefly on the bill, and then

                 I'll head off to the Gaming and Wagering

                 Committee meeting.

                            ACTING PRESIDENT MEIER:    Senator

                 Dollinger, on the bill.

                            SENATOR DOLLINGER:    It seems to

                 me that this is a reasonable use of an

                 exception to the general rule in New York that

                 no government entity should be permitted to

                 enter into any period longer than a five-year

                 lease.

                            I think that was done for a number

                 of reasons, most importantly to prevent one

                 elected government from committing a

                 subsequent elected government to the terms of

                 a long-term lease deal.

                            I'm satisfied that Senator Kuhl's

                 explanation is adequate, does the purpose, and

                 suggests that this is in the best interests of





                                                          5297



                 both the taxpayers of the State of New York,

                 since we fund the library system, and it seems

                 to me to be a reasonable basis for BOCES to

                 retain control of the property if at some

                 future time they wanted to exert control and

                 ownership and again use it purely for

                 educational purposes.

                            So, Mr. President, I'll be voting

                 in the affirmative.

                            ACTING PRESIDENT MEIER:    Does any

                 other member wish to be heard on this bill?

                            Senator Paterson.

                            SENATOR PATERSON:    Mr. President,

                 if Senator Kuhl would yield for a question.

                            ACTING PRESIDENT MEIER:    Senator

                 Kuhl, do you yield to a question from Senator

                 Paterson?

                            SENATOR KUHL:    Yes, I'd be happy

                 to.

                            ACTING PRESIDENT MEIER:    The

                 Senator yields.

                            SENATOR PATERSON:    Senator, has

                 this experience that we are going to codify

                 here today happened to any of the libraries in

                 the Southern Tier system before, where we've





                                                          5298



                 actually leased a property from someone else

                 but they retain control of the property?

                            You want the shorter question?  Has

                 this ever happened before?

                            SENATOR KUHL:    I wasn't pausing

                 based on not understanding your question,

                 Senator.  It was I was thinking about how to

                 respond to what appears to be a

                 misunderstanding that you have.

                            The Southern Tier Library System is

                 a 501(c)(3) corporation that's chartered by

                 the Board of Regents.  They are one of

                 several, and I'm not sure how many library

                 systems there are -- it seems to me it's

                 something like 37 throughout the entire

                 state -- that actually oversee a geographical

                 area.  And they vary in size, they have

                 different-sized libraries that they actually

                 oversee.

                            And they provide a coordination of

                 services from the state to the libraries.  And

                 actually, that organization itself is totally

                 funded by the state, by our budget which we

                 hopefully will adopt here shortly.

                            Now, a library that they would





                                                          5299



                 participate and would be part of that system

                 who actually provides the services to each one

                 of the communities, generally they're

                 chartered on their own, separately, and they

                 may have entirely different financial

                 circumstances.  Many of them, as you may know,

                 are struggling for dollars.  They have all

                 kinds of ways that they try to raise money.

                 And there is some funding that is provided to

                 them, but certainly not enough.

                            As a matter of fact, the Board of

                 Regents have offered up, and Senator Farley

                 carries, a bill that would authorize a major

                 overhaul of the funding system for those

                 individual libraries.  But that's different

                 from the centralized library system which this

                 is a part of.

                            So has a leasing of this particular

                 situation occurred before of the centralized

                 library systems?  I don't know.  Has leasing

                 of premises from another organization ever

                 occurred before for one of the smaller

                 libraries it provides the individual services

                 to?  I'm absolutely certain of that.  But

                 there never has been a need that I'm aware of





                                                          5300



                 for a longer term to be extended or for a

                 change in the law.

                            SENATOR PATERSON:    Very good.

                 Thank you, Mr. President.

                            ACTING PRESIDENT MEIER:    Does any

                 other member wish to be heard on this bill?

                            Senator Ada Smith.

                            SENATOR ADA SMITH:    Thank you,

                 Mr. President.  Would the sponsor yield for a

                 question?

                            ACTING PRESIDENT MEIER:    Senator

                 Kuhl, do you yield for a question?

                            SENATOR KUHL:    Certainly, to

                 Senator Smith.  I think it's Senator Smith's

                 birthday today.

                            SENATOR ADA SMITH:    No, tomorrow.

                 And you are Thursday.

                            (Laughter.)

                            SENATOR KUHL:    So we'd love to

                 have a birthday conversation.  Yes, I'll

                 yield.

                            SENATOR ADA SMITH:    Thank you.

                 See, you made me forget the question.

                            Is there a reason -- he wants to

                 know how old you are.  Is there a reason for





                                                          5301



                 leasing rather -

                            ACTING PRESIDENT MEIER:    Senator

                 Kuhl, you don't have to yield for that.

                            (Laughter.)

                            SENATOR ADA SMITH:    Is there a

                 reason for leasing versus purchasing?

                            SENATOR KUHL:    I haven't gotten

                 into the internal discussions with the board

                 of the Southern Tier Library System.  I know

                 that they have explored all the options.

                            And what they've come back to me

                 with was, Could you seek out a longer-term

                 lease so that we in fact could conclude our

                 negotiations on the construction aspect of

                 that with our prospective mortgagor?  And I

                 said, Yes, is this the most cost-efficient

                 way?  And they've assured me that it is.

                            SENATOR ADA SMITH:    I'm sorry, I

                 was not here earlier.  But could you tell me

                 exactly how long this leasing -

                            SENATOR KUHL:    Currently the law

                 restricts them to a five-year lease.  What

                 they're looking at is a 30-year lease.

                            SENATOR ADA SMITH:    Once again,

                 would the sponsor yield?





                                                          5302



                            ACTING PRESIDENT MEIER:    Senator

                 Kuhl, do you yield for a question?

                            SENATOR KUHL:    Yes.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR ADA SMITH:    With a

                 30-year lease, it would seem to me that the

                 amount that we would expend would be a hefty

                 amount towards purchasing or at least a decent

                 amount of a purchase.

                            SENATOR KUHL:    Well, I think what

                 you're missing, Senator, and if I can help you

                 out -- I didn't really hear a question there,

                 but the point is that this land that they will

                 put this building on costs them nothing.

                            If they were to go and purchase

                 something, certainly they're going to have to

                 purchase something on a piece of property

                 which they'd have to go out and buy.

                            And this is an extremely attractive

                 piece of property.  It's right off of what's

                 called I-86, an interstate.  It's right near

                 the regional DOT facility, it's right next to

                 a state police headquarters, it's right next

                 to a BOCES school system.





                                                          5303



                            So it provides a lot of potential

                 opportunity at virtually no cost for -- as far

                 as land acquisition goes.  The only cost that

                 they'll incur will be for construction.

                            SENATOR ADA SMITH:    Thank you

                 very much.  Now that I have a better

                 understanding of this leasing agreement, I

                 would certainly support this bill.

                            ACTING PRESIDENT MEIER:    Senator

                 Montgomery.

                            SENATOR MONTGOMERY:    Yes, Mr.

                 President, if Senator Kuhl would just yield

                 for a question.

                            ACTING PRESIDENT MEIER:    Senator

                 Kuhl, do you yield to a question?

                            SENATOR KUHL:    Be happy to.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR MONTGOMERY:    Yes, thank

                 you, Senator Kuhl.  I support this

                 legislation, of course.  And always, you know,

                 I think libraries are so important.

                            The question that I have for you is

                 the Department of Corrections talks about the

                 fact that inmates have been very much involved





                                                          5304



                 in helping to build libraries upstate for some

                 communities.  And I'm just wondering if you

                 have any idea if this particular library will

                 receive assistance from DOCS, with inmates

                 helping to construct that -- the new library.

                            SENATOR KUHL:    I don't know,

                 Senator, but I've heard no mention of that.

                            SENATOR MONTGOMERY:    Okay.  Thank

                 you.  Thank you, Mr. President.

                            ACTING PRESIDENT MEIER:    Any

                 other member wish to be heard on this bill?

                            Debate is closed.

                            Read the last section.

                            THE SECRETARY:    Section 3.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MEIER:    Call the

                 roll call.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 55.

                            ACTING PRESIDENT MEIER:    The bill

                 is passed.

                            Senator Morahan.

                            SENATOR MORAHAN:    Yes, Mr.

                 President.  Would you call up Calendar 260,

                 Senate Bill 2964.





                                                          5305



                            ACTING PRESIDENT MEIER:    The

                 Secretary will read Calendar 260.

                            THE SECRETARY:    Calendar Number

                 260, by Senator Farley, Senate Print 2964, an

                 act to amend the Banking Law, the Education

                 Law, and the Surrogate's Court Procedure Act.

                            SENATOR HEVESI:    Explanation.

                            SENATOR PATERSON:    Explanation.

                            ACTING PRESIDENT MEIER:    Senator

                 Farley, an explanation has been requested of

                 Calendar 260 by, I believe, Senator Paterson

                 and Senator Hevesi.

                            SENATOR FARLEY:    Thank you, Mr.

                 President.

                            This bill would enact technical

                 amendments that would ensure that all national

                 banks operating in New York State are subject

                 to the same laws.  These technical amendments

                 that we're talking about here are needed to

                 address changes which have occurred in the

                 banking industry as a result of the new

                 interstate branching laws.

                            Prior to interstate branching,

                 these particular laws applied to all national

                 banks with branch offices in New York State.





                                                          5306



                 However, after interstate branching, it

                 appears that these laws may apply only to

                 those national banks which are still

                 headquartered in New York State.

                            It is important to update these

                 laws because -- to ensure that they will

                 continue to apply to all national banks that

                 operate in New York.  There was no intent or

                 decision to exempt national banks

                 headquartered in New York from New York laws.

                            This bill will remove any possible

                 uncertainties or questions about applicability

                 of these laws.  It would ensure that the banks

                 continue to be subject to the same laws and

                 rules that apply to all other national banks

                 that operate in New York State.

                            The banking environment in the

                 mid-1990s changed substantially with the

                 enactment of the interstate branching laws.

                 Incidentally, before that, a bank could only

                 operate in one state.  I don't know if you

                 remember that.

                            As a result, this new environment

                 has called into question the applicability of

                 New York State laws, and these laws have yet





                                                          5307



                 to be amended to reflect the new banking

                 environment.

                            Basically, what this will do is to

                 say that -- go with the original intent of the

                 bill, of the law, which will apply to all

                 national banks which are actually operating in

                 New York State.  By updating the language of

                 these laws and removing the outdated reference

                 to having, quote, a principal office in the

                 state, this bill would clarify and ensure that

                 all national banks operating in New York State

                 are subject to the same laws.

                            ACTING PRESIDENT MEIER:    Senator

                 Paterson.

                            SENATOR PATERSON:    Mr. President,

                 if the sponsor would kindly yield for a few

                 questions.

                            ACTING PRESIDENT MEIER:    Senator

                 Farley, do you yield for some questions?

                            SENATOR FARLEY:    Yes, I will.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR PATERSON:    Senator, when

                 we were talking on April 4th, right before we

                 left here for a few days, we actually were





                                                          5308



                 talking about the convergence of Section 203

                 and Section 108 to accommodate the foreign

                 banks.

                            Are the international banks in any

                 way affected by this situation?  I know

                 they're not affected by this legislation.  But

                 did they have the same admonishment legally

                 that they had to be headquartered in the same

                 state before the passing of the interstate

                 banking laws in the mid-'90s?

                            SENATOR FARLEY:    No.

                            ACTING PRESIDENT MEIER:    Senator

                 Paterson.

                            SENATOR PATERSON:    Mr. President,

                 if the sponsor would yield for a question.

                            ACTING PRESIDENT MEIER:    Senator

                 Farley, do you yield?

                            SENATOR FARLEY:    Sure.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR PATERSON:    Mr. President,

                 I'm interested in Senator Farley's comments

                 about what the previous law was and the way it

                 was written, that the addressing of the

                 headquarters having to be in the state was





                                                          5309



                 because the nationally chartered bank could

                 only operate in one state, so then the

                 headquarters would have had to have been

                 there.  Was that what you were saying,

                 Senator?

                            SENATOR FARLEY:    That's correct.

                 That's prior to interstate branching.

                            SENATOR PATERSON:    Right.  So

                 then obviously it would -- it would be obvious

                 that now that the federal law has changed and

                 accommodates several states for these

                 different banks, they can't have their

                 headquarters in any other than one place.

                            But I did notice back and forth the

                 reference to a principal location.  Is the

                 principal location meaning the same thing as

                 the headquarters?

                            SENATOR FARLEY:    Well, some

                 places in the law it refers to a particular

                 law that applied to a bank that has a

                 principal headquarters in New York.  And what

                 this bill would do would make sure that

                 anybody -- any national bank that is doing

                 business in New York State, whether

                 headquartered here or whether it has a branch





                                                          5310



                 here, would be subject to all of our laws.

                            SENATOR PATERSON:    Thank you, Mr.

                 President.  If Senator Farley would yield for

                 another question.

                            ACTING PRESIDENT MEIER:    Senator

                 Farley -

                            SENATOR FARLEY:    Yes.

                            ACTING PRESIDENT MEIER:    The

                 Senator yields.

                            SENATOR PATERSON:    Senator, how

                 many banks that had their headquarters in

                 New York and have left New York -- at least

                 their headquarters, even though they're doing

                 business and may have branches here -- would

                 actually be affected by this legislation?  Or

                 is this something really just to clear up the

                 technicalities in case this should ever happen

                 so there'd be no misunderstanding?

                            SENATOR FARLEY:    Well, I don't

                 have an exact answer to this.  But I think

                 that -- I know that you've been here long

                 enough to remember that Fleet Bank and Key

                 Bank are the two most prominent examples of

                 national banks which consolidated their

                 multistate operations and moved out of state





                                                          5311



                 to a single bank.  As a result, these two

                 banks are now headquartered elsewhere.

                            And that came about because we were

                 a little bit reticent or reluctant to pass

                 banking deregulation, and also the wild card.

                            SENATOR PATERSON:    Mr. President,

                 if the Senator would continue to yield.

                            SENATOR FARLEY:    Yes.

                            SENATOR PATERSON:    Mr. President,

                 I do remember that.  Key Bank actually was

                 headquartered right here in Albany, and I

                 guess about six or seven years ago they

                 relocated to Cleveland.  Or eight years ago.

                 And it was probably as a result of some of the

                 new changes and some of the desires they had

                 in New York that they felt we weren't

                 accommodating.

                            My question is, would the passage

                 of the federal law, in spite of the fact that

                 we would want to be consistent, is there

                 necessarily a need to pass this legislation?

                 Or does it just -- is it just preempted by the

                 new regulations that were established about

                 seven or eight years ago.

                            SENATOR FARLEY:    I think, as the





                                                          5312



                 good lawyer that you are, I think there's a

                 need to do this, because there's a bit of

                 confusion in the law.  Although I think that

                 the courts would realize, should it have to go

                 to court, that the intent was, the legislative

                 intent was that all national banks are covered

                 by New York law, whether they're headquartered

                 or branched here.

                            But there are places in the law

                 right now that says that certain laws only

                 apply to banks that are headquartered here.

                 And that was -- that's not the intent and

                 that's not what we want to have happen.  We

                 want all banks that are national banks that

                 are branched or headquartered here to be

                 subject to New York law.

                            SENATOR PATERSON:    Mr.

                 President -

                            ACTING PRESIDENT MEIER:    Senator

                 Paterson.

                            SENATOR PATERSON:    Mr. President,

                 if I'm a good lawyer, then perhaps hearing

                 what the advice is from a great lawyer, it

                 would be a good time to defer.  Thank you.

                            SENATOR FARLEY:    Thank you.





                                                          5313



                            ACTING PRESIDENT MEIER:    Senator

                 Hassell-Thompson.

                            SENATOR HASSELL-THOMPSON:    Yes,

                 thank you, Mr. President.  I just have one

                 question, if the Senator would yield.

                            ACTING PRESIDENT MEIER:    Senator

                 Farley, do you yield?

                            SENATOR FARLEY:    Certainly.

                            ACTING PRESIDENT MEIER:    The

                 Senator yields.

                            SENATOR HASSELL-THOMPSON:

                 Senator Farley, I tried to follow -- through

                 you, Mr. President, I tried to follow all of

                 the discussion.  And the only question that

                 concerns me that I did not hear is will, in

                 fact, by there not being a principal office

                 here, will that have any effect on the CRA, or

                 Community Reinvestment Act?

                            SENATOR FARLEY:    No, it would

                 not.  Because it has to follow federal law on

                 that one.

                            SENATOR HASSELL-THOMPSON:    Okay.

                 Thank you.  Thank you, Mr. President.

                            ACTING PRESIDENT MEIER:    Senator

                 Stavisky.





                                                          5314



                            SENATOR STAVISKY:    If Mr. Farley

                 will yield for what I think will be one

                 question.

                            SENATOR FARLEY:    Certainly.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR STAVISKY:    Will this have

                 any effect on foreign banks?  And I go back to

                 what I said when we were debating the bill

                 that Senator Paterson referred to last -- two

                 weeks ago.

                            SENATOR FARLEY:    No.  No, it only

                 affects nationally chartered banks.  No.

                            SENATOR STAVISKY:    The answer is

                 no.  Thank you.

                            ACTING PRESIDENT MEIER:    Senator

                 Schneiderman.

                            SENATOR SCHNEIDERMAN:    Thank you.

                 Through you, Mr. President, if the sponsor

                 would yield for a few questions.

                            ACTING PRESIDENT MEIER:    Senator

                 Farley, do you yield for a question?

                            SENATOR FARLEY:    Certainly.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.





                                                          5315



                            SENATOR SCHNEIDERMAN:    Thank you.

                            What I'm curious about is, does

                 this bill eliminate any distinction in New

                 York law between banks with their principal

                 headquarters in New York and banks that just

                 have branch offices in New York?

                            SENATOR FARLEY:    No.  All it does

                 is it says that they shall be treated equally

                 under the law, that they're both subject to

                 our laws.  That's all.

                            SENATOR SCHNEIDERMAN:    Through

                 you, Mr. President.  But I guess what I'm

                 getting at is that in this era of national and

                 international banking, we have found -- and

                 I've been participating for years in a survey

                 of bank rates for ATMs and for savings

                 accounts, to try and inform consumers.  And

                 what we've found is we appear to have less and

                 less leverage as a state on some of these

                 banks.

                            So the question is, are we, by

                 passing this bill -- which I understand is to

                 bring us into line with the federal laws -

                 are we giving up any ability to regulate based

                 on a distinction between banks with their





                                                          5316



                 principal offices in New York and banks that

                 do not have their principal offices here?

                            SENATOR FARLEY:    No.  We're

                 putting all banks, and specifically certain

                 branch banks, that only are branched here,

                 under New York law.  So we're bringing in, if

                 you will, consolidating every national bank,

                 making it subject to New York law.

                            SENATOR SCHNEIDERMAN:    Through

                 you, Mr. President, if the sponsor will

                 continue to yield.

                            ACTING PRESIDENT MEIER:    Senator

                 Farley, do you yield?

                            SENATOR FARLEY:    Yes, I will.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR SCHNEIDERMAN:    So are

                 there any provisions left in the law after

                 this that would provide additional benefits or

                 advantages in the Banking Law to banks with

                 their principal offices in New York State, as

                 opposed to banks that just have branch offices

                 here?

                            SENATOR FARLEY:    No.  The answer

                 is no, not in regard to a national bank.





                                                          5317



                            Incidentally, we have limited

                 authority over a national bank anyway.  For

                 instance, we do have -- I was able to, with

                 the support of my colleagues, put in some

                 security for ATMs and so forth, because that's

                 a police power.  And one that we were -- we

                 subjected national banks to, that they had to

                 provide security for these ATMs, for the

                 consumer using it.  That sort of thing.

                            But on balance, we only have effect

                 over state-chartered banks.

                            SENATOR SCHNEIDERMAN:    Through

                 you, Mr. President, would we still have

                 authority after this bill was passed to

                 regulate the fees, the double-dipping fees, as

                 they're called, at ATMs to prevent them from

                 charging too high a rate to someone who's not

                 using that bank?

                            SENATOR FARLEY:    No, it would not

                 have any authority to do anything on fees for

                 national banks.

                            That's one of the reasons we

                 haven't moved in this area, Senator, is

                 because all they'll do is jump to a federal

                 charter.  And as you know as well as I, the





                                                          5318



                 feds are always trying to eat our lunch

                 anyway.

                            SENATOR SCHNEIDERMAN:    Well,

                 through you, Mr. President, the current

                 administration anyway, I do concur.

                            But a final question.  After the

                 repeal of the Glass Steigel Act, many banks

                 are in fact seeking to do additional business

                 in New York through their mergers or joint

                 ventures with various sorts of securities

                 firms.  Are we preserving our ability to

                 regulate that sort of joint activity or to

                 encourage banks to locate in New York in order

                 to do such activity if we pass this bill?

                            SENATOR FARLEY:    Actually, that's

                 very limited, because they have to follow the

                 federal law.

                            SENATOR SCHNEIDERMAN:    So through

                 you, Mr. President, there's nothing that we're

                 really giving up by this?

                            SENATOR FARLEY:    No.  As a matter

                 of fact, we're not only not giving up, we're

                 regulating more.

                            SENATOR SCHNEIDERMAN:    Okay,

                 thank you.  Thank the sponsor for his answers.





                                                          5319



                            ACTING PRESIDENT MEIER:    Senator

                 Onorato.

                            SENATOR ONORATO:    Would Senator

                 Farley yield to a question, Mr. President?

                            SENATOR FARLEY:    Certainly.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR ONORATO:    Senator Farley,

                 under the bill would there be a minimum amount

                 of branches that would be required to be

                 placed in this state?  Is there any minimum?

                            SENATOR FARLEY:    No.

                            SENATOR ONORATO:    Would one

                 suffice?

                            SENATOR FARLEY:    One would

                 suffice.

                            SENATOR ONORATO:    Okay.  And the

                 other one that I was -- why was the industrial

                 banks -- through you, Mr. President.  Senator

                 Farley -

                            SENATOR FARLEY:    Yup.

                            SENATOR ONORATO:    -- why were the

                 industrial banks omitted from this?

                            SENATOR FARLEY:    The authority to

                 have an industrial bank was repealed several





                                                          5320



                 decades ago, before you and me.  We don't have

                 industrial banks.

                            SENATOR ONORATO:    Okay.  Thank

                 you.

                            ACTING PRESIDENT MEIER:    Senator

                 Dollinger.

                            SENATOR DOLLINGER:    Through you,

                 Mr. President, will the sponsor yield to my

                 favorite question about small banks?

                            ACTING PRESIDENT MEIER:    Senator

                 Farley, do you yield for a question?

                            SENATOR FARLEY:    Yes.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR DOLLINGER:    Through you,

                 Mr. President, how does this bill impact home

                 office protection?

                            SENATOR FARLEY:    It does not

                 impact it.

                            SENATOR DOLLINGER:    Through you,

                 Mr. President, just a follow-up question, if I

                 may.

                            ACTING PRESIDENT MEIER:    Senator

                 Farley, do you yield?

                            SENATOR FARLEY:    Yes.





                                                          5321



                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR DOLLINGER:    My

                 understanding is that this bill says that

                 instead of having your principal place of

                 business in certain locales, that a bank may

                 have simply a branch in that locale and then

                 be able to do things that have traditionally

                 been done only by banks with their principal

                 residence.

                            For example, in the city of

                 Canandaigua, which I believe may be close to

                 Senator Kuhl's district and might be in

                 Senator Nozzolio's district, it has a bank,

                 Canandaigua National Bank and Trust, which has

                 its principal office for operations there, and

                 that they get certain protections under state

                 law because that's where their principal

                 office is, in a small city.

                            My question is, will all national

                 banks that have a branch in there now enjoy

                 the same benefits that it previously reserved

                 just to that particular instance?

                            SENATOR FARLEY:    No.  The federal

                 law requires the same home office protection





                                                          5322



                 that we do under state law.  Federal law is

                 the same as our home office protection.

                            SENATOR DOLLINGER:    Through you,

                 Mr. President, if Senator Farley will continue

                 to yield.

                            ACTING PRESIDENT MEIER:    Senator

                 Farley, do you continue to yield?

                            SENATOR FARLEY:    Yes.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR DOLLINGER:    Then why do

                 we need to do this bill if we've preserved

                 home office protection?  Aren't we allowing

                 banks that don't have their principal place of

                 residence in certain communities to now do

                 traditional bank functions like manage

                 estates, manage trusts, make loans and extend

                 credit to infants, and -

                            SENATOR FARLEY:    Let me just

                 address this, Richard, if I could.  Senator,

                 excuse me.

                            This really has nothing to do with

                 home office protection.  This bill has nothing

                 to do with it.  This addresses other areas.

                 Certain segments of the law -- not very many,





                                                          5323



                 but a few segments of the law said that this

                 particular law will only apply to a bank who

                 has a principal office in New York State.  We

                 don't want that to be the case.  It is not the

                 intent that that be the case.

                            What we're saying is that New York

                 law will apply to any national bank, whether

                 it is home-officed here, whether its principal

                 office is here, or whether they're a branch

                 office here.  That if they operate in this

                 state, they're subject to our laws.

                            SENATOR DOLLINGER:    Through you,

                 Mr. President, just on the bill briefly.

                            I'll take Senator Farley's word for

                 it.  As always whenever we do one of these

                 amendments where we sort of pick out certain

                 sections and insert new language, it's

                 difficult to determine what the long-term

                 ramifications are, certainly in the banking

                 bill, which has a constant repetition of

                 specific, defined terms which are then

                 repeated and describe both the extent of our

                 regulation and the ability of banks to operate

                 and how they operate.  I'll take Senator

                 Farley's word for it.





                                                          5324



                            I think that from my point of view,

                 I continue to believe that one of our major

                 sources of consistency in upstate New York has

                 been the strength of our small banks.  And I'm

                 reluctant to create a playing field in which

                 those banks will be paired in a competition

                 with banks that have much stronger muscle

                 because they have international or truly

                 national bases.

                            And I believe that there is a

                 justification for continuing New York's

                 preference for certain bank operations in

                 small communities upstate.  I think they've

                 been enormously successful.  I think that's

                 been very prudent.  And I'm just concerned, as

                 I know Senator Farley and I have talked about

                 this concept a number of times, that we not

                 erode that by allowing them to do bank-like

                 things, whether it's the administration of

                 trusts or providing loans to infants, which is

                 another one of the sections in the bill that's

                 amended.

                            But with the chairman of the

                 Banking Committee's assurance that this does

                 not affect that and erode that principal, I'll





                                                          5325



                 vote in favor.

                            ACTING PRESIDENT MEIER:    Senator

                 Hevesi.

                            SENATOR HEVESI:    Thank you, Mr.

                 President.  Would the sponsor yield, please.

                            ACTING PRESIDENT MEIER:    Senator

                 Farley, do you yield?

                            SENATOR FARLEY:    Yes, I will.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR HEVESI:    Thank you.

                            Through you, Mr. President.  It

                 seems to me that the technical corrections

                 that we're making today, if I have understood

                 the debate correctly, were necessitated by

                 Banking Law change that occurred five or six

                 years ago.

                            My question for you is -- and I

                 supported this last year, and I'm likely to

                 support it again today -- in the time since

                 these inconsistencies materialized as a result

                 of those banking changes in the mid-1990s, has

                 there been any national bank or any banking

                 institution that sought to take advantage of

                 this supposed loophole and not comply with any





                                                          5326



                 aspect of New York State law?

                            SENATOR FARLEY:    That's a good

                 question.  I have a written answer here to

                 that question.

                            Currently it is assumed that the

                 laws continue to apply to all national banks.

                 As far as we know and are aware, out-of-state

                 banks continue to comply with these laws, and

                 no one has brought any legal challenge.

                            Nevertheless, the language of the

                 law does raise some questions of uncertainty.

                 If we fail to update these laws, we could

                 someday find ourselves in a situation where an

                 out-of-state bank may claim that it does not

                 have to comply with certain provisions of our

                 New York law -- for instance, ATM security.

                 I'll just use that as an example.  We believe

                 it is appropriate to amend the -- update these

                 laws and eliminate any uncertainty.

                            There's no real objection to this

                 by anybody.  And I'm confident if -- because

                 these things fell between the cracks last

                 year, that this should become law.

                            SENATOR HEVESI:    Thank you.  Mr.

                 President, one final question for the sponsor,





                                                          5327



                 if he would yield.

                            ACTING PRESIDENT MEIER:    Senator

                 Farley, do you yield for a question?

                            SENATOR FARLEY:    Yes.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR HEVESI:    Thank you.

                            Through you, Mr. President.  And I

                 very much appreciate trying to take a

                 preventative approach to remedying a problem

                 that may exist if the future.  It's a good

                 idea.  And you addressed it at the end of your

                 comments.

                            But more specifically, is there any

                 problem that the other house, the Assembly,

                 has with this, or the Governor has with this

                 that resulted in this dying an untimely death,

                 as it were, last year?

                            SENATOR FARLEY:    None whatsoever,

                 Senator.  I think that's a good point.  I

                 think that the other house will embrace this,

                 and I'm sure that the Governor will.  There's

                 no -- it's just doing the right thing.

                            SENATOR HEVESI:    Thank you, Mr.

                 President.





                                                          5328



                            ACTING PRESIDENT MEIER:    Any

                 other member wish to be heard on this bill?

                            Debate is closed.

                            Read the last section.

                            THE SECRETARY:    Section 6.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MEIER:    Call the

                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 58.

                            ACTING PRESIDENT MEIER:    The bill

                 is passed.

                            Senator Marcellino.

                            SENATOR MARCELLINO:    Mr.

                 President, can we call up Calendar Number 268

                 at this time.

                            ACTING PRESIDENT MEIER:    The

                 Secretary will read Calendar 268.

                            THE SECRETARY:    Calendar Number

                 268, by Senator McGee, Senate Print 3089, an

                 act to amend the General City Law, the Town

                 Law, and the Village Law.

                            SENATOR OPPENHEIMER:

                 Explanation, please.

                            ACTING PRESIDENT MEIER:    Senator





                                                          5329



                 McGee, an explanation has been requested of

                 Calendar 268.

                            SENATOR McGEE:    Thank you.  May I

                 ask who asked for the explanation?

                            ACTING PRESIDENT MEIER:    I

                 believe it was Senator Oppenheimer.

                            SENATOR McGEE:    Yes, this bill is

                 designed to provide a framework for the use of

                 planned unit developments as a tool for

                 guiding communities in growth and development.

                            SENATOR OPPENHEIMER:    I'm having

                 trouble hearing, Mr. President.

                            SENATOR McGEE:    This is a bill

                 that's designed to help communities plan

                 development and growth.

                            ACTING PRESIDENT MEIER:    Senator

                 Sampson, why do you rise?

                            SENATOR SAMPSON:    I'll defer

                 to -

                            SENATOR OPPENHEIMER:    Well, thank

                 you very much.

                            Thanks, Senator McGee.  I

                 understand planned unit development, and

                 that's why I don't understand why we have the

                 bill.  So I guess I need a little more of an





                                                          5330



                 explanation of why we need the planned unit

                 development.  I can only tell you I did it

                 twenty years ago in my village.  So I don't

                 know why we need the law.

                            SENATOR McGEE:    At the present

                 moment, traditional zoning -

                            SENATOR OPPENHEIMER:    I can't -

                 whoops.  Excuse me, I am having trouble

                 hearing.

                            ACTING PRESIDENT MEIER:

                 Senators, could we have some order in the

                 chamber so that all of us can be enlightened

                 by this debate.  That's better.  Thank you.

                            Go ahead.

                            SENATOR McGEE:    Basically,

                 traditionally, zoning right now as we have it

                 typically provides for single use.  In other

                 words, it's single housing or double housing.

                 Now, there are variances that are allowed.

                 Single housing, double housing, agriculture,

                 commercial, industry, business.

                            This one will allow what's known as

                 a planned unit development, which will allow

                 multiple use.  In other words, we can have a

                 cluster development which would allow senior





                                                          5331



                 citizens' housing to be here, single homes,

                 perhaps throw in a double house in here,

                 perhaps even within that planned development,

                 that planned community, would allow them to

                 have restaurants, hairdressers, et cetera, et

                 cetera.

                            SENATOR OPPENHEIMER:    Okay.  Now

                 I can see how this varies from what I've done

                 in the past.

                            Does this require or allow for only

                 specific sites to be utilized for PUD

                 development?  Through you, Mr. President, if

                 you'll yield.

                            ACTING PRESIDENT MEIER:    Senator

                 McGee, do you yield to a further question?

                            SENATOR McGEE:    Yes, I do.

                            ACTING PRESIDENT MEIER:    The

                 Senator yields.

                            SENATOR McGEE:    It would be a

                 township or a municipality would make the move

                 as to whether there was a development that

                 wanted to come in.  That developer would then

                 go to that township and say, This is what I

                 have in mind.  The township then would be able

                 to look to see where that development is going





                                                          5332



                 to go.  It could be on farmland, if that's

                 where -- you know, you want to be very careful

                 that it's not agricultural farmland that's in

                 use right now, it's not in an ag district, et

                 cetera, et cetera, et cetera.  The developer

                 would have to say, This is my planned use.

                            In other words, it's designed

                 basically to control, if you can, urban

                 sprawl.

                            SENATOR OPPENHEIMER:    Then

                 through you, Mr. President, would there be -

                            ACTING PRESIDENT MEIER:    Wait,

                 wait.  Whoa, whoa.  Senator McGee, do you

                 yield for another question?

                            SENATOR McGEE:    Yes, I do.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR OPPENHEIMER:    Then would

                 you have certain -- would the law require

                 certain specific parameters for the

                 development of those sites?  In other words,

                 certain criteria that are required before the

                 site could be established as a planned unit

                 development?

                            SENATOR McGEE:    Oh, there would





                                                          5333



                 always have to be, Senator.  I mean, when you

                 go in to do any kind of a development, you

                 have to go through a certain plan type that

                 you have to go through, whether you're going

                 to, you know, provide the water, the sewer,

                 whether you're on environmentally touchy land,

                 et cetera, et cetera.

                            This just would be able to give the

                 township, where the developer has to go

                 through, the ability to make a decision as to

                 do we want a planned -- a PUD, they call

                 them -- planned unit development rather than a

                 specific use, senior housing or et cetera, et

                 cetera.

                            SENATOR OPPENHEIMER:    Thank you.

                 But through you, Mr. President.

                            ACTING PRESIDENT MEIER:    Senator

                 McGee, do you yield for another question?

                            SENATOR McGEE:    Certainly.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR OPPENHEIMER:    Would the

                 law have a certain requirement as far as the

                 total size, acreage, lot size?

                            SENATOR McGEE:    No.





                                                          5334



                            SENATOR OPPENHEIMER:    No?

                            SENATOR McGEE:    It does not call

                 for that.  Does it say -- you mean, in other

                 words, you have to use a planned unit

                 development in a 2-acre or you must have a 13

                 acres to do this in?  Is that what you're

                 saying?  In other words -

                            SENATOR OPPENHEIMER:    Yeah.

                            SENATOR McGEE:    Any time a

                 developer will come in, a developer naturally

                 would be able to tell you what the size of his

                 community was or that development was going to

                 be.

                            But no, this bill does not say -

                 does not require X amount of land with it.

                 That would be the decision of the town.

                 Zoning always goes through the town at that

                 point.  It's a town's decision as to whether

                 they want to do zoning -- I'm going to use

                 town as an example -- a town's decision as to

                 whether they want to do it or not.

                            So if you're saying does this bill

                 say you must have 5 acres or 10 acres to do

                 it, no, it does not.

                            SENATOR OPPENHEIMER:    That's





                                                          5335



                 interesting, because our law in the village

                 where I served did have a requirement of X

                 minimum acreage in order to permit the PUD to

                 move ahead.

                            SENATOR McGEE:    I suspect the

                 local municipality itself could set that by

                 virtue of looking at what the development was.

                 But this law doesn't call for that.

                            SENATOR OPPENHEIMER:    Well, then,

                 you'd -- through you, Mr. President -

                            ACTING PRESIDENT MEIER:    Senator

                 McGee, do you yield for a question?

                            SENATOR McGEE:    Certainly.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR OPPENHEIMER:    Then do you

                 believe or not believe that the powers of the

                 community board, city council, or village

                 board or planning board or zoning board, is

                 going to be impacted?  In other words, will

                 some of their decision-making power be taken

                 away, or do you feel it will be enhanced?

                            SENATOR McGEE:    No, absolutely

                 not.  As a matter of fact, this bill will give

                 them additional options to work with.





                                                          5336



                            SENATOR OPPENHEIMER:    Some -- oh,

                 additional options.

                            SENATOR McGEE:    This bill will

                 not impact on -- not have a negative impact on

                 anything like that.  What this bill will do,

                 it will give that municipality additional

                 options to operate with.

                            In other words, they will be able

                 to plan, use a planned unit development rather

                 than just saying you can only use it for

                 commercial, you can only use it for industry.

                 This gives them the opportunity to make a

                 planned unit development include, if they wish

                 to do so, a portion of each and every one of

                 those things.  So it enlarges their options.

                            SENATOR OPPENHEIMER:    Then

                 through you, Mr. President -

                            ACTING PRESIDENT MEIER:    Senator

                 McGee, do you yield for another question?

                            SENATOR McGEE:    Yes.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR OPPENHEIMER:    Would this

                 be like an addition to the zoning code of the

                 individual municipality?  Would they then





                                                          5337



                 incorporate this into their zoning code?

                            SENATOR McGEE:    If they wish to

                 do so.

                            SENATOR OPPENHEIMER:    And they -

                 then they could limit space or a variety of

                 choices that can be made within the planned

                 unit development?

                            SENATOR McGEE:    That's correct.

                 That's correct.

                            SENATOR OPPENHEIMER:    Is there

                 any -

                            ACTING PRESIDENT MEIER:    Senator

                 McGee, do you yield for another question?

                            SENATOR McGEE:    Yes, I will,

                 thank you.

                            SENATOR OPPENHEIMER:    I don't

                 even have to ask.

                            Is there anything in the bill -

                 I'm not certain if I read this -- in that a

                 requirement for a public, a municipal hearing

                 would be necessary before this could be

                 implemented?

                            SENATOR McGEE:    No, ma'am.  If

                 you're looking at zoning, if you're looking at

                 zoning, that is not a public referendum.





                                                          5338



                 That's a decision, it's a legislative decision

                 made by the municipality.

                            SENATOR OPPENHEIMER:    I just

                 remembered my zoning law.

                            Okay, I think -- thank you very

                 much, Senator McGee.

                            SENATOR McGEE:    You're welcome.

                            SENATOR OPPENHEIMER:    We come out

                 of a similar background.

                            Well, on the bill for a moment.

                            ACTING PRESIDENT MEIER:    Senator

                 Oppenheimer, on the bill.

                            SENATOR OPPENHEIMER:    The bill is

                 a very good one.  And now that I understand

                 how, this differs somewhat from what I was

                 doing as the head of my community twenty years

                 ago, when I did use planned unit development

                 to avoid basically sprawl and to make sure

                 that the infrastructure within the planned

                 unit development was funded both with public

                 and private monies, which was a new concept.

                            And this new concept in effect took

                 the old, standard land-use regulation pattern

                 of the original zoning and rezoned it into

                 something new, and that was this planned unit





                                                          5339



                 development.  And I think we were the first to

                 ever try this in Westchester County twenty

                 years ago.  And it was very exciting.  It did

                 give us a lot more flexibility.  And we were

                 working with the developers, and we permitted

                 greater density in certain areas in response

                 to leaving open space and having a

                 recreational area planned there.

                            And the design was much more

                 flexible, because we found this kind of

                 exception at that time called planned unit

                 development.  And it really leveraged a lot of

                 different things.  It permitted us to not only

                 cluster and then have open space, but we

                 worked out a maintenance of roads, which was

                 both public and private.  We had the private

                 change the lighting and interchange on the

                 streets, which they paid for, saving the local

                 taxpayer a considerable amount of money.

                            And I think it's valuable for

                 these -- in our cases, we saw it as a unique,

                 large land opportunity where there was large

                 lots, which were pretty unique in urban

                 communities, to develop something that was

                 new, original and could take care of a variety





                                                          5340



                 of needs, and indeed saved the local taxpayer

                 a considerable amount of money through what we

                 were able to negotiate.

                            But the difference being at that

                 time we only had mixed residential.  And I can

                 see the value of adding commercial.

                            We did utilize the space for

                 negotiating -- we negotiated additional space

                 for recreation for the community, parkland for

                 the community.  But if you're going to have a

                 variety of zoning uses like residential,

                 commercial, industrial, then I guess this is

                 the value of the bill before us.

                            And I think it's an excellent bill,

                 and I congratulate you.

                            ACTING PRESIDENT MEIER:    Senator

                 Sampson.

                            SENATOR SAMPSON:    Will the

                 sponsor yield for a few questions, Mr.

                 President?

                            SENATOR McGEE:    Yes, I will.

                            ACTING PRESIDENT MEIER:    The

                 Senator yields.

                            SENATOR SAMPSON:    Through you,

                 Mr. President, the criteria that is used in





                                                          5341



                 determining these PUD zones, who's going to be

                 involved in determining this criteria?

                            SENATOR McGEE:    Let me -- let

                 me -- just one moment, if I can.  I do need to

                 correct -- not correct, but enlarge a little

                 bit on a statement that I made to Senator

                 Oppenheimer.

                            You used the term "referendum."

                 There would be public hearings held on the

                 proposal, but there would not be a referendum,

                 because it is a legislative duty of the

                 municipality to make that decision.

                            Now, back to who -- what the

                 criteria would be?

                            SENATOR SAMPSON:    The criteria as

                 to how you determine these zones, these PUD

                 zones.  What criteria is going to be used in

                 determining it?

                            SENATOR McGEE:    I suspect that

                 that would be a decision made by the developer

                 who would come in with a plan to the town

                 board and say, This is what I would like to

                 do, this is a portion where I would like to

                 have senior housing, over here I would like to

                 have perhaps a small strip mall that would





                                                          5342



                 serve the senior housing, maybe a daycare

                 center here, mixed -- double houses here.

                            It would be a combination of

                 working together, the developer working with

                 the town board or the village board as to what

                 their -- how it fit into a planned PUD, if you

                 will.

                            SENATOR SAMPSON:    Through you,

                 Mr. President, will the sponsor continue to

                 yield?

                            ACTING PRESIDENT MEIER:    Senator

                 McGee, do you yield?

                            SENATOR McGEE:    Certainly.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR SAMPSON:    Senator, when

                 we're talking about the PUD zones, we're

                 dealing with usually large tracts of land.

                            SENATOR McGEE:    Yes.

                            SENATOR SAMPSON:    What about

                 those landowners who have smaller or mid-sized

                 property?  Can they also take advantage of

                 getting involved in this PUD development?

                            SENATOR McGEE:    Again, I would

                 assume -- if I may, through you, Mr.





                                                          5343



                 President -- I would assume that if it's

                 something that wouldn't fall into the scope of

                 a PUD, they would still come under what is

                 known as their traditional zoning.

                            I'm sure you're not going to take a

                 5-acre piece of land and going to build senior

                 housing on it and a childcare and a restaurant

                 and have industry in it.  I suspect there has

                 to be, within that link or within that space

                 that that developer wants to do, to bring that

                 into the village or the town or the

                 municipality, whichever is doing it, and then

                 they would make the decision.

                            This bill doesn't tell you whether

                 they're going to make that decision or not.

                 It's up to the municipality.  This bill gives

                 the municipality the option to stay with

                 traditional zoning or to be able to go to the

                 planned unit development.

                            SENATOR SAMPSON:    Okay.  Through

                 you, Mr. President.

                            ACTING PRESIDENT MEIER:    Senator

                 McGee, do you continue to yield?

                            SENATOR McGEE:    Certainly.

                            ACTING PRESIDENT MEIER:    The





                                                          5344



                 sponsor yields.

                            SENATOR SAMPSON:    Prior to this

                 legislation, what authority, if any, did the

                 local municipalities or zonings have to create

                 such a PUD development?  Or if they had any at

                 all.

                            SENATOR McGEE:    I would assume

                 that it would have to have been done by a

                 piecemeal thing.  If you take a township,

                 you're going to have perhaps a village in it.

                 In that village, you would create your own

                 zoning, whether you have commercial, whether

                 you have industry, or whether you have

                 residential.  And there's strict residential,

                 or you could have residential that had a

                 variance in it, like maybe a beauty parlor or

                 something in it.  That would be within that.

                            But as you go further out from a

                 village into a township, that township then

                 also has its own zoning to them, if they have

                 zoning.  Now, there are many areas in the

                 State of New York that don't have zoning.

                            So I guess I lost track of what it

                 was you asked me.  But what -- who has the

                 ability to say -- I'm sorry.  I think I





                                                          5345



                 answered your question.

                            SENATOR SAMPSON:    Okay.  Through

                 you, Mr. President.

                            ACTING PRESIDENT MEIER:    Senator

                 McGee, do you continue to yield?

                            SENATOR McGEE:    Certainly.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR SAMPSON:    Senator, what

                 sort of incentives, if any, would be offered

                 to the developer and the community surrounding

                 this development, if any?

                            SENATOR McGEE:    I really don't

                 know as there would be any type of incentive.

                 I think the main incentive that you would get

                 out of a planned unit development is the fact

                 that you're going to be able to contain urban

                 sprawl, you're going to be able to contain -

                 not going to end up -- and again, I'm going to

                 use a rural analogy, if I might -- you're not

                 going to end up with a racetrack or a pig farm

                 next to a -- or a car-painting business next

                 to a residential area where it could be

                 hazardous, where it could be -- you know, as a

                 matter of fact, it could in fact bring down





                                                          5346



                 the value of the property next to them.

                            So I think that that's the only

                 incentive.  If there were additional

                 incentives, I'm sure that that's something

                 that the developer and the municipality would

                 have to work out amongst themselves.  This

                 does not call for incentives.

                            Again, the only incentive I think

                 that you would find would be the ability to

                 offer an option to the developer and offer an

                 option to the municipality, the ability to be

                 able to use a planned unit and, again, contain

                 urban sprawl.

                            SENATOR SAMPSON:    Okay.  Thank

                 you.

                            SENATOR McGEE:    Thank you.

                            ACTING PRESIDENT MEIER:    Does any

                 other member wish to be heard on this bill?

                            Senator Hassell-Thompson.

                            SENATOR HASSELL-THOMPSON:    Thank

                 you, Mr. President.  I have just one question

                 of the Senator.

                            ACTING PRESIDENT MEIER:    Senator

                 McGee, do you yield for a question?

                            SENATOR McGEE:    Certainly.





                                                          5347



                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR HASSELL-THOMPSON:    Thank

                 you, Senator McGee.  Through you, Mr.

                 President, the only question I have is in your

                 summary of provisions you use the words that

                 the legislation will provide "specific

                 statutory authority for, and guidance in."

                 How are you defining "guidance"?

                            SENATOR McGEE:    I'm sorry, I

                 guess I didn't -- would you repeat it again?

                 I'm sorry.

                            SENATOR HASSELL-THOMPSON:    Okay.

                 In the language of the summary of provisions,

                 the legislation would provide specific

                 statutory authority for and guidance in.  And

                 then it talks about the establishment of the

                 PUD and whatever.

                            SENATOR McGEE:    The guidance

                 would be the fact that -- the ability for them

                 to do it.  And the fact that these are

                 different areas -- this gives you the option

                 of being able to go from the business,

                 industry, et cetera, et cetera, only guidance

                 to say this is what you can put into it, this





                                                          5348



                 will allow you to step outside of your

                 traditional one, which is the housing, the

                 senior citizens, et cetera, et cetera.  That's

                 the guidance that you would have on it.

                            SENATOR HASSELL-THOMPSON:    Okay.

                 Thank you.  Thank you, Senator.

                            SENATOR McGEE:    You're welcome.

                            SENATOR HASSELL-THOMPSON:

                 Through you, Mr. President, on the bill.

                            ACTING PRESIDENT MEIER:    Senator

                 Hassell-Thompson, on the bill.

                            SENATOR HASSELL-THOMPSON:    I have

                 the distinct advantage of having just come out

                 of a city council where we just did a major

                 PUD.  And it was interesting to me at that

                 time that there were many, many questions that

                 the city council members had of our planning

                 department, and it was clear that there were

                 no statutory -- there was no statutory

                 language that would limit it, so that we were

                 able to be very, very creative in terms of how

                 we developed this property.

                            And as I read the legislation, I

                 think we followed the guidelines.  And even

                 though we created it ourselves, it looked as





                                                          5349



                 though you lifted the language from that which

                 we did.

                            So I'm very supportive of the bill,

                 obviously, because we were extremely

                 successful.  And I think the thing that

                 becomes very important in the language of this

                 is the adherence, particularly to the public

                 hearings and to community hearings to ensure

                 that when you develop these parcels of land

                 that everyone feels that they have input.

                            Because we also did it so well that

                 we were able to sustain a lawsuit that was

                 brought by a neighboring community based upon

                 the amount of traffic and other issues that

                 they thought would be raised, based on the

                 abutment of this development to their school

                 district.

                            So we did our job well.  And in

                 reading the legislation, you did yours very

                 well.  So I can appreciate that and be very

                 supportive of this legislation.

                            Thank you.

                            ACTING PRESIDENT MEIER:    Does any

                 other member wish to be heard on this bill?

                            Debate is closed.





                                                          5350



                            Read the last section.

                            THE SECRETARY:    Section 4.  This

                 act shall take effect on the first day of

                 July.

                            ACTING PRESIDENT MEIER:    Call the

                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 58.

                            ACTING PRESIDENT MEIER:    The bill

                 is passed.

                            Senator Marcellino.

                            SENATOR MARCELLINO:    Mr.

                 President, at this time can we call up

                 Calendar Number 227.

                            ACTING PRESIDENT MEIER:    The

                 Secretary will read Calendar 227.

                            THE SECRETARY:    Calendar Number

                 227, by Senator Wright, Senate Print 2678, an

                 act to amend the Highway Law, in relation to

                 designating.

                            SENATOR DOLLINGER:    Explanation.

                            ACTING PRESIDENT MEIER:    Senator

                 Wright, an explanation has been requested of

                 Calendar 227 by Senator Dollinger.

                            SENATOR WRIGHT:    Thank you, Mr.





                                                          5351



                 President.

                            The bill before us amends the

                 Highway Law.  It takes a portion of state

                 highway currently designated as New York State

                 Route 12 and changes that designation to the

                 POW-MIA Memorial Highway.

                            ACTING PRESIDENT MEIER:    Senator

                 Brown.

                            SENATOR BROWN:    Through you, Mr.

                 President, would the sponsor yield for a

                 question?

                            ACTING PRESIDENT MEIER:    Senator

                 Wright, do you yield for a question?

                            SENATOR WRIGHT:    I will, Mr.

                 President.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR BROWN:    It seems like I

                 have seen this designation before.  Senator

                 Wright, are there other such highways

                 designated in the state?

                            SENATOR WRIGHT:    Yes, there are,

                 Mr. President.

                            SENATOR BROWN:    Through you, Mr.

                 President, would the sponsor continue to





                                                          5352



                 yield?

                            ACTING PRESIDENT MEIER:    Senator

                 Wright, do you yield?

                            SENATOR WRIGHT:    I do.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR BROWN:    Senator Wright,

                 where are the others?

                            SENATOR WRIGHT:    The first one is

                 a portion of a state highway in Kings and

                 Queens County.  The second is -- excuse me,

                 that's a bridge, not a highway, in Herkimer

                 County.  There's another bridge in Suffolk

                 County.  And there's a memorial highway in

                 Monroe County and a memorial highway in

                 Richmond County.  So if you were traveling in

                 any of those areas, you would encounter a

                 MIA-POW New York State memorial highway.

                            SENATOR BROWN:    Thank you.

                 That's why it looks familiar.  There's one in

                 Monroe, which is Rochester, right outside of

                 Buffalo.

                            SENATOR WRIGHT:    On the way home.

                 There you go.

                            SENATOR BROWN:    Yes, on the way





                                                          5353



                 home.

                            Through you, Mr. President, would

                 the sponsor yield for another question?

                            ACTING PRESIDENT MEIER:    Senator

                 Wright, do you continue to yield?

                            SENATOR WRIGHT:    I will, Mr.

                 President.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR BROWN:    Through this

                 POW-MIA designation, will there be additional

                 resources to maintain this section of the

                 highway?

                            SENATOR WRIGHT:    There will be no

                 additional resources required in terms of

                 maintenance.  There would be the ongoing

                 maintenance effort of the State Department of

                 Transportation.

                            The only cost that we could

                 identify would be accrued to signage, and we

                 believe that is minimal.  But more

                 importantly, the advocates and proponents of

                 this designation, many of whom are the various

                 American Legion and VFW posts along the length

                 and breadth of this highway, have already





                                                          5354



                 expressed a willingness to purchase and secure

                 the necessary signage as part of their

                 commitment as citizens.

                            SENATOR BROWN:    Senator Wright

                 was way ahead of me.  He asked my next

                 question.

                            However, through you, Mr.

                 President, would the sponsor continue to

                 yield?

                            ACTING PRESIDENT MEIER:    Senator

                 Wright, do you continue to yield?

                            SENATOR WRIGHT:    I certainly

                 will.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR BROWN:    How long is the

                 actual section of the highway that will be

                 designated for this purpose?  And when the

                 thruway is designated for such a purpose, is

                 the length the same in every case?

                            SENATOR WRIGHT:    Let me answer

                 the last question first.  That would be no.

                            In terms of the first question,

                 frankly.  I don't have the scale on this map,

                 but it's about that long on a state highway





                                                          5355



                 map (indicating).

                            SENATOR BROWN:    Okay.

                            SENATOR WRIGHT:    It would

                 commence in the town of Morristown, which is

                 in the northwestern corner of Saint Lawrence

                 County.  It would proceed east to the village

                 of Alexandria Bay, in the northeast corner of

                 Jefferson County.  It would proceed along the

                 Saint Lawrence River, through the crossings of

                 Fishers Landing, into the village of Clayton,

                 which is about the midpoint of the northern

                 edge of Jefferson County, whereupon it would

                 then proceed south.

                            It would proceed south through

                 Jefferson County, through Depauville down into

                 Brownville, through there into the town of

                 Watertown, thereby arriving at the city of

                 Watertown.  Whereupon, it would continue to

                 proceed south through South Rutland,

                 Copenhagen.  Upon arriving in Copenhagen, it

                 would be in Lewis County.

                            We have now gone into Senator

                 Meier's district, so I will discontinue my

                 description at that point.  But it does

                 continue further south into Senator Meier's





                                                          5356



                 district, into and including the city of

                 Utica, in Oneida County.

                            SENATOR BROWN:    Thank you.

                 Through you, Mr. President, would the sponsor

                 yield for one final question?

                            ACTING PRESIDENT MEIER:    Senator

                 Wright, do you yield for one more question?

                            SENATOR WRIGHT:    Yes, I will, Mr.

                 President.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR BROWN:    Senator Wright,

                 is there anything that limits these -- I know

                 that all of us want to honor our POWs and

                 MIAs.  Is there anything that limits these

                 from placed all the way up and down the state

                 highway, from Long Island all the way to

                 Niagara Falls?

                            SENATOR WRIGHT:    There are no

                 limitations other than those imposed by the

                 State Legislature, Senator.

                            If one looks at the designations to

                 date, I think you'll find that they are

                 regionally dispersed throughout the state,

                 they are reflective of urban and rural





                                                          5357



                 interests.  I think there is a great deal of

                 recognition among the people of this state as

                 to the importance of our veterans, a

                 willingness to designate and recognize our

                 veterans, and I think this is just one more

                 example of that.

                            SENATOR BROWN:    Thank you,

                 Senator.

                            SENATOR WRIGHT:    Thank you.

                            SENATOR BROWN:    On the bill, Mr.

                 President.

                            ACTING PRESIDENT MEIER:    Senator

                 Brown, on the bill.

                            SENATOR BROWN:    This certainly is

                 something that I think we all support.  I

                 think giving honor to the men and women who

                 have served our country is an important thing.

                            And certainly placing such signage

                 and making such a designation on the state

                 highway system gives the opportunity for

                 hundreds of thousands of people to see the

                 signage and to reflect and remember those men

                 and women who have courageously served our

                 country in the armed services, particularly

                 those who have been prisoners of war and those





                                                          5358



                 who have been missing in action during the

                 course of their service.

                            So I support this wholeheartedly

                 and thank Senator Wright for introducing this

                 legislation with Senator Meier.

                            ACTING PRESIDENT MEIER:    Senator

                 Dollinger.

                            SENATOR DOLLINGER:    Through you,

                 Mr. President, will the sponsor yield to just

                 one question?

                            ACTING PRESIDENT MEIER:    Senator

                 Wright, do you yield for a question?

                            SENATOR WRIGHT:    I will, Mr.

                 President.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR DOLLINGER:    Does the

                 designation of Route 12 as a POW-MIA Highway

                 in any way interfere with the Seaway Trail

                 program?  Which I believe also follows a

                 portion of Route 12 that borders the Saint

                 Lawrence River, as you described it, Senator

                 Wright.

                            SENATOR WRIGHT:    That is correct.

                 They would be following a similar path of





                                                          5359



                 highway.  But there is no inherent conflict in

                 the two statutes.

                            The only potential conflict would

                 be in signage.  By virtue of federal

                 requirements for the trail designation of the

                 Seaway Trail, there are federal restrictions

                 on appropriate utilization of signage.

                 However, State DOT signage of course would

                 conform with those federal requirements.  So I

                 don't envision any conflict or problem.

                            SENATOR DOLLINGER:    Thank you,

                 Mr. President.  I'll be very brief.

                            ACTING PRESIDENT MEIER:    Senator

                 Dollinger, on the bill.

                            SENATOR DOLLINGER:    Route 12,

                 which I am well familiar with in my experience

                 in the North Country, is an important source

                 of revenue for the communities along its way.

                 It has that wonderful distinction of going 55

                 at some times and then immediately going

                 through a small town where the speed limits

                 drops to 30.

                            And a number of my clients, even in

                 Rochester, New York, have been found to be

                 going somewhere in excess of 30 miles an hour





                                                          5360



                 as they pass through these innumerable small

                 communities along Route 12.

                            It's a familiar experience, I

                 think, to those of us who have traveled in the

                 North Country to meet some of the fine

                 officers either of the State Police or of

                 these small communities on Route 12 when we

                 have been moving at a speed slightly more than

                 the town restriction.

                            But I agree with Senator Brown.  I

                 think this is an interesting highway from the

                 early development of New York State's highway

                 system, flowing one way in the north, to the

                 northwest, and then eventually turning around

                 and driving down through the northeast along

                 the Saint Lawrence River.

                            I was concerned about the Seaway

                 Trail question, but I think Senator Wright is

                 correct, that even though they will have the

                 same designation, the difference in signage

                 could explain that.

                            So I appreciate Senator Wright's

                 preparation in response to the questions from

                 Senator Brown, and I will be voting in favor,

                 Mr. President.





                                                          5361



                            ACTING PRESIDENT MEIER:    Senator

                 Gentile.

                            SENATOR GENTILE:    Yes, thank you,

                 Mr. President.  If the sponsor would yield to

                 a question or two.

                            ACTING PRESIDENT MEIER:    Senator

                 Wright, do you yield?

                            SENATOR WRIGHT:    Yes, Mr.

                 President.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR GENTILE:    Senator, in

                 looking over the legislation, and particularly

                 the sponsor's memo, you do go into how bravely

                 the POWs and MIAs have fought and why we need

                 to designate or why we should designate this

                 portion of Route 12 as POW-MIA Memorial

                 Highway.

                            However, in reading part of this

                 sponsor's memo, there's something that strikes

                 me here that sounds as if it's a step back

                 from trying to honor our POWs and MIAs.  And

                 by that, I mean in the sponsor's memo it says,

                 "To avoid confusion and to limit any possible

                 disruption of commerce, this designation shall





                                                          5362



                 be one of ceremonial nature and the official

                 name of such highway shall not be changed."

                            I don't understand that, Senator,

                 in the sense that either we're naming it for

                 POW-MIAs or we're not.  And if we are, why not

                 make this an official name change?

                            SENATOR WRIGHT:    Well, I believe,

                 Senator, that that's the kind of language that

                 is used throughout several pages of

                 designation in Highway Law.

                            And it's simply a distinction that

                 while we are recognizing the nature of the

                 acknowledgment, at the same time, for very

                 specific legal purposes, it remains the

                 designated route numbers to ensure

                 coordination of federal and state highway

                 systems.  And I'm sure there's a corresponding

                 linkage there with federal and state highway

                 assistance as well.

                            SENATOR GENTILE:    If the Senator

                 would continue to yield.

                            SENATOR WRIGHT:    I will, Mr.

                 President.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.





                                                          5363



                            SENATOR GENTILE:    Through you,

                 Mr. President.  What would be the downside of

                 making this -- the official title as Route 12,

                 slash, POW-MIA Memorial Highway?  Would there

                 be any downside to making that the official

                 name of it?

                            SENATOR WRIGHT:    Well, frankly,

                 I'm not aware of any, Senator.

                            But I'm assuming that the counsel

                 that prepared this memo, based upon the

                 research that was done, anticipated that that

                 might have the potential at the current or

                 future date, so made sure that we avoided and

                 precluded that problem.

                            SENATOR GENTILE:    Through you,

                 Mr. President.

                            ACTING PRESIDENT MEIER:    Senator

                 Wright, do you yield?

                            SENATOR WRIGHT:    Yes, Mr.

                 President, I will.

                            ACTING PRESIDENT MEIER:    The

                 Senator yields.

                            SENATOR GENTILE:    So, Senator,

                 then you're suggesting that because only this

                 portion of Route 12 is designated as such,





                                                          5364



                 POW-MIA Memorial Highway, that that may cause

                 some confusion with other parts of Route 12?

                 I'm just trying to understand what you're

                 saying.

                            SENATOR WRIGHT:    No, no, Senator.

                 I don't believe I suggested that.  I believe

                 what I clearly indicated was I was not

                 personally or specifically aware of the reason

                 for that language.

                            But I made a reasonable assumption

                 that the counsel that included that did so in

                 anticipation of either known or potential

                 problems, and therefore would try to avoid

                 those in the future.

                            I don't believe it changes or

                 diminishes in any way our efforts to designate

                 and recognize the highway.

                            SENATOR GENTILE:    Through you,

                 Mr. President.

                            ACTING PRESIDENT MEIER:    Senator

                 Wright, do you continue to yield?

                            SENATOR WRIGHT:    Yes, Mr.

                 President, I'll be glad to respond.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.





                                                          5365



                            SENATOR GENTILE:    So then if we

                 take this to the next step, would there be any

                 restrictions on, sometime in the future, also

                 naming this portion of Route 12 for some other

                 group; for example, recipients of the Purple

                 Heart?  Could we then add that designation to

                 this portion of Route 12, since the POW-MIA

                 designation is not an official name change?

                            SENATOR WRIGHT:    I'm not aware of

                 any restriction that would apply.

                            SENATOR GENTILE:    So I would

                 assume the answer is yes, we can -

                            SENATOR WRIGHT:    No, I said I'm

                 not aware of any.  That's my answer.

                            SENATOR GENTILE:    Okay.  Thank

                 you, Senator.

                            SENATOR WRIGHT:    Thank you,

                 Senator.

                            SENATOR GENTILE:    On the bill,

                 Mr. President.

                            ACTING PRESIDENT MEIER:    Senator

                 Gentile, on the bill.

                            SENATOR GENTILE:    And I

                 appreciate the responses from Senator Wright.

                            Certainly POW-MIA Memorial Highway





                                                          5366



                 is a designation that has, as indicated, been

                 used around the state.  It's been used in my

                 county, in Richmond County.  Certainly as a

                 member of the Veterans Committee here in the

                 State Senate, I have been in full support of

                 these types of measures.

                            I believe that we should make it an

                 official name change, or a -- the old name,

                 Route 12, slash, POW-MIA Memorial Highway.  I

                 don't see why we cannot make it an official

                 name change.  I think veterans deserve to have

                 it officially named Route 12/POW-MIA Memorial

                 Highway.  And I say that for anywhere in the

                 state, not just for Route 12.

                            Given that, nevertheless, I will

                 support this legislation.  I thank Senator

                 Wright for his answers, and I think this a

                 good bill.

                            ACTING PRESIDENT MEIER:    Senator

                 Onorato.

                            SENATOR ONORATO:    Senator Wright,

                 will -- Mr. President, will the Senator yield

                 to a question?

                            ACTING PRESIDENT MEIER:    Senator

                 Wright, do you yield for a question?





                                                          5367



                            SENATOR WRIGHT:    Yes, I will, Mr.

                 President.

                            ACTING PRESIDENT MEIER:    The

                 Senator yields.

                            SENATOR ONORATO:    I'd just like

                 to know, basically, will this have any

                 enabling legislation if any other community

                 would like to opt into it in the future to

                 name a particular portion of the state highway

                 that runs through their particular

                 communities?  Or will we have to do a separate

                 bill again to enable that particular community

                 to opt into this very, very worthwhile bill?

                            SENATOR WRIGHT:    This bill does

                 not provide for inclusion of any other region

                 in the state other than the region

                 specifically defined and described in the

                 bill.

                            I have at least two pages of

                 various designations throughout the state that

                 have been done in a like fashion.  So my

                 belief is it would probably, absent a much

                 broader bill being introduced, would require

                 specific legislation of a like nature.

                            SENATOR ONORATO:    Through you,





                                                          5368



                 Mr. President.

                            ACTING PRESIDENT MEIER:    Senator

                 Wright, do you continue to yield?

                            SENATOR WRIGHT:    I do, Mr.

                 President.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR ONORATO:    Would it be

                 possible to have a broader bill that would

                 basically cover the thought that I just

                 referred to you, making -- giving enabling

                 legislation to any community that so desires?

                 So long, of course, that it doesn't overrun

                 with another portion of the highways that -

                            SENATOR WRIGHT:    Correct.  I

                 don't know, and it would be presumptive for me

                 to offer an opinion, since that's not an issue

                 that we've researched.  I'm not aware of

                 anything that would preclude a general

                 enabling legislation, thereby designating the

                 authority to perhaps the Commissioner of

                 Transportation or to a local designation.  But

                 I'm not aware of any prohibitive . . .

                            SENATOR ONORATO:    One final

                 question through you, Mr. President.





                                                          5369



                            ACTING PRESIDENT MEIER:    Senator

                 Wright, do you yield?

                            SENATOR WRIGHT:    Yes, Mr.

                 President, I do.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR ONORATO:    This is only

                 applying to state highways?  In other words,

                 it would not prohibit a city of New York or

                 the city council from designating a particular

                 portion of their community with the same

                 designation, provided, of course, it is not a

                 state highway?

                            SENATOR WRIGHT:    That would be my

                 understanding, there is nothing in this bill

                 that would restrict any local designation.

                            SENATOR ONORATO:    Thank you.

                            SENATOR WRIGHT:    Thank you.

                            ACTING PRESIDENT MEIER:    Any

                 other member wish to be heard on this bill?

                            Senator M. Smith.

                            SENATOR MALCOLM SMITH:    Thank you

                 very much, Mr. President.  On the bill.

                            ACTING PRESIDENT MEIER:    Senator

                 Malcolm Smith, on the bill.





                                                          5370



                            SENATOR MALCOLM SMITH:    I have no

                 question for the Senator.  I just think he is

                 so right on the mark in terms of what he is

                 trying to do.

                            As one who has a very special place

                 in my heart for all veterans, I couldn't help

                 but speak to this particular bill in just

                 support of it and indicate that probably there

                 is nothing more that we could do, if not more,

                 than designate certain areas of highways or

                 physical facilities, whether it was a

                 building, institutions -- I just believe that

                 every day of our life we should be doing

                 something related to veterans, devoting

                 something to them, whether it's a specific day

                 or a specific street or a specific holiday,

                 whatever you want to call it.  Because

                 clearly, we owe much of our existence to them.

                            And I know from time to time one

                 might consider this to be very repetitious,

                 but I will tell everyone in this chamber that

                 as long as I'm living, I'm going to do all

                 that I can every day to make sure that

                 something is said on behalf of veterans or

                 done on their behalf.





                                                          5371



                            And, Senator Wright, my kudos to

                 you.  And if at any point in time any of my

                 colleagues want to question you again about

                 something like that, you come see me.

                            Thank you.

                            ACTING PRESIDENT MEIER:    Does any

                 other member wish to be heard on this bill?

                            Debate is closed.

                            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.

                            Senator Marcellino.

                            SENATOR MARCELLINO:    Mr.

                 President, at this time can we take up

                 Calendar Number 189.

                            ACTING PRESIDENT MEIER:    The

                 Secretary will read Calendar 189.

                            THE SECRETARY:    Calendar Number

                 189, by Senator Nozzolio, Senate Print 224, an





                                                          5372



                 act amending the Correction Law, in relation

                 to requiring.

                            SENATOR SCHNEIDERMAN:

                 Explanation.

                            ACTING PRESIDENT MEIER:    Senator

                 Nozzolio, an explanation has been requested of

                 Calendar 189 by Senator Schneiderman.

                            SENATOR NOZZOLIO:    Thank you, Mr.

                 President.

                            This bill has passed the Senate

                 each year since 1997.  The purpose of the

                 measure is to require inmates in our state

                 correctional facilities to make a modest

                 copayment for medical treatment.  The

                 legislation models the copayment after the

                 copayment that is made by other state

                 employees, by all state employees through

                 their own health insurance.  If it's good

                 enough for our state workers, it should be

                 good enough for our prison inmates.

                            This legislation also ensures that

                 no inmate would be denied medical treatment

                 for lack of ability to pay.

                            ACTING PRESIDENT MEIER:    Senator

                 Schneiderman.





                                                          5373



                            SENATOR SCHNEIDERMAN:    Yes, thank

                 you, Mr. President.  Through you, if the

                 sponsor would yield for a few questions.

                            ACTING PRESIDENT MEIER:    Senator

                 Nozzolio, do you yield for a question?

                            SENATOR NOZZOLIO:    Yes, Mr.

                 President.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR SCHNEIDERMAN:    Thank you.

                            I'm curious as to -- we have had a

                 debate on this bill in past years relating to

                 other needs inmates may have for money in

                 prison and other uses for it.  What other

                 services, if any, are inmates required to pay

                 for while serving their sentences?

                            SENATOR NOZZOLIO:    Mr. President,

                 through you, that all too few.  All too few

                 services are being borne by inmates as opposed

                 to the burden borne by the taxpayers of this

                 state, including victims.

                            That commissary expenses of some

                 sort are paid for out of inmate

                 expenditures -- candy, cigarettes, that sort

                 of thing sold in commissaries.  But other than





                                                          5374



                 that, there really isn't too many services

                 paid for by inmates.

                            Although last year we did succeed

                 in a filing fee.  That there is a sport that

                 was engaged in in our prison system called

                 prisoners' litigation, and that that sport now

                 has a fee to it.  That those who engage in

                 litigation will have to pay, just as other

                 citizens do, a modest filing fee when they

                 initiate their lawsuits.

                            SENATOR SCHNEIDERMAN:    Thank you.

                 Through you, Mr. President, if the sponsor

                 will continue to yield.

                            ACTING PRESIDENT MEIER:    Senator

                 Nozzolio, do you continue to yield?

                            SENATOR NOZZOLIO:    Yes, Mr.

                 President.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR SCHNEIDERMAN:    And you

                 may have covered this when you were referring

                 to the commissary, but isn't it true that

                 inmates have to provide themselves with any

                 sort of toiletries or supplements of any kind,

                 even if it's not really of a medical nature,





                                                          5375



                 for the basic prison meals, any kinds of

                 vitamins or treatments that aren't covered by

                 the prison medical system, which is in fact

                 fairly spartan in terms of treatment

                 facilities?

                            SENATOR NOZZOLIO:    Mr. President,

                 I don't really understand what that question

                 is.

                            But I think that there may be

                 things that inmates pay for by themselves -

                 extra vitamins, extra things that they're able

                 to bring in.  That's possible.  But it's

                 certainly not part of the program.

                            SENATOR SCHNEIDERMAN:    Through

                 you, Mr. President, aren't inmates required to

                 pay for -- make payments for correspondence

                 and communication with the outside world?

                            ACTING PRESIDENT MEIER:    Senator

                 Nozzolio, do you yield for a question?

                            SENATOR NOZZOLIO:    Yes, Mr.

                 President.

                            SENATOR SCHNEIDERMAN:    Yes, you

                 yield, or yes, yes?

                            ACTING PRESIDENT MEIER:    I

                 believe he said yes.





                                                          5376



                            SENATOR SCHNEIDERMAN:    Thank you.

                            Then through you, Mr. President,

                 has any consideration been given to the fact

                 that as a policy in this state I think at many

                 levels we encourage inmates to maintain

                 contact with their home communities, with

                 their loved ones, since they all or just about

                 all at some point rejoin society -- has there

                 been any consideration given to the fact that

                 this bill may limit their ability to maintain

                 such communication?

                            SENATOR NOZZOLIO:    No, Mr.

                 President.

                            SENATOR SCHNEIDERMAN:    Through

                 you, Mr. President, if the sponsor will

                 continue to yield.

                            ACTING PRESIDENT MEIER:    Senator,

                 do you continue to yield?

                            SENATOR NOZZOLIO:    Yes, Mr.

                 President.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR SCHNEIDERMAN:    Thank you.

                            How was the $7 amount arrived at?

                            SENATOR NOZZOLIO:    Mr. President,





                                                          5377



                 the response to that, as I mentioned in my

                 opening remarks, this $7 fee, as I stated in

                 my opening remarks -- I'll repeat it again -

                 that this fee was arrived at by looking at the

                 copayment made by those who are in state

                 service who are in a healthcare plan sponsored

                 by the state service.

                            And that is the copayment that

                 legislators here pay, that the state employees

                 who are participating in the health insurance

                 program pay.  We thought that that would be a

                 good model to use for the copayment.

                            SENATOR SCHNEIDERMAN:    Finally,

                 through you, Mr. President -- by the way,

                 Senator Breslin keeps saying "I pay 8, I pay

                 8."  I hope you can help counsel him on how he

                 got on that sort of a plan.  Senator Stavisky

                 pays 10.  Obviously, you've got some

                 information we need to get.

                            One final question, if the sponsor

                 would continue to yield, Mr. President.

                            ACTING PRESIDENT MEIER:    Senator

                 Nozzolio, do you continue to yield?

                            SENATOR NOZZOLIO:    Yes.

                            ACTING PRESIDENT MEIER:    The





                                                          5378



                 sponsor yields.

                            SENATOR SCHNEIDERMAN:    I note -

                 and I think that it may be a very good

                 provision.  I'm very curious how this was

                 arrived at -- that inmates will not be

                 assessed copayment for psychiatric visits.

                            What was the genesis of that

                 distinction, since it seems almost to run

                 counter to many of our other laws that

                 actually make it more difficult for people to

                 have mental health illnesses covered by

                 insurance or treated and treated the same as

                 physical illnesses?

                            SENATOR NOZZOLIO:    We, Mr.

                 President, excluded the psychiatric cost,

                 because in many cases the psychiatric -- the

                 psychotic inmate is not working.  In many

                 instances, the psychotic inmate is not aware

                 of what they're doing.  So it made sense

                 that -- for those types of calls that those

                 would be excluded.

                            If Senator Schneiderman would like

                 to amend this measure, we'd certainly

                 entertain inclusion.  But we thought that

                 initially we would make this provision only





                                                          5379



                 apply to medical payments.

                            SENATOR SCHNEIDERMAN:    I'm sorry,

                 I couldn't hear the last part.

                            SENATOR NOZZOLIO:    Medical.

                            SENATOR SCHNEIDERMAN:    Mental?

                            SENATOR NOZZOLIO:    Medical.

                            ACTING PRESIDENT MEIER:    Medical.

                            SENATOR SCHNEIDERMAN:    I

                 understand.

                            And through you, Mr. President, who

                 will make the assessment of whether -

                            ACTING PRESIDENT MEIER:    Senator

                 Nozzolio, do you yield to another question?

                            SENATOR NOZZOLIO:    Yes.  I

                 yielded to one more question a question ago,

                 but I'd be glad to yield again.

                            SENATOR SCHNEIDERMAN:    Thank you.

                            I'm just curious as to how will the

                 assessment be made that a particular inmate's

                 needs are for mental health rather than

                 physical health or psychiatric rather than

                 medical.

                            SENATOR NOZZOLIO:    Mr. President,

                 each facility has a separate psychiatric

                 staff, a psychiatric unit, requests for





                                                          5380



                 psychiatric services.  I think that there's

                 certainly enough delineation within the system

                 that no special delineation needs to be made

                 in this legislation.

                            SENATOR SCHNEIDERMAN:    Thank you,

                 Mr. President.

                            ACTING PRESIDENT MEIER:    Senator

                 Stavisky.

                            SENATOR STAVISKY:    If the Senator

                 will yield for a number of questions.

                            ACTING PRESIDENT MEIER:    Senator

                 Nozzolio, do you yield to a question from

                 Senator Stavisky?

                            SENATOR NOZZOLIO:    Yes.

                            SENATOR STAVISKY:    I have a

                 number of questions.

                            ACTING PRESIDENT MEIER:    He

                 yields.

                            SENATOR STAVISKY:    Would you

                 explain how the medical treatment system works

                 in our prison system?  I assume the prisoner

                 does not have a choice the way we do.  But how

                 does the system work in the prisons?

                            SENATOR NOZZOLIO:    There is -- to

                 answer this question, an extremely broad





                                                          5381



                 question, that each -- to answer it as simply

                 as I can, that each prisoner receives whatever

                 medical services are necessary.

                            SENATOR STAVISKY:    But who

                 provides the service?  Through you, Mr.

                 President, I'd like to know who provides the

                 service.

                            ACTING PRESIDENT MEIER:    Senator

                 Nozzolio, do you yield to another question?

                            SENATOR NOZZOLIO:    Yes, Mr.

                 President.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR STAVISKY:    How is the

                 service provided?  I assume that there is no

                 choice, no HMO, for example.

                            SENATOR NOZZOLIO:    Yes, that's

                 correct.

                            ACTING PRESIDENT MEIER:    He said

                 yes, that's correct.

                            SENATOR STAVISKY:    Mr.

                 President -

                            SENATOR ONORATO:    Mr. President,

                 point of -

                            ACTING PRESIDENT MEIER:    Senator





                                                          5382



                 Onorato, why do you rise?

                            SENATOR ONORATO:    I'm having a

                 very, very difficult time to hear -

                            SENATOR STAVISKY:    Me too.

                            SENATOR ONORATO:    -- anything

                 that's going on.  I don't know if these

                 microphones are on, and if they work.  And if

                 they don't, I think, in view of the fact that

                 we have a budget surplus, I think it's time

                 that we replaced these antiquated microphones

                 so that we can actually hear what's going on

                 in this chamber.

                            ACTING PRESIDENT MEIER:    Senator

                 Stavisky, do you have another question?

                            SENATOR STAVISKY:    Or else we can

                 see an ear doctor.

                            ACTING PRESIDENT MEIER:    Senator

                 Stavisky, are you asking Senator Nozzolio to

                 yield to another question?

                            SENATOR STAVISKY:    Yes, I'm

                 asking Senator Nozzolio to yield.

                            ACTING PRESIDENT MEIER:    Senator

                 Nozzolio, do you yield to another question?

                            SENATOR NOZZOLIO:    Yes, Mr.

                 President.





                                                          5383



                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR STAVISKY:    How does the

                 telephone system work in the state

                 correctional facilities?  I'm looking for

                 comparability along those lines.

                            SENATOR NOZZOLIO:    Mr. President,

                 through you, that this bill has nothing to do

                 with the telephone system in our state

                 facilities.

                            SENATOR STAVISKY:    I understand

                 that, but -

                            ACTING PRESIDENT MEIER:    Senator

                 Stavisky.

                            SENATOR STAVISKY:    Mr. President,

                 perhaps I didn't make my question clear

                 enough.

                            Can we use the telephone system as

                 a comparable system for the prisoners?  In

                 other words, what I'm asking is how do the -

                 do the inmates pay for telephone service?  Let

                 me ask you that question.

                            SENATOR NOZZOLIO:    Do I have to

                 yield, Mr. President?

                            ACTING PRESIDENT MEIER:    I





                                                          5384



                 believe so.  Do you yield for that question?

                            SENATOR NOZZOLIO:    Yes, Mr.

                 President.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR NOZZOLIO:    The question,

                 I believe, was do inmates pay for telephone

                 services.  The answer is yes, they do.

                            ACTING PRESIDENT MEIER:    Senator

                 Stavisky.

                            SENATOR STAVISKY:    Are they -

                 through you, Mr. President -

                            ACTING PRESIDENT MEIER:    Are you

                 requesting the sponsor to yield for another

                 question?

                            SENATOR STAVISKY:    Yes, that's

                 what I just -

                            ACTING PRESIDENT MEIER:    Senator

                 Nozzolio, do you yield to another question?

                            SENATOR NOZZOLIO:    Yes, Mr.

                 President.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR STAVISKY:    In other

                 words, if an inmate were to place a telephone





                                                          5385



                 call, they would be paying for their own

                 telephone calls without a surcharge?

                            SENATOR NOZZOLIO:    That, Mr.

                 President, inmates make collect calls.  They

                 have the opportunity to make those collect

                 calls through pay phones which exist in the

                 prison system.  Every prison across the system

                 has pay phones that inmates are allowed to use

                 pay phones.

                            SENATOR STAVISKY:    Mr. President,

                 I'm having a lot of trouble hearing that

                 answer.

                            ACTING PRESIDENT MEIER:    Senator

                 Nozzolio, Senator Stavisky says she can't

                 hear.

                            SENATOR NOZZOLIO:    I'd be glad to

                 repeat my answer, Mr. President.

                            That to answer Senator Stavisky's

                 question, again, that each inmate is allowed

                 to make and utilize calls on the pay phones

                 that exist in each of the correctional

                 facilities.  Some may be barred because of bad

                 behavior, but the inmates by and large are

                 allowed to make those calls.  They also are

                 allowed to make collect calls in those





                                                          5386



                 prison -- in those pay phones at each prison.

                            SENATOR STAVISKY:    And the monies

                 that are -

                            ACTING PRESIDENT MEIER:    Senator

                 Stavisky, are you -

                            SENATOR STAVISKY:    Yeah, I only

                 have a few more questions, if the Senator

                 would yield.

                            ACTING PRESIDENT MEIER:    Senator

                 Nozzolio, do you yield to another question?

                            SENATOR NOZZOLIO:    Yes, Mr.

                 President.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR STAVISKY:    The monies

                 collected from the telephone calls, those that

                 are not made collect, do they go into a

                 segregated fund or into the prison's general

                 fund?

                            SENATOR NOZZOLIO:    Mr. President,

                 that this question relating to telephone

                 calls, I've gone through the legislation that

                 I have before us today and I see no reference

                 to telephone calls.  And this is a bill on

                 medical copayments.





                                                          5387



                            I think the distinguished Senator

                 might have this mistaken in some way.  But I

                 see no relevance or germaneness to this

                 question.

                            ACTING PRESIDENT MEIER:    I tend

                 to agree with your point, Senator.

                            Senator Stavisky.

                            SENATOR STAVISKY:    I will tie it

                 together when I make my comments at the end.

                            And I have just one last question.

                            ACTING PRESIDENT MEIER:    Senator

                 Nozzolio, do you yield for a question?

                            SENATOR NOZZOLIO:    Yes, Mr.

                 President.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR STAVISKY:    Can you tell

                 us if there's comparability in the federal

                 prisons?  In other words, do they have a

                 surcharge for health care in the federal

                 prisons?

                            SENATOR NOZZOLIO:    Mr. President,

                 this requirement is -- yes, it is in the

                 federal system as well as the states of

                 California, Connecticut, Ohio, Pennsylvania,





                                                          5388



                 New Jersey.  Each have established this

                 copayment system.

                            SENATOR STAVISKY:    That was not

                 my question.  My question was in the federal

                 penitentiary, for example, in Allenwood or -

                 what's the other one? -- Marion, do they

                 charge the inmates a copayment for health

                 care?

                            SENATOR NOZZOLIO:    Federal

                 inmates are billed directly to the

                 jurisdiction which was agreed to by the

                 federal agency.  That we're not certain about

                 the other copayment system that every federal

                 prison may utilize.

                            SENATOR STAVISKY:    Mr. President,

                 we -- I'm not the only one.  I -- I cannot

                 hear.

                            SENATOR NOZZOLIO:    Senator, that

                 the -- I am not certain about whether a

                 federal -- I didn't understand your question,

                 first.

                            That those federal inmates who may

                 be in our state facilities are going to be

                 billed to the appropriate federal agency.  But

                 in terms of the federal system, I listed the





                                                          5389



                 states that have a copayment system.  I am not

                 certain whether or not the federal system has

                 copayment requirements for medical services.

                            SENATOR STAVISKY:    And my last

                 question, if the Senator will yield.

                            ACTING PRESIDENT MEIER:    Senator

                 Nozzolio, do you yield for another question?

                            SENATOR NOZZOLIO:    Another last

                 question?  Yes, Mr. President.

                            ACTING PRESIDENT MEIER:    I'm not

                 going to comment.

                            The Senator will yield.

                            SENATOR STAVISKY:    Mr. President,

                 are the monies that are going to be collected

                 from the copayments, are they going to be held

                 in a segregated, separate account to take care

                 of expenses for the inmates' medical care?

                            SENATOR NOZZOLIO:    Mr. President,

                 the answer is that these monies will go into

                 the account for each facility, and the

                 facility will determine the needs of its

                 inmates and utilize those funds appropriately.

                            SENATOR STAVISKY:    Thank you, Mr.

                 President.

                            On the bill.





                                                          5390



                            ACTING PRESIDENT MEIER:    Senator

                 Stavisky, on the bill.

                            SENATOR STAVISKY:    The reason I

                 asked about the telephone surcharges and

                 payments received, the monies received on

                 telephone calls, is because I think there is

                 comparability.  The monies from copayments

                 made by the inmates going simply into the

                 correctional facilities general fund.

                            It seems to me that if you're going

                 to collect money for health care, then it

                 ought to be segregated and used for health

                 care.  And the same is true of other special

                 surcharges.

                            It seems to me that this is a bad

                 bill.  I voted against it last year, and I

                 intend to vote no again this year.

                            Thank you, Mr. President.

                            ACTING PRESIDENT MEIER:    Senator

                 Montgomery.

                            SENATOR MONTGOMERY:    Yes, Mr.

                 President.  I just have one question for

                 Senator Nozzolio.

                            ACTING PRESIDENT MEIER:    Senator

                 Nozzolio, do you yield for a question from





                                                          5391



                 Senator Montgomery?

                            SENATOR NOZZOLIO:    I'd be happy

                 to yield to Senator Montgomery.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR MONTGOMERY:    Okay.  Thank

                 you.

                            Senator Nozzolio, in the memo, the

                 sponsor's memo on this bill, under the

                 justification you say that New York currently

                 spends 121 million each year on prison health

                 services.  You also state that instituting a

                 copayment on inmates for medical treatment

                 will reduce the large number of abusive

                 medical visits and hold inmates partially

                 responsible for their own health care expenses

                 and provide a revenue source.

                            And I'm just wondering, Senator

                 Nozzolio -- Mr. President, through you -- what

                 percent or how much of this 121 million do we

                 expect to recoup from this copayment program?

                            SENATOR NOZZOLIO:    Mr. President,

                 it's estimated that between seven and

                 $8 million a year will be realized as a result

                 of the establishment of a copay.





                                                          5392



                            SENATOR MONTGOMERY:    Through you,

                 Mr. President, I didn't hear -

                            ACTING PRESIDENT MEIER:    Senator

                 Nozzolio, do you yield to another question?

                            SENATOR MONTGOMERY:    -- I didn't

                 hear if it were 7 or 70 million.

                            SENATOR NOZZOLIO:    Mr. President,

                 between 7 and 8 million a year.  Between

                 $7 million and $8 million a year it is

                 estimated that copayment would reap into the

                 utilization of our correctional facilities.

                            SENATOR MONTGOMERY:    All right.

                 Thank you.  So that's not quite 10 percent, it

                 seems to me, Mr. President.

                            I would just like to read into the

                 record some information that is available to

                 all of us, from DOCS, a statement from Senator

                 Nozzolio himself, as well as some of the news

                 outlets across our state.

                            ACTING PRESIDENT MEIER:    Senator

                 Montgomery, on the bill.

                            SENATOR MONTGOMERY:    On the bill.

                            Under the heading "Public Views

                 Inmate Work for Taxpayer Projects," this is an

                 article that talks about the exhibit that we





                                                          5393



                 had here in the State Capitol about two weeks

                 ago.  It says that seating desks and other

                 furniture produced for use in schools and

                 government offices and institutions, Braille

                 signs, which are regularly produced to ensure

                 compliance with the Americans Disabilities

                 Act, and many other items were displayed for

                 us to review and to view.

                            There is a quote by Governor Pataki

                 which says, inmate -- who said -- this is

                 Governor Pataki's direct quote, "Inmate labor

                 inside our prisons continues to provide

                 wide-ranging benefits for taxpayers of New

                 York State.  Through these efforts and other

                 successful prison initiatives, inmates are

                 helping to help offset the cost of their

                 incarceration while at the same time providing

                 something of value to tens of thousands of New

                 Yorkers."  That was a quote by Governor Pataki

                 at the opening of the DOCS exhibit.

                            "Almost everything that is used

                 inside our prisons, from clothing for staff

                 and inmates to bedding supplies, is made by

                 inmates.  Braille textbooks for blind

                 schoolchildren, prescription eyewear for some





                                                          5394



                 Medicaid clients, brochures for visitors to

                 New York State parks, cleaning items, and

                 dozens of other products."  That was a quote

                 by Commissioner Goord when he described some

                 of the activities of inmates in our

                 facilities.

                            "Inmates long have assisted New

                 Yorkers in recovering from natural disasters

                 like blizzards, floods, tornados, and ice

                 storms.  Earlier this year," says Commissioner

                 Goord, "their efforts and those of our

                 correction officers were instrumental in

                 helping residents of Western New York recover

                 from the heavy snows which blanketed the

                 region."

                            I also have a quote from Senator

                 Nozzolio:  "The division of industries remains

                 one of the key, unknown, unsung success

                 stories of the Department of Correctional

                 Services.  That statement comes directly from

                 Senator Nozzolio himself.

                            In the same issue of the DOCS

                 report, they go on to talk about inmates who

                 have sorted and bagged 1500 tons of food for

                 needy New Yorkers.  Inmates at seven state





                                                          5395



                 prisons in western and northern New York

                 recently sorted and bagged in excess of

                 300,000 pounds of surplus onions for

                 distribution to needy individuals and families

                 throughout New York State.

                            In another article, "Inmates' Work

                 Helps Preserve a Cemetery in Elmira.  30

                 Elmira correctional facility inmates, in a way

                 of giving back to the community and boosting

                 their own self-esteem and making lengthy

                 prison sentences pass more quickly, became

                 involved in a project to rebuild a fence for a

                 cemetery.

                            "It took the inmates about six

                 months to transform 26 tons of iron into 232

                 ten-foot fence sections and the same number of

                 11-foot posts.  More than 3 miles of bar stock

                 was cut by hand into 3,712 six-foot pieces and

                 welded onto the frame.  Inmates used a hand

                 torch to cut the posts and then buffed the

                 metal's rough edges with a grinder.

                            "Inmates from the prison's machine

                 shop built the brackets to connect the

                 sections, while others in the maintenance

                 department hand painted and completed





                                                          5396



                 sections.

                            "When the trucks delivered the

                 iron, all 26 tons were unloaded by hand.  We

                 had a 62-year-old inmate spend four days

                 straight doing nothing but cutting the

                 pieces."

                            In another article, inmates build

                 playhouses for charity.  "At the Elmira

                 correctional facility, in a unique program

                 that helps abused and neglected kids in

                 Chemung and Schuyler counties, nearly twenty

                 inmates at the prison built two dollhouses and

                 an 8-foot-tall playhouse for CASA of Chemung

                 and Schuyler counties, which is a nonprofit

                 children's advocacy program.  The walk-in,

                 wood frame playhouse features clapboard

                 siding, scroll work on the gable ends, and

                 other detailed craftsmanship.  About 14

                 inmates spent three weeks building it."

                            Each month -- and we additionally

                 have a thank-you letter from a Rochester

                 gentleman who noted that there were several

                 inmates in front of his home removing snow

                 from a fire hydrant which had been covered for

                 some days, and he thanked them for that.





                                                          5397



                            I wanted to read this into the

                 record, Mr. President, because each time this

                 report comes out, there are articles in it

                 which describe what inmates do to pay back to

                 communities across the state in some small

                 way; sometimes, very large ways.

                            So I think that it is very

                 shortsighted for us to have a bill before us

                 which would charge them a copayment which does

                 not even recoup 10 percent of what it

                 theoretically costs to provide health

                 services, while at the same time we reap a

                 tremendous benefit as taxpayers from the

                 activities of inmates within the prisons.

                            Certainly, Mr. President, I would

                 like to see more productive programs for

                 inmates and by inmates.  But nonetheless, the

                 little that we have produces an enormous

                 benefit for taxpayers in New York State.

                            So I certainly do not support this

                 attempt to charge inmates for their health

                 care, because I don't believe it is fair to

                 ask inmates to pay for their health care.  We

                 at least should provide health care for them,

                 because they in fact do come out of the





                                                          5398



                 facilities, do work in communities, and

                 certainly eventually will return to

                 communities from which they originated.  And

                 the least that we should be looking to do is

                 make sure that their basic health needs are

                 provided for while they're incarcerated.

                            So I will be voting no on this

                 legislation.  Thank you, Mr. President.

                            ACTING PRESIDENT MEIER:    Senator

                 Lachman.

                            SENATOR LACHMAN:    Will the

                 Senator yield for a question?

                            ACTING PRESIDENT MEIER:    Senator

                 Nozzolio, will you yield for a question from

                 Senator Lachman?

                            SENATOR NOZZOLIO:    Yes, Mr.

                 President.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR LACHMAN:    I'm aware of

                 the fact that prisoners get a certain stipend

                 when they work.  Do you know what the stipend

                 is?  Is it consistent throughout the state, or

                 does it vary from county to county?

                            SENATOR NOZZOLIO:    It's a





                                                          5399



                 statewide system, Mr. President.  It varies

                 depending on the job.  An inmate can -

                            SENATOR LACHMAN:    How much is it?

                 I'm sorry.  Through you, Mr. President.

                            SENATOR NOZZOLIO:    Inmate wage

                 amounts, hourly wages, depending on the grade,

                 the type of work, it could go anywhere from 7

                 cents to 65 cents an hour.

                            SENATOR LACHMAN:    Seven -

                            SENATOR NOZZOLIO:    -- cents to

                 65 cents an hour.

                            SENATOR LACHMAN:    -- to 65 cents

                 an hour.

                            And, Mr. President, may I continue?

                            ACTING PRESIDENT MEIER:    Senator

                 Nozzolio, do you continue to yield?

                            SENATOR NOZZOLIO:    Yes, Mr.

                 President.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR LACHMAN:    What is the

                 maximum amount of hours that a prisoner can

                 work?

                            SENATOR NOZZOLIO:    I'm not quite

                 sure, Mr. President.  I believe it depends on





                                                          5400



                 the job, the availability.  Usually there is

                 much more work in our prison system than there

                 are inmates to fill those positions.

                            SENATOR LACHMAN:    Mr. President,

                 my final question, if the Senator continues to

                 yield.

                            ACTING PRESIDENT MEIER:    Senator,

                 do you continue to yield?

                            SENATOR NOZZOLIO:    Yes, Mr.

                 President.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR LACHMAN:    If the prisoner

                 is not currently working and therefore can't

                 afford to pay the copayment, will he be

                 covered by the state if his health is at risk?

                            SENATOR NOZZOLIO:    Yes, Mr.

                 President.  That although this makes a modest

                 responsibility for an inmate to take care of

                 their own medical care expenses, no inmate is

                 going to be denied medical services for their

                 lack of ability to pay.

                            SENATOR LACHMAN:    No prisoner

                 will be denied medical service even if he

                 lacks payment for copayment?





                                                          5401



                            SENATOR NOZZOLIO:    That's

                 correct.

                            SENATOR LACHMAN:    Thank you, Mr.

                 President.

                            ACTING PRESIDENT MEIER:    Senator

                 Onorato.

                            SENATOR ONORATO:    Mr. President,

                 will the sponsor yield?

                            ACTING PRESIDENT MEIER:    Senator,

                 do you yield for a question from Senator

                 Onorato?

                            SENATOR NOZZOLIO:    Yes, Mr.

                 President.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR ONORATO:    Senator

                 Nozzolio, if an inmate's family has a health

                 plan currently in effect, a family plan, are

                 they covered while they are in prison?  Can

                 they use that as coverage for medical

                 benefits?

                            SENATOR NOZZOLIO:    Mr. President,

                 the question certainly depends on the plan.  I

                 assume most families do not have HMOs of

                 certain correctional facilities located in





                                                          5402



                 their plans.

                            I think you have to look at the

                 plan, Senator, that individual families have.

                 But I doubt too many include your state prison

                 facilities as part of the HMOs covered under

                 those family plans.

                            SENATOR ONORATO:    Through you,

                 Mr. President.

                            ACTING PRESIDENT MEIER:    Senator,

                 do you continue to yield?

                            SENATOR ONORATO:    If in fact they

                 do have a health plan coverage, has the state

                 at any time made an attempt to collect their

                 medical payments from an HMO plan whether they

                 belong to an HMO or not, or if they belong to

                 simply a private health plan that they -- just

                 like us, we have a health plan and we have a

                 copay.

                            SENATOR NOZZOLIO:    Mr. President,

                 I'm unaware of any attempts in the state to

                 recover from individual, private health care

                 insurers.

                            SENATOR ONORATO:    Through you,

                 Mr. President.

                            ACTING PRESIDENT MEIER:    Senator





                                                          5403



                 Nozzolio, do you continue to yield?

                            SENATOR NOZZOLIO:    Yes, Mr.

                 President.

                            ACTING PRESIDENT MEIER:    The

                 Senator yields.

                            SENATOR ONORATO:    Senator

                 Nozzolio, you state that you would charge a $7

                 medical copay for an individual who is

                 currently earning anywhere from 7 cents an

                 hour to 65 cents an hour.  We here in the

                 Legislature are very, very blessed that we are

                 charged $8 as a copay and we're making $90,000

                 a year.

                            Don't you think that, by

                 comparison, that charging a $7 copay for an

                 inmate making 7 cents an hour is a little bit

                 beyond their means?

                            SENATOR NOZZOLIO:    Mr. President,

                 I think it's an affront to the working men and

                 women in this state who are working for this

                 state that support those who are in prison -

                 through three meals a day, through their

                 housing, their clothing, their education, all

                 other items that are given to prisoners in an

                 effort to rehabilitate them.  Those costs are





                                                          5404



                 borne by the taxpayers of the state.

                            And I think it's an insult -- you

                 asked my opinion, Senator.  I think it's an

                 insult to those who are footing the bill that

                 they themselves, as state employees, must

                 provide not just their own copay for their own

                 health insurance but for all the other

                 benefits given to prison inmates.

                            Let's not forget these inmates are

                 there for a reason.  And the reason is they

                 victimized society.  And in many cases, they

                 bludgeoned their victims.  That we need to

                 keep that in focus here.  This is an hourly

                 wage issue.  This is an issue of fairness, of

                 equity to crime victims, and of setting up a

                 modest system.

                            As I mentioned, the states of

                 California, Connecticut, Ohio, Pennsylvania,

                 New Jersey, they've all respected their

                 taxpayers and said to their taxpayers that we

                 believe inmates should pay for part of their

                 medical treatment.  New York should be the

                 same.

                            SENATOR ONORATO:    Through you,

                 Mr. President, if the sponsor will continue to





                                                          5405



                 yield.

                            ACTING PRESIDENT MEIER:    Senator

                 Nozzolio, do you continue to yield?

                            SENATOR NOZZOLIO:    Yes, Mr.

                 President.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR ONORATO:    Senator

                 Nozzolio, in view of the fact that they -- and

                 I don't have any problem with a prisoner who

                 really comes from a wealthy family and can

                 really afford to pay that.  I'm having a

                 problem fathoming the fact that they make

                 below the minimum wage while they're actually

                 working in prison to pay this off.

                            And if they are unfortunate enough

                 to become sick at one time or another and

                 require treatment and they've got to pay $7,

                 is there any provisions in here to allow them

                 to make up for it so that they'll have some

                 money to go to the PX in the prison system at

                 a later date to recoup some of that money?

                 You know, while they're sick, they're not

                 going to be able to work.

                            SENATOR NOZZOLIO:    Mr. President,





                                                          5406



                 I direct Senator Onorato's concerns to lines

                 15 through 20 on page 1 of the legislation.

                 That each inmate account is credited and

                 debited for their copayment.  No one will be

                 refused medical treatment if they do not have

                 enough money in their account for making this

                 copayment.  And that certainly we're trying to

                 establish balance here.

                            SENATOR ONORATO:    Through you,

                 Mr. President.

                            ACTING PRESIDENT MEIER:    Senator

                 Nozzolio, do you continue to yield?

                            SENATOR NOZZOLIO:    Yes, Mr.

                 President.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR ONORATO:    My concern was

                 if they don't have -- if they don't have

                 enough money to make the copayment.  I don't

                 know if you've established a minimum amount

                 that they have in their account.  But assuming

                 that they have $25 in their account that

                 they've earned and they required to go to the

                 medical facility for four visits, they are now

                 completely wiped out and they have no further





                                                          5407



                 means of going to get any other items that

                 they would require from the -- will there be

                 provisions to allow them to earn some other

                 additional funds to make up for it?

                            SENATOR NOZZOLIO:    Mr. President,

                 there are more jobs in our correctional

                 facilities than there are inmates willing to

                 fill those jobs.  That we have inmates not

                 forced to work in New York, although that

                 certainly could be debated on another occasion

                 as to the viability and wisdom of making

                 inmates work while they're incarcerated.

                 That's not the issue before us today.

                            What's before us today is the

                 payment of a small medical copayment fee.

                 That no inmate, according to this legislation,

                 is going to be denied that medical treatment

                 if they do not have enough money in their

                 account to meet the satisfaction of the small

                 copayment this legislation requires.

                            SENATOR ONORATO:    Thank you.

                            ACTING PRESIDENT MEIER:    Senator

                 Dollinger.

                            SENATOR DOLLINGER:    Mr.

                 President, just briefly on the bill.





                                                          5408



                            ACTING PRESIDENT MEIER:    Senator

                 Dollinger, on the bill.

                            SENATOR DOLLINGER:    I voted in

                 favor of this bill in the past.  I'm going to

                 vote for it again.

                            I would just encourage Senator

                 Nozzolio to basically challenge our colleagues

                 in the Assembly to bring this bill out, and

                 this whole concept of inmate health, out to

                 part of our debate both in this chamber and

                 the other chamber.

                            I think there's been a recent

                 episode in Rochester, New York, with respect

                 to the county jail and the private concern

                 that was hired to provide health care in the

                 county jail, which has led to serious

                 questions raised about the quality of inmate

                 health.

                            I think there's a critical issue

                 facing New York, as we have 70,000 people in

                 our prison system, a rising incidence of

                 hepatitis and tuberculosis which can

                 significantly influence the entire population.

                 I'm not opposed to the concept of copays, but

                 I think that this bill merits a full





                                                          5409



                 discussion with our colleagues in the

                 Assembly.

                            And this whole concept of inmate

                 health and the quality of health care we

                 provide in our prisons is critically important

                 now.  There's a huge population that is going

                 to go back into the general population, be

                 released from prison.  And the question of the

                 quality of their health care, especially with

                 respect to infectious diseases, is I think a

                 critically important part of our public

                 health.

                            So I'm going to vote in favor of

                 this bill, and I'm going to urge Senator

                 Nozzolio to call out our friends in the

                 Assembly.  And what I would think should

                 happen is there should be a joint Assembly and

                 Senate committee that should analyze the

                 questions related to inmate health and make a

                 full report to the Legislature on the steps

                 necessary to provide quality health care in

                 our prisons.  So that we don't have the

                 unfortunate consequence not only of a rising

                 incidence of infectious diseases in our

                 prisons but the enormous danger that that





                                                          5410



                 poses to our general population.

                            This is a tip of the iceberg.  I'm

                 willing to vote in favor of it, Mr. President.

                 But the iceberg, the portion that remains

                 submerged, is what is dangerous to our public

                 health.  And I would just encourage Senator

                 Nozzolio to take my yes vote to the Assembly

                 and to challenge them to come forward and

                 address this issue.

                            ACTING PRESIDENT MEIER:    Senator

                 Hassell-Thompson.

                            SENATOR HASSELL-THOMPSON:    Yes,

                 thank you, Mr. President, if the Senator would

                 yield.

                            ACTING PRESIDENT MEIER:    Senator

                 Nozzolio, do you yield to a question?

                            SENATOR NOZZOLIO:    Yes, Mr.

                 President.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR HASSELL-THOMPSON:    Thank

                 you, Mr. President.  Through you.  Prison

                 health is an outside contracted entity and is

                 supported by the general revenue fund.

                 Senator, can you tell me currently, since





                                                          5411



                 there is no mechanism to receive funds, how

                 does this bill intend to do that?

                            SENATOR NOZZOLIO:    Mr. President,

                 I don't understand the question.

                            SENATOR HASSELL-THOMPSON:    I'll

                 repeat the question.

                            We're talking about prison health,

                 and we're talking about copayments that

                 prisoners would pay.  And currently we

                 contract outside services for prison health.

                 There is a mechanism to dispense, but there is

                 not a mechanism to collect.

                            How, then, will this legislation

                 impact that?  And will we be creating a

                 superstructure that would allow for these

                 payments to be collected?  And what would be

                 the fiscal impact to the state if we had to do

                 that?

                            SENATOR NOZZOLIO:    Mr. President,

                 the procedures established under this

                 legislation require inmates to log in to

                 schedule their visits, providing their name,

                 ID, and documentation and description of their

                 complaint.  We also allow, under Section 6,

                 that no inmate shall be refused any treatment.





                                                          5412



                 That it's a very simple procedure, as simple

                 as it is to stand in a sick call is now.

                            That I do not understand the

                 complicating factors that are suggested by

                 this question.

                            SENATOR HASSELL-THOMPSON:

                 Through you, Mr. President, then let me ask

                 the question this way.

                            ACTING PRESIDENT MEIER:    Senator,

                 do you yield for another question?

                            SENATOR NOZZOLIO:    Yes, Mr.

                 President.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR HASSELL-THOMPSON:    Is the

                 money deducted from the inmate's account and,

                 in that deduction, how is it paid into -- back

                 into the general revenue fund?

                            SENATOR NOZZOLIO:    Mr. President,

                 the process where each inmate is debited their

                 account and the account is frozen, those

                 descriptions are placed in the bill.  Also, as

                 is that the commissioner is allowed to

                 promulgate, under this legislation, rules

                 necessary for the implementation of the





                                                          5413



                 provisions.  That the commissioner will then

                 put in his formal rule-making authority the

                 process where these individual funds will be

                 expended and collected.

                            SENATOR HASSELL-THOMPSON:    And

                 collected.  Was that the response?

                            SENATOR NOZZOLIO:    Yes, Mr.

                 President.

                            SENATOR HASSELL-THOMPSON:    I

                 still -- through you, Mr. President -

                            ACTING PRESIDENT MEIER:    Senator,

                 do you wish the sponsor to continue to yield?

                            SENATOR HASSELL-THOMPSON:    Yes, I

                 would.

                            ACTING PRESIDENT MEIER:    Senator,

                 do you continue to yield?

                            SENATOR NOZZOLIO:    Yes, Mr.

                 President.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR HASSELL-THOMPSON:    My

                 question continues to be you explained the

                 process in terms of the how.  But you have not

                 explained -- the question that I asked was,

                 how does the mechanism trigger -- for the





                                                          5414



                 money that is collected from the prisoner,

                 there is no mechanism currently, in public

                 state law, in Public Health Law within the

                 prison to collect.  How will that be

                 structured?

                            SENATOR NOZZOLIO:    Looking at

                 page 2, lines -- line 5 through 8, it's

                 listed, Mr. President, that monies collected

                 pursuant to the section -- I'll read it -

                 will be plead available for the operation of

                 the correctional facility.

                            Section 10, line 7, says the

                 commissioner shall promulgate rules and

                 regulations necessary for the implementation

                 of the -- of this section.  That the monies

                 collected will be, as the statute will

                 require, made available for the operation of

                 the correctional facility where they're

                 collected from.

                            If an inmate is in Attica and is

                 seeking medical treatment in Attica, the

                 monies collected will be used in Attica, and

                 the commissioner will set up the necessary

                 regulatory process where those monies will be

                 utilized.





                                                          5415



                            SENATOR HASSELL-THOMPSON:    If the

                 Senator will yield for one other question.

                            ACTING PRESIDENT MEIER:    Senator,

                 do you yield for another question?

                            SENATOR NOZZOLIO:    Yes, Mr.

                 President.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR HASSELL-THOMPSON:    Your

                 statement was that this money would then go

                 back into the general use fund, as -- using

                 Attica as an example of how this would occur.

                            Would then -- my question, then,

                 would the amount of general revenue fund that

                 is appropriated for that prison be reduced by

                 that amount of money?

                            SENATOR NOZZOLIO:    Mr. President,

                 the answer is no.

                            SENATOR HASSELL-THOMPSON:    I will

                 honor my last -- that as my only question.

                 Thank you, Mr. President.  Thank you.

                            SENATOR NOZZOLIO:    Thank you.

                            ACTING PRESIDENT MEIER:    For the

                 information of the Senators, we're running a

                 list of the order that people have sought





                                                          5416



                 recognition.  We have Senators Brown, Espada,

                 and Mendez, in that order.

                            Senator Brown is next.

                            SENATOR BROWN:    Through you, Mr.

                 President, will the Senator yield?

                            ACTING PRESIDENT MEIER:    Senator

                 Nozzolio, do you yield for a question from

                 Senator Brown?

                            SENATOR NOZZOLIO:    Yes, Mr.

                 President.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR BROWN:    I know that

                 through this bill, as I understand it, the

                 inmate will be assessed a copayment for

                 medical treatment received.  If the inmate

                 never builds up an account where they never

                 have money that can be subtracted from, at the

                 end of their stay in prison, once that inmate

                 is released, could an inmate conceivably leave

                 a state facility owing the state money for

                 medical treatment?

                            SENATOR NOZZOLIO:    Mr. President,

                 yes.

                            SENATOR BROWN:    Through you, Mr.





                                                          5417



                 President, would the sponsor continue to

                 yield?

                            ACTING PRESIDENT MEIER:    Senator

                 Nozzolio, do you continue to yield?

                            SENATOR NOZZOLIO:    Yes, Mr.

                 President.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR BROWN:    So understanding

                 that an inmate could conceivably leave a

                 prison owing the state money for medical

                 treatment, would that amount, after the period

                 of incarceration, be waived, or would this

                 inmate actually be faced with the burden of

                 having to pay that indebtedness to the state?

                            SENATOR NOZZOLIO:    That the

                 process upon which the copayment is collected

                 would result in the inmate receiving medical

                 services if he did not pay that copayment.

                 Because this legislation specifically says no

                 inmate will be denied medical services if they

                 could not afford the copay, if there was not

                 enough money in their account to establish

                 that copay.

                            The legislation also establishes a





                                                          5418



                 logging and a posting on the inmate's account

                 of the charge.  So that, in effect, there

                 would be a debit on that inmate account.

                            I think the regulations certainly

                 could address that issue that the commissioner

                 would have to promulgate on the process.

                 There is no compulsion in this legislation

                 that the state go after that amount.  Assuming

                 a hundred visits that would result in $700, it

                 would probably cost the state more to go after

                 that once an inmate left.

                            And I think it would have been to

                 be -- it's a very good question, Mr.

                 President.  I think it would have to be

                 something subject to the regulations that the

                 commissioner would have to promulgate.

                            SENATOR BROWN:    On the bill, Mr.

                 President.

                            ACTING PRESIDENT MEIER:    Senator

                 Brown, on the bill.

                            SENATOR BROWN:    I want to thank

                 Senator Nozzolio for responding to my

                 questions.

                            I'm inclined to vote in favor of

                 this measure.  I think this is fiscally





                                                          5419



                 responsible.  I've read the bill memo that

                 indicates the amount of money that we spend as

                 a state on the health care of persons

                 incarcerated in the state.  And I think it is

                 reasonable for inmates to be able to

                 contribute toward the health benefits that

                 they do receive from the State of New York.

                 And I certainly am also mindful that people

                 incarcerated are people that have committed

                 crimes against their fellow citizens in the

                 state.

                            My one concern, upon hearing the

                 responses to the two questions that I asked,

                 is that inmates could conceivably complete

                 their term of incarceration owing the state

                 money.  And I was happy to hear Senator

                 Nozzolio say that he would be willing to look

                 at that.

                            Because certainly I think it would

                 be reasonable and make sense for some kind of

                 procedure to waive the amount owed at the end

                 of an inmate's period of incarceration or cap

                 the amount owed so an inmate, depending on

                 what kind of medical treatment they receive -

                 say an inmate develops some form of cancer or





                                                          5420



                 some other expensive form of medical illness,

                 medical procedure while they are incarcerated,

                 that they wouldn't leave a correctional

                 facility owing the state an exorbitant amount

                 of money.

                            But with that being said, I do

                 support this legislation.  I think citizens

                 who are not incarcerated certainly have to pay

                 for their health care.  And I think just

                 because someone is incarcerated should not

                 exempt them from being able to contribute to

                 the cost of their health care.

                            So I will be voting in the

                 affirmative when it's time to vote.  Thank

                 you.

                            ACTING PRESIDENT MEIER:    Senator

                 Espada.

                            SENATOR ESPADA:    Thank you, Mr.

                 President.  On the bill.

                            ACTING PRESIDENT MEIER:    Senator

                 Espada, on the bill.

                            SENATOR ESPADA:    The sponsor has

                 asked us to focus and to keep a focus, and I

                 ask us to visit reality.  I mean, we're

                 talking about people who have lost their





                                                          5421



                 freedom.  We're talking about, in many

                 instances, 23 hours of solitary confinement,

                 as documented by my colleagues Senators Duane

                 and Montgomery, a high incidence of rape and

                 other forms of violence, daily rituals of

                 degradation.  We're talking about telephone

                 surcharges of family members, just basic forms

                 of communication.

                            We're talking about chronic

                 illnesses -- TB, hepatitis, HIV, sexually

                 transmitted diseases, cancers, heart ailments,

                 greater than the average member of the free

                 society.

                            We're talking about a country that

                 is the greatest democracy on earth but that

                 jails over 2 million people.  This is well

                 known throughout the world.

                            And so we're putting people in jail

                 that need to be in jail.  We're also not

                 providing a system of quality -- or shall I

                 say we do provide a system of legal

                 representation that has been chronicled to be

                 clearly inadequate and way below anyone's

                 exceptions.  1600 people in a caseload for a

                 public defender, meeting their clients for the





                                                          5422



                 first time in court.

                            I share this context because

                 context is important.  And the details of this

                 bill are only important, I think, in an

                 abstractual sense.  Because the fact of the

                 matter is that we're clear where the sponsor

                 is coming from, we're clear where others who

                 support him come from.  They want to pile

                 punishment on top of punishment.

                            And I just cite the other realities

                 because just think for a moment how silly we

                 would be, how nonproductive we are when we

                 curtail and erect barriers to getting basic

                 health care, basic health care that for anyone

                 that dares look at it would not wish that upon

                 their worst enemy, and now we are erecting

                 these other barriers, on top of continued

                 exploitation of these people who are in there

                 making lots of folks rich on the outside.

                 This too has been chronicled and documented.

                            So my basic question is yes, we

                 have a focus, we have a reality, and we have a

                 continuation of piling punishment on top of

                 punishment to people, then denying them basic

                 access to care.  They're going to make their





                                                          5423



                 way back into society, and we want them to be

                 integrated back with their families, back into

                 their community, and not do some of the things

                 that have been done to them on the inside to

                 us once they reach the outside.

                            I'm not talking pampering here, I'm

                 talking about you've kept them in jail.  They

                 have no quality legal representation.  Maybe,

                 maybe some of them.  I'll take your

                 percentages.  1 percent of them are inside and

                 innocent of the crime that they were accused

                 of.

                            But this is a wholesale mix of an

                 angry, ill-informed, pro-getting-elected-in

                 certain-districts kind of approach to

                 legislating something that makes no sense when

                 you visit the reality of people in jail, when

                 you visit their conditions, and when you visit

                 what we still maintain should be basic

                 rehabilitation.  Even if you don't buy that,

                 how about basic humanity?

                            I would vote, Mr. President,

                 against this bill for all those reasons and

                 many, many more.

                            ACTING PRESIDENT MEIER:    Senator





                                                          5424



                 Mendez.

                            SENATOR MENDEZ:    Thank you, Mr.

                 President.  I wonder if Senator Nozzolio would

                 yield for a question.

                            ACTING PRESIDENT MEIER:    Senator

                 Nozzolio, do you yield for a question from

                 Senator Mendez?

                            SENATOR NOZZOLIO:    Yes, Mr.

                 President.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR MENDEZ:    Senator

                 Nozzolio, you mentioned that there are other

                 states that do have in fact this same kind of

                 legislation into law.  Tell me, aren't inmates

                 supposed to be wardens of the state?

                            SENATOR NOZZOLIO:    Mr. President,

                 I apologize, I could not hear Senator Mendez's

                 question.

                            SENATOR MENDEZ:    My question is a

                 simple, little one.  Aren't inmates supposed

                 to be wardens of the state?  Wards of the

                 state, I'm sorry.

                            SENATOR NOZZOLIO:    Yes, Mr.

                 President, inmates are considered wards of the





                                                          5425



                 state.

                            SENATOR MENDEZ:    So once the

                 state -

                            ACTING PRESIDENT MEIER:    You want

                 Senator Nozzolio to yield to another question?

                            SENATOR MENDEZ:    Yes, thank you,

                 Mr. President.

                            ACTING PRESIDENT MEIER:    Senator

                 Nozzolio, do you yield?

                            SENATOR NOZZOLIO:    Yes, Mr.

                 President.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR MENDEZ:    Once the state

                 takes the responsibility of having wards,

                 wouldn't you say it is the responsibility of

                 the state to provide for health, education,

                 counseling or whatever?

                            SENATOR NOZZOLIO:    Yes, Mr.

                 President, I believe it is the responsibility

                 of the state to provide those services.

                            SENATOR MENDEZ:    And, Mr.

                 President -- thank you.  And, Mr. President, I

                 understand that all medical services in the

                 New York State prison system are given to





                                                          5426



                 outside corporations.  There was a time, I

                 believe I'm correct, in which doctors within

                 the facilities would take care of the medical

                 problems of the inmates.

                            And I understand that -- and I

                 understand that some of those corporations are

                 not delivering the kinds of medical services

                 that we are paying for.  Is that a reality,

                 Senator Nozzolio?

                            SENATOR NOZZOLIO:    Mr. President.

                            ACTING PRESIDENT MEIER:    Senator

                 Nozzolio.

                            SENATOR NOZZOLIO:    I'm sorry, Mr.

                 President, the question was so long I couldn't

                 understand it.

                            SENATOR MENDEZ:    Mr. President,

                 Senator Nozzolio, I understand that the

                 medical services in the state prison system is

                 given out to private organizations.  Is that a

                 fact?

                            SENATOR NOZZOLIO:    Mr. President,

                 there are a number of services provided to

                 inmates that are not located right on the

                 prison itself.  For instance, those prisoners

                 at Auburn that require serious medical





                                                          5427



                 attention might have to go to Syracuse and be

                 taken care of at Upstate Medical Center and

                 other private or public health providers.

                            So it's not exclusively provided by

                 state doctors or the like.  I think that's the

                 gist of Senator Mendez's question.

                            SENATOR MENDEZ:    Thank you, Mr.

                 President.  I understand that there has been

                 some discontent with the kind of medical

                 services that are being provided by some of

                 those organizations because we are not

                 receiving the good medical services for the

                 kinds of monies that the state is paying for

                 those.  Is that a fact, Senator Nozzolio?

                            SENATOR NOZZOLIO:    Senator Mendez

                 may be correct.

                            SENATOR MENDEZ:    Well, I'll tell

                 you, I happen -- on the bill.

                            Thank you, Senator Nozzolio.

                            ACTING PRESIDENT MEIER:    Senator

                 Mendez, on the bill.

                            SENATOR MENDEZ:    Mr. President, I

                 think that this is a very bad bill.  I don't

                 care if the other 49 states do have similar

                 bills like this already made law.  The fact is





                                                          5428



                 that all these inmates, they committed a

                 crime.  In our civilized society, they have to

                 go back to prison and pay for it, pay back to

                 society for their transgression.

                            However, being wards of the state,

                 the state should pay for their rehabilitation,

                 they should pay for their medical services,

                 and they should pay for all the things that

                 are needed so when they reenter society, they

                 will be useful not only to their families and

                 their neighborhood but to all of us.

                            Thank you.  I'll vote no.

                            ACTING PRESIDENT MEIER:    Does any

                 other member wish to be heard on this bill?

                            Debate is closed.

                            Read the last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect on the 120th day.

                            ACTING PRESIDENT MEIER:    Call the

                 roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MEIER:    Senator

                 Montgomery, to explain her vote.

                            SENATOR MONTGOMERY:    Yes, Mr.

                 President.  I'm voting no on this bill, and





                                                          5429



                 I'm joining my colleagues Senators Duane,

                 Markowitz, Mendez, Onorato, Oppenheimer,

                 Paterson, Sampson, Santiago, Schneiderman,

                 Seabrook, Senator Ada Smith, Senator Stavisky,

                 and Senator Marchi, who we all voted no in the

                 year 2000, and we're voting no, most of us,

                 again.

                            We are talking about many different

                 needs in terms of health care.  I don't know

                 how people who are in the SHU units, doubled

                 up, how are they going to get -- receive

                 health care, how will they ever pay for it?

                 They don't work and they are in there for long

                 periods of time, some of them.

                            How do we treat inmates who are

                 injured?  That's not apparent in this

                 legislation.  There are no exemptions.  We -

                 we're charging people who earn 65 cents an

                 hour or less.  There are no exemptions from

                 payment, because even though there's a clause

                 that says that if they don't have money they

                 don't have to pay, their account gets frozen.

                 So whenever they do get money, they will be

                 charged.

                            And in some instances, as my





                                                          5430



                 colleague Senator Brown has pointed out, they

                 could possibly leave prison owing money for

                 their health care, and how will they get

                 money, earn money to repay?  So they'll

                 probably end up back in prison because they

                 didn't pay their health care bill.

                            So there are many, many flaws with

                 this legislation, in addition to the fact that

                 it's just plain mean-spirited and does not do

                 anything, not even recoup enough money to pay

                 for the costs of implementing it.

                            So, Mr. President, I vote no.

                            ACTING PRESIDENT MEIER:    Senator

                 Montgomery will be recorded in the negative.

                            Senator Oppenheimer, to explain her

                 vote.

                            SENATOR OPPENHEIMER:    Thank you,

                 Mr. President.

                            I'm voting no because it occurred

                 to me that if there wasn't any money in the

                 account that the patient would not be getting

                 health care.  And not to receive health care

                 in our society when, number one, there might

                 be a contagious disease there -- I mean,

                 things that could be transmitted to other





                                                          5431



                 people within the prison -- it sounds like an

                 absurd and kind of stupid thing to be doing,

                 to deprive them of health care because they

                 don't have the money, and that might cost us

                 much more as a society.

                            The other point I would like to

                 make is this is an opportunity for me to say

                 that what we are providing in the form of

                 education in prisons is almost meaningless.

                 And that we have proven with statistics that

                 if an inmate is able to access a college

                 degree, that you will probably never see that

                 inmate again.  And that might be one of the

                 reasons that we are not putting the kind of

                 education into prisons that we ought to be.

                            We can show that with a four-year

                 degree, that the typical inmate comes back at

                 a rate of maybe 5 percent.  With a two-year

                 degree from a junior college, the equivalent

                 of a junior-college degree, chances of that

                 inmate coming back is something like

                 18 percent.  And that without education and

                 with only the slimmest degree of education,

                 that the likelihood of that prisoner returning

                 is very high, somewhere around 60 or





                                                          5432



                 70 percent.

                            It makes no sense not to be

                 providing higher education to our prisoners

                 that are capable of higher education, because

                 it then puts them on a path of leading a

                 productive life and joining and becoming part

                 of our society.

                            Thank you very much.  I'm voting

                 no.

                            ACTING PRESIDENT MEIER:    Senator

                 Oppenheimer will be recorded in the negative.

                            Senator Onorato.

                            SENATOR ONORATO:    Thank you, Mr.

                 President, to explain my vote.

                            As I've stated earlier, I believe

                 in the concept of this here.  But this

                 particular bill does not fit my idea of the

                 concept.  It's so full of flaws.  Prison is a

                 very, very violent place.  We have people who

                 have committed violent crimes that are in

                 there.  We're asking them to pay a copayment

                 of $7, which is not commensurate with the

                 amount of money that they're actually earning

                 while they're in prison.

                            And it doesn't even -- I just went





                                                          5433



                 over the bill again.  It doesn't cover a

                 prisoner who is attacked and savagely beaten

                 by another inmate and requires

                 hospitalization.  You're telling him now that

                 while he's in prison and he's getting beaten

                 and he's a victim of a crime within the prison

                 system, he is required to make a copayment for

                 being victimized while they're in prison.

                            Now, you know, this bill needs a

                 lot of work on it.  And when they do that work

                 and they make sense out of it, I will vote

                 yes.  But under the current form, I will vote

                 no.

                            ACTING PRESIDENT MEIER:    Senator

                 Onorato will be recorded in the negative.

                            Senator Schneiderman, to explain

                 his vote.

                            SENATOR SCHNEIDERMAN:    Thank you,

                 Mr. President.

                            I think that one of the issues that

                 is raised by this bill and is an incredibly

                 important issue is something that we really

                 need to address in a more comprehensive way,

                 and that is the cost of our state's correction

                 system.  We are told that we are entering a





                                                          5434



                 period of economic downturn.  We are told that

                 several years from now our budget surpluses

                 will turn into deficits.

                            We need money for schools, we need

                 money for health care, we need money for

                 housing.  And there's no greater drain on

                 state's resources than the unreasonable

                 expenses of operating this correction system.

                            I would respectfully submit,

                 however, the way to deal with that issue is

                 not to require copayments from inmates but to

                 deal with the fact that we have a lot of

                 people serving much too much time in the

                 prison system.  And if we don't take the

                 opportunity presented to us this year to

                 reform the Rockefeller Drug Laws and deal with

                 some sentencing reform issues, which everyone

                 seems reluctant to address because I guess you

                 can never be hurt by appearing to be too tough

                 on crime, we are going to suffer and our state

                 is going to suffer.

                            And I think that the only thing for

                 us to do is deal with the issue of cost that

                 Senator Nozzolio has identified here in an

                 honest way.  Let's reform our sentencing laws.





                                                          5435



                 Let's get people who don't need to be in

                 prison out of prison.  Let's save the state

                 some money we can spend better in other ways.

                            ACTING PRESIDENT MEIER:    Senator

                 Schneiderman will be recorded in the negative.

                            Senator Stavisky, to explain her

                 vote.

                            SENATOR STAVISKY:    Mr. President,

                 I wish to vote no on this bill.  It seems to

                 me that it would set a dreadful, dreadful

                 precedent.  The next thing you know, when

                 teachers come to teach inmates, we're going to

                 start charging them tuition payments.

                            I can see that as the next step,

                 and I think we ought to draw the line at this

                 point and say no.

                            Thank you, Mr. President.

                            ACTING PRESIDENT MEIER:    Senator

                 Stavisky will be recorded in the negative.

                            Senator Hassell-Thompson, to

                 explain her vote.

                            SENATOR HASSELL-THOMPSON:    Thank

                 you, Mr. President.

                            I too will be voting no.  I believe

                 in concept there are some remunerations and





                                                          5436



                 different areas where in prison reform I think

                 that we ought to be looking at how inmates can

                 pay back some costs.  But I don't think that

                 this is the bill to begin to do that.

                            And even though the Senator's

                 legislation speaks to saving the state money,

                 when asked the question what happens to this

                 money, will this be used to pay down some of

                 the bill, the answer to that was that it would

                 not.

                            And it would seem that it would

                 give the commissioner a slush fund as opposed

                 to going to reducing the cost of inmates'

                 expenditures to the state.  So therefore, it's

                 in opposition to what his own legislative

                 intent seems to be, so I will be voting no.

                            ACTING PRESIDENT MEIER:    Senator

                 Hassell-Thompson will be recorded in the

                 negative.

                            Senator Gentile, to explain his

                 vote.

                            SENATOR GENTILE:    Thank you, Mr.

                 President.

                            While this bill may not be perfect

                 and may have some flaws, it is not without





                                                          5437



                 precedent.  As Senator Nozzolio has indicated,

                 this bill is similar to bills that have been

                 introduced and passed in Arizona, Minnesota,

                 Pennsylvania, and Nevada.  In each of those

                 cases, this bill has produced savings for the

                 state and has sent a message to the inmates

                 and to the people of the state that copayments

                 are some form of remuneration for the state.

                            It's not a perfect bill, but it's a

                 good bill, and I will be voting with Senator

                 Nozzolio in the affirmative.

                            ACTING PRESIDENT MEIER:    Senator

                 Gentile will be recorded in the affirmative.

                            Announce the results.

                            THE SECRETARY:    Those recorded in

                 the negative on Calendar Number 189 are

                 Senators Duane, Espada, Gonzalez,

                 Hassell-Thompson, Marchi, Markowitz, Mendez,

                 Montgomery, Onorato, Oppenheimer, Paterson,

                 Sampson, Santiago, Schneiderman, A. Smith, M.

                 Smith, and Senator Stavisky.  Ayes, 42.  Nays,

                 17.

                            ACTING PRESIDENT MEIER:    The bill

                 is passed.

                            Senator Marcellino.





                                                          5438



                            SENATOR MARCELLINO:    Yes, Mr.

                 President.  At this time can we call up

                 Calendar Number 250.

                            ACTING PRESIDENT MEIER:    The

                 Secretary will read Calendar 250.

                            THE SECRETARY:    Calendar Number

                 250, by Member of the Assembly Lentol,

                 Assembly Print Number 5305, an act to amend

                 the Judiciary Law and the Penal Law.

                            SENATOR BRESLIN:    Explanation.

                            ACTING PRESIDENT MEIER:    Senator

                 Lack, an explanation has been requested by

                 Senator Breslin of Calendar 250.

                            SENATOR LACK:    Thank you, Mr.

                 President.

                            Mr. President, this bill would

                 amend the Penal Law.  It's a bill we passed

                 last year -- the Assembly has now joined us

                 and passed it this year -- which would create

                 the new crime of providing a juror with an

                 unlawful gratuity based upon an actual case

                 that occurred in the City of New York a couple

                 of years ago.

                            We introduced our own bill two

                 years ago.  We've then substituted a bill that





                                                          5439



                 we received from the judiciary that's

                 virtually the same as what we passed.  And it

                 basically would establish a Class A

                 misdemeanor when a person who had been party

                 to an action tries to confer with the intent

                 to reward a juror for said service on a jury

                 with an unlawful gratuity.

                            ACTING PRESIDENT MEIER:    Senator

                 Breslin.

                            SENATOR BRESLIN:    Mr. President,

                 through you, would the sponsor yield to a

                 question?

                            ACTING PRESIDENT MEIER:    Senator

                 Lack, do you yield for a question?

                            SENATOR LACK:    Yes, Mr.

                 President.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR BRESLIN:    Under the

                 existing law as it is now, what would happen

                 if someone offered a gratuity to a juror after

                 either a criminal or a civil trial?

                            SENATOR LACK:    He'd pocket the

                 money and pay taxes to the IRS and the State

                 Tax Department.





                                                          5440



                            SENATOR BRESLIN:    Mr. President,

                 if the sponsor would continue to yield.

                            ACTING PRESIDENT MEIER:    Senator

                 Lack, do you continue to yield?

                            SENATOR LACK:    Yes, Mr.

                 President.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR BRESLIN:    Under the law

                 as proposed, if there was a situation during a

                 long trial, as a number of us have had,

                 there's a bonding between a -

                            SENATOR LACK:    Excuse me, Mr.

                 President, I can't hear Senator Breslin.

                            ACTING PRESIDENT MEIER:    Can we

                 have a little order in the chamber, please.

                 Keep the conversation down so we can all hear

                 the debate.

                            Senator Breslin.

                            SENATOR BRESLIN:    Again through

                 you, Mr. President, through long trials at

                 times there's a bonding between the defendant,

                 either in a criminal or a civil trial.  And if

                 a defendant is exonerated in a criminal trial,

                 again one of length, he's built up a bond with





                                                          5441



                 that juror.  And if he sent them fruit baskets

                 or things like that, would that be accountable

                 under the new proposed law?

                            SENATOR LACK:    No, Mr. President,

                 of course we're talking about an amendment to

                 the Penal Law, which in and by itself has to

                 be strictly construed.  In addition to that,

                 the body of the bill itself, in line 15, says

                 there has to be intent to reward such

                 person -- in this case, the juror -- for said

                 service.

                            So unless -- and indeed, flowers, a

                 bottle of liquor, "come on out and have a

                 drink" or any other such situation is not

                 termed to be an unlawful gratuity unless same

                 is meant to reward such person for such

                 service, in the same way that Abe Hirschfeld

                 passed out checks for $2,500, which was the

                 gravamen that led to the submission of the

                 instant bill.

                            SENATOR BRESLIN:    Again through

                 you, Mr. President, if the sponsor would

                 yield.

                            ACTING PRESIDENT MEIER:    Senator

                 Lack, do you continue to yield?





                                                          5442



                            SENATOR LACK:    Yes, Mr.

                 President.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR BRESLIN:    Were there any

                 other cases other than the Abe Hirschfeld case

                 which precipitated the introduction of this

                 legislation?

                            SENATOR LACK:    No, I'm happy to

                 say that as far as I know, in the annals of

                 modern-day New York penal law, Mr. Hirschfeld

                 seems to have been unique and thought about

                 this all by himself.  And there are no other

                 recorded instances of anybody, including

                 former candidates for office in the Democratic

                 Party, like Mr. Hirschfeld, who has paid off

                 people for serving on a jury.

                            And the whole point of this

                 particular bill, Mr. President -- by the way,

                 which poses no penalties for those who receive

                 the money -- is to pose penalties for those

                 who try to give the money specifically as a

                 reward.

                            And in Mr. Hirschfeld's case, since

                 that has been brought up, he specifically, Mr.





                                                          5443



                 President, did just that.  It was not a

                 "thanks so much for sitting for a month right

                 here, here's a bottle of liquor," or "can we

                 get a drink, I know it was a long time in

                 which you people had to serve," or "please

                 accept these flowers so you can smell them

                 nicely for a couple of days because you had to

                 sit in a jury box for a month," this was,

                 "Hey, you guys did a great thing, and I want

                 to pay you, here's $2,500," and he passed out

                 checks to whoever wanted to take them.

                            SENATOR BRESLIN:    One final

                 question, if the sponsor would yield, Mr.

                 President.

                            ACTING PRESIDENT MEIER:    Senator

                 Lack, do you yield for another question?

                            SENATOR LACK:    Yes, I will.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR BRESLIN:    In the summary

                 of the legislation, it indicates that there's

                 no financial impact.  But it also says that

                 there's -- that the OCA would undertake a

                 significant amount of advertising to let

                 people know that this law exists.  It seemed





                                                          5444



                 to be somewhat contradictory.

                            Is there the thought of any

                 expenditure of dollars to accomplish that

                 goal?

                            SENATOR LACK:    From what I

                 understand, Mr. President, we're talking about

                 a minimal amount.  And the, quote, unquote,

                 advertising is in and around the courthouse,

                 in the same way that OCA posts all sorts of

                 things.  One of which is, don't give unlawful

                 gratuities to jurors to reward them for their

                 service.

                            I mean, as far as I'm concerned,

                 OCA has chosen a very neutral term in terms of

                 "unlawful gratuity."  Personally, I think it's

                 bribery.  But I will go along with unlawful

                 gratuity.  It would establish a Class A

                 misdemeanor.  We have separate penalties for

                 bribery.

                            But I do have to hand it to

                 Mr. Hirschfeld.  He found in what he was doing

                 that technically, as a former assistant DA

                 myself, of course it isn't bribery, and

                 therefore there was no violation in his

                 writing out checks to jurors.  But be that as





                                                          5445



                 it may, from now on anybody who tries that

                 type of thing will have committed a Class A

                 misdemeanor.

                            SENATOR BRESLIN:    And I

                 apologize, there is one question that led

                 through the answer to the prior question.

                            ACTING PRESIDENT MEIER:    Senator

                 Lack, do you yield to another question?

                            SENATOR LACK:    Absolutely.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR BRESLIN:    I happen to

                 agree with the bribery designation.  And given

                 that, was there any consideration given to

                 making it a felony rather than a Class A

                 misdemeanor?

                            SENATOR LACK:    There was some

                 consideration, Mr. President.  But by the way

                 the Penal Law is structured and other offenses

                 that constitute something close to tampering

                 with a witness or a juror, and since this

                 occurs allegedly after the fact, after the

                 completion of whatever the instant trial that

                 gave rise to the factual situation to be

                 accomplished here, it was decided to leave it





                                                          5446



                 as a Class A misdemeanor.

                            I would assume, if somebody comes

                 up with a new or more novel approach on how to

                 handle this -- I mean, because I can think of

                 ways -- I mean, I can think of ways to violate

                 this immediately.  This was put in

                 specifically for what it was supposed to do,

                 not allow for a repeat of what Mr. Hirschfeld

                 did.  If indeed somebody wants to get more

                 innovative or ingenious and create new and

                 better ways to carry on the purpose that

                 Mr. Hirschfeld has managed to establish in our

                 law, I can think of further ways to structure

                 this that would have resulted in what I would

                 consider to be felonious behavior for which

                 this unlawful gratuity statute -- assuming

                 it's passed by this house and signed into law

                 by the Governor -- would just be the

                 misdemeanor compared to the felonious statute,

                 I'd be only to happy to draft.

                            SENATOR BRESLIN:    Thank you, Mr.

                 President.  On the bill.

                            ACTING PRESIDENT MEIER:    Senator

                 Breslin, on the bill.

                            SENATOR BRESLIN:    I think I first





                                                          5447



                 will compliment Senator Lack on the bill

                 itself.  It does close a loophole that when we

                 read about Abe Hirschfeld offering $2,500 to

                 jurors after a trial, and particularly a

                 Democrat doing that, I think we were all,

                 quite frankly, shocked.  And the quicker we

                 close that loophole, the quicker we make sure

                 that that doesn't happen again, the better off

                 all of us will be.

                            And for that reason, I will vote in

                 the affirmative.

                            ACTING PRESIDENT MEIER:    Senator

                 Paterson.

                            SENATOR PATERSON:    Mr. President,

                 on the bill.

                            ACTING PRESIDENT MEIER:    Senator

                 Paterson, on the bill.

                            SENATOR PATERSON:    And in

                 somewhat response to Senator Breslin's

                 question to Senator Lack, it is my awareness

                 that in November of 1992, when Lemrick Nelson

                 was convicted in the state trial for the

                 murder of Yankel Rosenbaum -- I'm sorry, he

                 was acquitted in 1992.  He was later convicted

                 of civil rights violations in that same act on





                                                          5448



                 the federal level.  But in 1992, in November,

                 when he was acquitted on the state trial, that

                 the defense attorneys held a party for the

                 jurors that was estimated to have cost over

                 $2,000.

                            And it not only, in many people's

                 opinions, really did a lot of disservice to

                 the process but it also heightened already

                 existing tensions in communities around

                 New York City after that case.

                            So this was another example,

                 Senator Lack, of an act occurring after a

                 trial, as a gratuity for what was the

                 perceived result of the trial, but it also

                 tampered with the legal process.  Because if

                 you were in the second trial and were a juror,

                 you might have expected the same treatment.

                            So these things do happen, and this

                 legislation is very much in order.

                            ACTING PRESIDENT MEIER:    Senator

                 Dollinger.

                            SENATOR DOLLINGER:    Mr.

                 President, I voted for this bill in the past,

                 I'm going to vote in favor of it again.  I

                 think it continues to preserve the integrity





                                                          5449



                 of both the criminal and civil jury process,

                 but the grand jury process as well.

                            There's only one suggestion I would

                 make to OCA if this bill becomes law, and that

                 is to require that the instructions that be

                 given in the empaneling of a grand jury

                 include an instruction that the offer of a

                 gift at any point in the process could

                 constitute either a bribe or, after the

                 process is concluded, the offer of a gift

                 could constitute a misdemeanor under this

                 statute.

                            I think that it would be important

                 to inform jurors at the time of their charge

                 in a grand jury, at the time of their charge

                 in either a civil or a criminal case, that the

                 offer of a gift, even after their jury duty is

                 committed, would nonetheless violate the laws

                 of this state.

                            I think with that suggestion to OCA

                 that the sponsor, as the chairman of the

                 Judiciary Committee, could clearly convey that

                 to the chief judge, that that should become a

                 permanent part of the instructions of the

                 empaneling judge at either -- empaneling of





                                                          5450



                 the grand jury or either the civil or the

                 criminal jury in these cases.

                            With that bit of advice, Mr.

                 President, I'll be voting in favor.

                            ACTING PRESIDENT MEIER:    Does any

                 other member wish to be heard on this bill?

                            Debate is closed.

                            Read the last section.

                            THE SECRETARY:    Section 3.  This

                 act shall take effect on the first day of

                 November.

                            ACTING PRESIDENT MEIER:    Call the

                 roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MEIER:    Announce

                 the results.

                            THE SECRETARY:    Ayes, 58.  Nays,

                 1.  Senator Duane recorded in the negative.

                            ACTING PRESIDENT MEIER:    The bill

                 is passed.

                            Senator Marcellino.

                            SENATOR MARCELLINO:    Yes, Mr.

                 President.  Is there any housekeeping at the

                 desk?

                            ACTING PRESIDENT MEIER:    Yes, we





                                                          5451



                 have one substitution, Senator.

                            SENATOR MARCELLINO:    Make the

                 substitution, please.

                            ACTING PRESIDENT MEIER:    The

                 Secretary will read the substitution.

                            THE SECRETARY:    On page number

                 16, Senator DeFrancisco moves to discharge,

                 from the Committee on Energy and

                 Telecommunications, Assembly Bill Number 1270

                 and substitute it for the identical Senate

                 Bill Number 579, Third Reading Calendar 157.

                            ACTING PRESIDENT MEIER:

                 Substitution ordered.

                            Senator Marcellino.

                            SENATOR MARCELLINO:    Yes, Mr.

                 President.  Would you recognize Senator

                 Dollinger, please.

                            ACTING PRESIDENT MEIER:    Senator

                 Dollinger.

                            SENATOR DOLLINGER:    Thank you,

                 Mr. President, and thanks to the Minority

                 Leader.

                            I hereby give notice to the Senate,

                 pursuant to Rule XI, of my intention to amend

                 Rule XV to create a new rule for the Senate





                                                          5452



                 with respect to the ethical standards of

                 officers, employees, and members of the

                 New York State Senate.

                            ACTING PRESIDENT MEIER:    The

                 notice is at the desk.  It will be entered in

                 the Journal.

                            SENATOR DOLLINGER:    Thank you.

                            ACTING PRESIDENT MEIER:    Senator

                 Marcellino.

                            SENATOR MARCELLINO:    Would you

                 recognize Senator Paterson, please.

                            SENATOR PATERSON:    Mr. President,

                 there will be a conference of the Minority

                 tomorrow morning at 10:30 in the Minority

                 Conference Room.  So that's on Wednesday,

                 April the 18th, all members of the Minority

                 and those who would like to become members can

                 report to Room 314 to a conference.

                            ACTING PRESIDENT MEIER:    Minority

                 conference tomorrow morning at 10:30 a.m.

                            Senator Marcellino.

                            SENATOR MARCELLINO:    Mr.

                 President, there being no further business, I

                 move we adjourn until Wednesday, April 18th,

                 at 11:00 a.m.





                                                          5453



                            ACTING PRESIDENT MEIER:    On

                 motion, the Senate stands adjourned until

                 Wednesday, April 18th, at 11:00 a.m.

                            (Whereupon, at 5:50 p.m., the

                 Senate adjourned.)