Regular Session - May 7, 2001

                                                              6546



                           NEW YORK STATE SENATE





                          THE STENOGRAPHIC RECORD









                             ALBANY, NEW YORK

                                May 7, 2001

                                 3:17 p.m.





                              REGULAR SESSION







                 LT. GOVERNOR MARY O. DONOHUE, President

                 STEVEN M. BOGGESS, Secretary

















                                                          6547



                           P R O C E E D I N G S

                            THE PRESIDENT:    The Senate will

                 please come to order.

                            I ask everyone present to please

                 rise and repeat with me the Pledge of

                 Allegiance.

                            (Whereupon, the assemblage recited

                 the Pledge of Allegiance to the Flag.)

                            THE PRESIDENT:    With us today -

                 again -- we are privileged to have with us the

                 Reverend Peter G. Young, from Blessed

                 Sacrament Church in Bolton Landing, as

                 everyone knows.

                            REVEREND YOUNG:    Thank you,

                 Lieutenant Governor.

                            Let us pray.

                            Dear God, as we assemble in Your

                 name to beseech Your blessing and wisdom for

                 our public service in this Senate session, we

                 turn to You for Your continued love for our

                 New York State citizens.  The blossoms and the

                 budding of the trees express Your omnipotent

                 creativity.

                            As we gather in Your mission to

                 intelligently create legislation that will





                                                          6548



                 enhance the life of all of our New York State

                 people, we seek Your guidance for

                 compassionate collegiality for the benefiting

                 laws of our efforts in this chamber today.

                            THE PRESIDENT:    Reading of the

                 Journal.

                            THE SECRETARY:    In Senate,

                 Saturday, May 5, the Senate met pursuant to

                 adjournment.  The Journal of Friday, May 4,

                 was read and approved.  On motion, Senate

                 adjourned.

                            THE PRESIDENT:    Without

                 objection, the Journal stands approved as

                 read.

                            Presentation of petitions.

                            Messages from the Assembly.

                            Messages from the Governor.

                            Reports of standing committees.

                            Reports of select committees.

                            Communications and reports from

                 state officers.

                            Motions and resolutions.

                            Senator Fuschillo.

                            SENATOR FUSCHILLO:    Madam

                 President, on behalf of Senator Wright, on





                                                          6549



                 page 51 I offer the following amendments to

                 Calendar Number 553, Senate Print Number 1327,

                 and ask that said bill retain its place on

                 Third Reading Calendar.

                            THE PRESIDENT:    The amendments

                 are received, and the bill will retain its

                 place on the Third Reading Calendar.

                            SENATOR FUSCHILLO:    Thank you,

                 Madam President.

                            On behalf of Senator LaValle, I

                 move that the following bills be discharged

                 from their respective committees and be

                 recommitted with instructions to strike the

                 enacting clause:  Senate Print Number 4501 and

                 Senate Print Number 4502.

                            THE PRESIDENT:    So ordered.

                            Senator Skelos.

                            SENATOR SKELOS:    Madam President,

                 are there any substitutions at the desk to be

                 made at this time?

                            THE PRESIDENT:    Yes, there are,

                 Senator.

                            SENATOR SKELOS:    If we could make

                 the substitutions, please.

                            THE PRESIDENT:    The Secretary





                                                          6550



                 will read.

                            THE SECRETARY:    On page 9,

                 Senator Marchi moves to discharge, from the

                 Committee on Water Resources, Assembly Bill

                 Number 7299 and substitute it for the

                 identical Senate Bill Number 3516, Second

                 Report Calendar 608.

                            On page 11, Senator Hannon moves to

                 discharge, from the Committee on Health,

                 Assembly Bill Number 2239 and substitute it

                 for the identical Senate Bill Number 2517,

                 Second Report Calendar 628.

                            On page 15, Senator Morahan moves

                 to discharge, from the Committee on Veterans

                 and Military Affairs, Assembly Bill Number

                 5007 and substitute it for the identical

                 Senate Bill Number 4736, Second Report

                 Calendar 665.

                            On page 23, Senator Morahan moves

                 to discharge, from the Committee on Veterans

                 and Military Affairs, Assembly Bill Number

                 1632 and substitute it for the identical

                 Senate Bill Number 499, Third Reading Calendar

                 150.

                            On page 25, Senator Maltese moves





                                                          6551



                 to discharge, from the Committee on Elections,

                 Assembly Bill Number 6958A and substitute it

                 for the identical Senate Bill Number 2679A,

                 Third Reading Calendar 179.

                            On page 32, Senator Trunzo moves to

                 discharge, from the Committee on

                 Transportation, Assembly Bill Number 882A and

                 substitute it for the identical Senate Bill

                 Number 1126, Third Reading Calendar 321.

                            On page 36, Senator Bonacic moves

                 to discharge, from the Committee on Civil

                 Service and Pensions, Assembly Bill Number

                 4612 and substitute it for the identical

                 Senate Bill Number 2640, Third Reading

                 Calendar 380.

                            On page 48, Senator Leibell moves

                 to discharge, from the Committee on Civil

                 Service and Pensions, Assembly Bill Number

                 4379 and substitute it for the identical

                 Senate Bill Number 2364, Third Reading

                 Calendar 525.

                            And on page 48, Senator Leibell

                 moves to discharge, from the Committee on

                 Civil Service and Pensions, Assembly Bill

                 Number 6615 and substitute it for the





                                                          6552



                 identical Senate Bill Number 3323, Third

                 Reading Calendar 528.

                            THE PRESIDENT:    The substitutions

                 are ordered.

                            Senator Skelos.

                            SENATOR SKELOS:    Madam President,

                 if we could take up the noncontroversial

                 calendar.

                            THE PRESIDENT:    The Secretary

                 will read.

                            THE SECRETARY:    Calendar Number

                 178, by Senator Farley, Senate Print 2006, an

                 act to amend the Election Law and the State

                 Finance Law.

                            SENATOR PATERSON:    Lay it aside.

                            SENATOR SKELOS:    Lay it aside for

                 the day, please.

                            THE PRESIDENT:    The bill is laid

                 aside for the day.

                            THE SECRETARY:    Calendar Number

                 315, by Senator Seward, Senate Print 3737, an

                 act to amend the Insurance Law.

                            SENATOR PATERSON:    Lay it aside,

                 please.

                            THE PRESIDENT:    The bill is laid





                                                          6553



                 aside.

                            THE SECRETARY:    Calendar Number

                 379, by Senator DeFrancisco, Senate Print

                 2566, an act to reopen the special retirement

                 plan.

                            SENATOR PATERSON:    Lay it aside.

                            THE PRESIDENT:    The bill is laid

                 aside.

                            THE SECRETARY:    Calendar Number

                 395, by Senator Wright, Senate Print 4029, an

                 act to amend the Public Service Law.

                            SENATOR PATERSON:    Lay it aside,

                 please.

                            THE PRESIDENT:    The bill is laid

                 aside.

                            THE SECRETARY:    Calendar Number

                 400, by Senator Stafford, Senate Print 847, an

                 act to amend the Racing, Pari-mutuel Wagering

                 and Breeding Law.

                            SENATOR PATERSON:    Lay it aside,

                 please.

                            THE PRESIDENT:    The bill is laid

                 aside.

                            THE SECRETARY:    Calendar Number

                 465, by Senator Kuhl, Senate Print 3337, an





                                                          6554



                 act to amend Chapter 689 of the Laws of 1993.

                            SENATOR PATERSON:    Lay it aside,

                 please.

                            THE PRESIDENT:    The bill is laid

                 aside.

                            THE SECRETARY:    Calendar Number

                 479, by Senator McGee, Senate Print 3963, an

                 act to adjust certain state aid payments.

                            SENATOR PATERSON:    Lay it aside.

                            THE PRESIDENT:    The bill is laid

                 aside.

                            THE SECRETARY:    Calendar Number

                 481, by Senator Larkin, Senate Print 3998, an

                 act to repeal Chapter 987.

                            SENATOR PATERSON:    Lay it aside.

                            THE PRESIDENT:    The bill is laid

                 aside.

                            THE SECRETARY:    Calendar Number

                 482, by Senator Bonacic, Senate Print 4084, an

                 act in relation to adjusting certain state aid

                 payments.

                            SENATOR HEVESI:    Lay it aside.

                            THE PRESIDENT:    The bill is laid

                 aside.

                            THE SECRETARY:    Calendar Number





                                                          6555



                 489, by Member of the Assembly Vitaliano,

                 Assembly Print Number 5116, an act to amend

                 the Executive Law.

                            SENATOR PATERSON:    Lay it aside,

                 please.

                            THE PRESIDENT:    The bill is laid

                 aside.

                            THE SECRETARY:    Calendar Number

                 492, by Senator Stafford, Senate Print 3760,

                 an act to amend Chapter 485.

                            SENATOR PATERSON:    Lay it aside,

                 please.

                            THE PRESIDENT:    The bill is laid

                 aside.

                            THE SECRETARY:    Calendar Number

                 516, by Senator Marcellino, Senate Print

                 2836A, an act to amend the Vehicle and Traffic

                 Law.

                            SENATOR PATERSON:    Lay it aside.

                            THE PRESIDENT:    The bill is laid

                 aside.

                            THE SECRETARY:    Calendar Number

                 519, by Senator Skelos, Senate Print 3357, an

                 act to amend the Public Authorities Law.

                            SENATOR PATERSON:    Lay it aside.





                                                          6556



                            THE PRESIDENT:    The bill is laid

                 aside.

                            THE SECRETARY:    Calendar Number

                 520, by Senator Kuhl, Senate Print 4388, an

                 act to amend the Vehicle and Traffic Law.

                            SENATOR PATERSON:    Lay it aside,

                 please.

                            THE PRESIDENT:    The bill is laid

                 aside.

                            THE SECRETARY:    Calendar Number

                 532, by Senator Rath, Senate Print 1453, an

                 act to amend the Public Authorities Law.

                            SENATOR PATERSON:    Lay it aside.

                            THE PRESIDENT:    The bill is laid

                 aside.

                            Senator Skelos, that completes the

                 reading of the noncontroversial calendar.

                            SENATOR SKELOS:    Thank you, Madam

                 President.  If we could go to the

                 controversial calendar.

                            THE PRESIDENT:    The Secretary

                 will read.

                            THE SECRETARY:    Calendar Number

                 315, by Senator Seward, Senate Print 3737, an

                 act to amend the Insurance Law, in relation to





                                                          6557



                 risk-based capital requirements.

                            SENATOR BRESLIN:    Explanation.

                            THE PRESIDENT:    Senator Breslin.

                            SENATOR BRESLIN:    Explanation,

                 please.

                            THE PRESIDENT:    Senator Farley.

                            Senator Seward.

                            SENATOR SEWARD:    Senator Seward,

                 yes.

                            Did someone call for an

                 explanation, Madam President?

                            THE PRESIDENT:    Yes.

                            SENATOR SEWARD:    Thank you.

                            THE PRESIDENT:    Senator Breslin

                 requested an explanation, Senator Seward.

                            SENATOR SEWARD:    Okay.  Thank

                 you, Madam President.

                            The bill before us would apply

                 risk-based capital standards to the property

                 and casualty insurers of our state.  These

                 risk-based capital standards provide what I

                 would best describe as an additional solvency

                 measure based upon the risks applicable to the

                 individual insurers.

                            Risk-based capital amounts are





                                                          6558



                 calculated on a formula.  It's a rather

                 complicated matter, the formula itself, but

                 it's been developed by the National

                 Association of Insurance Commissioners, so

                 this is a national standard that would come to

                 the P&C companies of New York under this

                 legislation.  And this formula may be amended

                 periodically by the NAIC to keep up with

                 current and ongoing changing conditions.

                            And it would also, in addition, to

                 apply the RBC standards to P&C companies here

                 in New York, it would, under this legislation,

                 allow the Superintendent of Insurance, based

                 on the financial solvency of the individual

                 P&C company, it would allow the Superintendent

                 of Insurance to take whatever appropriate

                 corrective action may be necessary, based on

                 the solvency numbers that are reported under

                 the RBC standards.

                            And that could range everything

                 from asking a company to provide a corrective

                 action plan to the Superintendent of

                 Insurance, or it could be as much as actual

                 liquidation of the company or the

                 Superintendent placing the company under





                                                          6559



                 rehabilitation.

                            So this legislation is designed to

                 provide an additional measure of some support

                 for the individual consumer in protection out

                 there by helping to insure that the P&C

                 companies in New York are indeed solvent and

                 able to pay the claims as they come in to help

                 our consumers of our state.

                            THE PRESIDENT:    Senator Breslin.

                            SENATOR BRESLIN:    Madam

                 President, would the sponsor yield for a

                 question?

                            THE PRESIDENT:    Senator Seward,

                 will you yield for a question?

                            SENATOR SEWARD:    Certainly.

                            THE PRESIDENT:    You may proceed,

                 Senator.

                            SENATOR BRESLIN:    Thank you,

                 Madam President.  Through you, what other

                 types of insurance companies are currently

                 under these risk standards?

                            SENATOR SEWARD:    Well, Madam

                 President, since 1993 the life insurance

                 companies of our state have been under this

                 standard in terms of their own risk standards.





                                                          6560



                            SENATOR BRESLIN:    Again through

                 you, Madam President, would the sponsor yield?

                            THE PRESIDENT:    Senator, will you

                 yield for another question?

                            SENATOR SEWARD:    Yes.

                            THE PRESIDENT:    You may proceed.

                            SENATOR BRESLIN:    Could you tell

                 us some of the factors that are -- some of the

                 factors -- the formula is complicated -- but

                 some of the factors that are considered with

                 each insurance company on the risk-based

                 standards?

                            SENATOR SEWARD:    Well, Madam

                 President, the risk-based capital standards as

                 they're applied to an insurance company would

                 take a number of things into consideration

                 under the formula, such as industry

                 performance, individual insurance

                 characteristics, reserve and premium

                 allocations, all of these factors.

                            Those would be some examples of the

                 types of items that would be included here in

                 terms of meeting this standard.

                            SENATOR BRESLIN:    Again through

                 you, Madam President, one last question.





                                                          6561



                            THE PRESIDENT:    Senator, will you

                 yield?

                            Senator Seward does yield.

                            You may proceed, Senator Breslin.

                            SENATOR SEWARD:    Certainly.

                            SENATOR BRESLIN:    If the

                 Superintendent determines that a particular

                 insurer falls below the standards, what

                 immediate remedies does the insurance

                 commissioner have?  The Superintendent, excuse

                 me.

                            SENATOR SEWARD:    Well, Madam

                 President, that would obviously be determined

                 by the individual circumstances.

                            But the Superintendent of Insurance

                 would have a wide range of options open,

                 everything from just asking the insurance

                 company to provide a corrective plan of

                 action -- in effect, demonstrate how they are

                 financially secure enough to pay whatever

                 claims that may come in, perhaps upping the

                 amount of reserves this they would be required

                 to have.

                            And in extreme cases, the

                 Superintendent, if the financial condition of





                                                          6562



                 the company were to slip to the point where

                 this would be appropriate, the Insurance

                 Superintendent would in fact be able to place

                 the company in rehabilitation.  Or the

                 ultimate extreme is of course a forced

                 liquidation of the company to pay the claims.

                            SENATOR BRESLIN:    On the bill,

                 Madam President.

                            THE PRESIDENT:    You may proceed,

                 Senator Breslin.

                            SENATOR BRESLIN:    Thank you.

                            It's my opinion that the bill is a

                 fair bill, a consumer friendly bill, and I

                 have every intention of voting in the

                 affirmative on it.

                            Thank you, Madam President.

                            THE PRESIDENT:    Does any other

                 member wish to be heard on this bill?

                            Then the debate is closed.

                            Read the last section.

                            THE SECRETARY:    Section 6.  This

                 act shall take effect immediately.

                            THE PRESIDENT:    Call the roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 51.





                                                          6563



                            THE PRESIDENT:    The bill is

                 passed.

                            THE SECRETARY:    Calendar Number

                 379, by Senator DeFrancisco, Senate Print

                 2566, an act to reopen the special retirement

                 plan.

                            SENATOR PATERSON:    Explanation.

                            THE PRESIDENT:    Senator

                 DeFrancisco, Senator Paterson has requested an

                 explanation.

                            SENATOR DeFRANCISCO:    Yes.  This

                 bill was brought before this house upon a

                 request from the town board of the Town of

                 Camillus.

                            There are three police officers who

                 did not participate in an optional retirement

                 program.  They informed the town that they

                 were not aware of it.  They're recent

                 employees.  And the town indicated that since

                 they do want to participate, since they felt

                 it was not due to the negligence of the three

                 employees, that they would be willing to

                 underwrite the cost to allow them into this

                 optional retirement program.

                            The total cost to the town upon the





                                                          6564



                 first year is $3,600 that they're willing to

                 pay, and in future years, around $3,600.  But

                 no more than 6.8 percent of their salaries is

                 the cost to the town.

                            The board asked us to do this, the

                 town board.  It was a seven to zero vote.  And

                 it's basically the town that's going to

                 underwrite the costs as a result of allowing

                 these people in the retirement program.

                            THE PRESIDENT:    Senator Paterson.

                            SENATOR PATERSON:    All right,

                 Madam President.  If Senator DeFrancisco would

                 yield for a question, I think we can clear

                 this up.

                            SENATOR DeFRANCISCO:    Yes.

                            THE PRESIDENT:    Go ahead, Senator

                 Paterson.  You may proceed.

                            SENATOR PATERSON:    Madam

                 President, I don't have a problem with the

                 amount of money -- it's really not a

                 particularly great amount of money -- in order

                 to bring the officers into the plan.  This is

                 equitable relief that presumes the integrity

                 on the part of those seeking it.

                            I would just like if Senator





                                                          6565



                 DeFrancisco would inform myself and other

                 colleagues as to how these three officers

                 particularly did not know of the deadline in

                 which they were required to file.

                            SENATOR DeFRANCISCO:    I didn't

                 really inquire into that, primarily because

                 the town sent this resolution that was

                 unanimously passed indicating that the failure

                 to enroll was not due to their negligence in

                 any way.  And if they've made that

                 determination and they're willing to pay, then

                 I thought that it would be appropriate to give

                 this equitable relief.

                            If the town thought they were

                 negligent, I would assume they would not be

                 willing to underwrite the cost of this

                 additional -- the additional cost to them by

                 allowing them into the retirement system.

                            THE PRESIDENT:    Senator

                 Dollinger.

                            SENATOR DOLLINGER:    Madam

                 President, will the sponsor yield just to one

                 other question?

                            SENATOR DeFRANCISCO:    Yes.

                            THE PRESIDENT:    You may proceed,





                                                          6566



                 Senator Dollinger.

                            SENATOR DOLLINGER:    Senator, your

                 plea of behalf of this bill seems

                 well-founded.  And I agree with you:  if the

                 town thinks it wasn't negligent who are we,

                 170 miles away, 150 miles away, to say

                 otherwise.

                            SENATOR DeFRANCISCO:    As a

                 result, you have no question.

                            SENATOR DOLLINGER:    Correct.

                            Well, here's my question.

                            (Laughter.)

                            SENATOR DOLLINGER:    Why is there

                 no provision in state law that would allow the

                 town to reopen the 20-year pension plan on its

                 own behalf?  Should we look to a statewide

                 bill that would allow towns, communities,

                 school districts, other -- and I know the

                 police officers have special 20-year plans.

                            But should we look to a bill that

                 says to the State Comptroller if the community

                 is willing to pay the cost, and the individual

                 is willing to finance it through additional

                 deductions prospectively, why not just let

                 them open the plan by themselves without our





                                                          6567



                 having to be involved?

                            SENATOR DeFRANCISCO:    I think in

                 some of these cases, though not with these

                 police officers, since they're newly on the

                 force, only two to three years -- I think in

                 some situations, in some retirement plans

                 there actually is a cost to the state

                 retirement system by allowing people to get

                 into the system at a later date.  And I think

                 that's why it's done on a state-by-state

                 basis.

                            But as far as whether we can do a

                 bill that one size fits all retirement plans

                 and all options, I don't think we can do that,

                 and that's why we're doing it this way.

                            SENATOR DOLLINGER:    Thank you,

                 Madam President.

                            Just briefly on the bill.

                            THE PRESIDENT:    You may proceed,

                 Senator.

                            SENATOR DOLLINGER:    I think

                 Senator DeFrancisco is to be commended.  This

                 is the kind of local bill that we should be

                 doing for everybody in this house.  I'm

                 certainly going to vote in favor of it.





                                                          6568



                            However, I would think that given

                 the circumstances of this bill -- that is, the

                 town say it wasn't their fault, the town is

                 willing to pay the back charges to get them

                 into the twenty-year plan and they're willing

                 to finance it as any twenty-year participant

                 would in the future -- it seems to me if you

                 met those three criteria, we should set up a

                 bill that says when those criteria are met by

                 any local community -- city, town, village,

                 wherever -- that they want to put people into

                 special plans like the twenty-year plan for

                 police, they should be allowed to do it.

                            And it just seems to me that that

                 kind of bill giving the Comptroller the

                 ability to allow them into the plan that those

                 three criteria are met -- and I think the

                 criteria are all present here, and they're

                 good ones, that the community is willing to

                 pay the back charges, they're willing to pay

                 the prospective charges, and there's a finding

                 of no negligence -- I'd be looking forward to

                 the day when we could vote for a bill like

                 that.

                            Not because we would dissuade





                                                          6569



                 members from carrying these bills in the

                 future, but it just seems to me a much simpler

                 way to do it, to invest the pension system

                 with the ability to make those allowances when

                 conditions require it.

                            THE PRESIDENT:    Does any other

                 member wish to be heard on this bill?

                            Then the debate is closed.

                            Read the last section.

                            THE SECRETARY:    Section 3 -

                            THE PRESIDENT:    There is a home

                 rule message at the desk.

                            Read the last section.

                            THE SECRETARY:    Section 3.  This

                 act shall take effect immediately.

                            THE PRESIDENT:    Call the roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 53.

                            THE PRESIDENT:    The bill is

                 passed.

                            THE SECRETARY:    Calendar Number

                 395, by Senator Wright, Senate Print 4029, an

                 act to amend the Public Service Law, in

                 relation to unauthorized changes.

                            SENATOR SCHNEIDERMAN:





                                                          6570



                 Explanation.

                            SENATOR PATERSON:    Explanation.

                            THE PRESIDENT:    Senator Wright,

                 Senator Paterson and Senator Schneiderman have

                 requested an explanation.

                            SENATOR WRIGHT:    Thank you, Madam

                 President.

                            The bill this afternoon amends the

                 Public Service Law and formally prohibits the

                 unauthorized change of a natural gas or

                 electric service provider, not unlike similar

                 legislation we passed in 1997 relative to the

                 telecommunications industry.

                            In the short version, it prohibits

                 the practice of slamming.  It in turn

                 authorizes the PSC to establish requirements

                 of customer consent and authorizes the PSC to

                 punish violators, prescribing and authorizing

                 penalties that are currently reflected in the

                 Public Service Law.  It strengthens the

                 consumer protection provisions.  And it

                 further tracks similar provisions, consistent

                 with what we have done within the

                 telecommunications statute.

                            THE PRESIDENT:    Senator





                                                          6571



                 Schneiderman.

                            SENATOR SCHNEIDERMAN:    Thank you,

                 Madam President.  If the sponsor would yield

                 for a few questions.

                            THE PRESIDENT:    Senator Wright,

                 will you yield for a question?

                            SENATOR WRIGHT:    I will, Madam

                 President.

                            THE PRESIDENT:    You may proceed

                 with a question, Senator Schneiderman.

                            SENATOR SCHNEIDERMAN:    Thank you.

                            I'm familiar with the situation in

                 respect to -- that you referred to with

                 telephone service.  With respect to natural

                 gas and electric service, is this something

                 that is occurring statewide, is it something

                 in particular service territories?  I don't

                 have any sense of how broad the scope of this

                 particular problem is.

                            SENATOR WRIGHT:    Well,

                 certainly -- Madam President, through you,

                 it's certainly an issue that has statewide

                 implications.  Perhaps the most recent case

                 that we're aware of involves, in the city

                 area, Keyspan and Brooklyn Gas & Electric with





                                                          6572



                 a company called Total Gas & Electric which

                 was accused of slamming literally thousands of

                 residential providers.

                            So certainly the practice has the

                 potential of existing statewide, the most

                 recent situation having occurred in the city.

                            SENATOR SCHNEIDERMAN:    Thank you.

                            Through you, Madam President, if

                 the sponsor will continue to yield.

                            THE PRESIDENT:    Senator Wright,

                 will you yield?

                            SENATOR WRIGHT:    I will continue

                 to yield, Madam President.

                            THE PRESIDENT:    You may proceed

                 with a question, Senator.

                            SENATOR SCHNEIDERMAN:    Thank you.

                            I think this does point up another

                 aspect of a very difficult problem that we

                 will be grappling with here for the next few

                 years having to do with our failed

                 deregulation of energy in the state.

                            I'm not completely clear, though,

                 as to who is doing the slamming in these

                 situations.  Is this utilities or brokers or

                 suppliers?  Who is actually responsible for





                                                          6573



                 the slamming in a situation like the Keyspan

                 situation you just referred to?

                            SENATOR WRIGHT:    I would describe

                 them as energy service companies -- ESCOs, if

                 you will, for lack of a better term -- that

                 are in -- and frequently they are a broker, as

                 opposed to the actual supplier or generator of

                 the commodity itself.  So they are a middleman

                 and frequently work through telemarketing or

                 door-to-door sales activities that are very

                 conducive to slamming itself.

                            I would not concur with your

                 assumption, though, that this is any

                 reflection of the restructuring activities

                 going on within the state.  In fact, the move

                 to competition in natural gas occurred a

                 number of years ago.

                            The move to competition within

                 electricity right now creates an environment

                 for this, which is why the Public Service

                 Commission has recommended it as a

                 departmental bill.

                            SENATOR SCHNEIDERMAN:    Thank you.

                            Do we have any reports or any

                 records on how much activity has been





                                                          6574



                 generated by the parallel provisions regarding

                 telephone service?  Is this something that is

                 going to require a lot of work by the PSC or

                 have there only been a few instances in the

                 parallel situation?

                            SENATOR WRIGHT:    I don't have

                 statistics to share with you, Senator.

                            SENATOR SCHNEIDERMAN:    Okay.

                 Thank you, Madam President.  Thank the sponsor

                 for his answers.

                            On the bill.

                            THE PRESIDENT:    You may proceed,

                 on the bill, Senator.

                            SENATOR SCHNEIDERMAN:    This

                 sounds to me to be a perfectly sensible bill.

                            I think we have to look carefully,

                 though, when we're trying to give

                 responsibilities to the Public Service

                 Commission and others in the area of energy

                 regulation and enforcement, to make sure that

                 they have the resources and the ability to

                 actually follow through.

                            The administrative penalty here of

                 up to a thousand dollars per violation sounds

                 a little bit light to me, to tell you the





                                                          6575



                 truth, but I think it's worth starting at.

                            I must say I don't -- I'm not sure

                 I quite understand -- and I didn't ask the

                 sponsor this; there's no reason he would know

                 the answer to this either.  I'm not sure why

                 this is not moving forward in the other house.

                 It seems like a very sound step, and I

                 certainly will be supporting it.

                            THE PRESIDENT:    Does any other

                 member wish to be heard on this bill?

                            Then the debate is closed.

                            Read the last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect 120 days.

                            THE PRESIDENT:    Call the roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 55.

                            THE PRESIDENT:    The bill is

                 passed.

                            THE SECRETARY:    Calendar Number

                 400, by Senator Stafford, Senate Print 847, an

                 act to amend the Racing, Pari-mutuel Wagering

                 and Breeding Law.

                            SENATOR PATERSON:    Explanation.

                            SENATOR SKELOS:    Lay it aside





                                                          6576



                 temporarily.

                            THE PRESIDENT:    The bill is laid

                 aside temporarily.

                            THE SECRETARY:    Calendar Number

                 465, by Senator Kuhl, Senate Print 3337, an

                 act to amend Chapter 689 of the Laws of 1993.

                            SENATOR PATERSON:    Explanation.

                            THE PRESIDENT:    Senator Kuhl, an

                 explanation has been requested by Senator

                 Paterson.

                            SENATOR KUHL:    Thank you.

                            This bill simply would extend the

                 opportunity for Ontario County to have

                 electronic appearances utilized in their

                 criminal justice system with regard to a

                 criminal action.

                            And it also would extend those

                 provisions that were previously granted to

                 other counties for an additional period of

                 time.

                            THE PRESIDENT:    Senator Paterson.

                            SENATOR PATERSON:    Madam

                 President, the explanation is satisfactory.

                            THE PRESIDENT:    Does any other

                 member wish to be heard on this bill?





                                                          6577



                            Then the debate is closed.

                            Read the last section.

                            THE SECRETARY:    Section 3.  This

                 act shall take effect immediately.

                            THE PRESIDENT:    Call the roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 55.

                            THE PRESIDENT:    The bill is

                 passed.

                            THE SECRETARY:    Calendar Number

                 479, by Senator McGee, Senate Print 3963, an

                 act to adjust certain state aid payments.

                            SENATOR HEVESI:    Explanation.

                            SENATOR OPPENHEIMER:

                 Explanation.

                            THE PRESIDENT:    Senator McGee,

                 Senator Hevesi and another colleague, Senator

                 Oppenheimer, have requested an explanation.

                            SENATOR McGEE:    Certainly.

                            The Whitesville Central School

                 District has received excess aid monies

                 totaling $240,000 during the 1998-99 school

                 year for which the district was not eligible

                 because of an untimely filing for building

                 aid.  Due to the substantial amount of this





                                                          6578



                 overpayment, the recovery term has been

                 extended to six years, allowing for a feasible

                 repayment schedule for the already financially

                 burdened school district.

                            This bill directs the state to

                 recover excess state aid payments made to the

                 Whitesville Central School District in the

                 1998-99 school year over a term of six years.

                 The bill was requested by the Whitesville

                 Central School.

                            SENATOR OPPENHEIMER:    Thank you,

                 Senator.

                            SENATOR McGEE:    You're welcome.

                            SENATOR OPPENHEIMER:    It's a

                 fair-sized amount of money.  It's like almost

                 a quarter of a million dollars.

                            SENATOR McGEE:    Yes.

                            SENATOR OPPENHEIMER:    I just

                 wondered how it happened.

                            THE PRESIDENT:    Senator, first of

                 all, Senator McGee, will you yield for this

                 question?

                            SENATOR McGEE:    Absolutely.

                            THE PRESIDENT:    You may proceed,

                 Senator Oppenheimer.





                                                          6579



                            SENATOR McGEE:    It says an

                 untimely filing, so I just assume they didn't

                 file it on time.  They then received the state

                 aid, and that means that state aid has to be

                 repaid back to them.

                            They're asking, because it is a

                 very small school district, to be able to

                 extend that payment time out over six years.

                            SENATOR OPPENHEIMER:    Thank you.

                 I understand, you know, six years is really

                 the common amount of time that we utilize for

                 these things.

                            How did they finally find -

                            THE PRESIDENT:    Senator McGee,

                 will you yield for a question?

                            SENATOR OPPENHEIMER:    Through

                 you, Madam President.

                            SENATOR McGEE:    Certainly.

                            THE PRESIDENT:    You may proceed

                 with a question, Senator Oppenheimer.

                            SENATOR OPPENHEIMER:    How did

                 they finally discover this?

                            SENATOR McGEE:    Well, I would

                 assume, Senator, that the State Education

                 Department found out that the -- looked down





                                                          6580



                 through and saw, hey, they hadn't received

                 this and the possibility existed they had

                 received the excess aid.  Or perhaps even the

                 school district discovered it.  So it's a

                 question of both of them being able to find

                 out or have found out that they were in fact

                 overpaid.

                            SENATOR OPPENHEIMER:    I think

                 it's more likely our state department found

                 it, since they were owed.

                            Through you, Madam President, if

                 the Senator would yield.

                            THE PRESIDENT:    Senator McGee?

                            SENATOR McGEE:    Certainly.  Yes.

                            THE PRESIDENT:    You may proceed,

                 Senator Oppenheimer.

                            SENATOR OPPENHEIMER:    I just

                 have -- following our prior discussion that

                 Senator Dollinger was engaging in, why do we

                 not as a state charge some interest penalty

                 for permitting them to utilize this money in

                 this period of time?  And now we are being

                 accommodating, as a state, in saying we're

                 giving you six years to pay it back.  I just

                 wonder why we are not asking for interest.





                                                          6581



                            SENATOR McGEE:    I'm sure that I

                 can't answer that question for you right now

                 in the manner in which you put it.

                            I know that they will be paying

                 back, over the period of six years, one-sixth

                 of each one of those payments, so that they

                 pay the total amount back.  Now, whether

                 there's interest included in it, I'm not sure,

                 Senator.

                            But I do know that Whitesville is a

                 very small school district.  Any additional

                 amount to them would be extremely costly and

                 would, in fact, add an additional burden on

                 the taxpayers of that school district.  It's a

                 very small school.

                            SENATOR OPPENHEIMER:    No, I'm not

                 objecting to it.  I was wondering.

                            Then the last question is -

                 through you, Madam President, if the Senator

                 will yield.

                            THE PRESIDENT:    Senator McGee?

                            SENATOR McGEE:    Certainly.

                            THE PRESIDENT:    You may proceed,

                 Senator Oppenheimer.

                            SENATOR OPPENHEIMER:    I have to





                                                          6582



                 assume the answer is yes.  And that is, have

                 they taken steps so this accident won't happen

                 again?

                            SENATOR McGEE:    I suspect that

                 might be the case, yes.

                            SENATOR OPPENHEIMER:    I think

                 that would be a yes.

                            SENATOR McGEE:    Yes.  Yes.

                            SENATOR OPPENHEIMER:    Thank you

                 very much.

                            SENATOR McGEE:    You're welcome,

                 I'm sure.

                            SENATOR OPPENHEIMER:    This is

                 something that does happen fairly often, and I

                 often wonder -- may I speak on the bill, Madam

                 President.

                            THE PRESIDENT:    Yes, Senator, you

                 may proceed on the bill.

                            SENATOR OPPENHEIMER:    This does

                 seem to happen with a fair amount of

                 regularity.  I think Senator Libous had a

                 school district that owed a half million

                 dollars.  I sometimes wonder about our school

                 districts and how carefully they're looking at

                 their books.





                                                          6583



                            But this is certainly within the

                 realm of reason, and we want to help our small

                 school districts, so I certainly think we

                 should all support it.

                            THE PRESIDENT:    Senator Hevesi.

                            SENATOR HEVESI:    Thank you, Madam

                 President.  Would the sponsor please yield?

                            THE PRESIDENT:    Senator McGee,

                 will you yield?

                            SENATOR McGEE:    Yes.

                            THE PRESIDENT:    You may proceed,

                 Senator Hevesi.

                            SENATOR HEVESI:    Thank you.

                            Through you, Madam President, it's

                 my understanding that the school district was

                 deemed ineligible for the $240,000 because the

                 building aid was filed late.  Is that correct?

                            SENATOR McGEE:    That's correct.

                 It's untimely filing, the bill being a request

                 for building aid.

                            SENATOR HEVESI:    Thank you.

                            Madam President, would the sponsor

                 continue to yield?

                            THE PRESIDENT:    Senator McGee?

                            SENATOR McGEE:    Certainly.





                                                          6584



                            THE PRESIDENT:    You may proceed,

                 Senator Hevesi.

                            SENATOR HEVESI:    Thank you.

                            That being the case, how was it

                 that they received the $240,000 payment if

                 they were ineligible for the payment when they

                 submitted the aid claims?

                            SENATOR McGEE:    I suspect that -

                 and again, I'm not sure, but I would suspect

                 that it was based on the previous years.

                            SENATOR HEVESI:    Madam President,

                 would the sponsor continue to yield?

                            SENATOR McGEE:    Certainly.

                            THE PRESIDENT:    Senator McGee,

                 you will yield?

                            SENATOR McGEE:    Yes.

                            THE PRESIDENT:    You may proceed,

                 Senator.

                            SENATOR HEVESI:    Let me clarify.

                 If the district or any school district submits

                 building aid claims that are not filed in a

                 timely fashion, how possibly could the State

                 Education Department pay out a substantial sum

                 of money to any school district?

                            SENATOR McGEE:    I'm sorry, I -





                                                          6585



                 go ahead.  I didn't hear you.

                            SENATOR HEVESI:    Through you,

                 Madam President, my question is I don't

                 understand -- maybe you can shed some light on

                 this -- how it is that the State Education

                 Department, having received building aid

                 claims that were invalid because they were

                 late, wound up paying this school district

                 $240,000.

                            SENATOR McGEE:    I certainly can't

                 answer that for you, because you'd have to ask

                 the State Education Department that.

                            The only thing I'm saying to you is

                 that Whitesville Central School was fully

                 aware of the fact they were overpaid in

                 excess.  They have, in fact, requested to be

                 able to pay back that excess aid that they

                 received in six years.

                            Why the State Education Department

                 did, I can't answer that for you.

                            SENATOR HEVESI:    Thank you.

                            Madam President, would the sponsor

                 continue to yield?

                            THE PRESIDENT:    Senator, will you

                 yield?





                                                          6586



                            SENATOR McGEE:    Certainly.

                            THE PRESIDENT:    You may proceed.

                            SENATOR HEVESI:    Thank you.

                            Is the sponsor aware that this is

                 probably the fourth or fifth bill we've done

                 this year?  And I daresay we've done eight or

                 nine of them last year, and there's another

                 one on the calendar today, where the amount of

                 overpayment was $2 million.

                            Is the sponsor aware that this is a

                 regular practice of overpayment and that the

                 State Education Department, making these

                 overpayments, has failed repeatedly -- because

                 we are looking at another bill here today -

                 has failed to correct this problem?

                            SENATOR McGEE:    Through you,

                 Madam President, I'm not -- there is another

                 bill on the calendar that requests basically

                 the same thing.  And maybe because Whitesville

                 in the W's, that may be why it made it today,

                 we're down to the end of them.  I'm not

                 possibly sure about that.

                            But let's put it this way.  I can't

                 be responsible for what the -- am I aware of

                 it?  I'm certainly aware of it when the bills





                                                          6587



                 come through.  I'm not sure what else you want

                 me to say about that.

                            SENATOR HEVESI:    Madam President,

                 will the sponsor continue to yield?

                            THE PRESIDENT:    Senator, will you

                 yield?

                            SENATOR McGEE:    Sure.

                            THE PRESIDENT:    You may proceed.

                            SENATOR HEVESI:    I asked the

                 question -- and I understand you're trying to

                 do the right thing for your school district.

                 And notwithstanding the question as to whether

                 or not interest should be recouped on this

                 money -- and I'm beginning to believe that it

                 should be -- there have been many individuals,

                 many state Senators representing many

                 different school districts who have brought

                 the same legislation to correct a problem that

                 has never been corrected.

                            So I don't believe it's an unfair

                 question to ask of any sponsor who brings this

                 bill.  And I'll ask the question this way.

                            Are you concerned that the State

                 Education Department is failing repeatedly to

                 make sure that they are only making payments





                                                          6588



                 that they should be making and as a result the

                 taxpayers of New York State are losing

                 thousands and thousands of dollars because the

                 SED does not recoup interest?  Are you

                 concerned about that?

                            SENATOR McGEE:    Through you,

                 Madam President, at the present moment, sir,

                 I'm looking at Whitesville Central School.

                 That's the issue we're working on right now.

                            SENATOR HEVESI:    Madam President,

                 would the sponsor continue to yield?

                            THE PRESIDENT:    Senator, will you

                 yield?

                            SENATOR McGEE:    Certainly.

                            THE PRESIDENT:    You may proceed,

                 Senator Hevesi.

                            SENATOR HEVESI:    Thank you.

                            Let's talk about the Whitesville

                 Central School District.  Whitesville

                 submitted late claims and then received

                 payment for the late claims that they were

                 ineligible to receive.  Then Whitesville, my

                 understanding is, went and spent the money

                 that they had received for which they were

                 ineligible.





                                                          6589



                            My question is, obviously we have a

                 problem with Whitesville School District, too,

                 filing late claims, then receiving payments

                 that they shouldn't have received, then

                 spending the money that they shouldn't have

                 received.  My question to you is, do we have a

                 problem with the Whitesville School District?

                            SENATOR McGEE:    Through you,

                 Madam President, that's always possible, sir.

                 There may have been a change of personnel.

                 Quite frequently, business managers do change.

                 Whitesville is a very small school, very small

                 district.  That's very possible.

                            Do we have a problem?  Yes, there

                 is a problem.  The problem has been discovered

                 and is in fact being rectified by this bill.

                            SENATOR HEVESI:    Madam President,

                 will the sponsor yield to one final question?

                 I won't belabor this.

                            THE PRESIDENT:    Senator, will you

                 yield?

                            SENATOR McGEE:    Certainly.

                            THE PRESIDENT:    You may proceed,

                 Senator Hevesi.

                            SENATOR HEVESI:    Thank you.





                                                          6590



                            And I do appreciate your patience

                 with this.  It's not your fault.  But this is

                 certainly something that anyone who brings

                 this legislation has to take into

                 consideration in reference to the larger

                 picture here.  And that's why I'm making these

                 points.

                            So my final question to you is a

                 very simple one.  In the case that has led to

                 this legislation, isn't it true that both the

                 Whitesville Central School District and the

                 State Education Department made a mistake and

                 we have to correct their mistake with this

                 legislation today?  Is that accurate?

                            SENATOR McGEE:    Well, it

                 certainly appears that way, since I've told

                 you right from the very beginning that the

                 Whitesville Central School District did not

                 file in a timely basis to receive the state

                 aid.

                            They did receive the state aid,

                 they're aware of it, the State Education

                 Department is aware of it, the Whitesville

                 Central School is aware of it.  They are now

                 making amends to try to be able to solve that,





                                                          6591



                 extend that payment time out to six years.

                 Because to pay it back in the following year

                 would be in fact a tremendous cost to the

                 taxpayers of Whitesville Central School

                 District, a very small district.

                            And so this bill will say to

                 Whitesville Central School District, you

                 acknowledge that you received the money, you

                 used the money, and it is in fact not yours,

                 so to speak.  They will pay it back in a

                 six-year payment.

                            SENATOR HEVESI:    Thank you.

                            Madam President, one final question

                 if the sponsor will yield.

                            THE PRESIDENT:    Senator, will you

                 yield?

                            SENATOR McGEE:    He said that last

                 one was the final one.

                            Yes, I will.

                            THE PRESIDENT:    You may proceed.

                            SENATOR HEVESI:    Thank you.

                            I understand exactly what this bill

                 does, because I've debated every one of these

                 bills that's come before the house, and I've

                 voted for all of them.





                                                          6592



                            My question to you is -- and we'll

                 leave your school district out of it for a

                 second.

                            SENATOR McGEE:    Sure.

                            SENATOR HEVESI:    SED has been

                 negligent, repeatedly, and it's costing the

                 taxpayers of this state thousands and

                 thousands and thousands of dollars.

                            And so I'm now going to call on the

                 State Comptroller to audit SED's procedures

                 for paying claims that they receive for

                 building aid and any other type of aid for

                 which we have had to come and vote on

                 legislation like this.

                            My question to you is, since you

                 have now experienced SED's failures and it's

                 caused some kind of a hardship for your

                 central school district, whether you would

                 support the State Comptroller auditing SED to

                 make sure that this doesn't happen again to

                 any other school district.

                            SENATOR McGEE:    I certainly would

                 have to look at any kind of legislation that

                 was proposed in that matter.

                            SENATOR HEVESI:    No, I was





                                                          6593



                 suggesting an audit.  Would you support an

                 audit of the SED by the state comptroller?

                            SENATOR McGEE:    I would have to

                 look at what the process would be.

                            SENATOR HEVESI:    Thank you.

                            Madam President, on the bill.

                            THE PRESIDENT:    You may proceed

                 on the bill.

                            SENATOR HEVESI:    Madam President,

                 the Whitesville Central School District should

                 not be penalized by us not acting today,

                 although I would submit to everybody in this

                 chamber that it's time for the school district

                 to start paying interest on this money.  And

                 the reason is because in addition to SED

                 having made a mistake in every one of these

                 cases, the school district has made mistakes.

                            And in this case, the school

                 district made two mistakes.  One, they -- they

                 made three mistakes.  One, they filed the aid

                 late.  Number two, they accepted the payment

                 from SED without sending it back, knowing that

                 it was ineligible.  And, three, they went and

                 spent the money.

                            And so we're left with a situation





                                                          6594



                 where six years are going to have to elapse

                 before the taxpayers of this state recoup the

                 principal on the $240,000.  That means

                 thousands and thousands of dollars that would

                 otherwise have gone for other educational

                 purposes in the classroom -- reducing class

                 size, increasing teacher salaries, whatever

                 the case may be -- we lose.

                            And this is just one example.

                 Senator Bonacic has a bill where $2 million is

                 going to have to be repaid on a staggered

                 scale -- schedule.  And this is just wrong.

                            It's time for us to ensure that we

                 don't find ourselves in the situation again

                 and again and again.  One of the ways to do it

                 is to prevent SED from paying out claims that

                 are ineligible to be paid out.

                            And I am going to ask the State

                 Comptroller to audit SED, because he should go

                 take a look at why it is that they have failed

                 year after year after year and case after case

                 after case the people of this state.  SED is

                 costing the people of this state thousands of

                 dollars.

                            And frankly, the local school





                                                          6595



                 districts who are receiving this money and

                 have to be bailed out here are getting a

                 benefit because of their own mistakes because

                 their legislators are very diligent

                 legislators.  And if it happened in a school

                 district that I represent, I'd probably have

                 to go to bat for them too.  But I certainly

                 would, at the same time, be trying to prevent

                 the situation from recurring.

                            So, Madam President, I'm going to

                 vote for this bill.  But if we keep seeing

                 bills like this that have no interest payments

                 built into them, and there has been no effort

                 by anyone in the Majority -- anybody who's

                 brought one of these bills or anybody else -

                 to do anything about this problem, that we're

                 just going to keep putting a Band-Aid on it

                 and wasting our time here and wasting

                 thousands of dollars of taxpayer money, I'm

                 going to start voting no on these bills, and

                 I'm going to urge all my colleagues to do it

                 also.

                            And in the meantime, I'm going to

                 ask the Comptroller to go ahead and audit SED.

                 And you know what?  We may want to do a review





                                                          6596



                 of some school district's procedures and have

                 a better procedure laid out for every school

                 district in the state so that we don't have

                 this problem time after time after time.  And

                 I'm not belaboring the point or beating a dead

                 horse here, because the kids in the state are

                 getting cheated out of money here.

                            I mean, this is just wrong.  It's

                 wrong, Madam President.  So I'm going to

                 support this bill.  I appreciate what Senator

                 McGee is trying to do.  I don't want the

                 children in that district to be harmed as a

                 result of the poor performance by that school

                 district and by SED.  But they shouldn't have

                 spent the money.  Shouldn't have filed it

                 late, shouldn't have received the money,

                 shouldn't have spent the money.

                            And now we have to bail them out so

                 that they don't get hit in one year having to

                 repay it.  But if they had to repay it in one

                 year, that would prevent everybody from being

                 cheated by their failures to have procedures

                 that prevent this from happening.

                            Now, how do we go and tell all the

                 kids in this state:  Thousands of dollars





                                                          6597



                 could have gone to your district, but it

                 didn't because we have a problem that we don't

                 correct, ever.  Now everybody knows about it.

                 They know about it because we've brought these

                 bills to the floor countless times.

                            I'm upset about this, Madam

                 President.  And so, with objections, I'm going

                 to vote for this bill.  But if we don't do

                 something about this in the future, I'm going

                 to do everything I can to bring as much public

                 attention to this as possible, that we are

                 squandering taxpayer money because we are too

                 lazy, or whatever the reason is, to correct

                 this problem.  It's wrong.

                            THE PRESIDENT:    Senator

                 Dollinger.

                            SENATOR DOLLINGER:    Thank you,

                 Madam President.

                            THE PRESIDENT:    You're welcome.

                            SENATOR DOLLINGER:    Just on the

                 bill, briefly.

                            Senator Hevesi, I'll sign the

                 letter to Comptroller McCall to ask for an

                 audit of SED.

                            And I guess I would add just one





                                                          6598



                 other thought.  It seems to me that we're in

                 this anomalous situation where the Whitesville

                 School District got money it wasn't entitled

                 to under law, and now is getting an extended

                 period of time to pay it back.  And yet as you

                 know, Senator Hevesi, I believe the City of

                 New York is owed about $900 million which it's

                 entitled to, which it's owed by the State of

                 New York, which it's got good claims for, and

                 they've been sitting there waiting for eight,

                 nine, ten years to be paid.

                            And as you, I think, are familiar,

                 since you advocated for it, one of the things

                 that we now do is we only pay the claims that

                 are about to go out of existence.  We only pay

                 those that after ten years are going to expire

                 because we're not willing to pay all the other

                 claims.  The $800 or $900 million more that

                 the state owes the City of New York school

                 system would be an enormous benefit to the

                 kids there.  It would certainly improve the

                 quality of education.

                            Here we have the instance where a

                 school district owes us money, in essence.

                 And not only are we creating a diversion from





                                                          6599



                 the usual pay-it-back-in-two-years principle,

                 but as Senator McGee, properly representing

                 her district, has said, this ought to be a

                 delayed payback.  Because otherwise, the

                 consequence is that they'd have to go out and

                 raise this $240,000 next year to pay back the

                 state.

                            What I would suggest is that those

                 who vote for this bill ought to apply the same

                 principle to New York City and say since the

                 City of New York has to find eight or

                 $900 million because we're not paying our bill

                 to them, the same principle ought to apply.

                            I would just suggest I agree with

                 Senator Hevesi.  This needs another statewide

                 solution.  We have countless districts that

                 fail to meet their transportation filing

                 dates, they fail to meet their building dates.

                 We preach accountability in education, but

                 apparently we don't have -- we cannot support

                 the people whose job it is to file these

                 applications on time to get it done on time so

                 that we can calculate how much money they

                 need.

                            That concept of accountability, it





                                                          6600



                 seems to me, would start by making sure that

                 everybody is accountable for the failure to

                 file these requests for building aid or

                 transportation aid.

                            And I would conclude, Senator

                 Hevesi, I have one other concern.  And that is

                 unfortunately we may end up with a rule that

                 generally applies in the districts -- the

                 Senate districts of those who sit in the

                 Majority of this house but not those who sit

                 in the Minority.

                            That a Majority Senator could pass

                 a bill that says, Oh, you owe the state money?

                 We'll extend the period of time from one year

                 to six years to pay it all back, and we won't

                 charge you interest.  And that will become the

                 rule for those who sit in the Majority in this

                 house, and the school districts that owe money

                 back to the state.

                            Whereas those who sit in the

                 Minority -- since I can't remember, in the

                 nine years that I've been here, that there has

                 ever been a late payment bill that's actually

                 been passed in this house that was sponsored

                 by a Senate Democrat.





                                                          6601



                            So we may have one rule that says:

                 You don't have to pay interest and you get six

                 years to pay it back if you owe the state

                 money and you happen to be a school district

                 in a Republican district.  But if you're one

                 of those districts, like all of mine, in which

                 a Democratic Senator sits in the seat:  Oh,

                 you have to pay it back next year.

                            It would seem to me, Senator

                 Hevesi, that that would be a result that is

                 completely unjustifiable.  And so I would just

                 suggest if we're going to come up with a rule

                 that says you get a benefit when you owe money

                 back, that benefit ought to be extended to

                 every school district in this state and not

                 just those that are in Republican Senate

                 districts.

                            I would strongly suggest -- I'm

                 going to vote in favor of this.  I've voted

                 for these kinds of bills in the past.  But I'm

                 looking for a single, statewide standard that

                 will apply to every school district regardless

                 of the party affiliation of the Senator whose

                 district it sits in.

                            Thank you, Madam President.





                                                          6602



                            THE PRESIDENT:    Does any other

                 member wish to be heard on this bill?

                            Then the debate is closed.

                            There is a local fiscal impact note

                 at the desk.

                            Read the last section.

                            THE SECRETARY:    Section 3.  This

                 act shall take effect immediately.

                            THE PRESIDENT:    Call the roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 56.

                            THE PRESIDENT:    The bill is

                 passed.

                            THE SECRETARY:    Calendar Number

                 481, by Senator Larkin, Senate Print 3998, an

                 act to repeal Chapter 987 of the Laws of 1972.

                            SENATOR DOLLINGER:    Explanation.

                            SENATOR STAVISKY:    Explanation.

                            THE PRESIDENT:    Senator Larkin,

                 an explanation has been requested.

                            SENATOR LARKIN:    Thank you, Madam

                 President.

                            This is a local bill that repeals

                 references to a school district named Sugar

                 Loaf Union Free School District, since this





                                                          6603



                 school district is no longer active, has no

                 students or no employees.  The district was

                 created in 1972.  It is a special school

                 district that serves the needs of young men

                 who had been in the court system, and was

                 operated by the Archdiocese of New York.  A

                 few years ago, the Archdiocese decided that it

                 needed to close the school because it was not

                 ready to continue with the financial

                 expenditures.

                            The provisions of this bill address

                 the issues of transfer of all the records of

                 the inactive school to the Orange-Ulster

                 BOCES.  Should a residue amount of any money

                 be left over once the school district has paid

                 all of is debts and dissolved, such monies

                 would go to the local BOCES to maintain the

                 school's records.

                            This legislation was requested by

                 the school district.  The bill's language was

                 reviewed by the State Education Department.

                 There is no opposition from them to this bill.

                            THE PRESIDENT:    Senator Stavisky.

                            SENATOR STAVISKY:    If Senator

                 Larkin would yield for a number of questions





                                                          6604



                 that I have on this bill.

                            THE PRESIDENT:    Senator Larkin,

                 will you yield for a question?

                            SENATOR LARKIN:    Yes, I'll yield

                 for a question.

                            THE PRESIDENT:    You may proceed

                 with a question, Senator.

                            SENATOR STAVISKY:    Has the Sugar

                 Loaf School District received state aid?

                            SENATOR LARKIN:    They did receive

                 some state aid, as normally any one of those

                 schools would do, for the maintenance of

                 records.

                            SENATOR STAVISKY:    Madam

                 President, through you, if the Senator will

                 continue to yield.

                            SENATOR LARKIN:    Yes.

                            THE PRESIDENT:    You may proceed,

                 Senator Stavisky.

                            SENATOR STAVISKY:    Then I assume

                 they received state aid for the fiscal year -

                 school year 2000.

                            SENATOR LARKIN:    No.  They've

                 been closed.

                            SENATOR STAVISKY:    Madam





                                                          6605



                 President, if Senator Larkin will continue to

                 yield.

                            THE PRESIDENT:    Senator, do you

                 yield?

                            SENATOR LARKIN:    Yes, Madam

                 President.

                            THE PRESIDENT:    You may proceed.

                            SENATOR STAVISKY:    Has there been

                 a local contribution of any sort towards the

                 maintenance of this school district?

                            SENATOR LARKIN:    The Archdiocese

                 of New York.

                            SENATOR STAVISKY:    Madam

                 President, if Senator Larkin will continue to

                 yield.

                            SENATOR LARKIN:    Yes, Madam

                 President.

                            THE PRESIDENT:    You may proceed.

                            SENATOR STAVISKY:    What happened

                 to the students who were attending the school

                 which was sponsored by the Archdiocese?

                            SENATOR LARKIN:    They were

                 returned to their respective districts within

                 New York City.

                            SENATOR STAVISKY:    Let me





                                                          6606



                 rephrase the -

                            SENATOR LARKIN:    Let me explain,

                 if I may.

                            These students were brought into

                 the court system.  And the court system said,

                 You'll either go here or go to reform school.

                 They in turn took the Archdiocese was paying

                 the bill, and it just got out of line with

                 what was costing.  So the Archdiocese said,

                 we're closing it down because they weren't

                 being properly reimbursed.

                            SENATOR STAVISKY:    Which leads

                 me, Madam President, to the next question, if

                 the Senator will yield.

                            SENATOR LARKIN:    Yes.

                            THE PRESIDENT:    You may proceed,

                 Senator.

                            SENATOR STAVISKY:    Why did these

                 students attend that school and not one of the

                 schools -- I believe it's the Division for

                 Youth that operates the educational system in

                 the -

                            SENATOR LARKIN:    I don't know.

                 You'd have to ask the City of New York school

                 district.  Because they referred them to the





                                                          6607



                 Archdiocese of New York because they had no

                 facilities available for them to be educated

                 in.

                            SENATOR STAVISKY:    Thank you,

                 Madam President.  A couple of other questions,

                 if Senator Larkin will yield.

                            THE PRESIDENT:    Senator Larkin?

                            SENATOR LARKIN:    Yes, Madam

                 President.

                            THE PRESIDENT:    You may proceed,

                 Senator Stavisky.

                            SENATOR STAVISKY:    How much money

                 is being returned to that school district in

                 the form of -- or do you propose to return to

                 the BOCES?

                            SENATOR LARKIN:    According to

                 BOCES and according to the school district and

                 the state SED, it's peanuts.  It's only -

                 what's left is the maintenance of the records,

                 of which they will be required to -- when this

                 is approved, they will go back to the State

                 Education Department with any monies that were

                 am allocated that were not used in the

                 maintenance of records and transferring the

                 records of the students to the New York City





                                                          6608



                 Board of Education.

                            SENATOR STAVISKY:    Madam

                 President, if Senator Larkin will continue to

                 yield.

                            THE PRESIDENT:    Senator Larkin,

                 will you continue to yield?

                            SENATOR LARKIN:    Yes, Madam

                 President.

                            THE PRESIDENT:    You may proceed,

                 Senator.

                            SENATOR STAVISKY:    I'm looking

                 for the term "peanuts" in the -- I don't see

                 the word "peanuts" listed in the bill.  Do

                 peanut have a dollar amount?

                            SENATOR LARKIN:    I am told,

                 Senator, that it's a very minimal amount and

                 it would hope -- they're hoping that what is

                 left there will be sufficient for the

                 Orange-Ulster BOCES to maintain these records

                 and do all the others that is required for

                 transfer of a student, a student who was a

                 student of the New York City school district

                 who became, in essence, a ward of the

                 Archdiocese because these students could not

                 function in the school district and had been a





                                                          6609



                 ward of the court and were sent there.  Is

                 happening is that this school district is no

                 longer in being.  The dollars that are left

                 are for maintenance of records.

                            SENATOR STAVISKY:    $47.60?

                 That's a lot of peanuts.

                            If Senator Larkin will yield to one

                 last question.

                            SENATOR LARKIN:    Yes.

                            THE PRESIDENT:    You may proceed,

                 Senator.

                            SENATOR STAVISKY:    Senator

                 Larkin, with the computerization of records

                 and the ability to keep records so compactly

                 and so easily and so readily, make them those

                 so readily available, this is just a simple

                 ministerial effort on the part of BOCES.

                            Shouldn't the peanuts or the

                 minuscule amount be returned to the State of

                 New York and not to the BOCES school district,

                 since this is state money?

                            SENATOR LARKIN:    Senator, the

                 records are not being maintained by the State

                 of New York.  And also, when you talk about

                 the records, you're also talking about medical





                                                          6610



                 records.  And there's the privacy aspect of it

                 too.

                            So this is not just here's two

                 papers off of a form.  The requirements by the

                 State Education Department for the maintenance

                 of the records or maintenance of the

                 individuals' health records and the privacy of

                 it, the decision was that all of these schools

                 are a part of the Orange-Ulster BOCES, and

                 therefore the responsibility is assigned to

                 them.

                            SENATOR STAVISKY:    Thank you very

                 much for your explanation, Senator Larkin.

                            Thank you, Madam President.

                            THE PRESIDENT:    Senator Lachman.

                            SENATOR LACHMAN:    Yes, Madam

                 President.  Through you, will the Senator

                 continue to yield?

                            THE PRESIDENT:    Senator, will you

                 yield for a question?

                            SENATOR LARKIN:    Yes, Madam

                 President.

                            THE PRESIDENT:    You may proceed,

                 Senator Lachman.

                            SENATOR LACHMAN:    Senator Larkin,





                                                          6611



                 I am interested and intrigued that this

                 occurred in 1972.  And with -

                            SENATOR LARKIN:    Could you speak

                 up a little louder, please.

                            SENATOR LACHMAN:    I am interested

                 and intrigued that this occurred in 1972.  As

                 you know, I chair a national collaborative of

                 public and nonpublic schools.  Do you have any

                 background as to the relationship between the

                 public school system and the Archdiocese in

                 selecting these students and in educating

                 them?

                            And as we all know, the Archdiocese

                 of New York private school system is not only

                 the three boroughs of Manhattan, the Bronx,

                 and Richmond, but seven upstate counties.

                            SENATOR LARKIN:    I looked at this

                 from just where they're at -- they're located

                 on the Chester-Warwick border, the school

                 is -- and knowing the background of it as I

                 represented it.  All of these students came as

                 a result of court action, came to the school

                 district.

                            SENATOR LACHMAN:    Madam

                 President, through you, will the Senator





                                                          6612



                 continue to yield?

                            THE PRESIDENT:    Senator, will you

                 yield?

                            SENATOR LARKIN:    Yes, Madam

                 President.

                            THE PRESIDENT:    You may proceed.

                            SENATOR LACHMAN:    Were these

                 students all from the city of New York or the

                 seven counties of the Archdiocese of New York?

                            SENATOR LARKIN:    New York City.

                            SENATOR LACHMAN:    New York City.

                            Will the Senator continue to yield?

                 Through you, Madam President.

                            SENATOR LARKIN:    Yes, Madam

                 President.

                            THE PRESIDENT:    You may proceed,

                 Senator Lachman.

                            SENATOR LACHMAN:    Okay.  Do you

                 recall the arrangement that was worked out

                 between the public school system in the County

                 of Orange and the Archdiocese of New York to

                 create what I think is a unique system of

                 collaboration between the Archdiocese of

                 New York school system and the County of

                 Orange?





                                                          6613



                            SENATOR LARKIN:    Two things.

                 When this was done in 1972, I was not a member

                 of this body or any political body.  I was a

                 hard-working civilian.  And I don't know what

                 went on in that time.

                            The only thing I know in talking to

                 some of the people in the Archdiocese Office

                 on Education was that that setup was between

                 the courts of New York City -- and I'm not

                 trying to be rude.  But the Archdiocese agreed

                 to open up a school in various grades, and

                 that the slots were to be filled by the city

                 of New York, the courts in the City of New

                 York to assign them to Sugar Loaf.

                            And these were troubled kids, kids

                 from broken homes, kids who had broken the

                 law.  And I don't have any records and people

                 I've talked to have no records because the

                 school is actually closed, the people from New

                 York City have gone back to the city.  And

                 that's it.

                            SENATOR LACHMAN:    Okay.  Through

                 you, Madam President, will the Senator

                 continue to yield?

                            THE PRESIDENT:    Senator, will you





                                                          6614



                 yield?

                            SENATOR LARKIN:    Yes, Madam

                 President.

                            THE PRESIDENT:    You may proceed,

                 Senator Lachman.

                            SENATOR LACHMAN:    Senator Larkin,

                 do you have any information as to the results

                 of this endeavor?  Were there any longitudinal

                 studies?  Did it, in its period of time,

                 achieve positive results?

                            SENATOR LARKIN:    From knowing

                 what I do about the school and visiting it, I

                 think that there was a very positive effort on

                 behalf of the staff and faculty from the

                 Archdiocese.  And there were a number of

                 youngsters there that I know that left there

                 and went to Siena, went to SUNY Albany, went

                 to Syracuse.

                            The bottom line was that the

                 reimbursement for operating the school, it

                 wasn't sufficient.  And this wasn't an

                 isolated case to do this.  In our papers

                 upstate, and you might have seen it in the

                 Times and others, in the Post two weeks ago,

                 the Archdiocese has closed three or four other





                                                          6615



                 schools for the same reason.

                            SENATOR LACHMAN:    Madam

                 President, through you, for a last question to

                 Senator Larkin.

                            THE PRESIDENT:    Senator, will you

                 yield?

                            SENATOR LARKIN:    Yes, Madam

                 President.

                            THE PRESIDENT:    You may proceed,

                 Senator Lachman.

                            SENATOR LACHMAN:    Would it be

                 possible, Senator Larkin, for my own research

                 endeavors, to receive more information from

                 you after you discuss this with the school

                 district and your staff?  One, relating to the

                 positive or negative or no results or yes

                 results of this relationship with the

                 Archdiocese of New York and the public school

                 system in the County of Orange.  And, two,

                 related to that is the actual legal means by

                 which this relationship was entered into.

                            I think it's a very interesting

                 precedent.

                            SENATOR LARKIN:    I'd be more than

                 happy to, Senator.





                                                          6616



                            SENATOR LACHMAN:    Thank you

                 kindly.

                            THE PRESIDENT:    Does any other

                 member wish to be heard on this bill?

                            Then the debate is closed.

                            Read the last section.

                            THE SECRETARY:    Section 7.  This

                 act shall take effect July 1.

                            THE PRESIDENT:    Call the roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 57.

                            THE PRESIDENT:    The bill is

                 passed.

                            THE SECRETARY:    Calendar Number

                 482, by Senator Bonacic, Senate Print 4084, an

                 act in relation to adjusting certain state aid

                 payments.

                            SENATOR DOLLINGER:    Explanation,

                 please, Madam President.

                            THE PRESIDENT:    Senator Bonacic,

                 Senator Dollinger is requesting an

                 explanation.

                            SENATOR BONACIC:    I'm surprised

                 that you wanted an explanation, Senator

                 Dollinger.





                                                          6617



                            But having asked for one, this is

                 an act in relation to adjusting certain aid

                 payments to the Delhi Central School District.

                 What happened was they were building a new

                 school back around 1997, and it was estimated

                 to be over a $12 million project.  And the

                 State Education Department gives aid -- at

                 that time, it was at the rate of 75 percent of

                 the estimated building project.

                            They made payments in the year

                 '97-'98 and '98-'99, so it went into two

                 years.  In October of 2000, the State

                 Education Department determines that they

                 overpaid, in building aid, $2,166,720.  Now,

                 that is a very heavy number.  I've come before

                 you for mistakes that the school districts

                 have made in small amounts.  Senator McGee,

                 earlier, it was 240,000.

                            And so we're here asking for a

                 six-year extension to pay the money back.

                 Right now, if I didn't come before you,

                 starting in the year 2001, there's a

                 three-year payback that that school district

                 would owe the State of New York, increasing

                 the tax burden by about 58½ percent.





                                                          6618



                            Keep in mind, now, this is the

                 taxpayers that we're trying to give some

                 relief to.  If and when this legislation

                 should pass, the taxpayers still would be

                 paying a tax increase of 49½ percent over a

                 six-year period.

                            I asked the question how could this

                 happen.  We have 735 school districts.  We

                 have turnover.  We have superintendents that

                 come and go.  We have administrators that come

                 and go.  And sometimes one hand doesn't know

                 what the other is doing, and mistakes are

                 made.

                            And they made a big mistake in this

                 school district, and now the taxpayers of that

                 school district are going to feel the pain of

                 paying it back, hopefully over a six-year

                 period.

                            THE PRESIDENT:    Senator

                 Dollinger.

                            SENATOR DOLLINGER:    Thank you,

                 Madam President.  Will the sponsor yield to a

                 couple of questions?

                            THE PRESIDENT:    Senator, will you

                 yield?





                                                          6619



                            SENATOR BONACIC:    Yes, sir.

                            THE PRESIDENT:    You may proceed

                 with a question, Senator Dollinger.

                            SENATOR DOLLINGER:    Senator

                 Bonacic, as I understand this, the State of

                 New York paid more money to the school

                 district than they were otherwise entitled to;

                 isn't that correct?

                            SENATOR BONACIC:    That's correct.

                            SENATOR DOLLINGER:    If the State

                 of New York -- through you, Madam President,

                 if the State of New York had not paid them

                 that extra money, they would have still spent

                 the money on the project, they simply would

                 have gone out and borrowed; isn't that

                 correct?  They would have increased the amount

                 of their borrowing because the amount of their

                 state revenue would go down.

                            SENATOR BONACIC:    In all

                 probability, they would have borrowed unless

                 they had a benevolent donor to a foundation to

                 help them.

                            SENATOR DOLLINGER:    Correct.  And

                 through you, Madam President, if Senator

                 Bonacic will continue to yield.





                                                          6620



                            THE PRESIDENT:    Senator Bonacic,

                 will you yield?

                            SENATOR BONACIC:    I do.

                            THE PRESIDENT:    You may proceed.

                            SENATOR DOLLINGER:    If your bill

                 did not become law, the school district would

                 simply go out and borrow the $2 million to pay

                 back the State of New York; isn't that

                 correct?

                            SENATOR BONACIC:    Well, as I've

                 indicated, if this did not become law, they

                 already have an arrangement with the State

                 Education Department to pay it back in three

                 years.

                            SENATOR DOLLINGER:    But through

                 you, Madam President, if the sponsor will

                 continue to yield.

                            THE PRESIDENT:    Senator, will you

                 yield?

                            SENATOR BONACIC:    I do.

                            THE PRESIDENT:    You may proceed.

                            SENATOR DOLLINGER:    The prudent

                 thing to do would be to simply borrow all the

                 money that you need, the $2 million, toss it

                 in with the other borrowing that you already





                                                          6621



                 borrowed to build the building in the first

                 place, and in essence you would have the

                 school district borrow the same amount of

                 money that they would have borrowed if the

                 State of New York had given them the correct

                 amount; isn't that a fair assessment?

                            SENATOR BONACIC:    If I were the

                 superintendent of that school, that's exactly

                 what I would have done.

                            SENATOR DOLLINGER:    Through you,

                 Madam President, then how is this school

                 district hurt by the nonpassage of this bill

                 if the effect of it is that if this bill

                 doesn't pass, the school district will end up

                 borrowing the exact same amount of money that

                 it would have had to borrow had this mistake

                 not been made?

                            SENATOR BONACIC:    The school

                 district has elected to go to their public and

                 the taxpayers and have decided to increase the

                 tax levy and not go out and ask for an

                 increase in bonding.  That's what they've

                 elected to do.

                            SENATOR DOLLINGER:    Through you,

                 Madam President, if the sponsor will continue





                                                          6622



                 to yield.

                            THE PRESIDENT:    Senator, will you

                 yield?

                            SENATOR BONACIC:    I do.

                            THE PRESIDENT:    You may proceed.

                            SENATOR DOLLINGER:    So in essence

                 it's not the fact that somebody made a mistake

                 in applying for these funds, but it's the

                 school board's election to do this through the

                 tax rate rather than through borrowing which

                 constitutes the reason why we're doing this

                 bill; is that a fair statement?

                            SENATOR BONACIC:    No.  The reason

                 we're doing this bill is that they had a

                 building project that they overestimated the

                 costs to be.  They submitted cost estimates to

                 the State Education Department.  The building

                 project came in less than what they estimated.

                 So the State Education Department paid them

                 75 percent on the estimate, and they're only

                 entitled to 75 percent of the actual cost of

                 the building.

                            SENATOR DOLLINGER:    Through you,

                 Madam President, then -- but if -- let me go

                 back to the scenario.  If they had to pay back





                                                          6623



                 the $2 million this year, they could borrow

                 the money; is that correct?

                            SENATOR BONACIC:    Well, I

                 don't -- I assume they could.  I mean, I don't

                 know the debt burden of that school district,

                 what other debts they may have.  I'm not

                 familiar with that.

                            SENATOR DOLLINGER:    But my

                 question is -- let's use a round figure.  The

                 amount that the State of New York reimburses

                 this school district was for $12 million.  All

                 right?

                            SENATOR BONACIC:    Yes, that's

                 correct.

                            SENATOR DOLLINGER:    And it turns

                 out that they should have only reimbursed them

                 10 million.  That's the scenario.  That's

                 where the $2 million differential comes

                 through.

                            SENATOR BONACIC:    Yes.  Yes.

                            SENATOR DOLLINGER:    If the total

                 project costs 20 million, that means that when

                 they did it the first time around, they only

                 borrowed 8 million, because they got

                 12 million from the State of New York, so





                                                          6624



                 therefore they only had to borrow $8 million.

                 Is that correct?  I mean, just to, again, sort

                 of using the -

                            SENATOR BONACIC:    Generically,

                 they didn't have to borrow as much.

                            SENATOR DOLLINGER:    Now, in order

                 to pay the school district back, they have do

                 go borrow 2 million more.  Which is what they

                 would have had to borrow had they not gotten

                 the state money in the first place.  Correct?

                            SENATOR BONACIC:    The answer is

                 yes.

                            SENATOR DOLLINGER:    My

                 question -- through you again, Madam

                 President, is -

                            THE PRESIDENT:    Senator, will you

                 yield for a question?

                            SENATOR BONACIC:    I do.

                            THE PRESIDENT:    You may proceed.

                            SENATOR DOLLINGER:    -- what then

                 is the practical effect of doing this bill?

                 Because as I understand it, if we don't do

                 this bill, they'll be in exactly the same

                 position that they should have been in to

                 start.  They'll have to borrow and pay, over a





                                                          6625



                 longer period than a year or two years or

                 three years, they'll pay it out over 30 years.

                 They'll pay 2 million more, which is what they

                 should have paid in the first place.  Isn't

                 that correct?

                            SENATOR BONACIC:    My answer to

                 you is that the school board and the present

                 administration has already gone to the public

                 and has apprised them that it's necessary to

                 increase the tax levy to pay the State

                 Education Department.  That's the avenue they

                 have chosen and gone for the support of their

                 taxpayers to do it this way.

                            SENATOR DOLLINGER:    Through you,

                 Madam President, just on the bill briefly.

                            THE PRESIDENT:    You may proceed

                 on the bill, Senator.

                            SENATOR DOLLINGER:    I appreciate

                 Senator Bonacic's candor in assessing this.

                            But, Senator Bonacic, with all due

                 respect, this -- what we are doing is not, in

                 essence, shielding the district from the

                 consequence of some failure of an

                 administrator.  What we're doing is we're

                 basically bailing out a political choice made





                                                          6626



                 by the school board to put all the costs into

                 the first year.

                            The sensible way to do this, Madam

                 President, is to simply borrow the $2 million

                 and pay it out over the term, the longer term

                 of the original financing for the

                 reconstruction.

                            Under those circumstances, we're

                 not in the same situation we were with Senator

                 McGee's bill, where in essence we had a

                 failure to meet a time issue.  In essence,

                 what we're doing is we're giving this school

                 district a special way to deal with a problem

                 that is entirely of its own making.

                            And my suggestion would be to go

                 back to the school board and say:  You want to

                 shield your taxpayers, the way to do it is not

                 go to your taxpayers and say, oh, we've got to

                 pay back this $2 million all in one year for a

                 capital project.  No.  What we're going to do

                 is the same thing we do with the financing of

                 the remaining portion of the building, which

                 is borrow the $2 million and pay it out over

                 30 years, when the effect on the taxes would

                 be substantially less than the 49 percent that





                                                          6627



                 they now face because of the school board's

                 decision.

                            Madam President, I'm going to vote

                 against this bill.  I appreciate Senator

                 Bonacic's efforts, and I understand how this

                 may be a scenario that as a Senator

                 representing a district he wants to stand up

                 and defend.  But at the same time, it seems to

                 me that this problem has a very eminently

                 reasonable solution, and it's one that we

                 shouldn't be in the position of being an

                 insurance policy for a bad choice made by the

                 school district.

                            The right choice here is to borrow

                 the money, pay it out over the same period of

                 time that you would have in the original

                 construction, and then the taxpayers will be

                 made whole.  They'll be financing exactly what

                 they should have financed in the first place,

                 which is the true cost that is not reimbursed

                 from the state.

                            Senator Bonacic, I think you're

                 doing the right job for the people of your

                 districts, and my guess is you will convince

                 the majority of this house to do it.  But in





                                                          6628



                 this particular instance, based on your

                 explanation, I have to vote no.

                            THE PRESIDENT:    Senator Stavisky.

                            SENATOR STAVISKY:    If Senator

                 Bonacic will yield.

                            SENATOR BONACIC:    I do.

                            THE PRESIDENT:    You may proceed,

                 Senator.

                            SENATOR STAVISKY:    My sheet is

                 scribbled with arithmetic mentioning exactly

                 the points that Senator Dollinger made.  But I

                 have a number of other questions.

                            I was intrigued when you said that

                 the State Education Department is permitting

                 them three years in which to pay off the

                 $2 million that is owed.  Can you tell us a

                 little bit about that?

                            SENATOR BONACIC:    What I can tell

                 you is that the State Education Department has

                 accepted an arrangement, if the school

                 district was so inclined, to pay them -- pay

                 the money back over a three-year period.  And

                 the school district feels that that's very

                 onerous on the taxpayers.  They came to me

                 with a home rule message and asked could I get





                                                          6629



                 it extended.

                            I would have preferred more than

                 six years, but it's been the custom and

                 practice of this house to do six years, so I'm

                 here proposing legislation to allow them to

                 pay it back over a six-year period.

                            SENATOR STAVISKY:    If Senator

                 Bonacic will continue to yield.

                            SENATOR BONACIC:    I do.

                            THE PRESIDENT:    The Senator does

                 yield.  You may proceed, Senator.

                            SENATOR STAVISKY:    I find that

                 fascinating.  They're forum shopping.  And

                 they're figuring that they can get a better

                 deal from the State Senate.  But the worst

                 that will happen is that they'll pay it out

                 over three years.

                            Question.  The first payment, if

                 this bill passes, will be due in June of the

                 year 2001; is that correct?

                            SENATOR BONACIC:    That's correct.

                            SENATOR STAVISKY:    How can they

                 determine what's going to happen so promptly?

                 In other words, why was that effective date

                 selected for the legislation where we don't,





                                                          6630



                 for example, have a budget, they don't have a

                 budget, and so on?

                            SENATOR BONACIC:    There's two

                 points I would like to respond to.  First, the

                 State Education Department discovered the

                 problem in October of 2000.  The prudent thing

                 to do when discovering that a mistake has been

                 made, to immediately commence payments the

                 next year irrespective of what the state aid

                 package is.

                            Number two, the administrators and

                 the superintendent made a terrible mistake for

                 the school district, and it's the taxpayers

                 that are going to suffer, irrespective of this

                 legislation that we're going to -- that's

                 going to have the burden of paying it back.

                            So I'm trying to buy them a little

                 more time, six years instead of three.  But

                 it's still a heavy hit on them.

                            SENATOR STAVISKY:    And I have one

                 last question, if the Senator will yield.

                            THE PRESIDENT:    Senator Bonacic,

                 will you yield?

                            SENATOR BONACIC:    I do.

                            THE PRESIDENT:    You may proceed,





                                                          6631



                 Senator.

                            SENATOR STAVISKY:    I'm taking a

                 look at the memo that you attached to the

                 bill.  And under "Purpose" it says to adjust

                 certain state aid payments made to the

                 Delaware Central School District.

                            SENATOR BONACIC:    No, Delhi.

                            SENATOR STAVISKY:    It's a

                 mistake, it's a typographical error?

                            SENATOR BONACIC:    Oh, I'm sorry.

                 Mine has Delhi.

                            SENATOR STAVISKY:    Okay.  Thank

                 you very much, Senator Bonacic, for your

                 patience.

                            SENATOR BONACIC:    Thank you.

                            THE PRESIDENT:    Senator Hevesi.

                            SENATOR HEVESI:    Thank you, Madam

                 President.  Would the sponsor please yield?

                            SENATOR BONACIC:    I do.

                            THE PRESIDENT:    You may proceed,

                 Senator.

                            SENATOR HEVESI:    Thank you.

                            Through you, Madam President.  I

                 just want to be clear on this, because I -

                 this is -- from what I understand from Senator





                                                          6632



                 Dollinger's questioning and your responses,

                 this really is same genre, different category

                 as Senator McGee's bill and some of the other

                 ones that we've done.

                            My question is, very simply, why

                 should the taxpayers of New York State

                 essentially give an interest-free loan of

                 $2 million to this school district when they

                 could right now go out and borrow

                 $2 million -- which is, as Senator Dollinger

                 pointed out, what they would have done had

                 they not made the mistake in the first

                 place -- and they'd pay interest on that loan?

                 Why should the taxpayers have to subsidize

                 their mistake?  I don't understand.

                            SENATOR BONACIC:    Well, is your

                 question why is it interest-free?  That's a

                 different question than the bonding question.

                            SENATOR HEVESI:    Well, I think

                 they're related, but if you want to -

                            SENATOR BONACIC:    Well, I think

                 we've had a policy, and until it changes -- we

                 have tried to help the taxpayers in school

                 districts where superintendents and

                 administrators have made mistakes and we





                                                          6633



                 didn't want to punish the taxpayers for their

                 mistakes.

                            It would be nice if we could go to

                 those superintendents, administrators, and

                 take that tax deduction out of their payroll

                 and have them pay the interest, but we don't

                 do that.  We try to run our government with a

                 little compassion, with a little heart.

                 Because when we do interest-free, we're trying

                 to help the children in that school district

                 by not bankrupting that school district.

                            And you can make an argument for

                 interest, because it was a mistake.  But we've

                 elected, as a state policy, not to do that up

                 to this point.

                            SENATOR HEVESI:    Madam President,

                 would the sponsor continue to yield?

                            SENATOR BONACIC:    I do.

                            THE PRESIDENT:    You may proceed,

                 Senator Hevesi.

                            SENATOR HEVESI:    Thank you.

                            I just -- this one is different.

                 And it's different because had they not made

                 the mistake, this school district would have

                 borrowed an additional $2 million, and they





                                                          6634



                 would be paying interest on it that the

                 taxpayers in that locality would be paying.

                            As it is, we are now, instead of

                 having them go back and borrow the money to

                 pay the interest, which is what they would

                 have had to do, we are subsidizing their

                 $2 million.  It just -- I don't know how else

                 to phrase it as a question.

                            SENATOR BONACIC:    I believe,

                 Senator, that the problem we have here is that

                 the price that the school came in was low.

                 And when you got the state money, to go out

                 and get another $2 million would be bonding

                 the project more than the market value of the

                 building.  That's one of the problems we have

                 with this particular facility.

                            SENATOR HEVESI:    Madam President,

                 would the sponsor continue to yield?

                            SENATOR BONACIC:    I do.

                            THE PRESIDENT:    Senator Bonacic

                 yields.

                            You may proceed, Senator Hevesi.

                            SENATOR HEVESI:    So you're

                 suggesting, then, that based on that cost

                 estimate, that this solution is the only





                                                          6635



                 solution that is fair and just for the

                 taxpayers in the district?

                            SENATOR BONACIC:    That's the

                 solution that they have come in a home rule

                 message.

                            Obviously, Senator Dollinger's

                 proposal is less painful.  Spread $2 million

                 over 30 years, it has a much smaller minimum

                 impact on taxpayers.  But I don't believe that

                 election was available for this school

                 district.

                            They have Delhi University in their

                 school district.  73 percent of the land in

                 that school district is tax-exempt.  So

                 there's just not a big base to go out and

                 borrow more money on top of a school facility

                 that came in a lot less in market value than

                 the money that was advanced against it.

                            That's the explanation.

                            SENATOR HEVESI:    Madam President,

                 on the bill.

                            THE PRESIDENT:    You may proceed

                 on the bill, Senator Hevesi.

                            SENATOR HEVESI:    Thank you.  I

                 thank Senator Bonacic for his explanation.





                                                          6636



                            One point before I begin speaking

                 on the bill that I'd like to make is during my

                 previous questioning with Senator McGee, I was

                 a little bit harsh in my questioning, though I

                 maintain on the substance that I was on point.

                 And I apologize to Senator McGee for that; it

                 should not be that tone.  And so I apologize

                 for that.

                            On this legislation, this bill is

                 different than Senator McGee's bill and the

                 other bills that we've done in this house.

                 And I understand what Senator Bonacic is

                 trying to do here; I just don't agree with it.

                            I think that this school district,

                 which made a mistake, should go out, borrow

                 the money and pay interest on that money.  And

                 therefore, since they have essentially gotten

                 what I believe to be an interest-free loan,

                 they are getting a benefit that they should

                 not be getting, number one.

                            And, number two, that benefit is

                 quite analogous with the benefit that the

                 Whitesville Central School District will be

                 getting if Senator McGee's bill becomes law,

                 and what all the other school districts that





                                                          6637



                 have gotten interest-free money have gotten.

                 And it's wrong.

                            And Senator Dollinger pointed

                 out -- and it's somewhat ironic that my

                 distinguished colleague from Rochester raised

                 the point, prior-year school aid claims owed

                 to the City of New York.  But that's the

                 point.  The point is that at the same time

                 we're providing interest-free money in

                 overpayments to school districts in other

                 areas of the state, New York City is owed

                 close to a billion dollars -- that's a billion

                 dollars -- in prior-year school aid claims.

                            And what's particularly galling for

                 me is that there is a law, a section of the

                 State Education Law which says that of any

                 money to be spent to repay prior-year school

                 aid claims, that only 40 percent of that money

                 make available in any one year can go to any

                 one municipality.

                            So New York City, which has

                 88 percent of the claim money in for

                 prior-year claims, can only get 40 percent of

                 whatever small amount of money is put into

                 that category every year.  And as Senator





                                                          6638



                 Dollinger rightly pointed out, when the oldest

                 of the claims age to 10 years, because of

                 accounting mechanisms they have to be written

                 off.  In my first year here in the Senate, we

                 had to do battle to get $39 million restored

                 to the budget so that we wouldn't blow a hole

                 in the Board of Ed's budget.

                            And the City doesn't recover any -

                 and all those claims from New York City are

                 legitimate claims and not mistakes that the

                 City of New York made.  Most of those

                 prior-year school aid claims come as a result

                 of a lack of computerization that resulted in

                 building aid claims not being late, but filed

                 years after they could have been had there

                 been computerization set up between the Board

                 of Ed of the City of New York and SED.

                            And so it pains me every time we

                 have a bill like this that denies the

                 taxpayers of the City of New York access to

                 their money, which could be used for

                 educational purposes.  And in the case of this

                 bill that's before us, the Delhi Central

                 School District, that's thousands of dollars

                 in interest on a $2 million-plus loan.





                                                          6639



                            In Senator McGee's case, the

                 Whitesville Central School District, $240,000,

                 we're denied any interest payments on it for

                 six years.  Earlier this year, the Greene

                 Central School District got $500,000 in an

                 interest-free loan for six years.

                            Last year, the Berkshire Falls

                 School District, $458,177 in an interest-free

                 loan, I believe for six years.  Last year,

                 Greenville School District, $343,900.

                 Schenectady, $946,808.

                 Cobleskill-Richmondville, $189,522.  Nyack

                 Union Free District, and on and on and on.

                            And that count that I just listed

                 here, it was close to $5 million over six

                 years.  How much interest is that at the going

                 rate?  It's thousands and thousands of

                 dollars, hundreds of thousands of dollars that

                 we're just denying to people who could use

                 that money, like the City of New York, which

                 is rightly owed the money and never gets paid

                 on it.

                            I mean, it's really outrageous.

                 It's really outrageous.  Not even taking into

                 consideration the fact that the City of





                                                          6640



                 New York already gets shortchanged on the

                 education runs, and a judge just told us

                 legally what we all knew and have been trying

                 to rectify for years and years.  And so we're

                 giving gifts now to other school districts.

                            And I want to help the other school

                 districts, but I don't want to do it at the

                 expense of the children in New York City.  And

                 that's how I see it.  I really don't see any

                 other way to view it.

                            And in this one particular case of

                 the bill we're speaking about here today, it's

                 a mistake not by SED, evidently, but of the

                 local school district.  And again, I'll just

                 reiterate the contention that I made earlier

                 that there need to be uniform procedures both

                 for local school districts and for SED in

                 making sure that we don't have this problem in

                 the future.

                            I'm not going to vote for this

                 bill.  I voted for Senator McGee's bill

                 because we haven't yet established whether or

                 not all bills pertaining to those types of

                 overpayments should be recovered with

                 interest.  I'm now beginning to think that





                                                          6641



                 they should be.  I still voted for that bill.

                            This bill I believe is wrong,

                 because this is essentially an interest-free

                 loan to a school district that could right now

                 go out and borrow the money and pay it back,

                 as they should.  I don't know why the

                 taxpayers of the state should have to

                 subsidize it.

                            These are two different bills

                 within the same general area.  I will support

                 Senator McGee's bill, as I did earlier, and I

                 may not support similar bills like that in the

                 future unless they have interest built in back

                 to the state.  But I cannot in good conscience

                 support Senator Bonacic's bill, though I very

                 much appreciate what he is trying to do for

                 his school district.

                            Thank you, Madam President.

                            THE PRESIDENT:    Does any other

                 member wish to be heard on this bill?

                            Then the debate is closed.

                            Read the last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            THE PRESIDENT:    Call the roll.





                                                          6642



                            (The Secretary called the roll.)

                            THE PRESIDENT:    Senator Onorato,

                 to explain your vote.

                            SENATOR ONORATO:    Madam

                 President, after hearing all of the discussion

                 here this evening on these aid to school

                 districts, I am definitely going to be voting

                 no this particular time, only because of the

                 unfairness that I have been recalling here.

                            And I think that in the future we

                 shouldn't be paying off debts for other school

                 districts before the State of New York

                 actually pays what is owed to the City of

                 New York, to the tune of $900 million.

                            We are continually subsidizing

                 other school districts, interest-free, who got

                 money that they didn't deserve, and we're not

                 paying the City of New York money that is

                 deserved and owed to them.  So in all good

                 conscience, I cannot support anything that is

                 going to continue to bring injustice to the

                 students and children of the City of New York

                 I vote no.

                            ACTING PRESIDENT MEIER:    Senator

                 Stavisky, to explain her vote.





                                                          6643



                            SENATOR STAVISKY:    Yes, Madam -

                 Mr. President.

                            ACTING PRESIDENT MEIER:    That's

                 okay, we changed quickly.

                            SENATOR STAVISKY:    I wish to be

                 recorded in the negative.

                            I too believe that this is a form

                 of welfare.  And we all agree that welfare

                 ought to be reformed, and a good place to

                 start is in that school district.

                            There is a very specific

                 distinction between this bill, Senator McGee's

                 bill, and the other bills that we have passed

                 in the last couple of weeks.  This is wrong.

                 It's wrong, and I urge all of my colleagues to

                 vote no.  Money is owed to the City of New

                 York.  $2 million would be a good start.  And

                 I just think it's wrong.

                            ACTING PRESIDENT MEIER:    Senator

                 Stavisky will be recorded in the negative.

                            Announce the results.

                            THE SECRETARY:    Those recorded in

                 the negative on Calendar Number 482 are

                 Senators Dollinger, Gentile, Hevesi,

                 Montgomery, Onorato, Paterson, and Stavisky.





                                                          6644



                 Ayes, 50.  Nays, 7.

                            ACTING PRESIDENT MEIER:    The bill

                 is passed.

                            Senator Alesi.

                            SENATOR ALESI:    Regular order.

                 Thank you, Mr. President.

                            ACTING PRESIDENT MEIER:    The

                 Secretary will read in regular order.

                            THE SECRETARY:    Calendar Number

                 489, by Member of the Assembly Vitaliano,

                 Assembly Print Number 5116, an act to amend

                 the Executive Law, in relation to designating.

                            SENATOR DOLLINGER:    Explanation,

                 please.

                            ACTING PRESIDENT MEIER:    Senator

                 Marchi, an explanation has been requested of

                 Calendar Number 489 by Senator Dollinger.

                            SENATOR MARCHI:    Well, I believe,

                 Mr. President, that a cursory examination of

                 the events that took place in Bastogne, in the

                 Ardennes, in the Belgian-Luxembourg area, will

                 commend all of you to support this

                 legislation.

                            It states very mildly that they

                 want to designate December 16 as Bastogne Day.





                                                          6645



                 And if it meant only that and we didn't take

                 into account the larger implications,

                 historical implications, of the victory that

                 the United States and the Allied powers were

                 able to gain in Bastogne, it would not be

                 enough.

                            This was a very critical area

                 coming at a most anxious moment in the history

                 of the world, one of the historic -- perhaps

                 greater than the episode at Pearl Harbor,

                 greater than almost anything in ancient

                 history.  But in terms of its impact on the

                 martial division of strength, this was

                 decisive.

                            And back in World War I, when the

                 Italian troops had overcome resistance in

                 Austria, Ludendorff buzzed off to warn,

                 notwithstanding the fact that German troops

                 were still in France, although the lines were

                 static.

                            This time the southern flank was

                 secure, and there was a titanic battle going

                 on in the east with the Russian -- advancing

                 Russian armies.  So this was a surprise

                 attack.  Nothing wrong with that, because they





                                                          6646



                 were involved in very, very high stakes.

                            But they launched this great

                 attack, and the nexus had come to Bastogne, in

                 this very critical area, where at the juncture

                 of 101st Airborne Division, maybe between

                 20,000 and 30,000 men stood before 40,000

                 German troops and against much larger forces

                 behind them.

                            And they had offered the Americans

                 the privilege of accepting a surrender to end

                 the further loss of life.  And Brigadier

                 General Anthony McAuliffe said "Nuts!"  That

                 was his response, the one response that he

                 sent back.  And it galvanized the spirit of

                 the American troops, reversed the pattern that

                 was developing.  And ultimately the Battle of

                 the Bulge became part of the history of

                 probably the demise of Europe as a major

                 factor in military adventure.

                            I know at the time I was out in the

                 Pacific, and we were besieging Okinawa, and we

                 had the heaviest loss of life ever.  But the

                 Japanese at that time were bargaining and

                 attempting to get and obtain a cessation of

                 activity.  But we insisted they had to





                                                          6647



                 surrender first.  But it would not have come

                 about.

                            We don't know what would have

                 happened if McAuliffe had not prevailed, along

                 with the brave troops of that period.  And

                 it's very important that we recognize this,

                 not only for memorializing and saying this day

                 is important -- and I believe they mention

                 December 16 as Bastogne Day -- but also in our

                 history books and in our knowledge of what

                 happened and how this was so significant in

                 the ultimate collapse of the forces that faced

                 Europe and the United States.

                            And that was the tripping stone.

                 When that happened, it was a very serious blow

                 to them, and it ultimately resulted in our

                 prevailing.

                            I know that my good friend the

                 Senator is going to speak on it somewhere

                 along the line, because he has a very lively

                 apprehension and realization of the historic

                 event of this.

                            But the bill was -- it did survive

                 the Assembly, and it's here now, and I believe

                 that we would be well-served in advancing





                                                          6648



                 this, but being fully aware of what was

                 involved and the significance it had in the

                 end of World War II and the hope it engendered

                 that we would know a period of peace from that

                 day on.

                            So there will be others, I assume,

                 that may want to speak to this.  I know

                 Senator Dollinger, we had a very exciting

                 discussion of the event.

                            And when you realize what happened

                 and what the effect has been, it explains a

                 great deal about our circumstances today.  Of

                 course we had the atomic bomb, we had a lot of

                 things happen.  But at that time it was

                 tenuous.  We didn't have that assurance, and

                 it could have gone either way.  It came just

                 within a gnat's eyelash of the defeat and the

                 slicing in half of the Allied forces in

                 Europe, the European continent, cutting across

                 the fuel lines and other areas of supply in

                 Europe from north to south.

                            So this was a very historic battle,

                 and not one that we should just adopt with a

                 casual yes, but with the hope and realization

                 that we will be sensitized to the importance





                                                          6649



                 of the event.

                            ACTING PRESIDENT MEIER:    Senator

                 Dollinger.

                            SENATOR DOLLINGER:    Thank you,

                 Mr. President.  I rise -- I'll be very brief.

                 I appreciate Senator Marchi's eloquence in

                 support of this resolution or this bill to

                 commemorate Bastogne Day.

                            And Senator Marchi couldn't be

                 clearer in his subscribing the importance, the

                 military importance and frankly the historical

                 importance of the Battle of the Bulge and the

                 great confrontation at Bastogne.

                            Because, Senator Marchi, I think

                 that this battle will be known as the last of

                 a number of critical military events that

                 occurred through eastern Europe -- or, excuse

                 me, western Europe.  It's really the final

                 battle of the Holy Roman Empire, the final

                 collision between the Gauls and the Franks,

                 with the Picts and the Scots and the Angles in

                 England and all of those forces coming

                 together, as they had on the plains of

                 northern Europe for centuries, from the

                 attempt by Charlemagne to unify the Empire,





                                                          6650



                 the Holy Roman Empire, to the collapse of that

                 empire, the battles at Agincourt and Arques,

                 certainly carrying into World War I.  The

                 entire range of military history, the clash of

                 the world's major powers occurred within a

                 200-mile radius of Bastogne.

                            This is their final battle.  It's

                 the final battle in which weather is an

                 amazing, a supreme factor -- the weather at

                 Bastogne on those December days, of course,

                 grounding the American air force.  And the

                 last great battle in which infantry will fight

                 the major portion of the battle.  Now, with

                 modern technology, of course, air support and

                 naval support has really assumed preeminence

                 in the military history.

                            It's also the end of military

                 domination in the technology.  It's the last

                 great battle fought with European technology,

                 the tank and the airplane.  Of course, the

                 focus of military technology shifts after this

                 battle in the United States with the

                 development of intercontinental ballistic

                 missiles, Trident submarines, and other forms

                 of delivering the devastating weapons that we





                                                          6651



                 now use in warfare.

                            The Battle of the Bulge and

                 Bastogne is also a tremendous testament to

                 America's organizational strength.  I'm always

                 reminded, Senator Marchi, that between June 6,

                 1944, a day in which there was no Allied troop

                 in Europe, six months later, on December 16,

                 when the counteroffensive occurred, there were

                 1.9 million American and Allied troops in

                 Europe.  10,000 men a day came from England or

                 from the United States to Europe to fight.

                 Think of the organizational effort that that

                 required -- from lawyers, from doctors, from

                 nurses, the whole gamut of Americans that

                 participated in this great battle.

                            The last point I would just make,

                 Senator Marchi, is in why this should be

                 commemorated.  It's really the end of the era

                 of the great land battles.  Now we fight

                 battles in terms of strategic supremacy around

                 the globe.  The weapons that we fight with are

                 no longer pointed at people across a trench,

                 they're now pointed at nations across oceans

                 because of the advance of our technology.

                            And I would just conclude my





                                                          6652



                 remarks on this battle by saying there are two

                 American cemeteries in Belgium that honor the

                 9,000 men and women who died in the Battle of

                 the Bulge.  They are part of America's soil a

                 long ways away.  And I would just suggest that

                 by commemorating this, we recognize that there

                 are New Yorkers who gave their lives in this

                 last great battle for European supremacy.

                            Now, as the supreme power in this

                 world, we carry the responsibility to make

                 sure that those battles and the terrible cost

                 that they extracted do not occur again.  It

                 means that we must be strong, we must be

                 decisive.  All those characteristics that

                 American troops exhibited at Bastogne, we have

                 to be as a nation.

                            And I would just strongly suggest

                 this is a tremendous testament to New Yorkers,

                 a tremendous testament to what I hope will be

                 the last great battle in which carnage of that

                 nature carries on.  It is now our

                 responsibility to avoid the next Bastogne.

                            And by making it a day of

                 commemoration, we maybe consign forever the

                 notion that men will kill each other in an





                                                          6653



                 attempt to gain political advantage and

                 instead will talk about those issues and try

                 to resolve and maybe even bring Europe

                 together through discussion rather than by

                 gunpoint.

                            I'll vote in favor, Mr. President.

                            ACTING PRESIDENT MEIER:    Does any

                 other member wish to be heard on the bill?

                            Hearing none, debate is closed.

                            Read the last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MEIER:    Call the

                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 58.

                            ACTING PRESIDENT MEIER:    The bill

                 is passed.

                            The Secretary will continue to read

                 in regular order.

                            THE SECRETARY:    Calendar Number

                 492, by Senator Stafford, Senate Print 3760,

                 an act to amend -

                            ACTING PRESIDENT MEIER:    Senator

                 Alesi.





                                                          6654



                            SENATOR ALESI:    Mr. President,

                 will you lay this bill aside for the day.

                            ACTING PRESIDENT MEIER:    Lay the

                 bill aside for the day.

                            SENATOR ALESI:    Mr. President,

                 would you go to Calendar 400 and lay that bill

                 aside for the day as well.

                            ACTING PRESIDENT MEIER:    Calendar

                 Number 400 will be laid aside for the day.

                            SENATOR ALESI:    And then proceed

                 to Calendar 516.

                            ACTING PRESIDENT MEIER:    The

                 Secretary will read Calendar 516.

                            THE SECRETARY:    Calendar Number

                 516, by Senator Marcellino, Senate Print

                 2836A, an act to amend the Vehicle and Traffic

                 Law, in relation to increasing penalties.

                            SENATOR STACHOWSKI:    Explanation.

                            ACTING PRESIDENT MEIER:    Senator

                 Marcellino, an explanation has been requested

                 of Calendar 516 by Senator Stachowski.

                            SENATOR MARCELLINO:    Thank you,

                 Mr. President.

                            This bill increases penalties for

                 the first and subsequent convictions for





                                                          6655



                 leaving the scene of an accident resulting in

                 personal injury or resulting in serious

                 personal injury or death.

                            Leaving the scene of an accident

                 resulting in personal injury or serious

                 personal injury is, as we all know, a grave

                 crime.  During this time when such an accident

                 goes unreported, the people injured at the

                 scene could become more seriously injured or

                 even die as a result of the lack of reporting.

                            This bill will bring the penalties

                 for leaving the scene of an accident more in

                 parity with those of vehicular assault or

                 vehicular manslaughter.  Under the current

                 law, for example, an intoxicated driver

                 causing an accident faces a more severe

                 charge -- second degree manslaughter, a Class

                 D felony -- than if the person left the scene

                 and sobered up, which would only be a Class E

                 felony.

                            This bill obviates the problems

                 with the current law, which in essence reward

                 an intoxicated driver for fleeing the scene.

                 In fact, they actually encourage him to do so.

                            ACTING PRESIDENT MEIER:    Senator





                                                          6656



                 Stachowski.

                            SENATOR STACHOWSKI:    Mr.

                 President, if Senator Marcellino would yield

                 for a few questions.

                            ACTING PRESIDENT MEIER:    Senator,

                 do you yield?

                            SENATOR MARCELLINO:    Surely.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR STACHOWSKI:    Thank you.

                            Through you, Mr. President.

                 Senator, I know you said this will bring this

                 in line with current law for vehicular

                 manslaughter and vehicular assault.  What is

                 the difference in the penalties?  I'm just

                 curious.

                            SENATOR MARCELLINO:    Well, for

                 example, in this particular case the -- let me

                 just check and make sure I got it all correct.

                            We would be raising -- for a

                 serious personal injury, we would be raising

                 it from an E to a D felony.  And for physical

                 injury, from a Class B to a Class A

                 misdemeanor.  And in the case of the

                 misdemeanor section, where it's physical





                                                          6657



                 injury, if you did it a second time, it would

                 come up to a Class E felony.

                            So we're basically upping the

                 penalties on all levels.

                            ACTING PRESIDENT MEIER:    Senator

                 Stachowski.

                            SENATOR STACHOWSKI:    Mr.

                 President, if Senator Marcellino would

                 continue to yield.

                            ACTING PRESIDENT MEIER:    Senator

                 Marcellino, do you continue to yield?

                            SENATOR MARCELLINO:    Surely.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR STACHOWSKI:    This bill

                 has been introduced every year since '93-'94,

                 and it passes the Senate every year and dies

                 in the Assembly.  Is there any way that we can

                 make this bill more acceptable so that it will

                 pass the Assembly, or is it just a matter of

                 because you're increasing the penalties that

                 the Assembly just doesn't seem to want to deal

                 with it?

                            SENATOR MARCELLINO:    I thank the

                 Senator for the softball, but I'm going to try





                                                          6658



                 not to hit it too hard.

                            The bill is carried in the other

                 house by Assemblyman Harvey Weisenberg.

                 Harvey is an Assemblyman of long standing and

                 seniority and is well-respected.  He's carried

                 this bill each and every year.  He can't get

                 it out of committee in the other house.

                            I've asked many times is there any

                 way we could talk about it, discuss it.  There

                 is no discussion coming from the other side.

                 We can't seem to bring them to the table, we

                 can't seem to get a response, the answer is

                 simply no.

                            SENATOR STACHOWSKI:    On the bill.

                            ACTING PRESIDENT MEIER:    Senator

                 Stachowski, on the bill.

                            SENATOR STACHOWSKI:    Mr.

                 President, I've voted for this bill every year

                 that it's been brought up.  I'm going to vote

                 for it again.

                            And I hope that somehow Assemblyman

                 Weisenberg finds a way to jar it loose, so to

                 speak, from the committee that it finds itself

                 stuck in, and maybe this year we can do

                 something about increasing the penalties for





                                                          6659



                 somebody that leaves the scene of the accident

                 with injuries in particular, because it leaves

                 the injured party at a terrible predicament

                 and sometimes causes death.

                            Thank you, Mr. President.

                            ACTING PRESIDENT MEIER:    Senator

                 Rath.

                            SENATOR RATH:    Thank you, Mr.

                 President.

                            Not to belabor the point, there was

                 a circumstance in my district that was exactly

                 what this bill is speaking to.  We call the

                 bill hit, run, and hide, because that's

                 exactly what happened.

                            The perpetrator, the man who was

                 driving the vehicle that killed the man in the

                 road, went home and did not announce until

                 three days later that it was indeed him who

                 had hit the gentleman who had died at the side

                 of the road.

                            And so to increase the penalties

                 for this kind of a circumstance and to

                 foreclose the possibility of the loopholes is

                 one of the most appropriate things that we can

                 do.  Because to hit, run, and hide is not





                                                          6660



                 something that this state can countenance.

                            And I applaud Senator Marcellino

                 for his leadership on the bill and am happy to

                 be a cosponsor.

                            ACTING PRESIDENT MEIER:    Senator

                 Stachowski.

                            SENATOR STACHOWSKI:    Mr.

                 President, would Senator Rath yield for a

                 question?

                            ACTING PRESIDENT MEIER:    Senator

                 Rath, do you yield?

                            SENATOR RATH:    Surely.

                            ACTING PRESIDENT MEIER:    Senator

                 Rath yields.

                            SENATOR STACHOWSKI:    Senator

                 Rath, I seem to recall that incident and the

                 story.  But can you correct me if I'm wrong?

                 Wasn't that individual an attorney, a lawyer?

                 The driver, I mean.

                            SENATOR RATH:    Yes, he was.  The

                 driver was an attorney, which makes it even

                 more of a frightening circumstance, because

                 someone who is sworn to uphold the law, to

                 manipulate the law that way was just without

                 its double in my recollection of seriously





                                                          6661



                 deviant behavior, let's call it.

                            SENATOR STACHOWSKI:    If the

                 Senator would yield for one more question.

                            ACTING PRESIDENT MEIER:    Senator

                 Rath, do you continue to yield.

                            SENATOR RATH:    My colleague from

                 Erie County, how could I not yield to my old

                 friend Billy Stack.

                            ACTING PRESIDENT MEIER:    Well,

                 you could.  But I'm willing to bet that you

                 won't.

                            (Laughter.)

                            ACTING PRESIDENT MEIER:    So

                 Senator Rath yields.

                            SENATOR RATH:    You'll have to

                 forgive me, Mr. President.

                            SENATOR STACHOWSKI:    Senator, I

                 think that -- and I don't want to put words in

                 the President's mouth or ideas in his head.  I

                 think just the lawyers are getting a little

                 edgy on this conversation.

                            But, Mr. President, through you,

                 isn't that particular lawyer also now trying

                 to get his license to practice back at this

                 current time, or something of that nature, if





                                                          6662



                 I'm not mistaken?

                            SENATOR RATH:    You're correct, he

                 was attempting to.  I believe it has been

                 denied.  And I think that that's a perfectly

                 appropriate action to happen to someone who is

                 manipulating what should be a sworn-to

                 circumstance of his life, to uphold the law.

                            SENATOR STACHOWSKI:    Thank you,

                 Senator.  Thank you, Mr. President.

                            ACTING PRESIDENT MEIER:    Does any

                 other member wish to be heard on this bill?

                            Hearing none, debate is closed.

                            Read the last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MEIER:    Call the

                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 58.

                            ACTING PRESIDENT MEIER:    The bill

                 is passed.

                            THE SECRETARY:    Calendar Number

                 519, by Senator Skelos, Senate Print 3357, an

                 act to amend the Public Authorities Law, in

                 relation to authorizing.





                                                          6663



                            SENATOR PATERSON:    Explanation.

                            ACTING PRESIDENT MEIER:    Senator

                 Skelos, an explanation has been requested by

                 Senator Paterson.

                            SENATOR SKELOS:    Thank you very

                 much, Mr. President.  The sole purpose of this

                 legislation is to allow the Atlantic Beach

                 Fire District to lease for up to a 30-year

                 period a vacant parcel of property owned by

                 the Nassau County Bridge Authority, located on

                 the southeast side of the Atlantic Beach

                 Bridge, for the express purpose of

                 constructing a building to be used by its

                 rescue squad.

                            This legislation merely changes the

                 lease period from 20 to 30 years.  It's

                 supported by the Atlantic Beach Fire District,

                 the Nassau County Bridge Authority, the

                 Village of Atlantic Beach.  And we have a home

                 rule message by the Nassau County Legislature.

                            ACTING PRESIDENT MEIER:    Senator

                 Hassell-Thompson.

                            SENATOR HASSELL-THOMPSON:    Thank

                 you, Mr. President.  If the Senator will

                 yield.





                                                          6664



                            ACTING PRESIDENT MEIER:    Senator

                 Skelos, do you yield?

                            SENATOR SKELOS:    Yes.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR HASSELL-THOMPSON:    Thank

                 you, Senator.

                            Through you, Mr. President, just a

                 couple of questions.  The sponsor's memorandum

                 refers to the fact that the Nassau County

                 Bridge Authority needs this lease extender for

                 the purpose of constructing this facility to

                 be used by the Atlantic Beach squad, but

                 there's no reference to that in the bill.

                            My question is, what other projects

                 will qualify under this bill?

                            SENATOR SKELOS:    Well, it would

                 be any other -- first of all, this is the only

                 intended project at this time.  They have not

                 requested any other project.

                            If they did come up with any other

                 project, it would have to be approved by the

                 Nassau County Legislature.

                            SENATOR HASSELL-THOMPSON:

                 Through you, Mr. President, if the Senator





                                                          6665



                 would continue to yield.

                            ACTING PRESIDENT MEIER:    Senator

                 Skelos, do you continue to yield?

                            SENATOR SKELOS:    Yes.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR HASSELL-THOMPSON:    So

                 that each project, then, that could possibly

                 qualify would have to come back before the

                 Legislature for approval.

                            SENATOR SKELOS:    Yes.

                            SENATOR HASSELL-THOMPSON:    If the

                 Senator would continue to yield.

                            ACTING PRESIDENT MEIER:    Senator

                 Skelos, do you yield?

                            SENATOR SKELOS:    Yes, I do.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR HASSELL-THOMPSON:    Thank

                 you, Senator.

                            Is there anyone in the Nassau

                 County Legislature that has any objection to

                 the construction of this facility?

                            SENATOR SKELOS:    Is there any -

                            SENATOR HASSELL-THOMPSON:    Any





                                                          6666



                 objection or opposition.

                            SENATOR SKELOS:    Not that I know

                 of.  I mean, it's -- we have letters in

                 support from the Village of Atlantic Beach,

                 the Nassau County Bridge Authority, the

                 Atlantic Beach Fire District.  And the Nassau

                 County Legislature has sent us a home rule

                 message that was adopted unanimously.

                            SENATOR HASSELL-THOMPSON:    If the

                 Senator will continue to yield, just two more

                 quick questions.

                            ACTING PRESIDENT MEIER:    Senator

                 Skelos, do you yield?

                            SENATOR SKELOS:    Yes, Mr.

                 President.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR HASSELL-THOMPSON:    Thank

                 you, Senator.

                            I have read your sponsor's

                 memorandum and I have a sense, but I would

                 appreciate if you would just give me a little

                 bit more information as to what in fact the

                 Atlantic Beach Rescue Squad is going to do

                 with this project that's going to be on this





                                                          6667



                 facility.

                            SENATOR SKELOS:    Well, really

                 what they're doing is they're going to build a

                 new facility in order to rescue people that

                 are drowning.

                            SENATOR HASSELL-THOMPSON:    Is

                 this a "Baywatch" kind of thing?

                            SENATOR SKELOS:    Well, not

                 exactly "Baywatch."  We could work on that.

                            (Laughter.)

                            SENATOR SKELOS:    But the men and

                 women of the Atlantic Beach Rescue Squad do a

                 wonderful job in patrolling not only the area

                 that leads out into the Rockaways through the

                 Rockaway Inlet, but also the ocean area.  And

                 many times you have vessels or boats that are

                 disabled, people that perhaps are caught in a

                 drift and pulled out to either the ocean or

                 towards the ocean.

                            And they are situated in such a

                 spot, by the Atlantic Beach Bridge, where they

                 are available to rescue these individuals.

                 And I believe they have roughly 150 of these

                 rescue calls a year.

                            SENATOR HASSELL-THOMPSON:    Okay.





                                                          6668



                 Then you just answered my last question, what

                 was the rationale for this extension.

                            Thank you, Senator.  Thank you, Mr.

                 President.

                            ACTING PRESIDENT MEIER:    Does any

                 other member wish to be heard on this bill?

                            Hearing none, debate is closed.

                            Read the last section.

                            THE SECRETARY:    Section 5.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MEIER:    Call the

                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 58.

                            ACTING PRESIDENT MEIER:    The bill

                 is passed.

                            THE SECRETARY:    Calendar Number

                 520, by Senator Kuhl, Senate Print 4388, an

                 act to amend the Vehicle and Traffic Law, in

                 relation to exempting.

                            SENATOR PATERSON:    Explanation.

                            SENATOR LACHMAN:    Explanation,

                 please.

                            ACTING PRESIDENT MEIER:    Senator

                 Kuhl, an explanation has been requested of





                                                          6669



                 Calendar 520 by Senator Paterson.

                            SENATOR KUHL:    Thank you, Mr.

                 President.

                            This bill has a very isolated

                 application.  Several years ago, in the wisdom

                 this Legislature, the wisdom of then the

                 Governor of the State of New York, we mandated

                 that all children who ride bicycles under the

                 age of 14 wear helmets.

                            At that time we put into conflict

                 some children whose religious tenets require

                 them to wear headdress.  And so this bill

                 would just simply allow these people who in

                 fact are required and expected to wear some

                 head cover, as a continuance and following of

                 their religious beliefs, in a position where

                 they do not and are not required to wear

                 helmets.

                            ACTING PRESIDENT MEIER:    Senator

                 Lachman.

                            SENATOR LACHMAN:    Yes.  Through

                 you, Mr. President, will the sponsor of the

                 legislation yield for a question or two?

                            ACTING PRESIDENT MEIER:    Senator

                 Kuhl, do you yield to a question from Senator





                                                          6670



                 Lachman?

                            SENATOR KUHL:    Certainly.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR LACHMAN:    Senator Kuhl,

                 this impacts upon, I believe, a few hundred or

                 thousand members of the Old Mennonite faith in

                 your community?

                            SENATOR KUHL:    The number I'm not

                 certain about at this point because the

                 community seems to be growing because of a

                 variety of different reasons.  And

                 predominantly located in Yates County, which

                 is part of my Senate district.  But that's

                 correct.

                            SENATOR LACHMAN:    Mr. President,

                 will the Senator continue to yield?

                            ACTING PRESIDENT MEIER:    Senator

                 Kuhl, do you continue to yield?

                            SENATOR KUHL:    Yes.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR LACHMAN:    Senator Kuhl,

                 the wearing of black hats to the Mennonites is

                 similar to the wearing of black hats of the





                                                          6671



                 Amish or of the Hasidim in New York City; is

                 that correct?  It's part of their religious

                 tenets?

                            SENATOR KUHL:    I believe that's

                 correct.

                            SENATOR LACHMAN:    Thank you,

                 Senator Kuhl.

                            Mr. President, on the bill.

                            ACTING PRESIDENT MEIER:    Senator

                 Lachman, on the bill.

                            SENATOR LACHMAN:    This bill is a

                 very intriguing and very interesting bill, and

                 it does have two sides to it.  It involves the

                 issue of safety and security, which we all

                 want to have for our children, but it involves

                 in my mind an even greater issue, which is the

                 separation of church and state.

                            Now, America's greatest

                 contribution to world religion, in my opinion,

                 has been the separation of church and state.

                 America has been a veritable greenhouse for

                 the birth and growth of religions, from the

                 Disciples of Christ to the Mormons to the

                 Christian Scientists, and our two largest

                 Protestant denominations -- which, though born





                                                          6672



                 in Britain, really grew in America -- and

                 those are the Baptists and the Methodists.

                            Here we have a small religious

                 group.  They're in a sense related to -- you

                 can say religiously they're cousins of the

                 Amish.  The difference is the Amish cannot use

                 electrical or mechanical facilities the way

                 the Old Mennonites can.  But in other ways,

                 they're very similar.

                            In 1972 there was a U.S. Supreme

                 Court decision called Yoder versus Wisconsin.

                 And in this decision there was an important

                 group of people coming together.  It was a

                 nonpartisan decision.  It involved then Chief

                 Justice Burger, who was a moderate

                 conservative, and the flaming liberal of the

                 U.S. Supreme Court, Justice Brennan.

                            And they held, in the case

                 involving the Amish where the Amish refused to

                 obey the law of the State of Wisconsin that

                 insisted that their children after the eighth

                 grade attend public school, the U.S. Supreme

                 Court, in a near unanimous decision, ruled

                 that because of the First Amendment, they will

                 permit in this nation that the Amish community





                                                          6673



                 not attend public school beyond the eighth

                 grade because it would be an infringement upon

                 their religious rights.

                            Now, some of us don't realize -

                 most of us do, especially in this chamber -

                 that the First Amendment involves two major

                 provisions.  One is Congress shall make no law

                 in regard to an establishment of religion.

                 And the second is that Congress nor this

                 nation shall prohibit the free exercise

                 thereof.

                            As in the case with the Amish, if

                 they were forced to send their children to a

                 public high school, it would be in violation

                 of their free exercise thereof of the First

                 Amendment.  Similarly, in this situation,

                 which is not education, but vehicular

                 traffic -- and safety, I admit -- I say that

                 if one prohibits the small Mennonite community

                 in Senator Kuhl's district from wearing their

                 black hats, it's an infringement on their

                 religious rights.

                            And all of us in this chamber are

                 members of religious minorities.  And we have

                 to sensitize ourselves to the needs of other





                                                          6674



                 minorities, even in western/northern New York

                 State, where Senator Kuhl comes from, and even

                 if it only involves a few hundred members of

                 the Old Mennonites.

                            So if I have to choose between the

                 safety issue and the freedom of religions

                 issue and the First Amendment issue, I

                 strongly support Senator Kuhl's legislation on

                 the basis of the First Amendment.

                            Thank you.

                            ACTING PRESIDENT MEIER:    Senator

                 Montgomery.

                            SENATOR MONTGOMERY:    Yes, Mr.

                 President.  I rise to oppose this legislation.

                            And I do that because while I

                 certainly agree with my colleague's strong

                 opinion as it relates to freedom of religion,

                 I think that we have an obligation to protect

                 every single child in our state.  And I just

                 do not accept that the religious issue should

                 lead us to eliminate certain protections that

                 we know are important for children who are in

                 fact too young to make that decision for

                 themselves.

                            So while I absolutely respect a





                                                          6675



                 person's right to their own religious belief,

                 I think that I am equally concerned that every

                 single child in our state should be protected.

                 And therefore, I am going to vote against this

                 bill -- not because I'm against anyone's

                 religion, including my own, but I am

                 absolutely opposed to removing protections

                 from children because of religious principles.

                            I vote no.

                            ACTING PRESIDENT MEIER:    Senator

                 Hevesi.

                            SENATOR HEVESI:    Thank you, Madam

                 President.  Would the sponsor yield?

                            ACTING PRESIDENT MEIER:    Senator

                 Kuhl, do you yield for a question from Senator

                 Hevesi?

                            SENATOR KUHL:    Be happy to.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR HEVESI:    Thank you.

                            I have a practical question,

                 because I'm concerned, as Senator Montgomery

                 is, and I may wind up voting no on this bill,

                 though I voted yes for it last year.

                            It is not possible in the Mennonite





                                                          6676



                 community to either wear a helmet under the

                 hat or wear a helmet over the hat?  Is that -

                 why is that a practical impossibility?

                            SENATOR KUHL:    Well, Senator, if

                 you were to see the garments that the

                 Mennonites use, whether they're bonnets or

                 hats, they're very wide-brimmed.  And to

                 properly cover that, you'd have to have a

                 helmet that was probably two feet across,

                 which would make it totally impossible.

                 Certainly a person would be totally top-heavy.

                 But there is no way -- and they're very high

                 hats.

                            SENATOR HEVESI:    Madam President,

                 would the sponsor continue to yield?  Mr.

                 President.

                            ACTING PRESIDENT MEIER:    Thank

                 you for noticing.  And -

                            SENATOR HEVESI:    With all due

                 respect.

                            ACTING PRESIDENT MEIER:    Senator

                 Kuhl, do you yield for another question from

                 Senator Hevesi?

                            SENATOR KUHL:    I'd be happy to.

                            ACTING PRESIDENT MEIER:    The





                                                          6677



                 sponsor yields.

                            SENATOR HEVESI:    Thank you.

                            In the Jewish religion, for

                 example, on Yom Kippur, the holiest day on the

                 Jewish calendar, where observant Jews are

                 supposed to fast, if that observant Jew is

                 sick or elderly or would otherwise have their

                 health in some way compromised, they are

                 entitled to eat.

                            Is there nothing in the Mennonite

                 religion that would provide an exemption for

                 the requirement that they wear the headdress

                 if wearing the headdress would compromise

                 their safety?

                            SENATOR KUHL:    Not that I'm aware

                 of, Senator.

                            SENATOR HEVESI:    Mr. President,

                 one final question for the sponsor.

                            ACTING PRESIDENT MEIER:    Senator

                 Kuhl, do you yield for a final question?

                            SENATOR KUHL:    Yes.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR HEVESI:    If someone in

                 the Mennonite community came to us and





                                                          6678



                 suggested that they should also be exempt from

                 the requirement of wearing a helmet while

                 riding a motorcycle, would you support that?

                            SENATOR KUHL:    No -- well,

                 actually, I probably would, Senator, because I

                 don't happen to believe currently that people

                 should be required to wear motorcycle helmets.

                 I support the ABATE group in removal of those.

                 I think that's another abuse.  But that has

                 nothing to do with this situation.

                            As you may know, the Mennonites and

                 the Amish, depending on what order you are,

                 really don't -- are not inclined to use

                 mechanized vehicles.  About the only vehicle I

                 ever see them utilize is a tractor, which

                 they're not allowed to have rubber tires on.

                 They don't go on the normal roads.  So I don't

                 think that you would ever see anybody who was

                 practicing the faith, as these people are,

                 requiring them to wear actually hats and

                 bonnets, to actually ever purchase or much

                 less ride a motorcycle.

                            SENATOR HEVESI:    Thank you.  One

                 final question, Mr. President, if the sponsor

                 would continue to yield.





                                                          6679



                            ACTING PRESIDENT MEIER:    Senator

                 Kuhl, do you continue to yield?

                            SENATOR KUHL:    I take it that

                 this is a follow-up to the final question?

                            I'd be happy to yield.

                            ACTING PRESIDENT MEIER:    This is

                 the penultimate.

                            SENATOR HEVESI:    I'm having

                 difficulty with the concept of finality.  This

                 will be the last question.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR HEVESI:    Thank you.

                            Is it currently legal in New York

                 State, if an individual has as one of his or

                 her religious beliefs that they cannot have

                 their blood transfused, if that individual is

                 in need of a blood transfusion, for a doctor

                 to fail to perform the transfusion on that

                 individual, thereby respecting his religious

                 belief?  Is that legal in New York State?

                            SENATOR KUHL:    I can't speak to

                 that, Senator.  I don't know the answer to

                 that question.

                            SENATOR HEVESI:    Thank you.





                                                          6680



                            On the bill, Mr. President.

                            ACTING PRESIDENT MEIER:    Senator

                 Hevesi, on the bill.

                            SENATOR HEVESI:    I voted for this

                 bill last year, but I don't remember that

                 there was a big discussion about it last year.

                            I'm going to vote against it today.

                 Because though I do believe that we have to

                 respect religion in many, many different ways,

                 when it comes to the safety of an individual,

                 particularly somebody who can't render

                 decisions for themselves, I believe that

                 that's where the line gets drawn in our

                 country.

                            And in this particular instance, I

                 can almost guarantee that some child will be

                 riding a bicycle without a helmet in the

                 Mennonite community and be more severely

                 injured than he would have been were he

                 wearing a helmet.

                            And for that reason and that reason

                 alone, I believe that the safety of a child -

                 or any person, for that matter -- comes ahead

                 of respecting an individual's religious

                 beliefs.  Just in the same way that we decided





                                                          6681



                 in New York State that individuals don't have

                 a right to hurt themselves by failing to wear

                 a seat belt and we require that of all of our

                 citizens, and it is illegal to commit suicide,

                 government has to draw a line somewhere.  And

                 where children are concerned, that's of more

                 paramount concern, in my view, than is their

                 religious beliefs.

                            And I would respectfully request

                 that somebody approach the Mennonite community

                 and ask them, in a very similar way to the

                 exemptions that are often made in other

                 religions, such as the one that I articulated,

                 whether an exemption could be made in this

                 case that respects the health and safety and

                 protects the child -- that that wouldn't, in

                 the eyes of the religion, do something counter

                 to the religious beliefs of that community.

                            I think that that should be

                 explored by the leaders in that community,

                 assuming that there is not a strict

                 fundamentalist interpretation of some text

                 which would absolutely preclude that.  In the

                 absence of that, I can't vote in good

                 conscience, because I know some kid is going





                                                          6682



                 to get badly hurt not wearing a helmet.

                            I vote no.

                            ACTING PRESIDENT MEIER:    Senator

                 Kuhl.

                            SENATOR KUHL:    Thank you, Mr.

                 President.  Just briefly on the bill.

                            Senator Hevesi, I'm disappointed

                 you decided to take that position, because I

                 think that you're not thinking about the other

                 side of the argument.  And you weren't here

                 when the law was passed that required young

                 people who were under 14 to wear helmets.

                            You should know that if you were to

                 drive throughout the Mennonite community, you

                 would not see any helmets on these children.

                 Their parents and themselves have made the

                 decision not to wear them.  So in essence,

                 what the Legislature did was, 14 or 10 years

                 ago, whenever that was done, was it made

                 criminals of them.

                            Now, I have not seen any statements

                 and have not heard of one bicycle accident in

                 which any Mennonite child has been killed as a

                 result of not wearing a helmet.  As a matter

                 of fact, we don't read about accidents because





                                                          6683



                 they don't have them.  They're their means,

                 their mechanism for transportation back and

                 forth from their church to their home.  They

                 don't ride around needlessly, aimlessly at

                 night or whatever.  They're very well

                 protected by their parents, by their family.

                            And so what you are doing by

                 continuing to vote no is you're saying to

                 these kids, we know better than you, number

                 one; you should discard your religion, number

                 two; and, number three, you're entitled to be

                 a criminal simply because you do not wear a

                 helmet.

                            I think that's wrong, and that's

                 why we've asked for the exemption.

                            ACTING PRESIDENT MEIER:    Any

                 other member wish to be heard on the bill?

                            Hearing none, debate is closed.

                            Read the last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MEIER:    Call the

                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Senator





                                                          6684



                 Marcellino, to explain his vote.

                            SENATOR MARCELLINO:    Yes, Mr.

                 President.  I'm going to vote yes on this

                 bill, because I believe, like what Senator

                 Lachman stated before very eloquently, there

                 is a separation between church and state.

                            And we have no right to judge

                 another person's religion or faith.  We have

                 absolutely no right to do that.  That's the

                 slippery slope to making a religion subject to

                 all kinds of laws; therefore, you have no

                 religion.  Any religious belief we do not

                 approve of in Albany is automatically struck

                 down for whatever very good reason we can come

                 up with.

                            Mr. President, that's a bad, bad

                 precedent to set.  I vote aye.

                            ACTING PRESIDENT MEIER:    Senator

                 Marcellino will be recorded in the

                 affirmative.

                            The Secretary will announce the

                 results.

                            THE SECRETARY:    Those recorded in

                 the negative on Calendar Number 520 are

                 Senators Hevesi, Libous, Montgomery, and





                                                          6685



                 Stachowski.  Ayes, 54.  Nays, 4.

                            ACTING PRESIDENT MEIER:    The bill

                 is passed.

                            THE SECRETARY:    Calendar Number

                 532, by Senator Rath, Senate Print 1453, an

                 act to amend the Public Authorities Law and

                 Chapter 579 of the Laws of 1999.

                            SENATOR PATERSON:    Explanation.

                            ACTING PRESIDENT MEIER:    Senator

                 Rath, an explanation has been requested of

                 Calendar 532 by Senator Paterson.

                            SENATOR RATH:    Yes, Mr.

                 President.  This bill is a very simple bill.

                 It's just expanding the authority of the

                 Monroe County Water Authority to take title to

                 lands in Genesee County, in furtherance of the

                 agreements that the Monroe County Water

                 Authority has had for the last year or two

                 with Genesee County to develop the countywide

                 water system in Genesee County.

                            SENATOR PATERSON:    Thank you.

                            ACTING PRESIDENT MEIER:    Any

                 other member wish to be heard on the bill?

                            Hearing none, debate is closed.

                            Read the last section.





                                                          6686



                            THE SECRETARY:    Section 4.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MEIER:    Call the

                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 57.  Nays,

                 1.  Senator Padavan recorded in the negative.

                            ACTING PRESIDENT MEIER:    The bill

                 is passed.

                            Senator Alesi.

                            SENATOR ALESI:    Mr. President, is

                 there any housekeeping at the desk?

                            ACTING PRESIDENT MEIER:    We have

                 one motion, I believe, Senator.

                            Senator Libous.

                            SENATOR LIBOUS:    Mr. President,

                 on behalf of Senator Leibell, on page 40 I

                 offer the following amendments to Calendar

                 Number 436, Senate Print Number 3297, and ask

                 that said bill retain its place on the Third

                 Reading Calendar.

                            ACTING PRESIDENT MEIER:    The

                 amendments are received and adopted, and the

                 bill will retain its place on the Third

                 Reading Calendar.





                                                          6687



                            Senator Alesi.

                            SENATOR ALESI:    Mr. President,

                 would you recognize Senator Dollinger, please.

                            ACTING PRESIDENT MEIER:    Senator

                 Dollinger.

                            SENATOR DOLLINGER:    Thank you,

                 Senator Alesi.

                            I hereby give written notice, Mr.

                 President, pursuant to Rule XI, that I will

                 move the Senate for an amendment to the Rules

                 to create ethical standards for the members,

                 officers, and employees of the New York State

                 Senate.  I ask that that be recorded in the

                 Journal, Mr. President.

                            ACTING PRESIDENT MEIER:    That is

                 at the desk and it will be recorded in the

                 Journal.

                            Senator Alesi.

                            SENATOR ALESI:    Mr. President,

                 there being no further business, I move we

                 adjourn until Tuesday, May 8th, at 3 o'clock

                 p.m.

                            ACTING PRESIDENT MEIER:    On

                 motion, the Senate stands adjourned until

                 Tuesday, May 8th, at 3:00 p.m.





                                                          6688



                            SENATOR PATERSON:    Mr. President.

                            ACTING PRESIDENT MEIER:    Senator

                 Paterson.

                            SENATOR PATERSON:    Can we delay

                 the proceedings just a moment for me to

                 announce a conference of the Minority to be

                 tomorrow afternoon at 2 o'clock Eastern

                 Daylight Time, in Room 314, the Minority

                 Conference Room.

                            ACTING PRESIDENT MEIER:

                 Conference of the Minority, tomorrow at

                 2:00 p.m. in the Minority Conference Room.

                            The Senate stands adjourned until

                 Tuesday, May 8th, at 3:00 p.m.

                            (Whereupon, at 5:28 p.m., the

                 Senate adjourned.)