Regular Session - May 16, 2001

                                                              7382



                           NEW YORK STATE SENATE





                          THE STENOGRAPHIC RECORD









                             ALBANY, NEW YORK

                               May 16, 2001

                                11:21 a.m.





                              REGULAR SESSION







                 LT. GOVERNOR MARY O. DONOHUE, President

                 STEVEN M. BOGGESS, Secretary

















                                                          7383



                           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:    In the absence of

                 clergy, may we each bow our heads in a moment

                 of silence.

                            (Whereupon, the assemblage

                 respected a moment of silence.)

                            THE PRESIDENT:    Reading of the

                 Journal.

                            THE SECRETARY:    In Senate,

                 Tuesday, May 15, the Senate met pursuant to

                 adjournment.  The Journal of Monday, May 14,

                 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.





                                                          7384



                            Messages from the Governor.

                            Reports of standing committees.

                            Reports of select committees.

                            Communications and reports from

                 state officers.

                            Motions and resolutions.

                            Senator Skelos.

                            SENATOR SKELOS:    Madam President,

                 if we could take up Resolution Number 1756, by

                 Senator Libous, have it read in its entirety,

                 and move for its immediate adoption.

                            THE PRESIDENT:    The Secretary

                 will read Resolution Number 1756 in its

                 entirety.

                            THE SECRETARY:    By Senator

                 Libous, Legislative Resolution Number 1756,

                 memorializing Governor George E. Pataki to

                 proclaim Wednesday, May 16, 2001, as

                 Legislative Disability Awareness Day in the

                 New York State.

                            "WHEREAS, The New York State Senate

                 Select Committee on the Disabled, in

                 conjunction with the New York State Assembly

                 Legislative Task Force on People with

                 Disabilities, is sponsoring the 21st Annual





                                                          7385



                 Legislative Disability Awareness Day in

                 Albany, New York; and

                            "WHEREAS, Television actress Ashley

                 Wolfe will be the special guest at the 21st

                 Annual Legislative Disability Awareness Day.

                 Recently starring in the CBS made-for-TV movie

                 'Jewel,' Ashley will join in the celebration

                 in hopes of inspiring other people with

                 disabilities to pursue their dreams; and

                            "WHEREAS, In addition, a technology

                 fair will be held with exhibitors from across

                 the state displaying their programs; and

                            "WHEREAS, It is the sense of this

                 Legislative Body that persons with

                 disabilities merit our recognition as they

                 realize the goals of inclusion and equality in

                 our communities and society at large; and

                            "WHEREAS, It is the intent of this

                 Legislative Body to recognize persons with

                 disabilities, accentuating, in turn, the

                 benefit to New York State of their

                 contributions to our economic, educational and

                 social growth; and

                            "WHEREAS, Legislative Disability

                 Awareness Day so clearly labors for the





                                                          7386



                 positive and salutary definition of the

                 communities of the State of New York; and

                            "WHEREAS, Legislative Disability

                 Awareness Day will conclude with this

                 Legislative Body considering legislation

                 significant to persons with disabilities; and

                            "WHEREAS, Legislative Disability

                 Awareness Day provides individuals with an

                 opportunity to acknowledge and understand the

                 legislative process; now, therefore, be it

                            "RESOLVED, That this Legislative

                 Body pause in its deliberations to memorialize

                 Governor George E. Pataki to proclaim

                 Wednesday, May 16, 2001, as Legislative

                 Disability Awareness Day in the State of

                 New York, fully confident that such procedure

                 mirrors our shared commitment to the

                 efflorescence of human dignity; and be it

                 further

                            "RESOLVED, That copies of this

                 resolution, suitably engrossed, be transmitted

                 to the Honorable George E. Pataki, Governor of

                 the State of New York, and selected

                 representatives of persons with disabilities."

                            THE PRESIDENT:    The question is





                                                          7387



                 on the resolution.  All in favor signify by

                 saying aye.

                            (Response of "Aye.")

                            THE PRESIDENT:    Opposed, nay.

                            (No response.)

                            THE PRESIDENT:    The resolution is

                 adopted.

                            Senator Skelos.

                            SENATOR SKELOS:    Madam President,

                 if we could take up Resolution 1755, by

                 Senator Libous, have it read in its entirety,

                 and move for its immediate adoption.

                            THE PRESIDENT:    The Secretary

                 will read in its entirety Resolution Number

                 1755.

                            THE SECRETARY:    By Senator

                 Libous, Legislative Resolution Number 1755,

                 honoring Ashley Wolfe upon the occasion of her

                 designation as Guest of Honor at the 21st

                 Annual Legislative Disability Awareness Day,

                 May 16, 2001.

                            "WHEREAS, It is the intent of this

                 Legislative Body to recognize and pay just

                 tribute to those citizens who embody the true

                 American spirit, demonstrating personal





                                                          7388



                 courage and conviction in pursuit of acting

                 achievement without regard to physical

                 limitation; and

                            "WHEREAS, The 21st Annual

                 Legislative Disability Awareness Day provides

                 individuals with an opportunity to acknowledge

                 and understand the needs and abilities of

                 people with disabilities throughout New York

                 State; and

                            "WHEREAS, This Legislative Body is

                 justly proud to honor 22-year-old Ashley Wolfe

                 upon the occasion of her designation as Guest

                 of Honor at the 21st Annual Legislative

                 Disability Awareness Day, to be held on

                 Wednesday, May 16, 2001, in Albany, New York;

                 and

                            "WHEREAS, A native of Simsbury,

                 Connecticut, Ashley Wolfe's aspiration has

                 always been to work in the performing arts;

                 and

                            "WHEREAS, Today, Ashley Wolfe, who

                 is afflicted with Down Syndrome, is an

                 actress, an inspirational public speaker, a

                 former gold medalist swimmer in the Special

                 Olympics, and a dancer; and





                                                          7389



                            "WHEREAS, Ashley Wolfe is also a

                 2000 graduate of Lesley College in Boston,

                 Massachusetts, with a major in business.  She

                 is a library assistant in the Somerville

                 Public Library, and a volunteer at the

                 Massachusetts General Eye and Ear Hospital in

                 Boston; and

                            "WHEREAS, Ashley Wolfe is the

                 loving daughter of Dr. Stanton and Nancy

                 Wolfe.  Her father is an oral surgeon with the

                 Connecticut Department of Public Health, and

                 her mother is the managing director of the

                 Center for Creative Youth at Wesleyan

                 University, as well as Ashley's acting coach.

                 She also has an older sister, Rebecca; and

                            "WHEREAS, Ashley Wolfe recently

                 starred in the CBS made-for-TV movie 'Jewel.'

                 She has also appeared in NBC's 'Third Watch';

                 and

                            "WHEREAS, Unwilling to accept the

                 limitations that society would have put on

                 her, Ashley Wolfe is a compelling and

                 provocative speaker who forces audiences to

                 question and confront their own assumptions

                 and prejudices; and





                                                          7390



                            "WHEREAS, It is the sense of this

                 Legislative Body to recognize and applaud the

                 achievements of its citizens who would elect

                 to challenge life with an uncommon valor and

                 determination, demonstrating by example and

                 purposeful action that commitment to personal

                 goals is the wellspring of self-fulfillment

                 and achievement; now, therefore, be it

                            "RESOLVED, That this Legislative

                 Body pause in its deliberations to honor

                 Ashley Wolfe upon the occasion of her

                 designation as Guest of Honor at the 21st

                 Annual Legislative Disability Awareness Day,

                 May 16, 2001, and be it further

                            "RESOLVED, That a copy of this

                 Resolution, suitably engrossed, be transmitted

                 to Ashley Wolfe."

                            THE PRESIDENT:    Senator Libous.

                            SENATOR LIBOUS:    Thank you, Madam

                 President.

                            As read in both resolutions, today

                 is the 21st Annual Legislative Disability

                 Awareness Day.  And I'd like to thank all of

                 my colleagues here in this chamber who have

                 participated and will participate throughout





                                                          7391



                 the day.

                            And we will have a number of

                 exhibitors -- there are well over 40

                 exhibitors that are down in the well.  These

                 exhibitors have grown over the years.  We

                 started out, I think, a number of years ago

                 with only five.  They are basically showing

                 and helping, through technology, people with

                 disabilities.

                            And I would like to, Madam

                 President, say thank you to Senator

                 DeFrancisco, who has seven exhibitors here

                 that are teaching people with disabilities

                 with new technology through the Internet and a

                 number of electronic devices.  So, Senator,

                 thank you for your participation in making it

                 a success.

                            And I would ask that my colleagues,

                 during or after session, please go downstairs

                 and visit the various booths.

                            Madam President, over past years we

                 have been very blessed and honored to have

                 some outstanding citizens from our state and

                 from outside of our state who are advocates

                 for people with disabilities.  This year is no





                                                          7392



                 different.  Serving as the chairman for ten

                 years on the Select Committee for the

                 Disabled, it is an honor for me to stand here

                 today with our guest and honoree, Ashley

                 Wolfe.

                            Ashley Wolfe gave a very inspiring

                 speech this morning in the Well to a number of

                 people that were there.  She talked about her

                 life, she talked about the difficulties that

                 she has gone through.  But yet, going through

                 all of those difficulties, she would come up,

                 as she gave her speech, with a smile.  And

                 that smile means that she broke every one of

                 those barriers, those barriers that tend to be

                 put on people who are disabled.  Ashley has

                 not let that stop her.

                            In the resolution, we read that she

                 is an actress.  And indeed, Madam President,

                 she an actress, and she performed with stars

                 like Farrah Fawcett and Cicely Tyson in the

                 movie "Jewel."

                            And if my colleagues have not had

                 the opportunity to see that movie, I would ask

                 that you take some time out this weekend and

                 rent it.  Not only did Ashley do an





                                                          7393



                 outstanding job, but it tells a little bit

                 more about why this chamber needs to continue

                 to do for more people with disabilities.

                            She not only is an actress, as

                 mentioned, she is an inspirational speaker.

                 She gave a great speech this morning.  And

                 she's a gold medal winner in the Special

                 Olympics, for swimming.

                            She also works at Harvard.  She

                 works at Harvard in the employment office.

                 And she told me this morning that she has

                 found that to be extremely rewarding, that she

                 can continue to help people there at the

                 university.

                            And, Ashley, from what short time

                 I've had with you today, I am sure that you

                 have been able to spread some great cheer and

                 knowledge and hope and inspiration to people

                 that you work with there.

                            Despite all that she has gone

                 through in her own personal life, she

                 continues to be an advocate.  Born with Down

                 Syndrome, Ashley has broken every barrier,

                 every stereotype that could have set her back.

                 She is indeed an inspiration to every one of





                                                          7394



                 us here in this chamber, she's an inspiration

                 to every New Yorker.

                            And I am just pleased and honored

                 that she could share some of her day with us

                 as we continue in this legislative body to

                 move forward in New York State as it pertains

                 to people with both mental and physical

                 disabilities.

                            Ashley, later today we will be

                 passing a number of pieces of legislation that

                 will assist you when you go out and speak to

                 various groups, that will assist people with

                 disabilities as we continue to follow your

                 lead in breaking down those barriers.

                            Madam President, Ashley is joined

                 today by her family.  And I too would like to

                 recognize in the gallery her mom and dad, her

                 grandmother and grandfather, her cousin and

                 her aunt.  And they are indeed a family that

                 is very, very inspirational.  I have enjoyed

                 my time with them this morning.

                            I only wish that this busy place

                 would allow us to spend more time.  But when

                 we conclude today, Ashley will then be honored

                 by our colleagues in the Assembly.





                                                          7395



                            So, Ashley, thank you for joining

                 us today.  Thank you for what you have done

                 for people with disabilities.  And thank you

                 for the inspiration that you give us as

                 legislators so that we can continue to fight

                 on everyone's behalf.  Thank you.

                            (Applause.)

                            THE PRESIDENT:    The question is

                 on the resolution.  All those in favor signify

                 by saying aye.

                            (Response of "Aye.")

                            THE PRESIDENT:    Opposed, nay.

                            (No response.)

                            THE PRESIDENT:    The resolution is

                 adopted.

                            And as president of the Senate, on

                 behalf of the Senate, Ashley, I want to

                 congratulate you and state that you are an

                 example and an education to each of us of the

                 inspiration of the individual.  And what you

                 have accomplished in your short life is

                 definitely a model for each and every one of

                 us in our daily lives.

                            Congratulations and best wishes for

                 continued success.





                                                          7396



                            (Applause.)

                            THE PRESIDENT:    Senator Skelos.

                            SENATOR SKELOS:    Madam President,

                 there's a privileged resolution at the desk by

                 Senator DeFrancisco.  I ask that the title be

                 read and move for its immediate adoption.

                            THE PRESIDENT:    The Secretary

                 will read.

                            THE SECRETARY:    By Senator

                 DeFrancisco, Legislative Resolution Number

                 1876, honoring the students of Ms. Lutwin's

                 First Grade Class at Lemoyne Elementary

                 School, in Syracuse, for their participation

                 in the "Good News! Good Kids!" Youth

                 Responsibility Program.

                            SENATOR DeFRANCISCO:    Thank you,

                 Madam President.

                            THE PRESIDENT:    Senator

                 DeFrancisco, you're welcome.

                            SENATOR DeFRANCISCO:    I'm very

                 honored today to have a class of students from

                 Lemoyne Elementary School who are being

                 honored as part of our "Good News! Good Kids!"

                 program.  And basically what that does is

                 recognize good kids who are doing good things





                                                          7397



                 in our communities, unlike those that normally

                 get reported in the papers, the bad things.

                            And these students, there's 21

                 elementary students.  Ms. Sally Ann Lutwin is

                 the person that's responsible for monitoring

                 this program.  And basically, what they did in

                 their school was obtain used eyeglasses -

                 now, these are 6- and 7-year-old children.

                 They got letters to the newspaper, they went

                 to the other classes in their school to obtain

                 used glasses so they could be used by those

                 who did not have glasses and those that had

                 seeing and eyesight problems, which is kind of

                 appropriate today, on Disability Awareness

                 Day.

                            So I want to let the world know

                 that in my district and all of your districts

                 there are good kids out there doing good

                 things.  I'm happy to honor them today.

                            And, coincidentally, today we have

                 another class from Roberts School, a group of

                 kids from another elementary school here today

                 visiting.  And I'm sure they will be

                 participating in that program next year.

                            So congratulations.





                                                          7398



                            (Applause.)

                            THE PRESIDENT:    The question is

                 on the resolution.  All in favor signify by

                 saying aye.

                            (Response of "Aye.")

                            THE PRESIDENT:    Opposed, nay.

                            (No response.)

                            THE PRESIDENT:    The resolution is

                 adopted.

                            Senator Skelos.

                            SENATOR SKELOS:    Madam President,

                 there's a privileged resolution at the desk by

                 Senator Nozzolio.  I ask that the title be

                 read and move for its immediate adoption.

                            THE PRESIDENT:    The Secretary

                 will read.

                            THE SECRETARY:    By Senator

                 Nozzolio, Legislative Resolution Number 1877,

                 honoring Arvo Efraimson upon the occasion of

                 his designation by the Seneca County Office

                 for the Aging as the recipient of the Senior

                 Citizen of the Year Award on May 18, 2001.

                            THE PRESIDENT:    The question is

                 on the resolution.  All in favor signify by

                 saying aye.





                                                          7399



                            (Response of "Aye.")

                            THE PRESIDENT:    Opposed, nay.

                            (No response.)

                            THE PRESIDENT:    The resolution is

                 adopted.

                            Senator Skelos.

                            SENATOR SKELOS:    Madam President,

                 there's a privileged resolution at the desk by

                 Senator Saland.  I ask that the title be read

                 and move for its immediate adoption.

                            THE PRESIDENT:    The Secretary

                 will read.

                            THE SECRETARY:    By Senator

                 Saland, Legislative Resolution Number 1892,

                 honoring Reverend Monsignor Dominick J.

                 Lagonegro, Pastor, St. Columba Catholic

                 Church, upon the occasion of his designation

                 for special recognition on May 22, 2001.

                            THE PRESIDENT:    The question is

                 on the resolution.  All in favor signify by

                 saying aye.

                            (Response of "Aye.")

                            THE PRESIDENT:    Opposed, nay.

                            (No response.)

                            THE PRESIDENT:    The resolution is





                                                          7400



                 adopted.

                            Senator Skelos.

                            SENATOR SKELOS:    Madam President,

                 if we could go to the calendar.  And we'll

                 just start controversial, with Calendar Number

                 309, by Senator Libous.

                            THE PRESIDENT:    The Secretary

                 will read the controversial calendar.

                            THE SECRETARY:    Calendar Number

                 309, by Senator Libous, Senate Print 3577, an

                 act to amend the Mental Hygiene Law, in

                 relation to directing the State Commission on

                 Quality of Care.

                            SENATOR PATERSON:    Explanation.

                            THE PRESIDENT:    Senator Libous,

                 an explanation has been requested.

                            SENATOR LIBOUS:    Can we lay that

                 aside temporarily.

                            SENATOR SKELOS:    Madam President,

                 please lay that aside temporarily.

                            THE PRESIDENT:    The bill is laid

                 aside temporarily.

                            SENATOR SKELOS:    Madam President,

                 if we could take up Calendar Number 477, by

                 Senator LaValle.





                                                          7401



                            THE PRESIDENT:    The Secretary

                 will read Calendar Number 477.

                            THE SECRETARY:    Calendar Number

                 477, by Senator LaValle, Senate Print 2761, an

                 act to amend the Education Law, in relation to

                 the return transportation of students.

                            SENATOR PATERSON:    Explanation.

                            THE PRESIDENT:    Senator LaValle,

                 an explanation has been requested.

                            SENATOR LAVALLE:    Thank you,

                 Madam President.

                            Senator Paterson, I'd first like to

                 start by thanking Senator Kuhl, as chairman of

                 our Education Committee, and the members of

                 the Education Committee for their affirmative

                 votes to move this bill to the floor.

                            I would also like to thank Senator

                 Johnson and Senator Skelos, Senator Velella

                 and Senator Volker for their help in ensuring

                 that this bill is before us.

                            And also, Madam President, I would

                 like to thank Robert and Karen Pace, who are

                 here today in the gallery.  Without their help

                 and their support, the provisions as they are

                 drafted would not be before us.





                                                          7402



                            Imagine finding out that your only

                 son's death could have been prevented.  Then

                 imagine finding out that the people to whom

                 you entrusted your child abandoned him in his

                 most desperate hour of need.  Then imagine

                 that those people were your child's teachers

                 and school officials.  As unbelievable as this

                 sounds, this situation has happened and

                 resulted in the death of a child.

                            Although common sense dictates that

                 school officials should never leave a child

                 behind on a school-sponsored field trip, there

                 is no statute or regulation addressing this

                 issue.

                            Situations where a student must be

                 left behind on a field trip typically involve

                 cases where a student has been arrested or

                 needs medical attention.  While school

                 district officials cannot act in the place of

                 a parent in terms of asserting or waiving a

                 student's legal rights or even to make

                 health-care decisions for the student,

                 students should not be left alone in stressful

                 circumstances.  Often the stress of these

                 situations can cause a student to act





                                                          7403



                 impulsively and cause additional harm to

                 themselves.

                            The bill that we have before us

                 would prevent students from being left behind

                 on a field trip without appropriate

                 supervision and will ensure that they are

                 never left alone in a moment of need.

                            The genesis of this bill is found

                 in the most tragic story of Robert Pace, Jr.,

                 a high school senior in the Riverhead school

                 district.  Robert Pace was a college-bound

                 honor student and a varsity athlete who went

                 on a class trip to Great Adventure Amusement

                 Park in New Jersey with 81 other Riverhead

                 students on April 14th in the year 2000.

                 Great Adventure has a zero-tolerance policy

                 about drugs.  Consequently, when park security

                 searched Robert's backpack, they found small

                 amounts of various controlled substances.  He

                 was first detained by park security and then

                 arrested by the local police.

                            No school official accompanied

                 Robert to the police station, and the incident

                 was not reported to school officials in

                 Riverhead until later that afternoon.  I





                                                          7404



                 believe several hours intervened from the time

                 he left the Great Adventure park until the

                 school district's involvement.

                            At 18, Robert was legally an adult,

                 not being legally required to contact his

                 parents.

                            The local authorities processed him

                 and released him on his own recognizance in

                 lieu of bail.  The police even expedited the

                 process so Robert could return home with his

                 classmates on the bus.  School officials,

                 however, phoned the police from Riverhead and

                 told them that they did not want Robert going

                 back on the bus with the other students.

                            By the time school officials had

                 reached Robert's parents, Robert had already

                 set off on his own, apparently contemplating

                 the consequences of his arrest.

                            No one really knows how he got to

                 Manhattan.  Police think he probably rode a

                 New Jersey Transit bus.  At Penn Station, he

                 boarded a Long Island Railroad train to

                 Ronkonkoma.  He made it all the way to

                 Bethpage before deciding he could go no

                 further.





                                                          7405



                            "Please tell anyone who ever knew

                 me that I am sorry for letting them down,"

                 read the note that he left behind on his seat.

                 Then he jumped between the two cars to his

                 death.

                            This tragedy could have been

                 avoided if Robert was not left alone in a

                 situation he was not equipped to handle.

                            As part of our due diligence that

                 we did after drafting the bill, we contacted

                 the Department of Education and asked whether

                 there is a need for the department to put

                 forth regulations instructing school districts

                 as to their responsibilities.  Alternatively,

                 the department was asked if there already were

                 regulations in place and is there a need for

                 said regulations to be reviewed and perhaps

                 tightened.

                            The Commissioner of the Department

                 of Education, Commissioner Mills, had the

                 Office of Facilities Management and

                 Information Services review the current

                 regulations surrounding transportation as well

                 as the bill.  And based upon that review, the

                 commissioner recommended that the most





                                                          7406



                 effective way to put these requirements in

                 place would be through legislative changes

                 that are recommended in this bill.  There were

                 no recommendations for any change to the

                 legislation before us.

                            I have some 3,000 signatures on the

                 part of the residents who live in the

                 Riverhead school district.  And the only

                 memorandum in opposition is from the New York

                 State School Boards Association.  In that

                 legislative memorandum, just to take a piece,

                 it says:  "School districts have a duty and an

                 obligation to exercise care of all students on

                 a field trip, as any prudent parent would.

                 However, this legislation addresses a rare

                 occurrence and could compromise the interests

                 of the majority of students on a trip by

                 depriving them of a chaperone."

                            Colleagues, I would say to you that

                 I began my professional career as a teacher

                 and a school administrator.  While being a

                 school administrator, I had that dreadful call

                 that you receive when a group goes off on a

                 field trip, that there was a student left

                 behind at the Museum of Natural History.





                                                          7407



                            The first thing that -- without

                 checking the school bylaws or regulations,

                 first thing, call the parent.  There was a

                 chaperone with the student.  How should we

                 proceed?  The parent then directed us on how

                 to proceed so that the child would be returned

                 safely.  Albeit that was a case of an

                 elementary school student and not a high

                 school student.

                            As many of you know, it's

                 well-rooted in Education Law that school

                 officials step into the shoes of the parent.

                 And so it is an awesome responsibility every

                 day that teachers and school administrators

                 take upon themselves to ensure that the most

                 precious thing that a parent has, their

                 children, once they set off to school, are

                 returned safely.

                            It's a basic principle.  And when a

                 parent signs a permission slip, it is assumed

                 that that student will be returned back to the

                 school or back to the parent safely.

                            This legislation amends several

                 sections of law as you look through the bill.

                 And it amends, beginning with the first





                                                          7408



                 section, the common school district section,

                 then the union free school district section of

                 law, central school district, central high

                 school district, BOCES, city school district,

                 and New York City school district boards,

                 community school district boards.

                            And what we say, as is drafted here

                 in the legislation, is that where a school

                 provides transportation to students who attend

                 a field trip or extracurricular activity or

                 any other similar event, it shall provide

                 transportation back to either the point of

                 departure or to the appropriate school in the

                 district, unless -- and this is the part that

                 involves the Pace case -- unless intervening

                 circumstances makes such transportation

                 impractical.

                            In cases where intervening

                 circumstances make transportation of a student

                 back to the point of departure or to the

                 appropriate school in the district

                 impractical, a representative of the school

                 district shall remain with the student until

                 such student's parent or legal guardian has

                 been contacted and informed of that





                                                          7409



                 intervening circumstance which makes the

                 transportation impractical and then such

                 student has been delivered to his or her

                 parent or legal guardian.

                            As I said, this is a commonsense

                 and basic approach.  There's nothing fancy

                 about this legislation.  It is very direct.

                 And it addresses situations that happen not on

                 occasion, but I would say, if I took a guess

                 and looked into my crystal ball, it happens

                 half a dozen to a dozen times every year in

                 our more than 700 school districts where

                 there's some intervening situation, a student

                 is left behind, there's a medical emergency,

                 or even a student is detained by the

                 authorities.

                            And so, again, I thank the

                 Education Committee for reporting this bill

                 for our consideration, and I would hope that

                 it is legislation, colleagues, that we could

                 support.

                            THE PRESIDENT:    Senator

                 Hassell-Thompson.

                            SENATOR HASSELL-THOMPSON:    Thank

                 you, Madam President.  I won't ask the Senator





                                                          7410



                 to yield, because I think that he has done an

                 excellent job.

                            THE PRESIDENT:    Senator, will you

                 yield?

                            SENATOR HASSELL-THOMPSON:    No, he

                 has done an excellent job in answering my

                 questions.  I'd like to speak on the bill.

                            THE PRESIDENT:    You may proceed

                 on the bill, Senator.

                            SENATOR HASSELL-THOMPSON:    Thank

                 you, Madam President.

                            It is just unfortunate to the

                 parents, particularly Robert and Karen Pace,

                 that it has taken common sense, Senator, for

                 us to have to legislate common behavior.  But

                 I am finding that sense is not as common as we

                 think it to be.

                            I think the language of your bill

                 expresses the concerns that I would have, and

                 certainly of any parent.  We have an

                 obligation, when our schools take our children

                 on trips, to ensure to us their safe return.

                 I commend you and the work of the Education

                 Committee and the bravery of these parents in

                 coming forward and trying to ensure that this





                                                          7411



                 kind of situation does not happen to any of

                 our other children.

                            Thank you, Madam President.

                            THE PRESIDENT:    Senator

                 Dollinger.

                            SENATOR DOLLINGER:    Thank you,

                 Madam President.  Will the sponsor yield just

                 to one question?

                            THE PRESIDENT:    Senator, will you

                 yield?

                            SENATOR LAVALLE:    Yes.

                            THE PRESIDENT:    You may proceed.

                            SENATOR DOLLINGER:    Senator

                 LaValle, what impact does this bill have on

                 the following situation?  That my son,

                 actually, who is 17 years old, he is a member

                 of a lacrosse team.  He goes to school, he

                 then drives himself to the away game, and he

                 drives himself home.

                            Does the school district have any

                 responsibility to provide a mandatory

                 transport with the team kind of policy, or

                 does it eliminate that option of driving

                 yourself when you reach that age where you can

                 drive your own car back and forth?





                                                          7412



                            Is it your intention to require

                 school districts, for an extracurricular event

                 like a lacrosse game, where they drive to an

                 away site, that they have an obligation to

                 drive them there and to deliver the whole team

                 back?

                            SENATOR LAVALLE:    Senator, the

                 key here is that you as the parent are in

                 control of what methodology and by what means

                 your son will be returned back to the place

                 that he departed from.  So if that is by

                 automobile, and you have given permission,

                 then that is the appropriate methodology of

                 transportation back to the school.

                            We don't -- as you can see from the

                 bill, Senator, we talk about transportation.

                 It's not defined.  It doesn't say a bus, it

                 doesn't say a train, it doesn't say a car.  We

                 leave that open to how that student is brought

                 back.  Because a student may leave on a school

                 bus but would have to come home by maybe a

                 car, a train.

                            But the key is that the parent is

                 in control of how that happens, as it should

                 be.





                                                          7413



                            SENATOR DOLLINGER:    Through you,

                 Madam President, if Senator LaValle would just

                 yield to one other question.

                            SENATOR LAVALLE:    Yes.

                            THE PRESIDENT:    The Senator does

                 yield.  You may proceed, Senator Dollinger.

                            SENATOR DOLLINGER:    So just for

                 purposes of the record, Senator LaValle, if a

                 school district faces this issue, we're not

                 saying to the school districts of this state

                 that you must transport everybody there and

                 must transport everybody home.

                            This is not a mandate that they

                 actually do the transportation, it's a mandate

                 that they have the transportation available to

                 the child or the young adult; is that correct?

                            SENATOR LAVALLE:    In the first

                 part of the bill, we talk about the

                 transportation back.

                            The second part of the bill,

                 Senator, there has to be some sort of

                 intervening circumstance.  It is at that point

                 that the school district must inform the

                 parent, must make a telephone call.  There

                 must be some sort of dialogue between the





                                                          7414



                 parent.

                            And at that point the parent may

                 say, Yeah, you can escort him back on the

                 train, you can escort him back in your car,

                 you can escort him back by local bus.

                            So as you read this, Senator, you

                 can see that we didn't want to tie the hands

                 of the local school district.

                            SENATOR DOLLINGER:    Just briefly

                 on the bill, Madam President.

                            THE PRESIDENT:    You may proceed

                 on the bill, Senator Dollinger.

                            SENATOR DOLLINGER:    I'm going to

                 vote in favor of this bill, Madam President,

                 and I would urge its adoption by the house.

                            I think that the terrible tragedy

                 that Senator LaValle has described should not

                 be repeated anywhere in this state or, for

                 that matter, anywhere in this country.  And

                 I'm not opposed to the notion of putting a

                 mandate on the school district that says when

                 a child leaves your facility in your custody,

                 you have an obligation to bring that child

                 back.

                            However, I would suggest to Senator





                                                          7415



                 LaValle, if this does end up in discussion

                 between the two houses, you might think of an

                 amendment to this bill that clarifies that in

                 instances in which the parents have made

                 alternative proposals for transportation for

                 the child, that the school district's

                 obligation under this portion of the statute

                 may not be suspended, but it is nonetheless

                 modified.

                            And that what the school district

                 should do is have a policy in place that says

                 we will provide transportation to and from

                 off-site extracurriculars, and we are going to

                 assume that your child, when he gets on the

                 bus, is coming home on the bus.  And we will

                 only make a departure from that requirement in

                 the event that the parent gives express

                 direction to the school district, either

                 through the school district contacting them

                 affirmatively or through a permission note -

                 which Lord knows I've signed hundreds of -- a

                 permission note that says my child is

                 permitted to drive home from the event in my

                 family's car or in someone else's car.

                            I agree with the intention of this





                                                          7416



                 bill.  And I'm only afraid, Senator LaValle,

                 that it may be broadly interpreted by the

                 school districts to eliminate that other

                 option of people taking -- especially as they

                 do in my son's case, who is 17 years old and

                 has an automobile and he drives himself back

                 and forth.

                            And with that caveat, I would just

                 refer it, if it does end up in discussions

                 between the two houses, to put some provision

                 or perhaps allow the commissioner to devise a

                 regulation to implement it along that line,

                 which is the other alternative.

                            But the concept is the right one.

                 When we say to our school districts, as every

                 parent does, this is my child, I'm putting

                 that child in your custody, we can assume, we

                 should be able to assume, we should be able to

                 rely on the fact that our child will not be

                 left behind.

                            And my strong voice of sympathy

                 goes out to this family, as the father of a

                 17-year-old son, that this tragedy should not

                 be repeated ever again.

                            THE PRESIDENT:    Senator





                                                          7417



                 Montgomery.

                            SENATOR MONTGOMERY:    Yes, Madam

                 President.  Would the sponsor, Senator

                 LaValle, yield for one question?

                            SENATOR LAVALLE:    Yes.

                            SENATOR MONTGOMERY:    Yes, Senator

                 LaValle, in the legislation you say that

                 the -- a school district personnel.  And I'm

                 just wondering if that also includes the

                 possibility of a person who is accompanying

                 the group other than a school district

                 representative.

                            SENATOR LAVALLE:    The answer is

                 yes, Senator.  That would be a chaperone who

                 is part of the trip or a teacher or school

                 administrator.  But it would definitely

                 include the chaperones that volunteer to

                 accompany a trip.

                            SENATOR MONTGOMERY:    Okay.  Thank

                 you.

                            Madam President, I would just like

                 to speak on the bill.

                            THE PRESIDENT:    You may proceed

                 on the bill, Senator Montgomery.

                            SENATOR MONTGOMERY:    Yes, I think





                                                          7418



                 this is a very good bill.  It's common sense,

                 Senator Hassell-Thompson has said.  And it

                 truly represents, I think, Senator LaValle's

                 interest in protecting young people.  So I'm

                 happy to support it.

                            I do, however -- I'm moved by the

                 story that Senator LaValle has told.  This

                 young man, who apparently is bright, he is

                 very capable, he was able to get himself from

                 a strange place in New Jersey all the way back

                 to Long Island.

                            But unfortunately, because the

                 society that we have is so unforgiving of

                 indiscretions that are typical for young

                 people, because he felt this pressure that he

                 could not live with the sanctions that he

                 would have to face as a young person who had

                 made a mistake -- there was nothing in your

                 story to indicate that this young man was a

                 criminal.  He made a mistake.

                            And he couldn't live with the

                 possibility that he would be viewed as perhaps

                 having let his parents down, having

                 embarrassed his school, having done something

                 so terrible that he had to commit suicide.  It





                                                          7419



                 is very, very tragic.

                            So, Senator LaValle, I fully

                 support this legislation.  It's good.  But I

                 also remind my colleagues that the young man

                 who committed suicide, apparently because of

                 this incident, I think is a very, very

                 important incident for us to consider when we

                 talk about what to do with young people and

                 when we understand the destruction that is

                 imposed on our young people because of the way

                 we deal with them, especially as it relates to

                 this horrible thing called drugs.

                            So, Senator LaValle, I support the

                 legislation and I hope that we can also

                 address the other end of this story, which is

                 what happens to young people when they make a

                 mistake in society.

                            Thank you, Madam President.

                            THE PRESIDENT:    Senator Paterson.

                            SENATOR PATERSON:    Madam

                 President, on the bill.  I was going to ask -

                            THE PRESIDENT:    You may proceed

                 on the bill, Senator Paterson.

                            SENATOR PATERSON:    Thank you.

                            THE PRESIDENT:    You're welcome.





                                                          7420



                            SENATOR PATERSON:    I was going to

                 ask the same question that Senator Montgomery

                 did relating to other personnel who accompany

                 the classes, particularly in the primary and

                 elementary schools, whether they could

                 represent the school by staying with the

                 student in a health-care emergency or some

                 kind of law enforcement intervention.  And

                 that answer was substantially responded to and

                 satisfied by Senator LaValle's answer.

                            But I was very touched by the

                 things that Senator Montgomery said.  It's

                 frustrating as a lawmaker sometimes when you

                 wish you had put this law on the books before,

                 before this terrible incident had happened.

                 But I guess nobody thought of it, no one

                 really would have ever surmised that the type

                 of lack of judgment that was taken in this

                 case was something that we'd have to mandate.

                            Or just think that we understand,

                 as I think it was Senator Fuschillo said

                 yesterday, that the school bus really connotes

                 the beginning of school, that when students

                 get on the school bus we have to see them as

                 in the dominion and control of school





                                                          7421



                 authorities at that point, even before they

                 get to the schoolhouse.

                            And of course from the very

                 inception of our educational system in this

                 country, the real primary purpose of education

                 in those days, or of schools, was custodial,

                 that the hands of school authorities are the

                 custodial hands, they take the place in loco

                 parentis at that particular time.  And we

                 would think that they would think as parents

                 rather than as public officials or whatever it

                 is that they thought they were in this

                 particular case.

                            And so when we look at this piece

                 of legislation, excellently crafted by Senator

                 LaValle, we hope that it will spare someone

                 from this type of a tragedy.  And it reminds

                 us that school officials should take that

                 jurisdiction over students even when they've

                 reached the age of majority.  They still came

                 to school, they were legally in the control of

                 the school, and the school should have acted

                 that way.

                            And just to close, I think Senator

                 Montgomery reminds us that the times when





                                                          7422



                 things are difficult for students, those

                 moments when a student or a young person is in

                 need of some kind of advice or counseling, or

                 for someone to have just said one or two words

                 that would have distracted them from feeling

                 that the world came to an end because of an

                 incident that could have been forgiven and

                 forgotten long ago, that somebody should have

                 been there.

                            And I just want to thank Senator

                 LaValle, because maybe his efforts and those

                 who supported him will have someone there for

                 the next young person who feels that pain and

                 that anguish and has someone there to tell

                 them that everything in the end will be all

                 right.

                            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 9.  This

                 act shall take effect immediately.

                            THE PRESIDENT:    Call the roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 56.





                                                          7423



                            THE PRESIDENT:    The bill is

                 passed.

                            Senator Skelos.

                            SENATOR SKELOS:    Madam President,

                 if we could go back to Calendar Number 309, by

                 Senator Libous.

                            THE PRESIDENT:    The Secretary

                 will read Calendar Number 309.

                            Senator Skelos.

                            SENATOR SKELOS:    Madam President,

                 before we start, there will be an immediate

                 meeting of the Higher Education Committee in

                 the Majority Conference Room.

                            THE PRESIDENT:    There will be an

                 immediate meeting of the Higher Education

                 Committee in the Majority Conference Room.

                            The Secretary will read.

                            THE SECRETARY:    Calendar Number

                 309, by Senator Libous, Senate Print 3577, an

                 act to amend the Mental Hygiene Law, in

                 relation to directing the State Commission on

                 Quality of Care.

                            SENATOR PATERSON:    Explanation,

                 please.

                            SENATOR SCHNEIDERMAN:





                                                          7424



                 Explanation.

                            THE PRESIDENT:    Senator Libous,

                 an explanation has been requested.

                            SENATOR LIBOUS:    Thank you, Madam

                 President.

                            This bill would take the Commission

                 on the Blind and the Visually Handicapped and

                 put them under the supervision of the

                 Commission on Quality of Care.  Right now,

                 under current statute, they fall under the

                 Office of Children and Family Services.

                            And if you look at the structure of

                 what the Commission on Quality of Care does,

                 or CQC, and how the Commission on the Blind

                 and Visually Handicapped really doesn't fit

                 being supervised or reviewed by the Office of

                 Children and Family Services.  So this would

                 move it to CQC.

                            THE PRESIDENT:    Does any other

                 member wish to be heard on this bill?

                            Senator Paterson.

                            SENATOR PATERSON:    Senator, would

                 you be willing to tell us a little more

                 specifically why the commission doesn't fit

                 with the Office of Children and Family





                                                          7425



                 Services?  I would assume because many of the

                 people served by the commission are actually

                 adults.

                            SENATOR LIBOUS:    Yes, Madam

                 President, I'd be happy to talk about that.

                            And I misspoke on one item.  They

                 would still be within the Department of

                 Children and Family Services, but they would

                 be reviewed by the Commission on Quality of

                 Care.  So I apologize, Madam President, and to

                 Senator Paterson.

                            And if, Madam President, Senator

                 Paterson could ask that question one more

                 time, I'd be happy to try to address it.

                            THE PRESIDENT:    That means that

                 you will yield to a question, correct,

                 Senator?

                            SENATOR LIBOUS:    Yes, I will.

                            THE PRESIDENT:    Then Senator

                 Paterson may proceed with a question.

                            SENATOR PATERSON:    Thank you,

                 Madam President.

                            Forty years ago, of those people

                 who were either totally blind or legally blind

                 or suffering from visual disabilities,





                                                          7426



                 92 percent of them were -- their overall

                 disability was specific to that cause.

                            Now, interestingly enough, most

                 people who have issues that require

                 intervention in the blindness field also have

                 other disabilities.  And really, it's about

                 fifty-fifty, if not less than 50 percent of

                 those people who have visual disabilities are

                 accompanied by other illnesses and challenges

                 in their lives.

                            And I wanted to ask Senator Libous

                 if that would also be one of the reasons that

                 the Commission on Quality of Care would be the

                 most apt supervisor, as opposed to just

                 supervision from the Department of Children

                 and Family Services.

                            SENATOR LIBOUS:    Madam President,

                 to Senator Paterson, without being too simple,

                 the answer to your question is yes.

                            And one of the concerns that we

                 have had, Madam President, is that we believe

                 that review by the Commission on Quality of

                 Care will give this 30-plus-billion-dollar

                 agency the type of expansion that it needs as

                 it serves people who are blind and people with





                                                          7427



                 disabilities.

                            While we recognize that Children

                 and Family Services do an outstanding job in

                 what they do, we believe that by having review

                 by an agency who cares about the care of

                 people with disabilities, that that fits

                 better under that umbrella.  And that by no

                 means are we looking to temper services or to

                 run how the agency runs.

                            We're just looking to make sure

                 that the quality of care, if you will, Madam

                 President, continues to grow and get better.

                            SENATOR PATERSON:    Madam

                 President, on the bill.

                            THE PRESIDENT:    You may proceed

                 on the bill, Senator.

                            SENATOR PATERSON:    I think we

                 were remiss before.  I think I speak for

                 everybody on this side of the aisle when we

                 compliment Senator Libous for his efforts in

                 the disability field, for his continuance of

                 this Disability Day since he came here in

                 1987, and his work in the field which has

                 caused him to become renowned on the subject

                 pretty much statewide.





                                                          7428



                            And to let him know that

                 particularly his efforts on behalf of the

                 Commission for the Blind are appreciated.  And

                 as someone who was a client of the commission,

                 in spite of that, I think that he has been

                 helpful to those who have passed through the

                 system.

                            And even if he knew that they were

                 the ones who taught me to be assertive in my

                 life and to ask a lot of questions, that he

                 would still be willing to allow the Commission

                 on Quality of Care to have a supervisory role,

                 which I think will enhance the ability and the

                 effectiveness of the commission.

                            Thank you.

                            THE PRESIDENT:    Senator

                 Schneiderman.

                            SENATOR SCHNEIDERMAN:    Thank you.

                 Through you, Madam President, if the sponsor

                 would yield for a few questions.

                            THE PRESIDENT:    Senator Libous,

                 will you yield for a question?

                            SENATOR LIBOUS:    Yes, I will,

                 Madam President.

                            THE PRESIDENT:    You may proceed,





                                                          7429



                 Senator Schneiderman.

                            SENATOR SCHNEIDERMAN:    Thank you.

                            I must confess I'm not as familiar

                 as Senator Paterson with the Commission on

                 Quality of Care for the Mentally Disabled.  My

                 question is, does this only cover, at present,

                 mental disabilities?  Are people with other

                 physical disabilities covered by other

                 agencies?

                            SENATOR LIBOUS:    Actually, the

                 commission -- Madam President, through you,

                 the Commission on Quality of Care I believe

                 does oversight for both OMRDD, OMH, OASAS, and

                 other agencies.  So this would just be another

                 agency that they would have review over.

                            We feel that, again, if you look at

                 the commission's work in the past and if you

                 go back -- and, you know, we even cite

                 situations that happened like Willowbrook and

                 others -- that is the function here.  The

                 function is to make sure that the Commission

                 on the Blind and the Visually Handicapped are

                 able to do better than they are through this

                 review process.

                            We're not looking to restructure,





                                                          7430



                 we're not looking to ask Family and Children

                 to -- we're just asking for the review

                 process -

                            THE PRESIDENT:    Could the members

                 please take their conversations outside the

                 chambers.

                            Go ahead, Senator Libous.

                            SENATOR LIBOUS:    We're just

                 asking for that review process to take place

                 where we believe it would be very helpful.

                            SENATOR SCHNEIDERMAN:    Through

                 you, Madam President, so will all of the

                 services for all the disabled in New York

                 State then be consolidated under this review

                 if this legislation passes?

                            SENATOR LIBOUS:    No, Madam

                 President, we believe that VESID is still

                 going -- VESID will still be under the State

                 Education Department.

                            SENATOR SCHNEIDERMAN:    Through

                 you, Madam President, are there -

                            SENATOR LIBOUS:    Madam President,

                 if I may, my learned counsel tells me that

                 that may be the case because of federal law.

                            THE PRESIDENT:    Senator, will you





                                                          7431



                 yield for another question?

                            SENATOR LIBOUS:    Sure.

                            THE PRESIDENT:    You may proceed,

                 Senator Schneiderman.

                            SENATOR SCHNEIDERMAN:    And is

                 there any additional funding being provided to

                 the commission for undertaking these

                 additional responsibilities?

                            SENATOR LIBOUS:    No.

                            SENATOR SCHNEIDERMAN:    Okay.

                 Thank you, Madam President.  Thank the

                 sponsor.

                            On the bill.

                            THE PRESIDENT:    You may proceed,

                 Senator, on the bill.

                            SENATOR SCHNEIDERMAN:    This is an

                 area where because, and the sponsor alluded to

                 the federal requirements, there are a great

                 many federal programs and a lot of federal

                 dollars that we have to access in New York

                 State.

                            And I do think that this does sound

                 like it's a move towards us coordinating and

                 consolidating our efforts as a state to make

                 sure that we provide good services and get all





                                                          7432



                 possible federal funds.

                            I do think that this probably is

                 going to require some additional funding for

                 the commission.  I'm not sure if that could

                 just be transferred over from the offices that

                 were providing the supervision before.  But it

                 does sound like a good idea to consolidate

                 this.  And I hope that we will be able to

                 continue to improve our services for the

                 handicapped and all the disabled in New York

                 State.

                            Thank you, Madam President.

                            THE PRESIDENT:    Senator

                 Montgomery.

                            SENATOR MONTGOMERY:    Yes, Madam

                 President.  Would Senator Libous yield for a

                 question?

                            THE PRESIDENT:    Senator, will you

                 yield for a question?

                            SENATOR LIBOUS:    I'll be happy to

                 yield, Madam President.

                            THE PRESIDENT:    You may proceed,

                 Senator.

                            SENATOR MONTGOMERY:    Yes, Senator

                 Libous, I join my colleagues in complimenting





                                                          7433



                 you in your excellence in representing the

                 people who have disabilities in this state.

                            I just want to ask, your

                 legislation would transfer the functions from

                 the Office of Children and Family Services

                 over to the Commission on Quality of Care.

                 And I'm just wondering, the legislation -- the

                 memo that accompanies the legislation

                 indicates under the fiscal implications that

                 "CQC will require a small plus up to cover the

                 cost of the additional responsibility."

                            And I'm just wondering if you

                 anticipate that we're going to transfer a

                 sufficient amount of resources so that we

                 don't lose any capacity based on new,

                 additional responsibilities for CQC.

                            SENATOR LIBOUS:    Madam President,

                 Senator Montgomery asks a very, very good

                 question.  And let me try to explain it so

                 that we can clarify the point that you make.

                            We are not transferring, Senator -

                 first of all, Senator Montgomery -- and

                 through you, Madam President -- let me say

                 that my intent here is, like the intent of any

                 piece of legislation that I move forward in





                                                          7434



                 helping people with disabilities, is to try to

                 help more people and try to enhance the

                 programs that we do here in New York State.

                 And certainly you have been very helpful and

                 supportive, both as a member of the committee

                 in the past and here on the floor.

                            This will not physically transfer

                 the agency out of Children and Family.  They

                 will still be under Children and Family.  The

                 review process where they will be reviewed,

                 just like OMRDD and OMH and OASAS is reviewed,

                 will fall under the Commission on Quality of

                 Care.

                            Right now, CBVH really is not

                 reviewed by anyone.  Certainly they fall under

                 Children and Families, which is fine, and they

                 will stay there.  The agency will stay there.

                 But there is no oversight.

                            Our concern is, as we have found

                 with OASAS and OMH and OMRDD, that

                 unfortunately, from time to time when caring

                 for people with disabilities, there have been

                 some problems that needed to be addressed, and

                 those problems came up through the oversight

                 process.





                                                          7435



                            So as the bill states, Madam

                 President, and Senator Montgomery, it says

                 "review."  And that's the key word.  We are

                 not physically moving it, we are not

                 physically saying that the Children and Family

                 is no longer going to house the commission.

                 They will.

                            And certainly to answer the fiscal

                 thing -- and I know that I said earlier that

                 there wouldn't be -- there is not a fiscal

                 note attached to this.  Certainly some may

                 assume that the commission might come back and

                 say, Gee, we need a half a body to do this or

                 whatever.  But again, I think that's something

                 that they can maintain within their budgetary

                 function in-house.

                            SENATOR MONTGOMERY:    All right.

                 Madam President, if I may continue my

                 questioning -

                            THE PRESIDENT:    Senator Libous,

                 will you yield?

                            SENATOR LIBOUS:    Absolutely.

                            THE PRESIDENT:    You may proceed,

                 Senator.

                            SENATOR MONTGOMERY:    -- for





                                                          7436



                 clarification.

                            Madam President, through you,

                 Senator Libous, the people who are blind and

                 visually handicapped, to a lesser or more

                 extent, seem to have a different set of

                 circumstances very often; i.e., they're more

                 independent, more spread out.  And the

                 excellent work of the CQC seems to be more

                 focused on congregate situations.

                            So I'm just -- I am -- again, I ask

                 if we are -- if there's an assurance that the

                 CQC can in fact do a thorough review, as they

                 certainly do now, given the different nature

                 of the way that blind and visually handicapped

                 people tend to be living.

                            SENATOR LIBOUS:    Madam President,

                 again, Senator Montgomery asks a very good

                 question.

                            And, Senator, at the present time,

                 CQC has oversight through the mental health

                 system and the system of OMRDD, which has

                 programs that are sprawling throughout all of

                 our Senate districts and communities

                 throughout the state.  So I would see this as

                 an easy function for the commission, that they





                                                          7437



                 could handle that.

                            And one of our concerns has always

                 been that CBVH, one of their key goals in

                 working with people who are blind and have

                 visual disabilities is to find employment for

                 them.  And many of them, as a matter of fact,

                 here in the Capitol, the newsstand downstairs.

                 I know in my state office building they run,

                 in Binghamton, programs there.

                            And one of the problems, we

                 actually had a problem with the arrangement in

                 the Binghamton state office building, that had

                 there been some oversight that we could have

                 probably detected a program where people who

                 were blind were not treated properly, were not

                 given the opportunity for the type of full

                 employment that they deserved.

                            And had we had an oversight or CQC

                 doing evaluations, this would have been

                 detected years in advance.  And unfortunately,

                 you know, it came to the conclusion where we

                 found a program in our own building that was

                 not properly run or maintained.

                            So again, Madam President, through

                 you, we believe that this change, this review





                                                          7438



                 process by CQC throughout a sprawling state,

                 as it does now, will be very beneficial to

                 those who have a disability, a sight

                 disability.

                            SENATOR MONTGOMERY:    All right.

                 Thank you, Senator Libous.

                            And, Madam President, on the bill.

                            THE PRESIDENT:    You may proceed,

                 Senator, on the bill.

                            SENATOR MONTGOMERY:    I think this

                 is certainly a good -- and I admire Senator

                 Libous's attempt to create a tighter sense of

                 review over the agencies as well as the

                 programs that serve the visually handicapped.

                            And it gives me a little bit more

                 comfort and security in knowing that the CQC

                 has been really very responsive, very

                 thorough, and they really are good in what

                 they do.  They protect the interests of people

                 who are unable to speak for themselves, they

                 are experts in holding agencies and programs

                 accountable, and I think they certainly are

                 equipped to do a more thorough job in holding

                 people accountable who serve the blind and

                 visually handicapped.





                                                          7439



                            I do have one caveat, and that is

                 we must make sure that they have additional

                 resources in order to do this job.  Because I

                 would not want to have us give them a mandate

                 to do more work without the proper resources,

                 which might water down their capacity to serve

                 all of the areas that they serve.

                            So with that, I certainly support

                 this legislation, Senator.

                            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 4.  This

                 act shall take effect immediately.

                            THE PRESIDENT:    Call the roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 57.

                            THE PRESIDENT:    The bill is

                 passed.

                            THE SECRETARY:    Calendar Number

                 335, by Senator Hoffmann, Senate Print 3665,

                 an act to amend the Agriculture and Markets

                 Law and the Tax Law.

                            SENATOR DUANE:    Explanation,





                                                          7440



                 please.

                            THE PRESIDENT:    Senator Hoffmann,

                 an explanation has been requested.

                            SENATOR HOFFMANN:    Thank you,

                 Madam President.  I'm happy to speak to this

                 law, this bill.

                            We right now have a fairly limited

                 definition of service dogs.  It deals largely

                 with physical disabilities.  And the need for

                 service dogs for people with neurological and

                 other types of disabilities has become

                 apparent, and we would like to expand that.

                            In the Executive Law, we already

                 have an expanded definition.  But this

                 proposed bill would amend the Ag and Markets

                 and the Tax Law to incorporate, by reference,

                 a broader term of "disability."

                            This would define disability as a

                 condition regarded by others as such an

                 impairment, would include in the category of

                 persons with disability of all those who have

                 a disability within the meaning of the

                 Executive Law, and not only those who are

                 mobility-, vision-, or hearing-impaired under

                 the existing law.





                                                          7441



                            And there is also a minor change in

                 this particular bill that would allow

                 municipalities to transmit the licensing data

                 to the Department of Agriculture and Markets

                 by the fifth day of the month following

                 license issuances.

                            THE PRESIDENT:    Senator Duane.

                            SENATOR DUANE:    Thank you, Madam

                 President.  If the sponsor would yield.

                            THE PRESIDENT:    Senator Hoffmann,

                 will you yield for a question?

                            SENATOR HOFFMANN:    Yes, I will.

                            THE PRESIDENT:    You may proceed

                 with a question, Senator Duane.

                            SENATOR DUANE:    Thank you, Madam

                 President.

                            Have there been cases that

                 clarifications to the current definitions

                 "service dog" and "persons with disability"

                 have been necessary?

                            SENATOR HOFFMANN:    Yes.  Madam

                 President, the answer would be yes.

                            SENATOR DUANE:    And through you,

                 Madam President -

                            THE PRESIDENT:    You may proceed





                                                          7442



                 with a question, Senator.

                            SENATOR DUANE:    Thank you, Madam

                 President.

                            Could the sponsor just give me just

                 a couple of the cases where this has been

                 necessary, just a couple of examples?

                            SENATOR HOFFMANN:    Madam

                 President, no, I don't have examples readily

                 available.

                            SENATOR DUANE:    Through you,

                 Madam President, if the sponsor would continue

                 to yield.

                            THE PRESIDENT:    Senator Hoffmann,

                 will you yield for a question?

                            SENATOR HOFFMANN:    Yes, I will.

                            THE PRESIDENT:    You may proceed

                 with a question, Senator Duane.

                            SENATOR DUANE:    I certainly know

                 of the important service that service dogs

                 provide.  But I'm wondering how many of these

                 types of dogs are licensed within the state

                 currently.

                            SENATOR HOFFMANN:    Madam

                 President, I would have to indicate that that

                 information would be available at the





                                                          7443



                 Department of Agriculture and Markets.

                            SENATOR DUANE:    Through you,

                 Madam President, if the sponsor would continue

                 to yield.

                            THE PRESIDENT:    Senator Hoffmann,

                 will you yield for a question?

                            SENATOR HOFFMANN:    Yes, I will.

                            THE PRESIDENT:    You may proceed,

                 Senator Duane.

                            SENATOR DUANE:    Is there a need

                 for more service dogs in the State of

                 New York?

                            SENATOR HOFFMANN:    Madam

                 President, the answer to that would be yes.

                            SENATOR DUANE:    And through you,

                 Madam President, if the sponsor would continue

                 to yield.

                            THE PRESIDENT:    Senator Hoffmann,

                 will you yield for a question?

                            SENATOR HOFFMANN:    Yes, Madam

                 President.

                            THE PRESIDENT:    You may proceed,

                 Senator Duane.

                            SENATOR DUANE:    How long is the

                 service training period for service dogs?





                                                          7444



                            SENATOR HOFFMANN:    Madam

                 President, the answer to that is the service

                 training varies depending upon the type of

                 service the dog would be going into.

                            SENATOR DUANE:    And through you,

                 Madam President, if the sponsor would continue

                 to yield.

                            THE PRESIDENT:    Senator Hoffmann,

                 will you yield for a question?

                            SENATOR HOFFMANN:    Yes, Madam

                 President.

                            THE PRESIDENT:    You may proceed,

                 Senator Duane.

                            SENATOR DUANE:    Is there a

                 minimum training period time for service dogs?

                            SENATOR HOFFMANN:    Madam

                 President, no, there is no minimum training.

                            SENATOR DUANE:    Hmm.

                 Interesting.

                            Through you, Madam President, if

                 the sponsor would continue to yield.

                            THE PRESIDENT:    Senator Hoffmann,

                 will you yield?

                            SENATOR HOFFMANN:    Yes, Madam

                 President.





                                                          7445



                            THE PRESIDENT:    You may proceed,

                 Senator Duane.

                            SENATOR DUANE:    Are service dog

                 purveyors presently licensed by the state?

                            SENATOR HOFFMANN:    No.

                            SENATOR DUANE:    And through you,

                 Madam President, if the sponsor would continue

                 to yield.

                            THE PRESIDENT:    Senator Hoffmann,

                 will you yield for a question?

                            SENATOR HOFFMANN:    Yes, Madam

                 President.

                            THE PRESIDENT:    You may proceed,

                 Senator Duane.

                            SENATOR DUANE:    The areas of

                 mental illness, panic disorders, disabilities

                 such as those, are they covered now under the

                 law, or would they be covered with your law?

                            SENATOR HOFFMANN:    That was two

                 questions, Madam President.  Which question

                 would the Senator from Manhattan like a

                 response to first?

                            THE PRESIDENT:    Senator Bonacic.

                            SENATOR BONACIC:    Thank you,

                 Madam President.  My apologies for





                                                          7446



                 interrupting, but I'd like to call an

                 immediate meeting of the Senate Finance

                 Committee in the Majority Conference Room.

                            THE PRESIDENT:    There will be an

                 immediate meeting of the Senate Finance

                 Committee in the Majority Conference Room.

                            Senator Duane.

                            SENATOR DUANE:    Thank you, Madam

                 President.  I realize that that was an awful

                 lot in one question, hard to grasp all of it.

                            Are panic disorders and other kinds

                 of mental illnesses covered within the

                 definition of a person with a disability?

                            SENATOR HOFFMANN:    Madam

                 President, the change in the law would read

                 that a physical, mental or medical impairment

                 resulting from anatomical, physiological,

                 genetic, or neurological conditions which

                 prevents the exercise of a normal bodily

                 function or is demonstrable by medically

                 accepted clinical or laboratory diagnostic

                 techniques would be in fact be covered.

                            SENATOR DUANE:    And through you,

                 Madam President, if the sponsor would continue

                 to yield.





                                                          7447



                            THE PRESIDENT:    Senator Hoffmann,

                 will you yield for a question?

                            SENATOR HOFFMANN:    Yes, Madam

                 President.

                            THE PRESIDENT:    You may proceed,

                 Senator.

                            SENATOR DUANE:    And is it the

                 Department of Agriculture that decides whether

                 or not a person falls within those categories?

                            SENATOR HOFFMANN:    It would be a

                 medical determination made in conjunction with

                 the Department of Agriculture regulations.

                            SENATOR DUANE:    And through you,

                 Madam President, if the sponsor would continue

                 to yield.

                            THE PRESIDENT:    Senator Hoffmann,

                 will you yield for a question?

                            SENATOR HOFFMANN:    Yes, I will.

                            THE PRESIDENT:    You may proceed,

                 Senator.

                            SENATOR DUANE:    Does that mean

                 that the person with a disability has to

                 present paperwork to Department of Agriculture

                 personnel so that they can then say -- they're

                 the ones that sort of stamp it and say this -





                                                          7448



                 now you can have a service dog?

                            SENATOR HOFFMANN:    No.

                            SENATOR DUANE:    Through you,

                 Madam President, if the sponsor would continue

                 to yield.

                            THE PRESIDENT:    Senator Hoffmann,

                 will you yield?

                            SENATOR HOFFMANN:    Yes.

                            THE PRESIDENT:    You may proceed,

                 Senator.

                            SENATOR DUANE:    If the sponsor

                 could explain to me, because I honestly don't

                 know what that system is.

                            SENATOR HOFFMANN:    I'd have to

                 get that information, Madam President, from

                 the Department of Agriculture and Markets and

                 the Department of Health.  I don't have that

                 readily available.

                            I don't think it's germane to the

                 issue of changing the statute, how it would

                 be, how the processing and paperwork

                 responsibilities would be implemented.  Our

                 discussion really should be limited to the

                 actual specifics of the law that we attempt to

                 amend today.





                                                          7449



                            SENATOR DUANE:    Well, through

                 you, Madam President, to try to get an idea of

                 whether this would be an increased cost to the

                 state or decreased, would there be a need for

                 more service dogs?  Or should I say, will

                 there be more or less service dogs in the

                 state as a result of this?

                            SENATOR HOFFMANN:    Madam

                 President, there would probably be more

                 service dogs recognized as service dogs in the

                 State of New York.  There would be no fiscal

                 impact on the State of New York.

                            SENATOR DUANE:    Thank you, Madam

                 President.

                            On the bill.

                            THE PRESIDENT:    You may proceed

                 on the bill, Senator Duane.

                            SENATOR DUANE:    Thank you.

                            I'm assuming, though I neglected to

                 ask the question, but I'm assuming that there

                 wasn't a public hearing on this bill which -

                 I mean, I would have preferred to have gotten

                 information through the public hearing,

                 although, sadly, it seems as if even the

                 sponsor doesn't know some of the information





                                                          7450



                 of the questions I was asking.

                            And had someone from Agriculture,

                 the Department of Agriculture been at the

                 public hearing, I could have asked them these

                 questions.  But I guess that's not what's

                 happened.

                            You know, I should say I'm

                 surprised, but I'm not surprised that there

                 was no hearing on this and an opportunity to

                 ask questions on the issues that I raised.

                            I am a little bit surprised that

                 there's no licensing for service dogs.  And if

                 we're expanding the definition of service

                 dogs, I think that there may very well be room

                 for fraud and, you know, perhaps even

                 mistreatment of dogs as a result of that.  So

                 I am concerned about that.

                            I'm also concerned that we don't

                 know whether this will mean that there will be

                 more or less service dogs now in the state of

                 New York.  At first glance I would have

                 thought that there would be more, but maybe

                 this means that there are going to be less.

                 So I am very, very surprised about that.

                            Anyway, I do think that service





                                                          7451



                 dogs do provide a valuable service to the

                 citizens of the state of New York.  And I'm

                 pleased that the definition of disability has

                 been expanded.  But I am sad that there was no

                 hearing and a really unfortunate lack of

                 knowledge on the part of really, as I

                 understand it, those who wanted to implement

                 these kinds of reforms in this house in the

                 past.  I would have hoped that members would

                 be prepared to answer questions, and I'm

                 saddened that that's not the case.

                            So with the hope that we'll have

                 further hearings on legislation dealing with

                 service dogs and their working with persons

                 with disability, I'm going to vote yes on it.

                 And I guess I'll have to resign myself to

                 investigating this information on my own,

                 which is really not the way I think it should

                 be.  I think that this information should be

                 made available in a public forum to everyone

                 in this house and any members of the public

                 who wish to attend such hearings.

                            Thank you, Madam President.

                            THE PRESIDENT:    Does any other

                 member wish to be heard on this bill?





                                                          7452



                            Then the debate is closed.

                            Read the last section.

                            THE SECRETARY:    Section 5.  This

                 act shall take effect on the 30th day.

                            THE PRESIDENT:    Call the roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 57.

                            THE PRESIDENT:    The bill is

                 passed.

                            THE SECRETARY:    Calendar Number

                 483, by Senator Kuhl, Senate Print 4178, an

                 act to amend the Education Law, in relation to

                 ensuring.

                            SENATOR PATERSON:    Explanation.

                            SENATOR OPPENHEIMER:

                 Explanation.

                            THE PRESIDENT:    Senator Kuhl, an

                 explanation has been requested.

                            SENATOR KUHL:    Thank you, Madam

                 President.

                            This is a departmental bill that we

                 actually presented to this body last year that

                 was adopted unanimously.  And after we had

                 adopted it, we found that there were some

                 suggested recommendations.  And we had an





                                                          7453



                 agreement between both houses to actually do a

                 chapter amendment, but the Governor wanted to

                 apparently see the bill in full print and full

                 context before he would sign it.  So the bill

                 was vetoed last year.

                            And so we have subsequently made a

                 couple of amendments, and the bill now comes

                 back to us.

                            The bill, very simply, is focused

                 on one purpose, and that is that we do have,

                 we recognize that we have handicapped students

                 in our school systems.  They're being

                 mainstreamed under some mandates coming from

                 the federal government, for which there's

                 provided funding.  And as a result of that,

                 we're seeing students who have a variety of

                 different disabilities, whatever it's

                 vision-impaired, hearing-impaired, whatever it

                 happens to be.

                            And what this bill essentially does

                 is it says that in fact the materials that are

                 usually presented to the mainstream students

                 with no disabilities will be given in a format

                 that's acceptable to the handicapped students

                 at the same time that the information is





                                                          7454



                 initially given to those students who have no

                 handicaps.

                            So it's a bill that is actually a

                 requirement on the school districts to set out

                 a plan as to how to do that with regard to

                 procurement, what types of disabled students

                 are going to be into the system, and then

                 provide the appropriate educational materials

                 at the same time as is provided to the

                 nonhandicapped students within that

                 educational calendar year.

                            SENATOR OPPENHEIMER:    Madam

                 President, if the sponsor would yield.

                            THE PRESIDENT:    Senator Kuhl,

                 will you yield for a question?

                            SENATOR KUHL:    I'd be happy to.

                            THE PRESIDENT:    You may proceed,

                 Senator Oppenheimer.

                            SENATOR OPPENHEIMER:    I want to

                 start by saying I think this is terrific.  But

                 I have a couple of questions.

                            What are the amendments that were

                 made from last year to this year?

                            SENATOR KUHL:    Senator, it's very

                 simple.  If you look at the bill, first page,





                                                          7455



                 down on line 12 -- you have the bill there in

                 front of you?

                            SENATOR OPPENHEIMER:    Oh, I don't

                 have the whole bill -- okay, yes.

                            SENATOR KUHL:    You've got the

                 bill?

                            SENATOR OPPENHEIMER:    Mm-hmm.

                            SENATOR KUHL:    Line 12, you see

                 over -- the third word from the right, it

                 talks about "preference."

                            SENATOR OPPENHEIMER:    Uh-huh.

                            SENATOR KUHL:    That was an

                 addition.  Before, schools were required to

                 make a purchase from a provider.  Now we've

                 simply required that they give a provider a

                 preference.

                            And then down on line 19 and over

                 into line 20, we use the words "or an

                 electronic file in approved format" rather

                 than the language that we used last year.

                 That's really the only change.

                            Now, I should note, Senator, for

                 your information, last year there were two

                 memos in opposition to this bill, one from

                 the, as we might expect, New York State School





                                                          7456



                 Boards Association.  It seems they object to

                 everything.

                            SENATOR OPPENHEIMER:    That's

                 going to cost money.

                            SENATOR KUHL:    Or close to that.

                            And the other one was from the

                 Association of American Publishers.

                            Now, this year, with those

                 amendments, the New York State School Boards

                 Association is not filing an objection or a

                 support memo.  They've filed no objections, so

                 they're not taking a position in opposition to

                 this bill.

                            And we do have a memo in support

                 from the Association of American Publishers,

                 because those amendments were really worked

                 out with them and with the other house, and

                 they accomplish the goals that they sought to

                 have accomplished in the initial bill.

                            SENATOR OPPENHEIMER:    Okay.  If

                 Senator Kuhl will yield again, please.

                            THE PRESIDENT:    Senator, will you

                 yield for a question?

                            SENATOR KUHL:    Yes.

                            THE PRESIDENT:    You may proceed.





                                                          7457



                            SENATOR OPPENHEIMER:    Actually,

                 two questions arise.  One is the school

                 books -- wait, what was that?  The second one,

                 the book publishers.

                            SENATOR KUHL:    Yes, the

                 Association of American Publishers.  AAP, they

                 call themselves.

                            SENATOR OPPENHEIMER:    All right.

                 Then the first question would be, is that

                 because these subsequent materials would be

                 not in book form but would be in alternative

                 forms that aren't textbook?

                            I guess I'll ask one question at a

                 time.

                            SENATOR KUHL:    Well, let me just

                 read from the memo.  That's probably the best

                 way to explain their support.

                            They say:  "The Association

                 supports the bill and recommends its passage

                 and enactment into law.  The bill will provide

                 assurances that textbooks are available in

                 alternative formats for children, including

                 students with disabilities whose learning

                 needs dictate their use of such formats.  We

                 understand that it is very important that





                                                          7458



                 these texts be in the hands of these students

                 on a timely basis and are eager to cooperate

                 with local school districts to attain this

                 objective."

                            That's the basis of their support.

                            SENATOR OPPENHEIMER:    Okay.

                 Thank you, Senator.

                            The other question I have, if you

                 would yield again -

                            SENATOR KUHL:    I'd be happy to

                 yield, Madam President.

                            SENATOR OPPENHEIMER:    -- is when

                 it says a preference in the bill, are we still

                 obliged by the lowest responsible bidder in

                 the preference area?  The lowest responsible

                 bidder.

                            SENATOR KUHL:    Yes.  The answer

                 is yes, Senator.

                            If you read the language, it says

                 will give a preference in the purchase of

                 instructional materials to vendors who agree

                 to provide materials in alternative formats.

                 Okay?  It doesn't talk about the lowest

                 responsible bidder.  That's still in the law

                 and is currently in the law.





                                                          7459



                            Last year what we did was,

                 regardless of the lowest responsible bidder,

                 we said we had to purchase these materials

                 from people who had the alternative formats,

                 regardless of the cost.  That was the

                 problem -- one of the problems that the

                 Governor had and outlines in his veto message.

                            SENATOR OPPENHEIMER:    That sounds

                 good.

                            Through you, Madam President, if

                 the Senator would yield.

                            ACTING PRESIDENT FUSCHILLO:

                 Senator Kuhl, do you yield for a question?

                            SENATOR KUHL:    Yes, Mr.

                 President.

                            SENATOR OPPENHEIMER:    I only have

                 a couple more.

                            ACTING PRESIDENT FUSCHILLO:    The

                 Senator yields.

                            SENATOR OPPENHEIMER:    You

                 mentioned, Senator Kuhl, the federal funding.

                 How much coming in is federal funding and how

                 much is our funding, state funding?

                            SENATOR KUHL:    Well, Senator,

                 that really doesn't have anything to do with





                                                          7460



                 this bill.

                            What I was just mentioning is in

                 the line at -- you may remember that several

                 years ago, under I think it was what's called

                 "idea legislation," the federal government

                 said to the states that you will mainstream

                 students, and for that we will provide

                 funding.  They promised to provide 40 percent

                 of the overall cost, and yet they have never

                 provided 40 percent of the overall cost.

                 That's a loss of billions of dollars to the

                 State of New York and to other states across

                 the country.

                            My simple point in mentioning that

                 is as an incentive to mainstream children who

                 have handicapped situations into the

                 mainstream of education, and now that is

                 creating a need for alternative formats for

                 these people as they are in fact mainstreamed

                 into the normal education arena.

                            SENATOR OPPENHEIMER:    That raises

                 another question -- oh, you're not Madam

                 President.  Mr. President.  If I could ask

                 another question.

                            ACTING PRESIDENT FUSCHILLO:





                                                          7461



                 Senator Kuhl, do you yield for another

                 question?

                            SENATOR KUHL:    Yes.

                            ACTING PRESIDENT FUSCHILLO:    The

                 Senator yields.

                            SENATOR OPPENHEIMER:    Could you

                 describe what are some of these alternatives

                 that we're talking about?

                            SENATOR KUHL:    You mean the

                 alternative formats?

                            SENATOR OPPENHEIMER:    Yeah.

                            SENATOR KUHL:    It's things like

                 Braille, large print, open and closed caption,

                 audio, and the electronic files, what's called

                 electronic files.

                            SENATOR OPPENHEIMER:    Audio,

                 that's important.

                            SENATOR KUHL:    Yes.  So it's

                 meant to put the educational materials in a

                 proper format or text -- not text literally,

                 but text that in fact a person with a handicap

                 can access and understand just like those

                 people who don't have handicaps.

                            So if you're visually impaired to

                 the point that you cannot read, then the





                                                          7462



                 format may be Braille.  Or if you have some

                 other handicap, it may be some other format.

                 But it's meant to cover all the various

                 formats for all the handicapped kids in each

                 school system.

                            This is why part of the bill

                 requires each school district to develop a

                 plan.  Because each school district will have

                 different types of handicapped students in

                 their system, so each program or each plan may

                 be a little different as to how to

                 accommodate.  Some people may have some

                 hearing-impaired, some visually impaired, and

                 vice versa.  So their approach to providing

                 the formats may be different.

                            But they're also supposed to, as

                 part of that plan, provide a purchasing

                 mechanism in anticipation of those students

                 who are going to be there next year when the

                 materials are distributed, that they're ready

                 for the distribution of those materials to

                 those handicapped students so they're not left

                 behind.

                            SENATOR OPPENHEIMER:    You sound

                 like the Children's Defense Fund.  Do not





                                                          7463



                 leave a child behind.

                            If I could ask another question,

                 please, through you, Mr. President.

                            ACTING PRESIDENT FUSCHILLO:

                 Senator Kuhl, do you yield for another

                 question?

                            SENATOR KUHL:    Yes.

                            ACTING PRESIDENT FUSCHILLO:    The

                 Senator yields.

                            SENATOR OPPENHEIMER:    I think -

                 and check me if I'm wrong, I think we have

                 always understood Braille and we've always

                 understood hearing problems, hard of hearing,

                 deaf.  But I think what this bill does is it

                 takes into account a whole variety of learning

                 disabilities that maybe we hadn't taken

                 account of before.

                            Like some children not being able

                 to read because of some learning -- severe

                 learning disability, so that instruction had

                 to be through audio rather than through

                 visual.

                            Is that not the direction that this

                 is taking?

                            SENATOR KUHL:    I would say that's





                                                          7464



                 the partial direction of this proposal,

                 Senator.

                            The other piece that you don't want

                 to leave behind is that it requires school

                 districts to anticipate before the

                 circumstances actually meet or show up at

                 their doorsteps.  That being that there are

                 students with handicapped situations in, say,

                 a class, materials are being handed out, but

                 yet the materials for that handicapped

                 situation are not there.

                            So the reason for the plan is,

                 number one, there are new types of handicapped

                 circumstances in school districts that need to

                 be attended to, but also you need to look

                 ahead as to what the demands are going to be

                 for providing these alternative formats so

                 that you can make the proper purchases at the

                 proper time.  So that when they are

                 distributed, whether it's the first day of

                 school in September or someplace along the

                 line, that the handicapped students get the

                 same kind of opportunity and availability to

                 materials that they will understand and be

                 able to utilize.





                                                          7465



                            SENATOR OPPENHEIMER:    Oh, I was

                 just going to ask one more question, but now I

                 have two more.  If the Senator would yield.

                            ACTING PRESIDENT FUSCHILLO:

                 Senator Kuhl, do you yield for a question?

                            SENATOR KUHL:    Yes.

                            ACTING PRESIDENT FUSCHILLO:    The

                 Senator yields.

                            SENATOR OPPENHEIMER:    What you

                 just said sparked me to think of something

                 else.

                            I don't know if we ever talked

                 about this, but a goodly percentage of my

                 family is deaf, and they have had a person

                 assigned to them through their school years

                 that signed for them.  Is this in any way

                 going to remove that person and say now it has

                 to be mechanical or it has to be, you know, in

                 this alternative form?

                            That wouldn't take away the person,

                 would it?

                            SENATOR KUHL:    No.

                            SENATOR OPPENHEIMER:    Okay.  My

                 last question is now that we've made -

                            SENATOR KUHL:    I'll be happy to





                                                          7466



                 yield.

                            SENATOR OPPENHEIMER:    Now that

                 we've made these changes, are we sure that the

                 Governor is going to approve it now?

                            SENATOR KUHL:    We have every

                 indication that the Governor will sign this,

                 because we have met the objections that he

                 raised in his veto message.

                            And we have had some communications

                 with him, and we're almost at the point where

                 we were able to sign the original bill,

                 because we had an agreement with the chapter

                 amendment, but for whatever reasons, it fell

                 apart at the last minute.  And even though the

                 AAP was on board and the School Boards had

                 withdrawn their objection at that point, for

                 whatever reason it was, it just didn't make

                 it.

                            So we expect the Governor to sign

                 it.

                            SENATOR OPPENHEIMER:    Thank you.

                 I want to thank Senator Kuhl for being so

                 forthright and so detailed.

                            And as I said at the very

                 beginning, this is a terrific bill.  And I





                                                          7467



                 hope everybody will appreciate how terrific it

                 is.

                            ACTING PRESIDENT FUSCHILLO:    Does

                 any other member wish to be heard?

                            The debate is closed.

                            Read the last section.

                            THE SECRETARY:    Section 7.  This

                 act shall take effect on the 180th day.

                            ACTING PRESIDENT FUSCHILLO:    Call

                 the roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 57.

                            ACTING PRESIDENT FUSCHILLO:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 490, by Senator Libous, Senate Print 2889, an

                 act to amend the Mental Hygiene Law and the

                 Executive Law, in relation to requiring.

                            SENATOR DUANE:    Explanation,

                 please.

                            ACTING PRESIDENT FUSCHILLO:

                 Senator Libous, an explanation has been

                 requested on Calendar 490.

                            SENATOR LIBOUS:    Thank you, Mr.

                 President.  Calendar Number 490.  That's





                                                          7468



                 4-9-0.

                            The bill would require service

                 providers for persons who are mentally

                 retarded or developmentally disabled to check

                 the employees for criminal backgrounds through

                 the use of fingerprints and background checks

                 by DCJS.

                            ACTING PRESIDENT FUSCHILLO:

                 Senator Duane, why do you rise?

                            SENATOR DUANE:    If the sponsor

                 would yield, please.

                            ACTING PRESIDENT FUSCHILLO:

                 Senator Libous, will you yield for a question?

                            SENATOR LIBOUS:    Sure, Mr.

                 President.

                            ACTING PRESIDENT FUSCHILLO:    The

                 Senator yields.

                            SENATOR DUANE:    Thank you, Mr.

                 President.  Could the sponsor tell me the

                 genesis of this legislation?

                            SENATOR LIBOUS:    Mr. President,

                 this bill has been around this chamber for a

                 couple of years.  And it is our intent that -

                 our concern was that people who deal with

                 people with disabilities sometimes are not





                                                          7469



                 thoughtful and caring people.

                            And we felt that it was important,

                 after working with all the providers, talking

                 with the ARCs, talking with the different

                 direct care workers and different people and,

                 quite frankly, talking with the unions, that

                 we wanted to make sure that anyone who is

                 unsupervised, anyone who has direct access to

                 an individual through direct care needs to

                 have a background check, so that there is not

                 any -- a problem of history.

                            Mr. President, many of the groups

                 and organizations like ARC asked for the bill.

                 So its genesis came from the groups who

                 provide the service to the mentally ill and

                 mentally disabled.

                            SENATOR DUANE:    Through you, Mr.

                 President, if the sponsor would continue to

                 yield.

                            ACTING PRESIDENT FUSCHILLO:

                 Senator Libous, do you continue to yield?

                            SENATOR LIBOUS:    Sure.

                            ACTING PRESIDENT FUSCHILLO:    The

                 Senator yields.

                            SENATOR DUANE:    Did they cite any





                                                          7470



                 specific examples of abuse?

                            SENATOR LIBOUS:    Mr. President,

                 is that a question?

                            SENATOR DUANE:    Yes, Mr.

                 President, I was -

                            ACTING PRESIDENT FUSCHILLO:

                 Senator Duane, will you just reask the

                 question, please.

                            SENATOR DUANE:    Did they supply

                 any specific examples of abuse that had

                 occurred?

                            SENATOR LIBOUS:    Mr. President,

                 through you, and to Senator Duane, yes,

                 Senator Duane, they did.

                            I'd be happy to cite a couple, if I

                 could, because these are pretty serious.

                 Although I don't like to read, I think I need

                 to read directly.  These came from several

                 agencies.

                            A situation where a direct care

                 worker was hired by an agency which then had

                 to terminate him after finding through the

                 newspaper that the employee had been convicted

                 five times, including convictions for violent

                 felonies.  That's one example.





                                                          7471



                            Another example where an employee

                 was hired to drive clients to their programs.

                 The employer subsequently saw the employee on

                 "America's Most Wanted" television show.

                 That's another example.

                            SENATOR DUANE:    Through you, Mr.

                 President, if the sponsor would continue to

                 yield.

                            ACTING PRESIDENT FUSCHILLO:

                 Senator Libous, do you yield for another

                 question?

                            SENATOR LIBOUS:    Yes, Mr.

                 President.

                            ACTING PRESIDENT FUSCHILLO:    The

                 Senator yields.

                            SENATOR DUANE:    Now, unless I'm

                 mistaken, the legislation doesn't call for

                 sharing of the information with any federal

                 law enforcement agencies.  I know it was cited

                 yesterday that the FBI is probably not the one

                 that should be cited, but it's the only one

                 that comes to mind immediately.

                            And so if the -- in the case cited,

                 for instance, of "America's Most Wanted," if

                 his or her crimes had happened in another





                                                          7472



                 state, this legislation still wouldn't capture

                 that they were a risk.

                            SENATOR LIBOUS:    Mr. President,

                 we reviewed this.  It's a very good question.

                 And I believe Senator Saland had a bill

                 previously.  One of the concerns was that it

                 takes forever to do an FBI check.

                            And it was in this case the

                 sponsor's decision -- moi -- decided that

                 working along with these agencies that we

                 would be best to keep it within New York

                 State, that we did not want to go through that

                 rigorous effort that one must have to go

                 through when dealing with the FBI.

                            SENATOR DUANE:    Through you, Mr.

                 President, if the -- Madam President, if the

                 sponsor would continue to yield.

                            THE PRESIDENT:    Thank you.

                            SENATOR DUANE:    If the sponsor

                 would continue to yield.

                            THE PRESIDENT:    Will you yield

                 for a question?

                            SENATOR LIBOUS:    I'm on my feet,

                 Madam President.  I'd be more than happy to.

                            THE PRESIDENT:    Senator Duane,





                                                          7473



                 you may proceed with a question.

                            SENATOR DUANE:    Do any other

                 states require this kind of background check

                 for people working with mentally retarded and

                 developmentally disabled people?

                            SENATOR LIBOUS:    Madam President,

                 I don't know the answer to that question, and

                 I don't really care.  Because I serve in

                 New York State, and that's what I care about,

                 is whether New York State does this or not.

                            SENATOR DUANE:    And through you,

                 Madam President, if the sponsor would continue

                 to yield.

                            THE PRESIDENT:    Senator Libous,

                 will you yield for a question?

                            SENATOR LIBOUS:    Sure.

                            THE PRESIDENT:    You may proceed,

                 Senator Duane.

                            SENATOR DUANE:    Even if we don't

                 look at what's happening in other states that

                 may or may not have data on the effectiveness

                 of this kind of legislation, there are other

                 groups in New York State who are already being

                 fingerprinted.

                            And I'm wondering if any of them -





                                                          7474



                 any of the commissioners of those agencies or

                 any of the groups whose employees or

                 prospective employees are fingerprinted and

                 given background checks, if there have been

                 any data to see if this has reduced abuse or

                 crime within those areas where this kind of

                 background check is required.

                            SENATOR LIBOUS:    Senator Duane,

                 through you, Madam President, my goal here, as

                 chairman of the Committee on the Disabled, and

                 working with the providers who care very

                 deeply about some of the serious, serious

                 situations that have taken place with direct

                 care workers and people with disabilities, it

                 is my goal to not worry about other agencies

                 or other commissioners, it is my goal as the

                 chairman of that committee to do what I feel

                 is right in my heart and to do what I feel is

                 right in working with them to solve the nasty,

                 ugly problems of abuse, molestation, or any

                 type of situation that could occur.

                            And when the people who provide

                 services to the thousands of people of

                 New York State who are physically or mentally

                 disabled come to me and ask me for a piece of





                                                          7475



                 legislation that would bring protection to

                 those individuals, then it is my

                 responsibility, Madam President, to just move

                 forward on that legislation and try to do what

                 I believe is right.  And I believe this is

                 right.

                            And I have had no discussions with

                 other agencies.  I don't feel that that's

                 necessary.

                            SENATOR DUANE:    Through you,

                 Madam President, if the sponsor would continue

                 to yield.

                            THE PRESIDENT:    Senator Libous,

                 will you yield?

                            SENATOR LIBOUS:    Sure.

                            THE PRESIDENT:    You may proceed,

                 Senator Duane.

                            SENATOR DUANE:    Thank you, Madam

                 President.

                            I note that this bill is limited to

                 persons working with those who are mentally

                 retarded or developmentally disabled.  But I'm

                 wondering why other mental health workers are

                 not included, since their clients are as

                 vulnerable as the ones who are covered in the





                                                          7476



                 bill.

                            SENATOR LIBOUS:    Madam President,

                 again, when the providers came to us, these

                 are the workers that they were directly

                 concerned about.  And these are the workers

                 that we are attending to in the bill.

                            SENATOR DUANE:    Through you,

                 Madam President, if the sponsor would continue

                 to yield.

                            THE PRESIDENT:    Senator Libous,

                 will you yield?

                            SENATOR LIBOUS:    Yes.  Yes, Madam

                 President.

                            THE PRESIDENT:    You may proceed,

                 Senator Duane.

                            SENATOR DUANE:    But there are

                 some different providers who do adult mental

                 health than those who provide services for

                 mentally retarded and developmentally disabled

                 people; is that correct?

                            SENATOR LIBOUS:    Madam President,

                 in our state, which is an extremely complex

                 state that services probably more people with

                 disabilities than any other state, we have a

                 variety of providers and agencies that oversee





                                                          7477



                 different types of programs.

                            As we discussed earlier, the

                 Commission on the Visually Blind and Disabled

                 are under Family and Children, and we wanted

                 to put their review process in CQC.  Senator

                 Kuhl articulated a bill recently, just a few

                 moments ago, about dealing with kids with

                 disabilities as it pertains to the State

                 Education Department and the department of

                 VESID, which under his committee he has

                 responsibility for.

                            So we could probably take almost

                 every agency in the State of New York and look

                 to which agencies overlap as they pertain to

                 dealing with people with disabilities.

                            So in this particular piece of

                 legislation, Madam President, I felt that the

                 guidelines that deal with these specific

                 workers for these specific agencies and

                 providers is most appropriate to address at

                 this time.

                            SENATOR DUANE:    Through you,

                 Madam President, if the sponsor would continue

                 to yield.

                            THE PRESIDENT:    Senator Libous,





                                                          7478



                 will you yield for a question?

                            SENATOR LIBOUS:    Yes, I will.

                            THE PRESIDENT:    You may proceed,

                 Senator.

                            SENATOR DUANE:    Just to clarify,

                 was it that the mental health providers

                 requested that they not be part of the bill?

                 Or was that the sponsor's decision?

                            SENATOR LIBOUS:    Madam President,

                 to you, Senator Duane, this came to me

                 directly from those providers under the

                 umbrella of OMRDD.  So they did not come to

                 us, the mental health providers, on this

                 particular issue.

                            SENATOR DUANE:    Through you,

                 Madam President, if the sponsor would continue

                 to yield.

                            THE PRESIDENT:    Senator Libous,

                 will you yield?

                            SENATOR LIBOUS:    Absolutely.

                            THE PRESIDENT:    You may proceed,

                 Senator.

                            SENATOR DUANE:    I'm wondering if

                 the sponsor has an idea or a ballpark figure

                 or a range about how many people will need to





                                                          7479



                 be fingerprinted.

                            SENATOR LIBOUS:    Well, the

                 sponsor does like to play ball, so let's see

                 if he can come up with a number.

                            Madam President, we estimate 53,000

                 in year one and about 8,000 in subsequent

                 years thereafter.

                            SENATOR DUANE:    Just for

                 clarification, Madam President, if I may,

                 through you.

                            THE PRESIDENT:    Senator Libous,

                 will you yield?

                            SENATOR LIBOUS:    Yes.

                            SENATOR DUANE:    That's 53,000 in

                 the first year and then 8,000 each year

                 afterwards, or over time 8,000 more?

                            SENATOR LIBOUS:    Yeah, we believe

                 over time.

                            SENATOR DUANE:    Over time.

                            And through you, Madam President,

                 if the sponsor would continue to yield.

                            THE PRESIDENT:    Senator Libous,

                 will you yield?

                            SENATOR LIBOUS:    Yes.

                            THE PRESIDENT:    You may proceed,





                                                          7480



                 Senator.

                            SENATOR DUANE:    Who's paying the

                 freight for this background check?

                            SENATOR LIBOUS:    The provider,

                 Madam President, will pay $50 per request.  Up

                 to a cap of $5,000 per year, depending on how

                 many people are being subject to the

                 legislation.

                            SENATOR DUANE:    And through you,

                 Madam President, if the sponsor would continue

                 to yield.

                            SENATOR LIBOUS:    Yes.

                            THE PRESIDENT:    The Senator does

                 yield.  You may proceed.

                            SENATOR DUANE:    Does that mean

                 that after -- if a provider has more than a

                 hundred employees, that that would bring it to

                 the cap of 5,000.  What happens after that?

                 Who pays?

                            SENATOR LIBOUS:    We believe that

                 at that point, Madam President, the state

                 would absorb anything over that.  But for the

                 most part, we would take care of the lion's

                 share.

                            In looking at all of the providers,





                                                          7481



                 the number of employees, we think that it

                 would pretty much wash out.

                            SENATOR DUANE:    Through you,

                 Madam President, if the sponsor would continue

                 to yield.

                            THE PRESIDENT:    Senator Libous,

                 will you yield?

                            SENATOR LIBOUS:    I would be happy

                 to, Madam President.

                            THE PRESIDENT:    You may proceed.

                            SENATOR DUANE:    Was DJCS or -

                            SENATOR LIBOUS:    DCJS.

                            SENATOR DUANE:    DCJS.  I have

                 problems with that.  I have a lot of problems.

                 That's a minor problem.  But anyway, you don't

                 want to hear about those.

                            But was DCJS consulted about the

                 workload?

                            SENATOR LIBOUS:    Madam President,

                 absolutely.  As a matter of fact, we worked

                 with DCJS on putting this information

                 together.

                            Those figures that I just shared

                 with you, Senator Duane -- through you, Madam

                 President -- was part of the analysis that





                                                          7482



                 DCJS did.  We looked at a number of different

                 things.  But we worked very closely with them.

                            SENATOR DUANE:    And through you,

                 Madam President, if the sponsor would continue

                 to yield.

                            SENATOR LIBOUS:    Yes, I will.

                            THE PRESIDENT:    Senator Libous

                 does yield.

                            You may proceed, Senator.

                            SENATOR DUANE:    At what point in

                 the application process would the providers be

                 required to do the fingerprinting and

                 background check?

                            I mean, suppose two people are

                 applying for the same job.  Do they both have

                 to have a background check, or is it -

                 because it's prospective and those that have

                 been hired.  So I'm wondering, is this one of

                 the things that's required before you actually

                 hire someone?

                            SENATOR LIBOUS:    Madam President,

                 Senator Duane, that is an excellent question.

                 It would be after they were hired.

                            SENATOR DUANE:    After they're

                 hired.





                                                          7483



                            SENATOR LIBOUS:    Yes.

                            SENATOR DUANE:    And, Madam

                 President, if the sponsor would continue to

                 yield.

                            SENATOR LIBOUS:    Yes, I will.

                            THE PRESIDENT:    The Senator does

                 yield.  You may proceed, Senator.

                            SENATOR DUANE:    I'm wondering who

                 is going to be responsible for the startup for

                 those employees who are already working.  Is

                 it the providers who have to give notice, or

                 will it be the state that gives notice that

                 this check has to happen?

                            SENATOR LIBOUS:    Madam President,

                 the provider does.

                            SENATOR DUANE:    And through you,

                 Madam President, if the sponsor would continue

                 to yield.

                            SENATOR LIBOUS:    Yes.

                            THE PRESIDENT:    Senator Libous

                 yields.

                            You may proceed, Senator.

                            SENATOR DUANE:    Is there a

                 recommended or standardized form that each of

                 the providers will have to develop, or do they





                                                          7484



                 get to develop their own?  Or how will that be

                 coordinated?

                            SENATOR LIBOUS:    Standardized

                 form, Madam President.

                            SENATOR DUANE:    And through you,

                 Madam President, I'm assuming that the agency

                 will provide that for them to -- or will it be

                 DCJS that will provide that?

                            SENATOR LIBOUS:    That's correct,

                 Senator.

                            SENATOR DUANE:    Thank you.

                            SENATOR LIBOUS:    Actually, this

                 is what it looks like.  It's a fingerprint

                 card.

                            SENATOR DUANE:    Oh, we're already

                 there.  Great.

                            Actually, Madam President -- thank

                 you.  Thank you.  But if I may speak on the

                 bill.

                            THE PRESIDENT:    You may proceed

                 on the bill, Senator Duane.

                            SENATOR DUANE:    It's no secret

                 that I'm disinclined to require

                 fingerprinting.

                            And I am a little concerned also





                                                          7485



                 that other mental health providers are not

                 being required to do this.  I mean, not that I

                 would want them to, but I don't really

                 understand why some would be included and why

                 other workers wouldn't be excluded.  And in

                 some cases, they would be workers for the same

                 agency and some would require background

                 checks and others would not require a

                 background check.

                            There probably would be no perfect

                 way to craft this legislation to satisfy me.

                 But I do think it would be helpful to see what

                 the experience is in other states, if other

                 states actually do have this requirement, or

                 just to see what the experiences are of other

                 state agencies.  It occurs to me there's a

                 real -- you know, a tremendous amount of data

                 out there that could be looked at so that we

                 really know what we're doing when we require

                 these background checks.

                            I mean, on the face of it, it seems

                 like who would object to background checks.

                 But I'm not convinced that this is really a

                 way to halt abuse in state agencies or with

                 providers.  I mean, for instance, if someone





                                                          7486



                 moves to New York States from another state,

                 the New York State DCJS would not find out any

                 problems that had happened before.  Only by

                 sharing that information.

                            And even if it takes a long time to

                 get that information from the FBI, getting it,

                 in sort of the philosophy of what this bill

                 is, would probably, you know, go a long way

                 towards achieving what it's supposed to

                 achieve.

                            The issue of background checks and

                 fingerprinting is really a very, very

                 compelling and interesting area and one which

                 the state government, of course, has to take a

                 lead on, because we're the ones that have to

                 weigh the civil liberties of workers versus,

                 you know, protecting the public.  I didn't ask

                 the question about whether or not there had

                 been a hearing on this, because I'm actually

                 assuming -- and I think probably from now on

                 I'll just assume that there wasn't a hearing

                 unless, you know, it's been otherwise shown.

                            But I think that in the years

                 fingerprinting has been used in various

                 professions around the state, and indeed





                                                          7487



                 throughout the country, that before we

                 continue to legislate and burden our state

                 agencies and providers with both the

                 administrative and cost issues of background

                 checks and fingerprinting, that we should

                 really look at what the success has been in

                 our state and around the rest of the nation.

                            So in the absence of having that

                 kind of a public debate and dialogue, I'm

                 going to be voting in the negative.

                            Thank you, Madam President.

                            THE PRESIDENT:    Senator

                 Schneiderman.

                            SENATOR SCHNEIDERMAN:    Thank you.

                 Through you, Madam President, if the sponsor

                 would yield to a few questions.

                            THE PRESIDENT:    Senator Libous,

                 will you yield for a question?

                            SENATOR LIBOUS:    Yes, I will,

                 Madam President.

                            THE PRESIDENT:    You may proceed.

                            SENATOR SCHNEIDERMAN:    Thank you.

                            I wonder if we have any information

                 about the size of the providers that would be

                 covered by this legislation.  My concern is





                                                          7488



                 that I think it might be very burdensome on

                 some smaller providers.  And certainly in my

                 part of the world there are some extremely

                 small agencies that provide such services.

                            Has anyone taken a look at that

                 issue?

                            SENATOR LIBOUS:    Madam President,

                 that too is a good question.  We have taken a

                 look at that issue.  There is no restriction

                 on size.

                            And certainly, again, when the

                 associations came to us, I had to make the

                 assumption that they were speaking on behalf

                 of all their providers, no matter what the

                 size is.

                            So no, there is not any particular

                 provision that's required by all.

                            SENATOR SCHNEIDERMAN:    As I

                 understand this, is there any provision to

                 allow an employee to actually review the

                 records that are provided to the employer by

                 DCJS, that the employee may review them?

                            SENATOR LIBOUS:    Madam President,

                 DCJS regulations will already apply to this

                 particular situation, as they do with others.





                                                          7489



                 So to answer your question, those regulations

                 are in place by DCJS.

                            SENATOR SCHNEIDERMAN:    So then

                 the employee or prospective employee would

                 have the right to see their criminal records

                 and ask questions or say, Hey, that's not me,

                 that's another Tom Libous who got arrested

                 somewhere, or something?

                            SENATOR LIBOUS:    Yes, Madam

                 President.  If that is what the regulations

                 state now, then that is what they will be able

                 to do.

                            SENATOR SCHNEIDERMAN:    Thank you.

                            The final area that concerns me -

                 and this relates, again, partly to my concern

                 about small agencies and the difficulty of

                 handling this sort of a process and of

                 providing the appropriate treatment of such

                 sensitive data.  Why do we have a provision

                 here granting immunity from suit for these

                 agencies if there is negligence in the

                 handling of this information that causes harm

                 to someone?

                            I mean, we already have a standard

                 of care rule in New York State.  And I must





                                                          7490



                 say that I don't understand that provision at

                 all.

                            SENATOR LIBOUS:    Madam President,

                 my counsel tells me that they're immune except

                 in cases of recklessness or gross negligence.

                            SENATOR SCHNEIDERMAN:    And my

                 question, through you, Madam President, is why

                 are we giving them an immunity from

                 negligence?

                            SENATOR LIBOUS:    Counsel

                 advises -- and I happen to agree, because I'm

                 the author -- that, you know, if some small

                 clerical error comes up, we don't need to have

                 all kinds of harassing lawsuits taking place.

                            That might not make everyone in

                 this chamber happy, but that's the way it is.

                            SENATOR SCHNEIDERMAN:    And

                 through you, Madam President, one final

                 question.

                            THE PRESIDENT:    Senator, will you

                 yield for a final question?

                            SENATOR LIBOUS:    Absolutely.

                            THE PRESIDENT:    You may proceed,

                 Senator Schneiderman.

                            SENATOR SCHNEIDERMAN:    So if





                                                          7491



                 under this legislation, through negligence,

                 the confidential records of someone's criminal

                 conduct are, you know, revealed in a way that

                 causes harm to that individual, and it's not

                 gross recklessness, that individual will no

                 longer have the right to bring an action; is

                 that correct?

                            SENATOR LIBOUS:    Madam President,

                 there is an exception if someone violates

                 confidentiality.

                            SENATOR SCHNEIDERMAN:    Thank you.

                 Thank the sponsor for his answers.

                            On the bill.

                            THE PRESIDENT:    You may proceed

                 on the bill, Senator.

                            SENATOR SCHNEIDERMAN:    I think

                 this is an effort to deal with a very

                 difficult issue.  And I also have problems

                 with the bill, although I differ somewhat from

                 Senator Duane's concerns.

                            I think that this is -- the

                 structure that this bill will create I think

                 is going to be quite unwieldy.  I think it's

                 very difficult -- and I'm thinking of the

                 areas that I'm familiar with, where we have





                                                          7492



                 lots of different service providers that would

                 fall into this category.  A lot of them really

                 operate almost on a shoestring.  They don't

                 have great recordkeeping facilities.  They

                 don't have the ability to ensure that

                 confidential records are treated properly.

                            And I'm just very concerned that

                 this system really won't have the intended

                 effect.  It will put a particular burden on

                 small agencies for them to have to pay the

                 fee.  I think there will be an incentive for

                 providers to avoid using this system.

                            And then those that do use the

                 system, I don't see any guarantee that the

                 confidentiality of the records will be

                 preserved.  And I must say that is heightened

                 by the fact that instead of trying to take

                 extra steps to ensure the confidentiality will

                 be preserved, we provide an exemption from

                 liability for negligence in the treatment of

                 those records.

                            Right now in the State of New York

                 we have a common-law standard of care that

                 applies to all of us in all of our activities,

                 and it just requires that you act reasonably





                                                          7493



                 so as to avoid exposing someone to harm -

                 foreseeable harm, not just any harm.  And I

                 don't see any reason to change that.

                            And I'm afraid what we're going to

                 end up with are a lot of records sloshing

                 around into places where they don't belong and

                 no recourse to the courts.  I appreciate the

                 exception having to do with confidentiality,

                 but it's not clear to me how that would

                 operate in this context.

                            So while I commend the sponsor for

                 his efforts to address a very important issue,

                 I'm afraid that I will once again have to vote

                 against this particular bill.

                            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 3.  This

                 act shall take effect in 90 days.

                            THE PRESIDENT:    Call the roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Those recorded in

                 the negative on Calendar Number 490 are





                                                          7494



                 Senators Duane, Hassell-Thompson, Montgomery,

                 and Schneiderman.  Ayes, 54.  Nays, 4.

                            THE PRESIDENT:    The bill is

                 passed.

                            SENATOR BALBONI:    Madam

                 President.

                            THE PRESIDENT:    Senator Balboni.

                            SENATOR BALBONI:    Could we please

                 return to reports of standing committees.  I

                 believe there is a report from the Finance

                 Committee at the desk.

                            THE PRESIDENT:    Reports of

                 standing committees.

                            The Secretary will read the Finance

                 Committee report.

                            THE SECRETARY:    Senator Stafford,

                 from the Committee on Finance, reports the

                 following nominations:

                            As a member of the Battery Park

                 City Authority, David B. Cornstein, of New

                 York City.

                            As members of the Empire State

                 Plaza Art Commission, James R. Breese, of

                 Rochester, and Rosemary E. Burgher, of

                 Selkirk.





                                                          7495



                            SENATOR BALBONI:    Madam

                 President, could we please have a vote on the

                 first nomination.

                            THE PRESIDENT:    Yes, Senator

                 Balboni.

                            SENATOR BALBONI:    Thank you very

                 much.

                            THE PRESIDENT:    The question is

                 on the nomination of David B. Cornstein, of

                 New York City, as a member of the Battery Park

                 City Authority, for a term to expire

                 December 31st in the year 2004.  All in favor

                 signify by saying aye.

                            (Response of "Aye.")

                            THE PRESIDENT:    Senator Paterson.

                            SENATOR PATERSON:    Madam

                 President, we have a member that wants to vote

                 on this nomination.  Can we just hold that for

                 just a second.  We're trying to get them in

                 here.

                            THE PRESIDENT:    Senator Balboni,

                 do you have any objection if we wait a moment

                 or two?

                            SENATOR BALBONI:    Madam

                 President, if we could just lay this aside and





                                                          7496



                 go to the next nomination, please.

                            THE PRESIDENT:    The confirmation

                 is laid aside.

                            The Secretary will read.

                            THE SECRETARY:    As members of the

                 Empire State Plaza Art Commission, James R.

                 Breese, of Rochester, and Rosemary E. Burgher,

                 of Selkirk.

                            As members of the Republic Airport

                 Commission, Stella M. Barbera, of Lindenhurst,

                 and Frank A. Nocerino, of North Massapequa.

                            As a member of the Stewart Airport

                 Commission, James M. Fedorchak, Esquire, of

                 Poughkeepsie.

                            As a member of the State Commission

                 on Quality of Care for the Mentally Disabled,

                 Angelo T. Muccigrosso, of Schenectady.

                            As members of the Advisory Council

                 to the Commission on the Quality of Care for

                 the Mentally Disabled, Mary H. Derby, of

                 Geneseo, and Jeffrey Luria, of Central Bridge.

                            As members of the State Hospital

                 Review and Planning Council, Sister Joseph

                 Mary Brecanier, of Albany, and Alan Kopman, of

                 Oceanside.





                                                          7497



                            And as a member of the Board of

                 Visitors of the Western New York Developmental

                 Disabilities Services Office, Therese Mudd, of

                 Lewiston.

                            THE PRESIDENT:    Senator Balboni,

                 to move the nominations.

                            SENATOR BALBONI:    Yes, Madam

                 President, I move the nominations.

                            THE PRESIDENT:    Thank you,

                 Senator Balboni.

                            The question is on the

                 confirmations as read by the Secretary.  All

                 in favor signify by saying aye.

                            (Response of "Aye.")

                            THE PRESIDENT:    Opposed, nay.

                            (Response of "Nay.")

                            THE PRESIDENT:    Senator

                 Dollinger.

                            SENATOR DOLLINGER:    Madam

                 President, just briefly to explain my vote.

                            James Breese, who is up for the

                 appointment to the -- I think it's the Empire

                 State Plaza Art Commission, is a supervisor in

                 the town of Henrietta, represented by Senator

                 Alesi.  But I've known Jim for a long time.





                                                          7498



                 He is kind of a quiet art afficionado, and I

                 think he'll be a good addition to the State

                 Plaza Art Commission.

                            So I just enthusiastically support

                 Supervisor Breese and wish him well in his new

                 position.

                            THE PRESIDENT:    The record will

                 so reflect your remarks, Senator Dollinger.

                            The nominees as read by the

                 Secretary are hereby confirmed.

                            Senator Balboni.

                            SENATOR BALBONI:    Thank you,

                 Madam President.

                            THE PRESIDENT:    You're welcome.

                            SENATOR BALBONI:    Could we please

                 return to the reports of standing committees

                 and the nomination that was previously laid

                 aside.

                            THE PRESIDENT:    The Secretary

                 will read the previously laid aside

                 nomination.

                            THE SECRETARY:    As a member of

                 the Battery Park City Authority, David B.

                 Cornstein, of New York City.

                            THE PRESIDENT:    Senator Balboni,





                                                          7499



                 to move the nomination.

                            SENATOR BALBONI:    Yes, I move the

                 nomination, Madam President.

                            And please recognize Senator

                 Paterson.

                            THE PRESIDENT:    Senator Paterson.

                            SENATOR PATERSON:    Madam

                 President, am I speaking on the nomination or

                 explaining my vote?  It doesn't matter; I just

                 wanted to know.

                            SENATOR BALBONI:    Madam

                 President, could we please move the

                 nomination.  And Senator Paterson will have

                 the opportunity to explain his vote.

                            THE PRESIDENT:    All in favor

                 please signify by saying aye.

                            (Response of "Aye.")

                            THE PRESIDENT:    Opposed, nay.

                            (Response of "Nay.")

                            SENATOR DOLLINGER:    Are we voting

                 on the nomination, Madam President?  Point of

                 order.

                            THE PRESIDENT:    We are voting on

                 the nomination of David B. Cornstein.

                            Senator Paterson, do you wish to





                                                          7500



                 explain your vote?

                            SENATOR PATERSON:    Yes.

                            THE PRESIDENT:    You may be heard.

                            SENATOR PATERSON:    Thank you,

                 Madam President.

                            I'm not familiar with

                 Mr. Cornstein.  However, Senator Smith, who is

                 outside the chamber on other business, is.

                 The Senator wanted to voice some concerns with

                 respect to this nominee.

                            I believe that the Senator asked

                 for an appearance by the nominee, upon

                 information and belief in the committee, and

                 the nominee did not appear.  There were

                 certainly some outstanding issues that Senator

                 Smith felt were not resolved.  In the

                 substantive committee, not in Finance, she

                 asked for the appearance.

                            And just for me to even speak too

                 much about this at any length is unfair to the

                 nominee, and also to Senator Smith, because I

                 don't really know the situation.  But I did

                 feel it necessary to put that on the record

                 and to use this time to explain my vote in

                 that fashion.





                                                          7501



                            THE PRESIDENT:    Senator

                 Dollinger.

                            SENATOR DOLLINGER:    Madam

                 President, I rise to explain my vote as well.

                            I'm going to vote no for

                 Mr. Cornstein for the following reason.  This

                 committee process, through the Finance

                 Committee and through the substantive

                 committee process, is designed to give the

                 members an opportunity to ask questions of a

                 particular nominee.

                            Late yesterday and during the last

                 24 hours I've become aware of disturbing

                 allegations against a corporation in which

                 Mr. Cornstein is not just a shareholder, he's

                 the chairman of the board.  The company is

                 called Telehub Link.  It's a company that

                 engages in consumer marketing, direct to

                 consumer marketing.  And they are the subject

                 of a court action brought by the Attorney

                 General of the State of New York to enjoin

                 their activities in this state because of

                 widespread fraud against consumers.

                            Now, most of the discussion that

                 came up in the Finance Committee is that that





                                                          7502



                 isn't necessarily evidence that Mr. Cornstein

                 is involved.  I acknowledge that.  But it

                 certainly raises a cloud on his ability to

                 serve and whether the Senate should grant the

                 imprimatur of its approval to someone whose

                 company is involved in defrauding our seniors.

                            I would strongly recommend, Madam

                 President, that this go back to the Finance

                 Committee, that the Majority show its

                 willingness to allow this man to have the

                 opportunity to answer questions and remove the

                 cloud that hangs over him because of his

                 involvement in this company.

                            And until that cloud is removed and

                 until the Senate commits itself to remove that

                 cloud, give him the opportunity to remove the

                 cloud, I'm going to vote no, and I would urge

                 all my colleagues to do so.

                            The allegations in this complaint

                 are enormously troubling because they claim

                 that this company has broken laws passed by

                 this Senate, signed by governors, to protect

                 our seniors from telemarketing fraud.

                            I would strongly encourage the

                 Senate, hold this nomination, give this man an





                                                          7503



                 opportunity to explain himself, and then we

                 can make a proper determination of whether to

                 vote yes or no.  Now we're only lost in the

                 cloud that surrounds his reputation, and we

                 don't know what to do.

                            Under those circumstances, I'm

                 voting no.

                            THE PRESIDENT:    Senator Paterson

                 and Senator Dollinger, the record will reflect

                 your remarks.

                            Senator Montgomery was next, I

                 believe.

                            SENATOR MONTGOMERY:    Yes, thank

                 you, Madam President.

                            I too am going to be voting no on

                 this candidate.  I do not know him.  I have

                 not been able to have an opportunity to ask

                 questions.  And certainly the information that

                 I've received is that he is chairman of the

                 board of this telemarketing organization.

                            And I know that many people in my

                 district have lost their homes, they have

                 gotten tremendously involved in debt problems.

                 This telemarketing is a major deterrent to the

                 economic well-being of people in this state,





                                                          7504



                 especially people like those in my district

                 who are seniors and poor people who have bad

                 credit and they're invited to sign over their

                 homes, just to fold all of their bills into a

                 credit card.  It's just a major problem for

                 us.

                            And so if there is any company -

                 if there's an appointment of any person who is

                 associated with a company that does this

                 telemarketing, I want to be sure that there

                 has never been an incident where they have

                 come into my district and marketed

                 fraudulently to people so that their financial

                 status is jeopardized based on that kind of

                 activity.

                            So I'm going to vote no, Madam

                 President, until I have an opportunity to have

                 my questions answered by Mr. Cornstein.

                            THE PRESIDENT:    The record will

                 reflect your remarks, Senator Montgomery.

                            Senator Stachowski.

                            SENATOR STACHOWSKI:    Madam

                 President, I rise to explain my vote briefly.

                            It wasn't until this morning that I

                 found out some of the problems that some of my





                                                          7505



                 colleagues have with this particular

                 appointee, that in fact the Attorney General

                 is gathering quite an extensive file on

                 complaints against this corporation, not

                 necessarily against this individual.

                            Because of that, we had some

                 questions that we may not have had yesterday

                 when the list first came out, at least myself

                 personally.  So that I didn't see any problem

                 with maybe holding this one until next week so

                 that this individual could come in and say

                 whatever it was, they're addressing it, or

                 whatever it was, it's this or that.

                            It seems to me that in the past

                 we've had confirmations of people that

                 gathered a lot of no votes for what turned out

                 to be not necessary reasons.  That maybe there

                 was something in their past that people had

                 questions on, didn't have a chance to speak to

                 the individual and so voted no, and the person

                 got a lot of no votes that if they in fact had

                 taken a little more time, come and spoke to

                 the individuals that voted no before they had

                 the opportunity to vote, they could have

                 cleared that situation up, as this situation





                                                          7506



                 may have easily been cleared up.  But it

                 wasn't done, so the no votes came.

                            And that's basically a brief

                 synopsis and the reason why I'm voting no

                 also.

                            THE PRESIDENT:    The record will

                 reflect your remarks, Senator Stachowski.

                            Senator Malcolm Smith.

                            SENATOR MALCOLM SMITH:    Thank you

                 very much, Madam President.

                            I too have to rise with some

                 discomfort and echo my colleagues' concerns

                 about voting against the nominee.  Again, it

                 has nothing to do personally with the nominee.

                 But clearly there are some allegations that

                 have been raised with regards to his ability

                 to perform in an ethical manner as relates to

                 the telemarketing company that he is involved

                 with.

                            Unfortunately, as a body, we are a

                 body of individuals who passes laws, and we

                 expect individuals that come before us to be

                 confirmed to be an adjunct to this body, in

                 some form or fashion, to respect and honor

                 those laws as well.





                                                          7507



                            Unfortunately, Mr. Cornstein's

                 corporation, while this may seem as though

                 it's piercing the corporate veil in some way

                 or another, is tied to an operation or alleged

                 operation that is not doing right by our

                 seniors.

                            And I believe, given the fact that

                 he was asked to come before the committee,

                 just as a matter of respect to everyone in the

                 entire body here, we could at least hold this

                 particular nomination until such time that he

                 has come forward and resolved any clouds or

                 concerns as relates to his company and the

                 performance thereof.

                            So because of those reasons, I will

                 have to be voting no on this nomination.

                            THE PRESIDENT:    The record will

                 reflect your remarks, Senator Smith.

                            Senator Schneiderman.

                            SENATOR SCHNEIDERMAN:    Yes, Madam

                 President, briefly to explain my vote.

                            When this nominee was passed on

                 from the substantive committee, the Committee

                 on Corporations and Authorities, our

                 extraordinarily distinguished chair, Senator





                                                          7508



                 Marchi, said that it was being passed on to

                 Finance because Finance was equipped to handle

                 an investigation into these matters and put

                 the matters to rest.

                            It appears that that has not

                 happened.  I don't know why.  This is not an

                 appointment that I think a delay of a week or

                 two would seriously impede the operation of

                 any agency of state government.

                            And I think what we are doing here

                 is leaving the air uncleared.  And I think

                 that it is a disservice to this house, it's a

                 disservice to all of the nominees here for us

                 to proceed in this manner.  There's no reason

                 not to have an investigation and clear this

                 up.

                            And accordingly, I will be voting

                 no.

                            THE PRESIDENT:    The record will

                 reflect your remarks, Senator Schneiderman.

                            Senator Stavisky.

                            SENATOR STAVISKY:    To explain my

                 vote, Madam President.

                            I too rise troubled by this

                 nomination.  It seems to me it's as though we





                                                          7509



                 were going into a store to make a purchase and

                 the purchase is all wrapped up and we don't

                 know what's inside.  I think this is the

                 situation with Mr. Cornstein.

                            We don't know whether these

                 allegations are true or false, and he

                 certainly has to be given the opportunity to

                 explain and to address our concerns.  He has

                 not done so.

                            And for that reason, Madam

                 President, I vote no.

                            THE PRESIDENT:    The record will

                 reflect your remarks, Senator Stavisky.

                            Senator Duane, to explain your

                 vote, I assume.

                            SENATOR DUANE:    Yes, thank you,

                 Madam President.

                            I don't know Mr. Cornstein.  And my

                 position has generally been that for positions

                 of this kind of caliber, even if it's an

                 unpaid position, that the person should

                 appear.

                            It becomes even more urgent in a

                 case like this when members of the committees

                 that Mr. Cornstein is passing through have not





                                                          7510



                 had an opportunity to ask him about

                 allegations.  And they're merely allegations.

                            But on a matter as important as

                 this, I think that the prudent thing to do

                 would be to delay this confirmation until such

                 time as Mr. Cornstein is able to appear at his

                 convenience and respond to questions that

                 committee members may have.

                            And without any personal knowledge

                 of Mr. Cornstein in this situation, and really

                 with optimism that he will eventually be

                 approved for the board -- which I actually

                 represent Battery Park City -- I'm going to at

                 this time be casting my vote in the negative.

                            Thank you, Madam President.

                            THE PRESIDENT:    The record will

                 reflect your remarks, Senator Duane.

                            The nominee is hereby confirmed.

                            Senator Balboni.

                            SENATOR BALBONI:    Thank you,

                 Madam President.  Can we please return to the

                 calendar and could we go to -- one minute,

                 please.

                            ACTING PRESIDENT McGEE:    Senator

                 Bruno.





                                                          7511



                            SENATOR BRUNO:    Madam President,

                 could we at this time take up Calendar Number

                 944.

                            ACTING PRESIDENT McGEE:    The

                 Secretary will read.

                            THE SECRETARY:    Calendar Number

                 944, by Senator Bruno, Senate Print 2B, an act

                 to amend the Tax Law and the State Finance

                 Law, in relation to establishing.

                            ACTING PRESIDENT McGEE:    Senator

                 Dollinger.

                            SENATOR DOLLINGER:    Explanation,

                 please, Madam President.

                            ACTING PRESIDENT McGEE:    Senator

                 Bruno, an explanation has been requested.

                            SENATOR BRUNO:    Thank you, Madam

                 President.

                            This is part of the Senate tax cut

                 proposal, part of our budget proposal.  And it

                 relates to about $2.2 billion in tax cuts for

                 the people of this state.  And one of the big

                 parts of this is that it would ease the burden

                 on the consuming public by reducing the taxes

                 on gasoline, residential utility bills,

                 commercial heating fuels, will assist





                                                          7512



                 low-income New Yorkers with their heating

                 bills through a personal income tax credit,

                 and promote energy efficiency through a sales

                 tax exemption.

                            We all know that the price of

                 gasoline is escalating.  It is the highest in

                 New York than anywhere in the Northeast,

                 fourth highest in the country, average price

                 per gallon of gas.  People are paying about

                 $400 million in state taxes.  This would

                 eliminate that state tax, saving the people of

                 this state $400 million annualized.

                            Currently, the gross receipts tax

                 on utilities, which is passed through to

                 residential customers, is 2.5 percent.  This

                 bill eliminates the tax, saving residential

                 consumers $175 million.

                            Families having problems with the

                 increasing cost of heating their homes through

                 the Home Energy Assistance tax, HEAP, this is

                 a credit to assist families with the dramatic

                 rise in home heating costs.  And the HEAP

                 program, the Home Energy Assistance tax

                 credit, would provide 1.1 million eligible

                 families with a tax credit equal to 25 percent





                                                          7513



                 of their state earned income tax credit, the

                 EITC.  That's over 400,000 of these families

                 are located in the upstate areas that have the

                 highest heating consumption and costs.

                            Under this bill, an eligible family

                 with two children getting an EITC of about

                 $875 would receive an additional $220 to

                 reimburse them for a portion of the increase

                 in the home heating costs.

                            Fuel oil used for residential

                 heating is exempt, as we all know, from the

                 petroleum business tax.  That for commercial

                 purposes is not.  This removes the PBT on

                 commercial heating fuel, saving businesses

                 10 million annually.

                            This bill would also exempt from

                 the sales tax materials that promote energy

                 efficiency, saving consumers about

                 $200 million annually.  Some of the products

                 that would qualify would include furnaces,

                 windows, appliances, all approved under the

                 Energy Star Program, alternative energy

                 systems such as solar heating fuel cells,

                 insulation, weather stripping, caulking,

                 anything that would conserve energy.





                                                          7514



                            And localities that may lose

                 revenue that they would normally raise would

                 be reimbursed by the state for any losses that

                 they incur.

                            This is something that should

                 happen on behalf of the consumers in New York

                 State.  We feel that tax cuts are a

                 stimulation to the economy.  Given what's

                 happening out there with the potential

                 stagnation, recession, that this would really

                 be a stimulus to everything that happens here

                 in the economy, with job creation as well as

                 making life more comfortable, more tenable for

                 the people here who pay the taxes.

                            Thank you, Madam President.

                            ACTING PRESIDENT McGEE:    Senator

                 Dollinger.

                            SENATOR DOLLINGER:    Madam

                 President, is there an amendment at the desk?

                            ACTING PRESIDENT McGEE:    Yes,

                 there is.

                            SENATOR DOLLINGER:    Madam

                 President, I would ask that the reading of the

                 amendment be waived and that I offer the

                 amendment before the house and ask to be heard





                                                          7515



                 on it.

                            ACTING PRESIDENT McGEE:    Senator

                 Dollinger, the reading is waived.

                            SENATOR DOLLINGER:    Thank you,

                 Madam President.

                            Senator Bruno, there's a lot in

                 this tax bill that deals with energy that's

                 good.  I would suggest, however, I do disagree

                 or I'm going to at least raise a disagreement

                 with you about one fact, Senator Bruno, the

                 notion that there's a stagnancy or a recession

                 out there in the state of New York.

                            I'm not sure that we completely

                 agree on that issue.  Although I will

                 acknowledge that given events that are

                 happening, certainly the economy in New York

                 is back at the top of our concern about the

                 future of this state.  We certainly need more

                 job development upstate.  We certainly need

                 greater job development in our urban

                 communities, like the one I represent.

                            And I think that it's time to take

                 this focus on energy and add another dimension

                 to it.  And that is to take -- Senator Bruno

                 talked about the importance of solar power.





                                                          7516



                 This amendment, Madam President, would allow

                 the creation of a tax credit for wind energy

                 generators.  It would also provide for the net

                 metering of solar photovoltaic systems.  These

                 are systems that allow the use of the sun and

                 wind to generate energy.  They can be

                 extremely important.

                            This system, if it were enacted,

                 would really pattern -- is patterned after

                 legislation that we put in effect in 1997

                 which provided tax credits.  This increases

                 those tax credits.  Thirty states have some

                 form of net metering of these devices.

                 New York is one of only two states that does

                 not allow net metering for small wind energy

                 generators.

                            We all know that wind energy is

                 abundant, largely in Western New York.  The

                 central portion of the state also has ample

                 resources in the movement of the winds.  Small

                 wind turbines, those that produce 5 to 100

                 kilowatts of electricity, have been developed

                 for residential and farm applications, and

                 they can provide a variety of public and

                 private benefits.





                                                          7517



                            We all know that wind is probably

                 the most efficient and clean source of energy.

                 The movement of propellers in the generation

                 of energy, which is all a part of our American

                 past, through the windmill, the use of larger

                 windmills to generate wind power is clearly

                 the most fuel-efficient method of generating

                 energy, and it's one that would do us all

                 credit.

                            So, Senator Bruno, while we talk

                 about energy in this state -- and I for one

                 have been disappointed that we don't seem to

                 have much of an energy policy in this state in

                 the course of the last six years after we

                 eliminated the Energy Department -- we haven't

                 had a focus on energy until the price of

                 gasoline jumps near $2 a gallon.  And then all

                 of a sudden it seems to become critically

                 important.

                            I would suggest that both this

                 house and the Governor would be well-advised

                 to use the wind resources in New York State,

                 to use them to their fullest by adopting this

                 amendment, by creating an income tax credit of

                 up to $7,500 to encourage the purchase and





                                                          7518



                 operation of small wind turbines.

                            We can do that as part of our

                 energy system in this state.  We can use

                 private enterprise to do it.  People can erect

                 these small wind turbines on their own

                 property, they can obtain the necessary zoning

                 and other approvals.  It's a great way to add

                 to our energy base in this state without

                 running the risk of further pollution and

                 further damage to our environment.

                            Under those circumstances, Madam

                 President, I commend this amendment to the

                 house.  And I think we can take what Senator

                 Bruno has started with, a reasonably good

                 energy package to try to deal with energy, and

                 we can even make it better by adding this

                 amendment to it.

                            I recommend a yes vote on the

                 amendment.

                            ACTING PRESIDENT McGEE:    Those

                 Senators in agreement with the amendment

                 please signify by raising your hand.

                            Senator Dollinger.

                            SENATOR DOLLINGER:    I rise for a

                 point of order, Madam President.





                                                          7519



                            ACTING PRESIDENT McGEE:    Point of

                 order.

                            SENATOR DOLLINGER:    Is this a

                 vote on the amendment, Madam President?

                            ACTING PRESIDENT McGEE:    This is

                 a canvass of agreement on the amendment.

                            SENATOR DOLLINGER:    Oh.

                            Senator Bruno properly points out

                 that canvas is like sails.  In fact, Senator

                 Bruno, they put canvases in windmills, which

                 is part of what they use to generate power.

                 So it's -- how appropriate that we could use

                 canvas from the canvass of agreement to propel

                 our windmills.

                            ACTING PRESIDENT McGEE:    Thank

                 you, Senator Dollinger.

                            The Secretary will announce the

                 results.

                            THE SECRETARY:    Those recorded in

                 agreement are Senators Breslin, Connor,

                 Dollinger, Gentile, Hassell-Thompson,

                 Markowitz, Montgomery, Oppenheimer, Paterson,

                 Sampson, Schneiderman, M. Smith, Stachowski,

                 and Stavisky.

                            ACTING PRESIDENT McGEE:    The





                                                          7520



                 amendment is defeated.

                            Senator Schneiderman.

                            SENATOR SCHNEIDERMAN:    Thank you,

                 Madam President.  I believe there's another

                 amendment at the desk.  I would request that

                 its reading be waived and that I be heard on

                 the amendment.

                            ACTING PRESIDENT McGEE:    The

                 reading is waived and you may speak on the

                 amendment at this time, Senator Schneiderman.

                            SENATOR SCHNEIDERMAN:    Thank you

                 very much.

                            The tax relief that's provided for

                 in this bill is not really going to be able to

                 address the serious problems that have been

                 created by essentially our botched

                 deregulation of the energy industry in the

                 state of New York.  We have to do a lot more

                 to encourage the reduction in consumption of

                 energy if we're going to be able to survive

                 without building many more power plants,

                 increasing pollution, and overburdening

                 communities that already have too many

                 facilities in them.

                            I suggest that with this amendment,





                                                          7521



                 which would create a clean energy fund, we

                 will accomplish four things.  We will provide

                 funds for promotion of energy efficiency, for

                 energy-demand reduction, for research, and for

                 energy affordability for low-income New

                 Yorkers.

                            Tragically, and to me

                 incomprehensibly, Governor Pataki has slashed

                 funds for clean energy programs since he was

                 in office.  We now are providing less money -

                 significantly less money, about half -- for

                 clean energy programs than we were providing

                 in 1993.  We provide significantly less money

                 for clean energy programs than all the states

                 surrounding us.  And I don't think it's really

                 in dispute that energy-efficiency programs,

                 conservation programs are critical to our

                 economic health.

                            The New York State Energy Research

                 and Development Authority has estimated that

                 over a ten-year period every $1 million

                 invested in energy efficiency saves $3 million

                 in energy costs, avoids 100 tons of sulfur

                 dioxide emissions, 70 tons of nitrogen oxide

                 emissions, and 45,000 tons of carbon dioxide





                                                          7522



                 emissions.  So it's good financially and it's

                 good environmentally.

                            This amendment would create a clean

                 energy fund that would provide additional cost

                 saving and also incentives for those of us who

                 wish to expand residential energy programs and

                 purchase the energy-efficient appliances.

                            This amendment is based on a bill

                 that was sponsored by -- that I sponsored but

                 also there was an almost identical bill

                 Senator Marcellino introduced last year.  And

                 I think this is something that should have

                 bipartisan support.  And if, somehow or other,

                 this amendment does not pass today, I would

                 urge that this bill be revived.

                            The time is now to act on the issue

                 of energy prices.  This is what we would call

                 in the business world a no-brainer.  This will

                 save us money, this will help clean up our

                 air.

                            I urge a yes vote on this

                 amendment.

                            ACTING PRESIDENT McGEE:    Those

                 Senators in agreement with the amendment

                 please signify by raising your hand.





                                                          7523



                            THE SECRETARY:    Those recorded in

                 agreement are Senators Breslin, Brown, Connor,

                 Dollinger, Duane, Gentile, Hassell-Thompson,

                 Markowitz, Montgomery, Oppenheimer, Paterson,

                 Sampson, Schneiderman, M. Smith, Stachowski,

                 and Stavisky.

                            ACTING PRESIDENT McGEE:    The

                 amendment is failed.

                            Senator Gentile.

                            SENATOR GENTILE:    Yes, Madam

                 President.  I believe there's an amendment at

                 the desk.

                            ACTING PRESIDENT McGEE:    The

                 reading of the amendment is waived -

                            SENATOR GENTILE:    And I'd ask

                 that you waive the reading and allow me to

                 explain.

                            ACTING PRESIDENT McGEE:    Thank

                 you.  The reading is waived, and you may speak

                 on the amendment, Senator.

                            SENATOR GENTILE:    Thank you,

                 Madam President.

                            Madam President, my community in

                 Staten Island is one of those communities that

                 has been imposed upon with a generating plant





                                                          7524



                 that we were told is absolutely necessary for

                 New York City to avoid brownouts and blackouts

                 this summer.

                            It is something that the community

                 has opposed and will continue to oppose.

                 Because we're told that there is enough energy

                 in New York State, the problem is we can't

                 transmit that energy to New York City.  It's a

                 transmission problem, not an energy problem in

                 New York City.

                            And so my amendment, Madam

                 President, would require an amendment to

                 Chapter 451 of the Laws of 2000, and it would

                 require New York City or cities of a million

                 or more to purchase appliances that meet

                 minimum energy-efficiency standards that have

                 been preset.

                            Now, this is a state law that

                 applies to state agencies.  My amendment would

                 now apply to cities of a million or more -

                 i.e., New York City.

                            This proposal, by directing that

                 the city purchase only those appliances which

                 exceed the minimum energy-efficiency standards

                 will dramatically, dramatically help to reduce





                                                          7525



                 the city's energy needs.

                            Right now, the City of New York's

                 government agencies consume 800 megawatts of

                 power each year, at a cost of $328 million a

                 year.  If this amendment were to be adopted,

                 we could realize in the City of New York a

                 savings of $6.6 million a year.

                            Indeed, the potential is great

                 here.  If the entire City of New York, under

                 this amendment, were to retrofit their red,

                 green, and yellow traffic lights to

                 low-emitting diodes -- which have been done in

                 parts of Queens, and will soon be done in

                 parts of Staten Island.  But if the entire

                 City of New York were to do that, it would

                 reduce the capacity needs of energy by more

                 than 10 megawatts and save more than

                 $8.5 million to the city in maintenance costs.

                            So the potential here, Madam

                 President, is great.  Indeed, the

                 refrigeration industry has made great strides

                 in meeting energy-efficiency standards.

                 There's a new generation of energy-efficient

                 refrigerators that has reduced their

                 electricity consumption by 75 percent, or





                                                          7526



                 saving 60,000 megawatts of electricity.

                            If we were to require New York City

                 to use those more energy-efficient

                 refrigerators in their agency buildings, we

                 would be saving more than $50 billion over the

                 course of the life of those appliances.

                            So, Madam President, it is a

                 question here that we have been presented with

                 in the City of New York that the transmission

                 of the energy throughout the state is not

                 available to the City of New York.  So one of

                 the ways to address that problem is to

                 incorporate this amendment, which would

                 require the city to reduce its energy usage by

                 using these types of appliances.  Because the

                 bottom line is that every kilowatt-hour that

                 is saved is one less kilowatt-hour that needs

                 to be found.

                            So I commend this amendment to my

                 colleagues, not only in the City of New York

                 but in the entire house.

                            ACTING PRESIDENT McGEE:    Senator

                 Paterson.

                            SENATOR PATERSON:    Madam

                 President, just a point of order.





                                                          7527



                            If I'm correct, the rules of the

                 Senate do not permit for there to be any kind

                 of party action on a canvass.  In other words,

                 you can't have a party vote in the affirmative

                 on a canvass.  That is correct, isn't it?

                            ACTING PRESIDENT McGEE:    That is

                 correct.  That's why we're asking for hand

                 signalings.

                            SENATOR PATERSON:    Okay.  Then

                 that being the case, Madam President, is it

                 permissible, being that the only way a member

                 can be recorded would be to physically be in

                 the chamber, that when we have these such

                 amendments that we ring the bells?  Because

                 there's no way for members to necessarily know

                 that we're on an amendment, and therefore no

                 way for a member to be recorded.

                            ACTING PRESIDENT McGEE:    One

                 moment.

                            Senator Bruno.

                            SENATOR BRUNO:    Madam President,

                 can we have the ringing of the bills to alert

                 the members who are not in the chamber where

                 they belong that this is where they ought to

                 be.





                                                          7528



                            We are doing very important work on

                 behalf of our constituency throughout this

                 state, and members belong in the chamber.

                 We'd like to be able to progress with our

                 proceedings.

                            But I would ask to have the bell

                 rung while we are debating and proceeding.

                            ACTING PRESIDENT McGEE:    Thank

                 you, Senator Bruno.

                            SENATOR BRUNO:    Thank you, Madam

                 President.

                            ACTING PRESIDENT McGEE:    The

                 Secretary will ring the bells.

                            Senator Paterson.

                            SENATOR PATERSON:    I just wanted

                 to thank the Majority Leader for acceding to

                 that request, because it will make it easier

                 for the members to be recorded.

                            But I think it only fair that I

                 reiterate that this was an important bill,

                 we're going to have a final vote on this bill

                 very soon, and that everybody should be in

                 this chamber.

                            ACTING PRESIDENT McGEE:    Thank

                 you, Senator Paterson.





                                                          7529



                            Senator Schneiderman.

                            SENATOR SCHNEIDERMAN:    Thank you,

                 Madam President.  I just wanted to rise very

                 briefly to speak in support of this amendment.

                            And again, I urge my colleagues on

                 the other side of the aisle -- oh, I'm sorry,

                 I don't want to interrupt an outbreak of

                 bipartisan sentiment.

                            In fact, I'm talking more about

                 bipartisan sentiment.  This is a bill that

                 expands Senator Morahan's bill, just as the

                 bill that I proposed, the amendment that I

                 proposed follows Senator Marcellino's bill.

                            These are very important ways to

                 reduce energy consumption in the state of

                 New York.  These are very important ways to

                 reduce the price of energy in the state of

                 New York.  These are critical ways to ensuring

                 we do not have blackouts, we don't have to put

                 power plants in communities where they don't

                 belong.

                            And I would urge that if this

                 amendment is also defeated, which I hope is

                 not going to be the case, that this bill will

                 resurface once again.  And I'm sure it will





                                                          7530



                 have tremendous support from our side of the

                 aisle.

                            Thank you.  I urge a yes vote,

                 Madam President.

                            ACTING PRESIDENT McGEE:    Senator

                 Dollinger.

                            SENATOR DOLLINGER:    Thank you,

                 Madam President.  On the amendment.

                            Senator Schneiderman is absolutely

                 correct.  All three of these amendments, the

                 first two and this one, find their origin in

                 bills that come to us from the Majority.  I

                 think this bill follows a bill from Senator

                 Morahan.  Senator Schneiderman explained how

                 his bill follows.  And the original bill that

                 we did for solar power tax credits comes from

                 a bill that Senator Hoffmann did.

                            So it seems to me that

                 bipartisanship, which Senator Schneiderman

                 described as an outbreak, I think this is a

                 celebration of bipartisanship.  We're taking

                 good ideas that exist and that come to us from

                 the other side.  We've taken a look at those

                 ideas, we think they're worthy of inclusion in

                 a massive tax bill that deals with energy.





                                                          7531



                            So, Madam President, I think this

                 is a true demonstration or a celebration of

                 bipartisanship that these amendments are on

                 the floor.

                            With respect to this specific

                 amendment, this is an amendment -- and Senator

                 Gentile is absolutely correct, it does exactly

                 what we should be doing.  It's telling major

                 purchasers to buy fuel-efficient utilities,

                 fuel-efficient equipment -- refrigerators,

                 washers, all those things that a big city

                 would buy, there are ways to buy them that

                 will save us energy.

                            If we did that as a state, if we

                 took that responsibility seriously, we could

                 substantially reduce our need for power and

                 all the problems that come with it, whether

                 it's the difficulties represented by nuclear

                 generation or the emissions that deal with

                 coal- and gas-fired plants and oil-fired

                 plants.

                            This is a bill that does exactly

                 what everyone in the state should be doing,

                 buy fuel-efficient equipment.  The City of

                 New York, one of the largest purchasers in the





                                                          7532



                 country of this types of equipment, if we tell

                 them to do this, we're going to reduce the

                 need for energy.

                            We may reduce, Senator Gentile, the

                 chance that a blackout will come rolling

                 through Staten Island and Brooklyn this summer

                 when they don't have enough power.

                            This is all about preserving what

                 we've got and optimizing the energy we have

                 and not requiring us to use more.  It's

                 absolutely the right thing to do.  It's an

                 idea whose time has come.

                            It came out of your side of the

                 aisle.  It's a good idea in Republican hands,

                 it's a good idea in Democratic hands, it's a

                 good idea for the Senate to send to the

                 Assembly.  And it will be a good idea when the

                 Governor signs it into law, Madam President.

                            ACTING PRESIDENT McGEE:    Those

                 Senators in agreement with the amendment

                 please signify by raising your hand.

                            The Secretary will announce the

                 results.

                            THE SECRETARY:    Those recorded in

                 agreement are Senators Breslin, Brown, Connor,





                                                          7533



                 Dollinger, Duane, Gentile, Hassell-Thompson,

                 Markowitz, Montgomery, Oppenheimer, Paterson,

                 Sampson, Schneiderman, M. Smith, Stachowski,

                 and Stavisky.

                            ACTING PRESIDENT McGEE:    The

                 amendment is failed.

                            Senator Wright.

                            SENATOR WRIGHT:    Thank you, Madam

                 President.

                            It's appropriate, as President Bush

                 is preparing to unveil his national energy

                 agenda, that we're standing here this

                 afternoon discussing the energy agenda in

                 New York State.  Because, in fact, New York

                 State, unlike the nation, has an energy

                 agenda.  It has been the federal

                 administration that has been absent an energy

                 agenda for the past eight years.

                            There are but three ways to reduce

                 the energy bills for individuals across this

                 state.  Number one is to reduce consumption,

                 energy efficiency.  We've talked about that

                 this afternoon.  It is embodied in the Senate

                 proposal.

                            Increasing supply.  It is in





                                                          7534



                 concert with the administration that the

                 Senate led the siting bill legislation,

                 Article 10.

                            And to reduce taxes.  Those are the

                 three ways you reduce the cost of energy.

                            And under the leadership of Senator

                 Bruno, Senator Stafford, in cooperation with

                 the administration, this house has led the way

                 in the nation in reducing energy taxes, going

                 straight to the bottom line of every

                 individual bill, be it an individual resident,

                 a commercial or industrial user.

                            So in fact, the state does have an

                 energy agenda.  The Senate has demonstrated

                 that leadership.  For years, under the

                 leadership of Senator Bruno, we debated and

                 advanced the elimination of the gross receipts

                 tax, finally having achieved success.

                            Last year we initiated and passed

                 one of the first green building tax credits in

                 the nation, sponsored by Senator Goodman on

                 this side of the house.

                            We have advanced the Article 10

                 bill to facilitate siting, thereby increasing

                 supply.





                                                          7535



                            All of those elements are part of

                 an agenda for energy in New York State.  They

                 are being mirrored on the national level in

                 terms of what is being done.

                            Now, today, you see us again

                 advancing the proposals, the first being the

                 elimination of the gas sales tax, for obvious

                 reasons.  The quickest reduction at the pump

                 will occur through the elimination of taxes.

                            We continue to advance the

                 elimination of residential GRT.  Having

                 started that process last year, we now advance

                 its complete phaseout.  And of course, third,

                 you see the proposals in terms of sales tax

                 exemptions on energy-efficiency investments.

                 And, unlike the proposed amendment we just

                 heard, where we mandate a cost on a local

                 government, in fact our bill covers the cost

                 of local governments in terms of their loss of

                 sales tax.  That is very intentional, to

                 facilitate energy efficiency and savings.

                            And while it's not in this

                 particular bill, I would suggest if Senator

                 Dollinger has the opportunity to review

                 Senate 4A, he will in fact find the wind tax





                                                          7536



                 credit reflected in that bill as an amendment

                 to the previously adopted solar credits.

                            That was initiated, very simply,

                 because of discussions we commenced this past

                 summer in August with the Wind Association

                 nationally, not just in New York State.  But

                 the national association was here in New York

                 State, representatives of the Senate and the

                 Power Authority met with them, discussed this

                 concept.

                            We've not only introduced a bill -

                 as Senator Hoffmann has, as Senator Rath has,

                 as a number of our members have introduced

                 bills on those tax credits -- we have embodied

                 it in the budget bill.

                            So I think you will find that not

                 only do we have a very clear agenda to move

                 ahead on the issues of efficiency, to reduce

                 consumption, to provide those necessary

                 incentives; at the same time, they are

                 incorporated in very good tax legislation that

                 is critical to providing the necessary

                 reductions to our individual consumers and to

                 protect their interests.

                            So, Madam President, I would urge





                                                          7537



                 my colleagues to support 2B that's before us

                 now, as well as 4A, and to move ahead on what

                 clearly is making New York State a leader in

                 addressing the energy crisis.

                            Thank you.

                            ACTING PRESIDENT McGEE:    Any

                 other member wishing to speak on the bill?

                            Read the last section.

                            THE SECRETARY:    Section 22.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT McGEE:    Call the

                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 59.

                            ACTING PRESIDENT McGEE:    The bill

                 is passed.

                            Senator Bruno.

                            SENATOR BRUNO:    Madam President,

                 can we at this time take up Calendar Number

                 945.

                            ACTING PRESIDENT McGEE:    The

                 Secretary will read.

                            THE SECRETARY:    Calendar Number

                 945, by Senator Bruno, Senate Print 4A, an act

                 to amend the Tax Law, in relation to elder





                                                          7538



                 care credits.

                            ACTING PRESIDENT McGEE:    Any

                 Senator wishing to speak on the bill?

                            Read the last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT McGEE:    Call the

                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 58.  Nays,

                 1.  Senator Duane recorded in the negative.

                            ACTING PRESIDENT McGEE:    The bill

                 is passed.

                            Senator Bruno.

                            SENATOR BRUNO:    Madam President,

                 can we now call up Calendar 953, please.

                            ACTING PRESIDENT McGEE:    The

                 Secretary will read.

                            THE SECRETARY:    Calendar Number

                 953, by Senator Bruno, Senate Print 5255, an

                 act to amend the Tax Law, in relation to a

                 sales tax exemption for gas.

                            SENATOR PATERSON:    Explanation.

                            ACTING PRESIDENT McGEE:    Senator

                 Bruno, an explanation has been requested.





                                                          7539



                            SENATOR BRUNO:    Madam President,

                 we have talked, we have read, we have heard

                 from our constituency that the price of gas is

                 going up every day, every week.  People are

                 having trouble driving to work, driving to

                 school, taking children where they have to

                 take them.

                            This bill would rescind the sales

                 tax on gasoline.  It saves the consumers of

                 this state $400 million.  As the price of gas

                 goes up, so does the sales tax.  There's

                 something wrong with that.

                            As I mentioned earlier, New York is

                 presently paying the highest average price per

                 gallon in the Northeast, and I think we are

                 fourth highest in the country, on the average.

                            So we think this is an appropriate

                 thing to do, keep that $400 million in the

                 hands of the consumers, the driving public.

                            ACTING PRESIDENT McGEE:    Does any

                 Senator wish to speak on the bill?

                            Read the last section.

                            THE SECRETARY:    Section 10.  This

                 act shall take effect July 1.

                            ACTING PRESIDENT McGEE:    Call the





                                                          7540



                 roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT McGEE:    Senator

                 Schneiderman, to explain his vote.

                            SENATOR SCHNEIDERMAN:    Thank you,

                 Madam President.

                            While I join in the sentiment

                 behind this bill, I really don't think that it

                 provides an adequate solution to the problem

                 of high gasoline prices.  If gas hits $2 or

                 even $3, the sales tax repeal will seem

                 inconsequential.

                            And there's no guarantee in this

                 bill that this be passed along to the

                 consumer.  We've seen in the past situations

                 arise where taxes are cut but the price

                 doesn't come down for the consumers.

                            And absent something like that, I'm

                 constrained to vote no.

                            ACTING PRESIDENT McGEE:    Senator

                 Oppenheimer.

                            SENATOR OPPENHEIMER:    Thank you.

                            I'm going to vote yes.  But I feel

                 very strongly that we are not doing near

                 enough to control some of the vehicles on our





                                                          7541



                 roads that consume an incredible amount of

                 gasoline per mile.  And I think that we have

                 to put some emphasis on controlling -- in one

                 way, I think price is one way to control.  And

                 so in a way, I think if we had a very high

                 price on gas, it might be good.  We might all

                 think about getting rid of our SUVs.

                            I think it's important during the

                 holiday season, certainly during the summer

                 season that we permit our families to travel.

                 But I just have to raise my objection to these

                 gas-guzzling automobiles and vehicles that are

                 on our roads now.  And I would like the people

                 to think twice about what they're doing when

                 they purchase these vehicles.

                            ACTING PRESIDENT McGEE:    Any

                 other Senator wishing to speak on the bill?

                            Senator Duane.

                            SENATOR DUANE:    Thank you, Madam

                 President.

                            You know, the issue of tax

                 reductions is one which is very, very

                 important.  And, first of all, I don't think

                 it's appropriate just to use this as the forum

                 to look at things like tax reductions and what





                                                          7542



                 we're doing with eliminating sales taxes on

                 gasoline.  You know, it's not appropriate to

                 do here to begin with, but then after, you

                 know, criticism that people aren't here,

                 there's no -- people still aren't here.

                 People have left.

                            I think this legislation is really

                 more appropriately part of the budget.  And

                 that we're doing these pieces of legislation

                 separate and apart from the budget is just

                 wrong.  Instead of spending our time on these

                 one-house budget bills, we would be better off

                 working with our colleagues on both sides of

                 the aisle, and with the Governor, to get a

                 real budget for the people of the State of

                 New York.

                            I really feel like I've wasted my

                 time by coming in here to even do this.  And

                 obviously I have, since people who are

                 critical of people not being in the chamber

                 aren't even here to hear that.

                            Thank you, Madam President.

                            ACTING PRESIDENT McGEE:    Thank

                 you.

                            Any other Senator wishing to speak





                                                          7543



                 on the bill?

                            Announce the results.

                            THE SECRETARY:    Ayes, 57.  Nays,

                 2.  Senator Senators Duane and Schneiderman

                 recorded in the negative.

                            ACTING PRESIDENT McGEE:    The bill

                 is passed.

                            Senator Skelos.

                            SENATOR SKELOS:    Madam President,

                 would you lay aside Calendar Number 867 for

                 the day.

                            ACTING PRESIDENT McGEE:    The bill

                 is laid aside for the day.

                            SENATOR SKELOS:    And would you

                 take up Calendar Number 930, by Senator

                 Libous.

                            ACTING PRESIDENT McGEE:    The

                 Secretary will read.

                            THE SECRETARY:    Calendar Number

                 930, by Senator Libous, Senate Print 3667, an

                 act to amend the Mental Hygiene Law, in

                 relation to providing.

                            SENATOR PATERSON:    Explanation.

                            SENATOR SCHNEIDERMAN:

                 Explanation.





                                                          7544



                            ACTING PRESIDENT McGEE:    Senator

                 Libous, an explanation has been requested.

                            SENATOR LIBOUS:    Thank you, Madam

                 President.

                            The bill would actually require

                 that OMRDD providers submit certain reports to

                 OMRDD via the Internet.

                            ACTING PRESIDENT McGEE:    Senator

                 Paterson.

                            SENATOR PATERSON:    Madam

                 President, would Senator Libous yield for a

                 question?

                            ACTING PRESIDENT McGEE:    Senator,

                 will you yield?

                            SENATOR LIBOUS:    I will.

                            SENATOR PATERSON:    Senator, I'm

                 concerned about the allocation.  What is going

                 to be the cost of instituting this?

                            SENATOR LIBOUS:    Actually,

                 Senator, through you, Madam President, we

                 believe there will be a savings, because right

                 now there are thousands of reports that are

                 submitted in writing to OMRDD.  This will

                 allow the reports to be submitted via the

                 Internet, which is going to make it much





                                                          7545



                 simpler.  They can just be downloaded.

                            At the present time, these reports

                 come in in humongous volumes, and they have to

                 put people at keyboards and they have to

                 data-enter all of this information.  It's

                 just -- yes, it's going to save money.

                            ACTING PRESIDENT McGEE:    Senator

                 Paterson.

                            SENATOR PATERSON:    Thank you,

                 Madam President.  If Senator Libous would

                 continue to yield.

                            ACTING PRESIDENT McGEE:    Senator

                 Libous, will you continue to yield?

                            SENATOR LIBOUS:    Absolutely,

                 Madam President.

                            ACTING PRESIDENT McGEE:    The

                 gentleman yields.

                            SENATOR PATERSON:    Senator, are

                 we going to need new telephone lines to

                 accommodate the greater load that we're going

                 to have when we bring all these agencies on

                 line?

                            SENATOR LIBOUS:    Senator,

                 speaking of telephone lines, someone should

                 take theirs out of the chamber that's ringing





                                                          7546



                 right now.

                            SENATOR PATERSON:    That's an

                 excellent idea, Madam President.  I hope

                 you'll -

                            SENATOR LIBOUS:    Madam President,

                 through you, the answer is no.

                            ACTING PRESIDENT McGEE:    The

                 answer is no.

                            SENATOR PATERSON:    No.

                            Madam President, if Senator Libous

                 would yield for another question.

                            ACTING PRESIDENT McGEE:    Senator

                 Libous, will you continue to yield?

                            SENATOR LIBOUS:    I'm happy to

                 continue to yield to Senator Paterson.

                            SENATOR PATERSON:    The

                 legislation calls for a date of an enactment

                 that I think is somewhat optimistic.  Are we

                 planning to have all these agencies online by

                 that date, Senator, or is that just the date

                 that it becomes law and we'll hope that -

                            SENATOR LIBOUS:    That's the date

                 that it becomes law.

                            Actually, many of these agencies

                 are now providing reports via the Internet.





                                                          7547



                 Keep in mind that we feel that this will save

                 money, be more effective, more efficient.

                            And also, Madam President, through

                 you to Senator Paterson, there is a disclaimer

                 in there.  We recognize there may be one or

                 two smaller agencies who are not able to send

                 it via the Internet.  And certainly the

                 commissioner can permit them with a waiver

                 that would allow that to happen.

                            ACTING PRESIDENT McGEE:    Senator

                 Paterson.

                            SENATOR PATERSON:    Thank you,

                 Madam President.  I have a final question if

                 Senator Libous, who has been patient, will

                 suffer one more.

                            ACTING PRESIDENT McGEE:    Senator

                 Libous, will you be patient and suffer one

                 more?

                            SENATOR LIBOUS:    Madam President,

                 I don't consider this suffering whenever

                 Senator Paterson asks me a question.

                            ACTING PRESIDENT McGEE:    He

                 suffers for you.

                            SENATOR PATERSON:    Senator, who

                 will bear the cost of upgrading the computers





                                                          7548



                 or the additional hardware that it might take

                 to accommodate this transition?

                            SENATOR LIBOUS:    Madam President,

                 that is an excellent question.

                            Let me reference that this is a

                 departmental bill that was sent to us, and

                 that the department has informed us that the

                 infrastructure is already in place to be able

                 to handle this.

                            SENATOR PATERSON:    Thank you,

                 Madam President.  And thanks, Senator Libous.

                            ACTING PRESIDENT McGEE:    Senator

                 Hassell-Thompson.

                            SENATOR HASSELL-THOMPSON:    Thank

                 you, Madam President.  If the Senator will

                 yield to a couple of questions.

                            ACTING PRESIDENT McGEE:    Senator

                 Libous, will you yield to some questions?

                            SENATOR LIBOUS:    Like Senator

                 Paterson, I would be honored to yield to

                 Senator Hassell-Thompson.

                            ACTING PRESIDENT McGEE:    The

                 Senator yields.

                            SENATOR HASSELL-THOMPSON:    Thank

                 you, Senator.  I just wanted to go over a





                                                          7549



                 couple of questions.  I think one of them

                 Senator Paterson asked.  But I'd like you, if

                 you will, just to give me a broader

                 explanation.

                            Would you please describe the

                 training that agencies would receive in order

                 to be sure that they transmit these reports

                 over the Internet appropriately?

                            SENATOR LIBOUS:    That's a good

                 question, Madam President.

                            I believe that OMRDD feels that

                 they have a pretty good relationship with

                 their providers and that the reports are now

                 typed up -- actually, Madam President, and to

                 you, Senator, there are some 800 reports that

                 are provided on an annual basis to OMRDD.

                 These report range in length from 15 pages to

                 some 1500 pages.

                            So we would believe that any

                 training involved would be very, very minimal,

                 if anything at all.  The agency has already

                 reached out to its providers and asked them

                 that this would be an appropriate way to send

                 documents.

                            Right now, as I said earlier, Madam





                                                          7550



                 President, these documents are all mailed and

                 shipped and delivered by hand and actually sit

                 in piles, like some of these documents before

                 us.

                            So I think the training would be

                 minimal.

                            ACTING PRESIDENT McGEE:    Senator

                 Hassell-Thompson.

                            SENATOR HASSELL-THOMPSON:    Thank

                 you.  If the Senator will continue to yield.

                            ACTING PRESIDENT McGEE:    Will you

                 continue to yield?

                            SENATOR LIBOUS:    Be happy to.

                            ACTING PRESIDENT McGEE:    The

                 Senator yields.

                            SENATOR HASSELL-THOMPSON:    You

                 talked about the costs and the funding, but

                 the only question that I have about the

                 financing is who will pay for or will the

                 budget reflect any upgrade on an annual basis

                 that may be required as computer data changes

                 and as software changes?

                            SENATOR LIBOUS:    I'm informed,

                 Madam President, that the infrastructure is

                 already in place.  But I believe that there is





                                                          7551



                 a statewide upgrade that is bigger than just

                 this department that is going to take place in

                 2002 that will be part of this.

                            ACTING PRESIDENT McGEE:    Senator

                 Hassell-Thompson.

                            SENATOR HASSELL-THOMPSON:    And if

                 the Senator will yield.

                            ACTING PRESIDENT McGEE:    Do you

                 continue to yield, sir?

                            SENATOR LIBOUS:    Yes.

                            SENATOR HASSELL-THOMPSON:    Are

                 you then saying that the cost of this upgrade

                 is already or automatically a part of what

                 this bill will do?

                            SENATOR LIBOUS:    Madam President,

                 the Senator's question is a good one.

                            We have no fiscal note attached to

                 this bill.

                            And as I said earlier, when I was

                 asked by one of your colleagues, that this is

                 a departmental bill.  And it is our belief

                 that those costs have already been absorbed

                 and they will not need to be added to any

                 future fiscal note that this body will have to

                 deal with.





                                                          7552



                            SENATOR HASSELL-THOMPSON:    Okay.

                 Thank you.  No, I have no other questions.

                            Thank you, Madam President.  Thank

                 you, Senator.

                            ACTING PRESIDENT McGEE:    Does any

                 other Senator wish to speak on the bill?

                            Read the last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect January 1, 2002.

                            ACTING PRESIDENT McGEE:    Call the

                 roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT McGEE:    Announce

                 the results.

                            THE SECRETARY:    Ayes, 59.

                            ACTING PRESIDENT McGEE:    The bill

                 is passed.

                            Senator Skelos.

                            SENATOR SKELOS:    Madam President,

                 would you please call up Calendar Number 775,

                 by Senator Bonacic.

                            SENATOR BRESLIN:    Explanation.

                            ACTING PRESIDENT McGEE:    The

                 Secretary will read.

                            THE SECRETARY:    Calendar Number





                                                          7553



                 775, by Senator Bonacic, Senate Print 4349A,

                 an act in relation to creating the Hurley

                 Library District.

                            ACTING PRESIDENT McGEE:    Senator

                 Bonacic, an explanation has been requested.

                            SENATOR BONACIC:    Thank you,

                 Madam President.

                            This is a bill that will create the

                 Hurley Library District in the town of Hurley

                 in Ulster County.  The existing library board

                 requested the legislation, and the Hurley town

                 board is in support of it.

                            Presently -- well, let me go back a

                 minute.  This legislation will not take effect

                 and this library will not be created unless

                 there is a public referendum for the creation

                 of the district and approval of a proposed

                 budget and the election of nine library

                 district trustees.

                            ACTING PRESIDENT McGEE:    Senator

                 Breslin.

                            SENATOR BRESLIN:    Yes, Madam

                 President.  Would the sponsor yield to a

                 question?

                            ACTING PRESIDENT McGEE:    Senator





                                                          7554



                 Bonacic, do you yield?

                            SENATOR BONACIC:    I do.

                            ACTING PRESIDENT McGEE:    The

                 Senator yields.

                            SENATOR BRESLIN:    Through you,

                 Madam President, the legislation refers to a

                 current Hurley library.  Is there a current

                 one in existence?

                            SENATOR BONACIC:    Yes.  Let me

                 explain that for you, if I may.

                            Presently, there is a library in

                 Hurley.  It's called the Hurley Library.  And

                 it's chartered by the Board of Regents as an

                 association library.

                            Now, the problem is in funding to

                 keep it going.  They get money, some money

                 from the County of Ulster; they get some money

                 by the Hudson Valley Library District.  And

                 they have to raise about $10,000 a year

                 through philanthropy, fundraising, membership

                 fees, in order to maintain a budget.  And it's

                 a very lean budget.

                            So what they want to do now is

                 create a better library system, have it as

                 part of a property tax levy, assuming that the





                                                          7555



                 voters approve within that district.

                            SENATOR BRESLIN:    Through you,

                 Madam President.

                            ACTING PRESIDENT McGEE:    Senator

                 Breslin.

                            SENATOR BRESLIN:    Can I assume,

                 then, from your answer to the prior question

                 that this would be an increase in taxes for

                 the residents of the proposed district?

                            SENATOR BONACIC:    The answer is

                 yes.  Right now they expect a tentative budget

                 to be around $76,000.  About $55,000 of that

                 will have to be raised through a property tax

                 levy.  About a little less than 2 percent on a

                 home of 100,000 assessed value.  Roughly about

                 40 bucks a year.

                            ACTING PRESIDENT McGEE:    Senator

                 Breslin.

                            SENATOR BRESLIN:    One final

                 question.

                            ACTING PRESIDENT McGEE:    One

                 final question, Senator Bonacic?

                            SENATOR BRESLIN:    Will there be

                 any capital expenses, new construction

                 involved with -





                                                          7556



                            SENATOR BONACIC:    At the present

                 time, we don't know the answer to that.  But

                 if you need to do a capital project, the town

                 board has the authority to float that bond for

                 a library building or an expansion, if the

                 voters are so inclined.

                            SENATOR BRESLIN:    And one final

                 question, if the sponsor would yield.

                            ACTING PRESIDENT McGEE:    One

                 more, Senator Bonacic.

                            SENATOR BRESLIN:    Was there any

                 consideration given to a combined library that

                 would include both West Hurley and Hurley

                 together, economies of volume?

                            SENATOR BONACIC:    Include Hurley

                 and who?

                            SENATOR BRESLIN:    West Hurley.

                            SENATOR BONACIC:    And West

                 Hurley.

                            SENATOR BRESLIN:    Correct.

                            SENATOR BONACIC:    Have you been

                 there?

                            SENATOR BRESLIN:    Yes, I have.

                            SENATOR BONACIC:    There's a good

                 tavern in West Hurley.





                                                          7557



                            SENATOR BRESLIN:    That's where I

                 was.  Through you, Madam President.

                            (Laughter.)

                            SENATOR BONACIC:    This particular

                 library district, if it's formed by the

                 voters, is specifically for the Town of

                 Hurley.  But it specifically excepts, does not

                 include, West Hurley Library District.

                            And it certainly will be a

                 consideration of the voters, when they have to

                 approve this library, in the form that they

                 want to create the legislation for it.

                            SENATOR BRESLIN:    Thank you,

                 Madam President.

                            ACTING PRESIDENT McGEE:    Thank

                 you.

                            Any other Senator wishing to speak

                 on the bill?

                            Read the last section.

                            THE SECRETARY:    Section 8.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT McGEE:    Call the

                 roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT McGEE:    Announce





                                                          7558



                 the results.

                            THE SECRETARY:    Ayes, 59.

                            ACTING PRESIDENT McGEE:    The bill

                 is passed.

                            Senator Skelos.

                            SENATOR SKELOS:    Madam President,

                 would you please call up Calendar Number 582,

                 by Senator Hoffmann.

                            ACTING PRESIDENT McGEE:    The

                 Secretary will read.

                            THE SECRETARY:    In relation to

                 Calendar Number 582, Senator Hoffmann moves to

                 discharge, from the Committee on Rules,

                 Assembly Bill Number 4910 and substitute it

                 for the identical Senate Bill Number 2562,

                 Third Reading Calendar 582.

                            ACTING PRESIDENT McGEE:    The

                 substitution is ordered.

                            The Secretary will read.

                            THE SECRETARY:    Calendar Number

                 582, by Member of the Assembly Magee, Assembly

                 Print Number 4910, an act to amend the

                 Agriculture and Markets Law, in relation to

                 including.

                            SENATOR SCHNEIDERMAN:





                                                          7559



                 Explanation.

                            ACTING PRESIDENT McGEE:    Senator

                 Hoffmann, an explanation has been requested.

                            SENATOR HOFFMANN:    Thank you,

                 Madam President.

                            I am delighted to explain this

                 bill, and I am so pleased that my colleagues

                 on the other side of the aisle are interested

                 in the issue of manure management on New York

                 State farms.  And I've been looking forward to

                 the opportunity when I could explain in a

                 little bit more detail why this is an integral

                 part of New York State agriculture, and I

                 guess today is my lucky day.

                            We presently have in our

                 definitions of farm practices all of the

                 expected activities that deal with raising

                 crops and animals.  But one of the activities

                 that takes place on every farm inevitably

                 involves manure management.  And in some

                 cases, it is a very substantial part of a farm

                 operation.

                            Manure management has moved into an

                 entirely new era previously unanticipated by

                 the people who drafted these laws many, many





                                                          7560



                 years ago.  We now have anaerobic digesters,

                 methane processors, many composting

                 activities, all of which apply very high-tech

                 scientific practices in contemporary farm

                 activities.  And yet the laws that govern our

                 agricultural activities in New York State do

                 not define these manure management practices

                 as a farm operation.

                            And this bill that we are about to

                 vote on today, my friends, will correct that

                 inadequacy.  And I'm very proud that we have

                 the opportunity to do that today.  And I know,

                 on behalf of many farmers in this state, it is

                 greatly appreciated, not only that we are

                 doing it but that there is sufficient interest

                 that we are discussing it today here while we

                 are involved with so many of our budget

                 negotiations and other activities, that manure

                 management on New York State farms ranks up

                 there with the rest of our pursuits.

                            ACTING PRESIDENT McGEE:    Senator

                 Schneiderman, you wish to speak upon this

                 subject?

                            SENATOR SCHNEIDERMAN:    Yes, Madam

                 President.  If the sponsor would yield for a





                                                          7561



                 few questions regarding the heralding of the

                 new era of manure management in the state of

                 New York.

                            ACTING PRESIDENT McGEE:    Senator

                 Hoffmann, will you yield?

                            SENATOR HOFFMANN:    With pleasure,

                 Madam President.

                            ACTING PRESIDENT McGEE:    The

                 Senator yields with pleasure.

                            SENATOR SCHNEIDERMAN:    Thank you.

                            Through you, Madam President, I'm

                 not completely clear from the language of the

                 statute what the consequence of being

                 designated as a farm operation is.  What does

                 that mean, that manure processing and handling

                 facilities are now designated as a farm

                 operation?

                            SENATOR HOFFMANN:    Madam

                 President, this particular change in

                 definition would simply mean that for any farm

                 activities that are classified for tax

                 purposes, any kind of farm assistance programs

                 and environmental protection programs, manure

                 management would now be a conforming activity.

                            SENATOR SCHNEIDERMAN:    Thank you.





                                                          7562



                 Through you, Madam President.

                            ACTING PRESIDENT McGEE:    Senator

                 Hoffmann, will you yield for Senator

                 Schneiderman?

                            SENATOR HOFFMANN:    Yes, I

                 continue to yield.

                            SENATOR SCHNEIDERMAN:    My reading

                 of the proposed bill would include, within the

                 definition of "farm operation," a manure

                 processing and handling facility that was not

                 on a farm.

                            Say, you know, the great technology

                 that you have cited, the anaerobic digesters,

                 say some entrepreneur in the South Bronx,

                 presumably connected to Senator Gonzalez,

                 decided to set up a manure processing

                 facility.  That would then fall within the

                 definition provided in the statute, would it

                 not?

                            SENATOR HOFFMANN:    Madam

                 President, I would not know offhand whether a

                 South Bronx manure processing facility would

                 be classified as an agricultural activity, but

                 I suppose it's within the realm of possibility

                 that might happen.  And I say good for the





                                                          7563



                 people of the South Bronx if they want to move

                 in that direction.

                            ACTING PRESIDENT McGEE:    Senator

                 Schneiderman, do you -

                            SENATOR SCHNEIDERMAN:    Through

                 you, Madam President, then would that mean

                 that if someone sets up -

                            ACTING PRESIDENT McGEE:    Do you

                 wish the Senator to yield?

                            SENATOR SCHNEIDERMAN:    Oh, yes, I

                 do wish the Senator to continue to yield.

                            ACTING PRESIDENT McGEE:    Thank

                 you.

                            Senator, will you continue to

                 yield?

                            SENATOR HOFFMANN:    Yes, I will.

                            SENATOR SCHNEIDERMAN:    So that we

                 can continue to aerate this important issue.

                            I gather, though, that that would

                 mean that if someone sets up a manure

                 processing and handling facility that is not

                 connected in any other way to an agricultural

                 operation, it would be designated as a farm

                 operation.  You'd end up with what is

                 essentially a commercial facility for creating





                                                          7564



                 energy or whatever other good things can be

                 created out of manure with the fine technology

                 you've cited, would be classified as a farm

                 operation.

                            And I don't really see why that

                 should be the case.  Is this perhaps an

                 omission in the careful drafting of this

                 manure management statute?

                            SENATOR HOFFMANN:    Madam

                 President, with respect to the change in the

                 statute, since the change in the statute is

                 taking place in the Agricultural Districts

                 Law, it's unlikely, sadly, that the Bronx

                 model defined by Senator Schneiderman before

                 would actually be considered an agricultural

                 activity.  It would require considerably more

                 than manure alone to make it a farm activity.

                            ACTING PRESIDENT McGEE:    Senator

                 Schneiderman.

                            SENATOR SCHNEIDERMAN:    Yes, thank

                 you.  Through you, Madam President, one final

                 question, if the sponsor would yield.

                            ACTING PRESIDENT McGEE:    One

                 final question, Senator Hoffmann?

                            SENATOR HOFFMANN:    Yes, I





                                                          7565



                 continue to yield.

                            ACTING PRESIDENT McGEE:    One

                 final question, Senator Schneiderman.

                            SENATOR SCHNEIDERMAN:    Would the

                 ability of a local planning authority to

                 regulate, through local laws, farm operations

                 be limited with respect to a freestanding

                 manure processing facility by the operation of

                 this statute if it was passed?

                            SENATOR HOFFMANN:    Madam

                 President, I'm not sure I understood the

                 question posed by Senator Schneiderman.

                            ACTING PRESIDENT McGEE:    Senator

                 Schneiderman, would you care to rephrase that?

                            SENATOR SCHNEIDERMAN:    Yes, I'd

                 be glad to rephrase that.  Thank you.  I think

                 that in this area there frequently is a need

                 to clarify.

                            The concern I have is that my

                 understanding of the law is that if you

                 designate something as a farm operation, local

                 municipal governments' efforts to regulate or

                 zone the type of facility are limited.

                            So would this not mean, if this

                 bill were passed, that a freestanding manure





                                                          7566



                 processing and handling facility would be

                 beyond the reach of the local municipalities'

                 efforts to regulate or zone?

                            SENATOR HOFFMANN:    Madam

                 President, the existing laws about

                 agricultural practices as they presently exist

                 in New York State are very clear about what

                 constitutes an agricultural practice.  And

                 they are integrated.

                            Obviously, the manure aspect of

                 farming is an output of other animal husbandry

                 activities.  Local zoning is affected by state

                 laws.  This would simply bring into compliance

                 the definition of manure, along with the other

                 animal husbandry activities that take place on

                 a farm.  There would be no change in the way

                 local zoning handles activities relative to

                 farms.

                            SENATOR SCHNEIDERMAN:    Thank you.

                            Through you, Madam President, on

                 the bill.

                            ACTING PRESIDENT McGEE:    Senator

                 Schneiderman, on the bill.

                            SENATOR SCHNEIDERMAN:    I

                 appreciate Senator Hoffmann's energetic





                                                          7567



                 support for this measure and promotion of this

                 issue, and I certainly know that she is

                 without peer and certainly will be known as

                 the first lady of manure management in the

                 State of New York should this statute pass.

                            My concern, with all kidding aside,

                 is that as I read this statute, if there is -

                 and again, I think these facilities are great

                 to the extent we're able to generate energy or

                 any other usable product out of managing

                 manure -- is that a freestanding manure

                 management facility would now be called a farm

                 operation and would not subject -- would be

                 subject to the same restrictions on local

                 governments that apply to farms.

                            With that caveat, I am going to

                 support the bill.  I hope we will take a look

                 at that.  I don't think we have a great danger

                 to the state at this point in time for being

                 overrun with freestanding manure management

                 facilities.  But as technology develops, that

                 perhaps could become an issue.

                            And in some areas in downstate

                 New York, we have serious problems with, not

                 that, but certainly relating to the placement





                                                          7568



                 of human waste facilities.  And I hope that we

                 will not see the day that next to the Hudson

                 River sewage treatment plant we have the

                 municipal manure processing facility creating

                 some of the same issues.

                            So I will support the bill.  And

                 again, I do commend Senator Hoffmann for her

                 energetic promotion of this issue.

                            ACTING PRESIDENT McGEE:    Any

                 other Senator wishing to speak on -

                            Senator Dollinger.

                            SENATOR DOLLINGER:    Thank you,

                 Madam President.  Will the sponsor yield to a

                 question?

                            ACTING PRESIDENT McGEE:    Senator

                 Hoffmann, will you yield to a question,

                 please?

                            SENATOR HOFFMANN:    Yes, Madam

                 President, I will.

                            ACTING PRESIDENT McGEE:    Thank

                 you.

                            SENATOR DOLLINGER:    And I

                 apologize in advance, Senator Hoffmann, if

                 Senator Schneiderman has drawn attention to

                 this issue.





                                                          7569



                            Does this bill apply to manure

                 processing and handling faciles that are

                 generated -- that are receiving manure that is

                 generated on the farm, solely on the farm?  In

                 other words, the production of manure as part

                 of a dairy herd from this farm?  Or would this

                 apply to manure processing facilities that

                 take the product from many farms?

                            SENATOR HOFFMANN:    The bill on

                 which we are engaged in such animated

                 discussion right now does not distinguish

                 whether it would allow manure from a different

                 farm to be processed on one farm.  But I can

                 see where that could in fact be a possibility.

                            SENATOR DOLLINGER:    Through you,

                 Madam President, on the bill.  And again, I

                 thank -

                            ACTING PRESIDENT McGEE:    Senator

                 Dollinger, on the bill.

                            SENATOR DOLLINGER:    I thank

                 Senator Hoffmann for her observation about the

                 bill, because that's the way I read it.

                            ACTING PRESIDENT McGEE:    Please

                 proceed, Senator Dollinger.

                            SENATOR DOLLINGER:    Thank you,





                                                          7570



                 Madam President.

                            I agree with Senator Hoffmann,

                 that's the way I read the bill.  And I'm going

                 to vote against it on that basis.  It seems to

                 me that this portion of the statute which says

                 "farm operation" includes the land and unfarm,

                 on-farm buildings.  It's site-specific.

                            It says "the equipment."  Then,

                 under the current statute, without the

                 amendment, it says "and practices which

                 contribute to the production, preparation,

                 marketing of crops, livestock, and livestock

                 products as a commercial enterprise."

                            That would mean to me that "farm

                 operation" simply includes the incidence of

                 the farm operation as produced from the locale

                 where the farm is located.

                            This farm-operation exception was

                 designed to say if you have a farm, you should

                 be able to do everything that a farmer does

                 without local regulation and control in

                 agricultural districts.  Which I appreciate

                 and understand.

                            But I think Senator Hoffmann is

                 correct when she says when you add this





                                                          7571



                 phrase -- that is, "manure processing and

                 handling facilities" -- it could be a facility

                 which is a completely commercial enterprise

                 which takes manure from many farms and

                 processes it on a specific site.

                            That may be the economical thing to

                 do, Senator Hoffmann.  It may be the right

                 thing to do to establish the volume to have a

                 true manure processing facility.  But then at

                 that point it's not a farm operation, it's a

                 commercial enterprise using farm by-products,

                 and it's not part of what you would think of

                 as the normal operation of a family farm.

                            That's why, Senator Hoffmann, I'm

                 going to vote against this bill, because I

                 think it goes too far.  If it said manure

                 processing and handling facilities for the

                 manure and other by-products produced on the

                 farm, on that farm, then I think it would be

                 properly included in the definition of farm

                 operation.

                            But given the fact that it's going

                 to introduce processing facilities into our

                 farm districts without the ability of local

                 communities to control them, and agricultural





                                                          7572



                 districts, I think it goes well beyond what we

                 originally intended when we intended to

                 describe what is a normal farm operation.

                            What is produced on-site could

                 qualify.  What's produced off-site and becomes

                 a major manure processing facility is

                 something completely different from the

                 operation of the family farm.

                            I'll vote no, Madam President.

                            ACTING PRESIDENT McGEE:    Any

                 other Senator wishing to speak on the bill?

                            Senator Hoffmann.

                            SENATOR HOFFMANN:    Yes, Madam

                 President, I was under the impression I was

                 yielding for a question from Senator

                 Dollinger.  And I tried to hear what he was

                 saying and I don't think I heard a question in

                 there.  Did I miss something?

                            ACTING PRESIDENT McGEE:    There

                 was not a question, Senator, he was speaking

                 on the bill.

                            SENATOR HOFFMANN:    Thank you.

                            ACTING PRESIDENT McGEE:    Any

                 other Senator wishing to speak on the bill?

                            Senator Hoffmann.





                                                          7573



                            SENATOR HOFFMANN:    Just to close

                 debate on this subject, I want to indicate

                 that the Farm Bureau of New York has sent a

                 support memo.  I value their opinion greatly.

                 I understand how difficult it is for people in

                 production agriculture today.  I know what

                 it's like to manage manure.  I have a manure

                 pit on my own farm.

                            And it can be trivialized in a

                 discussion here, but it is a real-life issue

                 for the many people in New York State who

                 practice agriculture for a living.  They are

                 faced with increasing environmental

                 regulations that sometimes make it very hard

                 for them to manage their activities.  And very

                 often the people who imposed the regulations

                 on them have little or no concept of what it

                 means and take only the most trivial view of

                 what the manure management aspect of

                 agriculture entails.

                            It's highly unlikely, to use

                 Senator Dollinger's scenario, that somebody

                 wants to go into commercial manure management,

                 although it would be wonderful if the time

                 comes where the market increases to that





                                                          7574



                 level.  And possibly for those parts of the

                 state that have difficulty growing the

                 beautiful gardens that we can grow in upstate

                 New York, we can ship some more of the manure

                 process in upstate New York into those areas.

                            I will say that, in reviewing this

                 particular piece of legislation, Senator

                 Schneiderman's series of questions showed a

                 remarkable level of interest from an

                 urban-based legislator.  And flattered as I am

                 that he would call me the queen of manure

                 management -- first lady, thank you.  I don't

                 know which one I prefer.

                            But flattered as I am at that, I

                 believe that this particular law would be

                 better suited to reflect some of the comments

                 that Senator Schneiderman himself has made.

                 And some of my colleagues -- notably, the very

                 capable Senator Skelos and Senator Alesi -

                 have suggested, and I have concurred that we

                 could consider renaming this the Effluent

                 Regulation In Composting Act, better known as

                 Eric's Law.

                            (Laughter.)

                            ACTING PRESIDENT McGEE:    Senator





                                                          7575



                 Schneiderman, why do you rise?

                            SENATOR SCHNEIDERMAN:    Thank you,

                 Madam President.  I am really awed by this

                 honor.  And it really is a tribute to Senator

                 Hoffmann and many of my other colleagues that

                 a boy from New York City has come here and,

                 through my experience in this chamber, learned

                 an awful lot about manure.

                            (Laughter.)

                            SENATOR SCHNEIDERMAN:    And I am

                 not in any way opposed to having this referred

                 to as Eric's Law.  I think that would be quite

                 an honor.

                            I think it may be a little bit

                 awkward because, having listened to the debate

                 and listened to the questions, I'm afraid that

                 I am constrained to join Senator Dollinger in

                 voting against my own law.

                            So it was a great moment in the

                 sun, but I do share his concern and the

                 concern that I raised.  And as I thought this

                 through, I don't think that we should allow a

                 freestanding manure processing and handling

                 facility to be subject to the same exemptions

                 as a farm operation.





                                                          7576



                            I appreciate the tribute.  And

                 perhaps as we go through this process, at

                 Senator Hoffmann's urging, to expand our

                 regulation of manure processing and handling

                 facilities, that we will have another chance

                 to pass a bill that perhaps could bear my name

                 in this area.

                            Thank you, Madam President.

                            ACTING PRESIDENT McGEE:    Any

                 other Senator wishing to speak on the bill?

                            Read the last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT McGEE:    Call the

                 roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT McGEE:    Senator

                 Dollinger, to explain his vote.

                            SENATOR DOLLINGER:    Just very

                 briefly.

                            I appreciate Senator Hoffmann's

                 suggestion that Senator Schneiderman's first

                 name go on this bill.  What I would suggest is

                 the appropriate way to end this session is to

                 put Senator Schneiderman's last name on a bill





                                                          7577



                 that benefits his constituents, and that would

                 be the right way to pay him homage.  The first

                 name oftentimes gets lost.  The second name

                 signifies that a bill may become a chapter,

                 which would be a fitting way to someday

                 conclude this session, Madam President.

                            I will be voting in the negative,

                 however, for the reasons stated earlier.

                            ACTING PRESIDENT McGEE:    Senator

                 Dollinger in the negative.

                            Announce the results.

                            THE SECRETARY:    Those recorded in

                 the negative on Calendar Number 582 are

                 Senators Dollinger, Duane, and Schneiderman.

                 Ayes, 56.  Nays, 3.

                            ACTING PRESIDENT McGEE:    The bill

                 is passed.

                            Senator Skelos.

                            SENATOR SKELOS:    Does Senator

                 Duane wish to be -

                            ACTING PRESIDENT McGEE:    Senator

                 Duane.

                            SENATOR DUANE:    Thank you, Madam

                 President.

                            Had I been present in the chamber,





                                                          7578



                 I would have canvassed in the positive for the

                 first canvassed amendment.  I would like

                 unanimous consent to have that stenographered.

                            ACTING PRESIDENT McGEE:    The

                 record will so indicate.  Thank you, Senator

                 Duane.

                            SENATOR DUANE:    Thank you.

                            ACTING PRESIDENT McGEE:    Senator

                 Skelos.

                            SENATOR SKELOS:    Madam President,

                 is there any housekeeping at the desk before

                 we go on to the next bill?

                            ACTING PRESIDENT McGEE:    Yes.

                            Senator Marcellino.

                            SENATOR MARCELLINO:    Thank you,

                 Madam President.

                            I offer amendments to the following

                 Third Reading Calendar bills.

                            By Senator Trunzo, on page number

                 22, Calendar 420, Senate Print Number 2594.

                            By Senator Johnson, on page 28,

                 Calendar Number 515, Senate Print Number 2221.

                            By Senator Seward, on page number

                 33, Calendar Number 570, Senate Print Number

                 2129B.





                                                          7579



                            And by Senator Kuhl, on page 56,

                 Calendar Number 805, Senate Print Number 2956.

                            Madam President, I now move that

                 these bills retain their place on the order of

                 Third Reading Calendar.

                            ACTING PRESIDENT McGEE:    Senator,

                 the amendments are received, adopted, and will

                 retain their place on the Third Reading

                 Calendar.

                            Senator Kuhl.

                            SENATOR KUHL:    Thank you, Madam

                 President.

                            I wish to call up my bill, Senate

                 Print 4178, which is now at the desk.

                            ACTING PRESIDENT McGEE:    The

                 Secretary will read.

                            THE SECRETARY:    Calendar Number

                 483, by Senator Kuhl, Senate Print 4178, an

                 act to amend the Education Law.

                            SENATOR KUHL:    Yes, Madam

                 President, I now move to reconsider the vote

                 by which the bill passed the house and ask

                 that said bill be restored to the order of

                 third reading.

                            ACTING PRESIDENT McGEE:    The





                                                          7580



                 Secretary will call the roll upon

                 reconsideration.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 59.

                            ACTING PRESIDENT McGEE:    The bill

                 is recommitted.

                            SENATOR KUHL:    I think we

                 restored that to the Third Reading Calendar,

                 Madam President.

                            And I now move to discharge, from

                 the Committee on Rules, Assembly Print 7926

                 and substitute it for my identical bill.

                            ACTING PRESIDENT McGEE:

                 Substitution ordered.

                            SENATOR KUHL:    I now move that

                 the substituted Assembly bill have its third

                 reading at this time.

                            ACTING PRESIDENT McGEE:    The

                 Secretary will read.

                            THE SECRETARY:    Calendar Number

                 483, by Member of the Assembly Weisenberg,

                 Assembly Print Number 7926, an act to amend

                 the Education Law.

                            ACTING PRESIDENT McGEE:    Read the

                 last section.





                                                          7581



                            THE SECRETARY:    Section 7.  This

                 act shall take effect on the 180th day.

                            ACTING PRESIDENT McGEE:    Call the

                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 59.

                            ACTING PRESIDENT McGEE:    The bill

                 is passed.

                            Senator Skelos.

                            SENATOR SKELOS:    Madam President,

                 if we could take up Calendar Number 756, by

                 Senator Volker.

                            ACTING PRESIDENT McGEE:    The

                 Secretary will read.

                            THE SECRETARY:    Calendar Number

                 756, by Member of the Assembly Eve, Assembly

                 Print Number 2397, an act to amend the Local

                 Finance Law.

                            SENATOR MALCOLM SMITH:

                 Explanation.

                            SENATOR DOLLINGER:    Explanation.

                            ACTING PRESIDENT McGEE:    An

                 explanation has been requested, Senator

                 Volker.

                            SENATOR VOLKER:    Madam President,





                                                          7582



                 this is a bill that came out of the fiscal

                 crises in New York and Buffalo back in the

                 '80s, I believe, and relates to the sale of

                 municipal bonds by Erie County.  And it allows

                 for greater flexibility and a maximum return

                 on bonds sold.

                            Back when the County of Erie had an

                 extremely serious fiscal situation, we did

                 this bill.  And I believe at the same time, as

                 I say, I think we did a bill very similar to

                 this for the City of New York.  And it allows

                 the comptroller to sell private bonds,

                 municipal obligations in the marketplace.

                            It's been repeated every year as a

                 chapter.  The present law runs out June 30,

                 2001.  And all this bill does -- it's

                 completely the same bill -- it extends it to

                 June 30th of 2002.

                            And you might ask the question, why

                 don't we make it permanent.  And the answer is

                 apparently we do this with New York City and

                 with a number of other places.  The concept

                 was that just in case any kind of problem

                 should occur or anything untoward, the

                 decision is made that the authority, because





                                                          7583



                 actually all it is the authority -- we do the

                 same thing, by the way, with the City of

                 Buffalo.  Did I say Buffalo?  This is for the

                 County of Erie.  We do one for the City of

                 Buffalo also, and give them the authority to

                 do private bonds.

                            In case there should be some sort

                 of problem, that the authority expires in

                 another year, so that we just don't have pass

                 it.  And I think the thought was that if

                 something should come up with any of these,

                 then what would happen is that we would just

                 let them expire.

                            ACTING PRESIDENT McGEE:    Senator

                 Brown.

                            Senator Smith, I'm sorry.  Senator

                 Malcolm Smith.

                            SENATOR MALCOLM SMITH:    I could

                 say something, but I won't say it.  I won't

                 say it.

                            (Laughter.)

                            SENATOR MALCOLM SMITH:    Madam

                 President, would the sponsor yield for a

                 question.

                            ACTING PRESIDENT McGEE:    Senator





                                                          7584



                 Volker, will you yield for a question?

                            SENATOR VOLKER:    Why, certainly.

                 I'm a little confused, but I will yield.

                            SENATOR MALCOLM SMITH:    Thank you

                 very much.  Through you, Madam President.

                            Senator Volker, do you know

                 specifically what the proceeds of these

                 particular bonds that are being issued are

                 going to be utilized for?

                            SENATOR VOLKER:    Well, I believe

                 that these bonds are going to the general -

                 there is no specific place that the bond

                 proceeds go to.  It's -- this is the authority

                 to sell bonds, and the proceeds then go into

                 the general fund.

                            It's because of the market

                 flexibility that this would allow you to

                 generate some dollars.  It would really be up

                 to the county legislature and the county

                 executive to decide where the proceeds would

                 go.

                            Usually, I think, if my

                 recollection is correct, there's usually some

                 specific part of the budget that they will use

                 these for.  I know the comptroller told me





                                                          7585



                 that last year she ran into a problem because

                 we were very late in passing the authority,

                 and she was already out in the marketplace

                 trying to make sure that the bonds were sold,

                 and she couldn't do it right away because it

                 hadn't been signed into law.

                            So she asked this year if we could

                 do it a little earlier than June 29th, which

                 is somewhere in that area last year is I think

                 when it actually was passed and signed into

                 law.

                            SENATOR MALCOLM SMITH:    Thank

                 you.  Through you, Madam President, if the

                 sponsor will continue to yield.

                            ACTING PRESIDENT McGEE:    Senator

                 Volker, will you continue to yield?

                            SENATOR VOLKER:    Certainly, yes.

                            ACTING PRESIDENT McGEE:    The

                 Senator yields.

                            SENATOR MALCOLM SMITH:    Is this

                 particular bond sale, are these -- through

                 you, Madam President, is this competitive or

                 negotiated bonds?

                            SENATOR VOLKER:    These are

                 negotiated bonds.  And therefore, you're





                                                          7586



                 looking for the best rate possible.  And

                 that's the prime reason for these, the private

                 sale of these bonds.

                            SENATOR MALCOLM SMITH:    Through

                 you, Madam President, if the sponsor will

                 continue to yield.

                            ACTING PRESIDENT McGEE:    Senator

                 Volker, will you continue to yield?

                            SENATOR VOLKER:    Certainly.

                            ACTING PRESIDENT McGEE:    The

                 Senator yields.

                            SENATOR MALCOLM SMITH:    Through

                 you, Madam President, I also know that, in all

                 deference to my colleague here, that Buffalo

                 has been trying for quite some time to suggest

                 to Erie that perhaps from some of the proceeds

                 of these bond sales they'd be able to share

                 these proceeds with Buffalo, who is clearly

                 sort of strapped.  And you yourself indicated

                 that there is some flexibility with this

                 particular bond issuance for Erie County.  Is

                 there some possibility they would yield to

                 that kind of concern?

                            SENATOR VOLKER:    They could.  But

                 I think what they're really looking for the





                                                          7587



                 proceeds of is the sales tax.

                            The County of Erie, during their

                 fiscal crisis, requested -- the county

                 legislature and the county executive requested

                 an additional 1 percent sales tax.  And it was

                 granted, and it's granted each year.  The city

                 has asked that the county allow a piece of

                 that proceeds to go to the city.  The county

                 has not agreed do that.

                            We have pointed out that it's not

                 up to the State Legislature to make those kind

                 of decisions, because it's really up to the

                 county to decide.  We only allow the

                 implementation of it.

                            As far as bond proceeds are

                 concerned, the county, if they so chose, could

                 certainly allow the city, I suppose, a piece

                 of any bond proceeds.

                            They have their own ability, by the

                 way, to -- yes.  And another answer to that,

                 from my learned counsel to my right, is that

                 they are actually doing that this year,

                 because the county is assisting the city with

                 some of the construction bonds for the city

                 schools, which this Legislature last





                                                          7588



                 December -- whenever we passed it, I think it

                 was last year -- passed.  Art, myself, and the

                 delegation passed during last year, frankly, a

                 billion dollars' worth of bonds over the next

                 five or six years to repair schools and build

                 new schools in the city of Buffalo.  And the

                 county is assisting in that process.

                            SENATOR MALCOLM SMITH:    Madam

                 President, through you, one final question.

                            ACTING PRESIDENT McGEE:    Senator

                 Volker, will you yield for one final question?

                            SENATOR VOLKER:    I certainly

                 will.

                            SENATOR MALCOLM SMITH:    Madam

                 President, through you, I know the sponsor

                 sort of preempted the strike and earlier

                 answered why not permanent.  But clearly, this

                 has been going on since 1986 and further back.

                            I just don't seem to understand why

                 there's no reason to make this permanent.  Or

                 is it a cost measure or a matter in which they

                 feel that it's just -- the fiscal policy is

                 better for them to do so?

                            SENATOR VOLKER:    Senator, in

                 reality, you will find as we go along that





                                                          7589



                 there's a lot of these types of things.  And

                 we ask ourselves many times why do we continue

                 to do this.

                            And the prime reason that they've

                 been done has to do with control.  Because we

                 don't directly control.  We give them the

                 authority to issue bonds or do certain things.

                 And the prime control is if something untoward

                 should happen, that the way in which we can

                 stop it quickly is to just let the authority

                 expire.

                            So that the decision has been made

                 in a number of these areas, and usually

                 they're all joined together.  That is, I'm

                 pretty sure you're going to see some bills

                 similar to this for the City of New York later

                 on this year.  Usually they come in around

                 June 30th -- 28th, 29th, 30th, someplace in

                 there, a whole raft of them comes in here,

                 one- or two-year extenders.

                            And it's the same principle.  And

                 the principle is that you keep control over

                 it, just in case something should occur that

                 is beyond the ability of the Legislature,

                 really, and the Governor to deal with, unless





                                                          7590



                 we -- and by the way, the other side of that

                 story is that either house then can decide to

                 let the authority lapse.  Because if one house

                 doesn't pass it, it lapses.

                            ACTING PRESIDENT McGEE:    Senator

                 Smith.

                            SENATOR MALCOLM SMITH:    Thank

                 you, Madam President.  On the bill.

                            ACTING PRESIDENT McGEE:    On the

                 bill.

                            SENATOR MALCOLM SMITH:    I thank

                 Senator Volker for the explanation as to why

                 and how Erie County is handling this matter.

                            A concern that I would raise, and I

                 have raised this a number of times at my

                 Cities Committee meeting, you have a number of

                 upstate cities -- Syracuse, Rochester,

                 Buffalo, Albany -- they are all on a mission

                 to establish their own authority to deal with

                 some commercial and residential development

                 within their respective areas.

                            And for some reason or another,

                 it's just not getting to the floor, it's not

                 getting through Cities.  I believe this bill,

                 such as the ones that they are pursuing, have





                                                          7591



                 merit to it.  When you find cities upstate who

                 are having some difficulty as relates to the

                 economics, economic development, authorities

                 do offer a means by which they can do some

                 social standing development on their own.

                            And I would just hope that as we

                 are also here ratifying this bill today that

                 we will consider the concerns of Mayor

                 Jennings and Masiello and the other mayors who

                 are in the cities upstate -- Buffalo,

                 Rochester, and the like -- and assist them in

                 establishing their own authorities to do such

                 similar work.

                            Thank you.

                            ACTING PRESIDENT McGEE:    Senator

                 Dollinger.

                            SENATOR DOLLINGER:    Madam

                 President, will the sponsor yield to a couple

                 of questions?

                            ACTING PRESIDENT McGEE:    Senator

                 Volker, will you yield?

                            SENATOR VOLKER:    Certainly.

                            SENATOR DOLLINGER:    Through you,

                 Madam President.  I know, Senator Volker,

                 you're well aware that when the whole concept





                                                          7592



                 of negotiated bond sales came up, there were

                 ethical issues raised, there were questions of

                 conflicts of interests, because we were going

                 to change from our normal practice of sending

                 these out to bid.  There were allegations

                 about cozy sales and political contributions

                 that would follow.

                            And given all that, and the fact

                 that it's been in existence in Erie County for

                 at least 14 years, are you aware of any report

                 or information or a report from the

                 comptroller that would suggest that all those

                 fears that lots of people had about negotiated

                 bond sales -- because these are large sums of

                 money, and there are huge legal fees and

                 placement fees and consultant fees attached to

                 them.

                            But is there any report that you're

                 aware of that suggests the purpose for which

                 this was intended, to lower the cost of

                 borrowing, has not been attained or that any

                 of those chimeras, those dragons that we were

                 all afraid of, have actually come to pass in

                 the marketplace, either in the Erie County or

                 in the City of New York?





                                                          7593



                            SENATOR VOLKER:    Not really that

                 I'm aware of.

                            Although I would point out that in

                 the ensuing years you've had initially

                 Republican county executive, then a Democratic

                 county executive, and now, after eight years,

                 we have a Republican county executive again.

                 And there have been times when the comptroller

                 and the county executive have had differences

                 of opinion.

                            But as far as actual allegations of

                 impropriety or anything of that nature, I

                 can't ever remember that.  You might have a

                 disagreement on how something is done, but I

                 don't ever remember any allegations of

                 impropriety of any kind.

                            ACTING PRESIDENT McGEE:    Senator

                 Dollinger.

                            SENATOR DOLLINGER:    Thank you,

                 Madam President.  And I thank Senator Volker.

                            I know -

                            ACTING PRESIDENT McGEE:    Senator

                 Dollinger, on the bill.

                            SENATOR DOLLINGER:    I know

                 Senator Volker has preempted perhaps Senator





                                                          7594



                 Smith and myself by asking the question of why

                 not make it permanent.  And I understand the

                 basis for his answer.  But I would

                 respectfully disagree with Senator Volker.

                            I understand that we want to keep

                 some control over the way the governments

                 work.  And I would understand that given all

                 those potential dangers that we talked

                 about -- and they were very legitimate.  I

                 think they went to the core of what government

                 is, and that whole notion of pay-for-play

                 government, that these bond sales would occur

                 and that both attorneys and bond placement

                 counsels and securities firms would then, in

                 essence, ante up to get into this business.

                            I know there have been allegations.

                 And I know there have been lots of, most often

                 in the hot fire of a campaign, allegations

                 made about conflicts and other problems.

                            But seems to me that this whole

                 notion of negotiated bond sales has withstood

                 the test of time.  I'm not aware of any report

                 from the Comptroller of the State of New York

                 that says it's not a good idea and that it

                 hasn't produced the benefit of reduced bond





                                                          7595



                 rates and actually reducing the cost of

                 borrowing for communities, including Erie

                 County.

                            So I would suggest to Senator

                 Volker one of two things.  Either next time

                 around, let's make this bill permanent, or

                 let's ask, through some rider attached to this

                 bill, let's ask the Comptroller of the State

                 of New York to do a report that evaluates the

                 effectiveness of negotiated bond sales and

                 whether we've achieved the goal of reducing

                 the cost or whether we've complicated our

                 democracy by creating another temptation for

                 public officials and their contributors to

                 become involved in the bond sales and we've

                 created a pay-for-play environment.

                            I think the Comptroller of this

                 state is eminently qualified to do that.  And

                 I would think -- although I agree with Senator

                 Volker, there have been occasional glitches in

                 this, occasional reports that suggest this is

                 worthy of scrutiny -- I think if the

                 conclusion is that we've achieved or goal and

                 that negotiated bond sales produce less cost

                 to borrowers, we ought to make all of them





                                                          7596



                 permanent, not just here in Erie County but in

                 New York City as well.

                            And I would suggest also to Senator

                 Volker that one of the things we always have

                 to be afraid of -- while I agree with him

                 completely that by making an extender that

                 either the Assembly or the Governor or the

                 Senate could prevent reauthorization of the

                 bill, I would suggest that that may be

                 micromanaging Erie County and the City of

                 New York and other communities that do these

                 sales just a little too far.

                            I would suggest that if problems

                 come up in the future, we ought to get a

                 bipartisan consensus to change it at that

                 point rather than allow, quite frankly, one of

                 my colleagues from Erie County to stand up and

                 say "I don't want this to happen," and

                 suddenly it doesn't, it seems to me over the

                 objection of his colleagues from the Senate

                 who would have maybe a better long-term

                 perspective or, given the size of the

                 district, a more pervasive interest in the

                 future of Erie County.

                            So I'm not so sure that making it





                                                          7597



                 continual through continual extenders is the

                 right way to manage this problem.  My hope is

                 that Senator Volker would go back and -- and

                 I'm going to vote in favor of this, but that

                 we should either look at this whole issue in

                 detail, come up with a report, and if the case

                 is that it's actually been successful, let's

                 make it permanent everywhere and get out of

                 the business of looking over local

                 governments' shoulders when they make these

                 decisions.

                            I'll vote aye today, but I hope we

                 take this issue a couple of steps further.

                            ACTING PRESIDENT McGEE:    Senator

                 Brown.

                            SENATOR BROWN:    Yes, on the bill,

                 Madam President.

                            ACTING PRESIDENT McGEE:    Senator

                 Brown, on the bill.

                            SENATOR BROWN:    Let me just take

                 a moment to reflect my support for this

                 measure and to thank Senator Volker for really

                 being a champion of the needs of Erie County

                 and the City of Buffalo in the Senate.

                            Just by way of some history,





                                                          7598



                 Senator Volker mentioned the fiscal crisis

                 that the County of Erie had which dates back

                 to, I think, 1987, when the County of Erie was

                 about $75 million in debt.  And I think this

                 was one of the measures that was instituted

                 some years ago to assist the County of Erie in

                 being able to get itself out of debt.

                            And as a former department head in

                 the Erie County government, as a person that

                 ran a department of the Erie County

                 government, the county was able to right

                 itself.  It was able to come into a situation

                 of fiscal stability from that period when it

                 had $75 million worth of debt.  And it's

                 because of actions like this that were taken

                 in this house that gave that government the

                 ability to help heal itself.

                            So I certainly support this

                 measure, because for the over 1.1 million

                 people that reside in Erie County, giving the

                 county government this kind of flexibility is

                 important.

                            And Senator Dollinger and Senator

                 Smith spoke to why not permanentize this.  And

                 certainly there can be arguments made for





                                                          7599



                 permanentizing this ability of the county to

                 have the flexibility to sell its own bonds.

                 But as Senator Volker has indicated, in

                 probably three administrations of county

                 government, two Republican county executives

                 and one Democratic county executive that

                 served for a period of 12 years, there has

                 never been an issue with how the county has

                 handled the sale of its bonds.  There has

                 never been any question of impropriety in how

                 those bonds have been handled.

                            We also in Erie County have a

                 strong county comptroller who audits the

                 business of county government, who presides

                 over the bond sales in Erie County.  So there

                 is a check and balance to this measure.

                            Senator Volker and Senator Smith

                 also touched upon -- and I know this is a

                 tangential issue, but they also touched upon

                 the sales tax in Erie County.  And again, back

                 in 1987, after the fiscal crisis that Erie

                 County was experiencing, the local governments

                 came to the state and asked to increase the

                 sales tax by an additional 1 percent,

                 increasing the sales tax in Erie County from





                                                          7600



                 7 percent to 8 percent.

                            And at that time that sales tax was

                 supposed to be a temporary measure to again

                 assist the county in getting out of this major

                 fiscal deficit.  Well, it has been passed, you

                 know, every year, and the county has come to

                 rely on that sales tax.  And it is true, as

                 Senator Smith was alluding to, and as Senator

                 Volker confirmed, the city has asked for a

                 larger share of the sales tax.  And I

                 certainly would at some point like to see the

                 County of Erie acquiesce to that request on

                 the part of the City of Buffalo.

                            The city has gotten older in

                 population, the income in the city has gone

                 down, the population in the city has gone

                 down.  But still the city is the financial

                 center, the hub of the County of Erie.  And

                 the health of the city I think is critical to

                 the health of Erie County.  So at some point I

                 would like to see us be able to get a larger

                 share of that sales tax.

                            But with respect to this measure, I

                 think it is an important piece of legislation

                 to pass; yet again, another piece of





                                                          7601



                 legislation that Senator Volker has championed

                 for our community.  The only thing that I as a

                 new Senator lament is not being able to show

                 my support in the strongest of terms for this

                 measure and be able to join Senator Volker as

                 a cosponsor.

                            Hopefully, as we go forward in this

                 legislative session, that will be able to be

                 rectified and those members on this side of

                 the aisle that wish to join members across the

                 aisle in the sponsorship of measures to show

                 our support in the strongest terms will be

                 able to do that.

                            But on this measure, I'm certainly

                 very proud to join Senator Volker and my other

                 colleagues in support.  I will vote aye.

                            ACTING PRESIDENT RATH:    Is there

                 any other Senator wishing to be heard?

                            Hearing none, debate is closed.

                            There is a home rule message at the

                 desk.

                            Read the last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT RATH:    Call the





                                                          7602



                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 59.

                            ACTING PRESIDENT RATH:    The bill

                 is passed.

                            The Secretary will read.

                            THE SECRETARY:    Calendar Number

                 646, by Senator Padavan, Senate Print 3543, an

                 act to amend the Penal Law, in relation to

                 illegal possession.

                            SENATOR SKELOS:    Lay it aside for

                 the day.

                            ACTING PRESIDENT RATH:    The bill

                 is laid aside for the day.

                            THE SECRETARY:    Calendar Number

                 700, by Senator Farley, Senate Print 2840, an

                 act to amend the Banking Law, in relation to

                 increased penalty.

                            SENATOR BRESLIN:    Explanation.

                            ACTING PRESIDENT RATH:    Senator

                 Farley, an explanation has been requested.

                            SENATOR FARLEY:    Thank you, Madam

                 President.

                            This bill would increase the

                 maximum penalty that may be imposed for a





                                                          7603



                 refusal by a bank to permit examination by the

                 Banking Department.  The current penalty was

                 established in 1930.  It is $200 a day.  This

                 would increase it to $5,000 a day, which is

                 the general penalty for any kind of a

                 violation of the Banking Law.

                            And examinations, as you can well

                 imagine, are a crucial part of the regulatory

                 process for the safety and soundness of our

                 banks.  It is important that these financial

                 institutions cooperate with the Banking

                 Department, and having an adequate penalty can

                 serve to be an effective deterrent to a

                 violation.

                            Let me just say this.  In recent

                 years, New York has not had problems with

                 banks refusing an examination.  But there have

                 been a lot of them around the nation, by OCS.

                 And consequently, by the time they got in

                 there, all kinds of mischief had happened.

                            This is a deterrent.  Now, why has

                 this not been changed since 1930?  Almost all

                 of your penalties were raised to $5,000, and

                 this one was one that was overlooked and just

                 not done.  And it more or less levels all the





                                                          7604



                 penalties for violations.  I think it is one

                 that is reasonable.  There's no known

                 opposition to it.

                            ACTING PRESIDENT RATH:    Senator

                 Breslin.

                            SENATOR BRESLIN:    Madam

                 President, through you, if the sponsor would

                 yield for a question.

                            SENATOR FARLEY:    Yes, I will.

                            ACTING PRESIDENT RATH:    Senator

                 Farley yields.

                            SENATOR BRESLIN:    Through you,

                 Madam President, when an investigation of a

                 bank is conducted, what actually takes place?

                            SENATOR FARLEY:    Well, they

                 examine all facets of the bank for safety and

                 soundness and -- as far as all their books are

                 concerned.

                            SENATOR BRESLIN:    Again, through

                 you, Madam President.

                            ACTING PRESIDENT RATH:    Senator

                 Farley, do you continue to yield?

                            SENATOR FARLEY:    Yes, I will.

                            ACTING PRESIDENT RATH:    Senator

                 Farley yields.





                                                          7605



                            SENATOR BRESLIN:    How frequently

                 do these examinations take place?

                            SENATOR FARLEY:    Once a year.

                            SENATOR BRESLIN:    And is there

                 any sort of a reporting system to make sure

                 that the Superintendent of Banking in fact

                 investigates each bank on an annual basis?

                            ACTING PRESIDENT RATH:    Senator

                 Farley, do you continue to yield?

                            SENATOR FARLEY:    Yes.

                            The report is made to the Banking

                 Department every year.  A report goes to the

                 Superintendent Of banks.

                            SENATOR BRESLIN:    And again

                 through you, Madam President.

                            ACTING PRESIDENT RATH:    Senator

                 Farley.

                            SENATOR BRESLIN:    Is the Banking

                 Department efficient in making sure that all

                 banks in New York are in fact reviewed on an

                 annual basis?

                            SENATOR FARLEY:    Yes, they are.

                            And incidentally, on that same

                 subject, we have one of the finest banking

                 departments as far as examining banks in the





                                                          7606



                 nation.  We set the standard.

                            As you recall, some of you that are

                 old enough to remember when banks and S&Ls

                 were failing all over the nation, this did not

                 happen in New York State.

                            SENATOR BRESLIN:    Right.

                            And again through you, Madam

                 President, if the sponsor would continue to

                 yield.

                            ACTING PRESIDENT RATH:    Senator

                 Farley, will you continue to yield?

                            SENATOR FARLEY:    Yes, I will.

                            ACTING PRESIDENT RATH:    He

                 yields.

                            SENATOR BRESLIN:    Do you have any

                 sort of numbers available to you as to how

                 many banks in New York State during the past

                 twelve months have in fact refused an

                 inspection?

                            SENATOR FARLEY:    None.  As far as

                 we know, I think it's zero.  And to be very

                 frank with you, Senator Breslin, I think since

                 1930 there's been few or none.

                            SENATOR BRESLIN:    And again

                 through you, Madam President, if a bank -





                                                          7607



                            ACTING PRESIDENT RATH:    Senator

                 Farley continues to yield.

                            SENATOR FARLEY:    Yes, I will.

                            SENATOR BRESLIN:    If a bank was

                 found to be noncompliant by the

                 superintendent, would the bank have any right

                 to appeal that decision, that administrative

                 determination?

                            SENATOR FARLEY:    Well, of course

                 you can always appeal an administrative

                 determination.  But this is a fine of $5,000 a

                 day if you refuse to be inspected.

                            SENATOR BRESLIN:    And again

                 through you, Madam President -

                            ACTING PRESIDENT RATH:    Senator

                 Farley, do you continue to yield?

                            SENATOR FARLEY:    Yes.

                            SENATOR BRESLIN:    Does the annual

                 inspection include affiliates or related

                 corporations?

                            SENATOR FARLEY:    Yes, it would

                 include branches and affiliates, yes.

                            SENATOR BRESLIN:    On the bill,

                 Madam President.

                            ACTING PRESIDENT RATH:    On the





                                                          7608



                 bill, Senator Breslin.

                            SENATOR BRESLIN:    I accept

                 Senator Farley's explanation that in fact it's

                 a kind of a cleanup bill and brings a higher

                 penalty.

                            And particularly given the fact, as

                 Senator Farley expressed, that throughout the

                 country there seems to be more banks that are

                 doing less kinds of "compliant" things, that

                 it's probably a wonderful safety measure to do

                 it now, to make sure that in fact if there is

                 a bank -- and Senator Farley indicated that

                 there are few or none that have been

                 noncompliant since 1930.

                            I think that, based on those

                 observations, I will be voting in the

                 affirmative.

                            Thank you, Madam President.

                            ACTING PRESIDENT RATH:    Senator

                 Breslin.

                            Is there any other Senator wishing

                 to be heard on the bill?

                            Hearing none, read the last

                 section.

                            THE SECRETARY:    Section 2.  This





                                                          7609



                 act shall take effect in 30 days.

                            ACTING PRESIDENT RATH:    Call the

                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 59.

                            ACTING PRESIDENT RATH:    The bill

                 is passed.

                            SENATOR FARLEY:    Just to explain

                 my vote -

                            ACTING PRESIDENT RATH:    Senator

                 Farley, to explain his vote.

                            SENATOR FARLEY:    -- because I

                 didn't address this.

                            This also applies to mortgage

                 brokers, check-cashers, money transmitters and

                 all the other ancillary groups, which there is

                 more chance for mischief, if you will, than

                 there is with the banks.

                            So it goes across the board, and it

                 is a significant piece of legislation.  It's

                 like the stitch in time saves nine.

                            ACTING PRESIDENT RATH:    The clerk

                 shall read.

                            THE SECRETARY:    Calendar Number

                 725, by Senator Seward, Senate Print 4097, an





                                                          7610



                 act to amend the Insurance Law, in relation to

                 the licensing and continuing education.

                            SENATOR DOLLINGER:    Explanation,

                 please.

                            ACTING PRESIDENT RATH:    An

                 explanation has been requested.

                            SENATOR SEWARD:    Yes, Madam

                 President.

                            ACTING PRESIDENT RATH:    Senator

                 Seward.

                            SENATOR SEWARD:    This bill would

                 stagger the expiration dates of licenses with

                 the State Insurance Department for the life

                 and accident and health agents.

                            Currently, all of these licenses,

                 which are valid for a two-year term, they all

                 expire on the same day, June 30th of the odd

                 numbered year.  And this would, under this

                 legislation, provide for commencing on July 1,

                 2001, the life, accident and health agents'

                 licenses shall be for a two-year period, but

                 they would expire on -- one-third of them on

                 February 28th, one-third on June 30th, and

                 one-third on October 31st of the odd year.

                            And this is done to help to





                                                          7611



                 facilitate the processing of these license

                 renewals, so that they can be done in an

                 expeditious manner.

                            This is a departmental bill from

                 the State Insurance Department.  And I think

                 it should be supported, because it helps to

                 streamline operations for the benefit of not

                 only the personnel at the department but, more

                 importantly, for the license holders out there

                 across our state, and there are approximately

                 105,000 of these individuals.

                            And this would mean that they will

                 always have a license in effect without the

                 hassle of this difficulty in getting the

                 renewals done in a timely manner.

                            ACTING PRESIDENT RATH:    Is there

                 any other Senator wishing to be heard on the

                 bill?

                            Senator Hassell-Thompson.

                            SENATOR HASSELL-THOMPSON:    Thank

                 you, Madam President.  If the Senator would

                 just yield for a couple of questions.

                            ACTING PRESIDENT RATH:    Senator

                 Seward, do you yield?

                            SENATOR SEWARD:    Certainly.





                                                          7612



                            ACTING PRESIDENT RATH:    Senator

                 Seward yields.

                            SENATOR HASSELL-THOMPSON:    Thank

                 you, Senator.

                            Through you, Madam President,

                 during the confirmation hearings, the new

                 Superintendent of Insurance stated that he

                 felt with the department's new speed to market

                 reform that they would be able to solve this

                 problem.  If this is so, why would this bill

                 be necessary?

                            ACTING PRESIDENT RATH:    Senator

                 Seward.

                            SENATOR SEWARD:    Well, Madam

                 President, I applaud our new Superintendent

                 Serio at the Insurance Department, and the

                 previous superintendent, for initiating the

                 so-called speed to market initiative at the

                 department.  They're attempting to speed up

                 the process of approving new insurance

                 products but also in this area of licensing

                 and license renewals.

                            That certainly is going to help.

                 But the department has indicated to us -- in

                 fact, the legislation before us is a





                                                          7613



                 departmental bill -- that they still would

                 like to spread out the work load throughout

                 the year rather than having every license done

                 at the very same date every other year.

                            So I think the combination of the

                 two, the initiative that you've outlined and

                 the passage of this legislation, I think would

                 ease the process completely.

                            SENATOR HASSELL-THOMPSON:    If the

                 Senator would continue to yield, Madam

                 President.

                            ACTING PRESIDENT RATH:    Senator

                 Seward, do you continue to yield?

                            SENATOR SEWARD:    Certainly, Madam

                 President.

                            ACTING PRESIDENT RATH:    The

                 Senator yields.

                            SENATOR HASSELL-THOMPSON:    Thank

                 you.

                            If I read this correctly, this bill

                 also calls for the issuance of temporary

                 licensures.  And the Assembly Insurance

                 Committee, headed by Assemblyman Grannis, has

                 had serious opposition to this and has been

                 said to say that this problem would keep them





                                                          7614



                 from passing it in the Assembly.  How does

                 that augur for us passing this bill?

                            SENATOR SEWARD:    Well, Madam

                 President, I would say this.  I think it's

                 important that we pass the bill because in its

                 current form -- the issue of the temporary

                 license is one that I think it's important

                 that our house go on record as supporting it,

                 because this deals with the situations that

                 arise when someone has completed all of the

                 requirements for a license and they are simply

                 awaiting the process at the State Insurance

                 Department.  And in the meantime, they are

                 unable to pursue their profession and derive

                 an income from it and serve their prospective

                 new clients.

                            The temporary license would allow

                 them to, just as the name would suggest, to on

                 a temporary basis, as they are awaiting the

                 final license to be processed and approved,

                 that would allow them to go out and make a

                 living and to serve their clients.

                            Now, under the legislation we give

                 a great deal of authority, as we should, I

                 believe, to the Superintendent of Insurance to





                                                          7615



                 really come in with some strict rules so that

                 the public is protected here from any

                 unscrupulous activity, shall we say.  But I

                 think it's certainly justifiable to include

                 the temporary license provisions in our bill.

                            Obviously, as we move toward our

                 June 20th adjournment or recess from the

                 regular session, obviously we will have

                 discussions with the Assembly to try to work

                 this out.  And stay tuned.

                            SENATOR HASSELL-THOMPSON:    Just a

                 couple of final questions, if the Senator will

                 continue to yield, Madam President.

                            ACTING PRESIDENT RATH:    Senator

                 Seward, do you continue to yield?

                            SENATOR SEWARD:    Yes.

                            ACTING PRESIDENT RATH:    The

                 Senator yields.

                            SENATOR HASSELL-THOMPSON:    Thank

                 you, Madam President, through you.

                            What changes will be made in the

                 certification of continuing education

                 requirements for insurance agents?

                            SENATOR SEWARD:    What changes?

                 We just -- changes from last year?





                                                          7616



                            SENATOR HASSELL-THOMPSON:

                 Mm-hmm.  What in terms of this bill?

                            SENATOR SEWARD:    The only change

                 that we make under this bill is to streamline

                 the process, in effect, to allow for

                 electronic filings in terms of the information

                 that is submitted to the department.  That's

                 really just to update the law because of the

                 updated technology that now exists.

                            Rather than saying in the law that

                 you have to submit the information in written

                 form, under the changes we've made, it would

                 allow that to be done electronically.

                            SENATOR HASSELL-THOMPSON:    Thank

                 you, Senator.

                            Mr. President, on the bill.

                            ACTING PRESIDENT MEIER:    Senator

                 Hassell-Thompson, on the bill.

                            SENATOR HASSELL-THOMPSON:    Thank

                 you.

                            I appreciate Senator Saland's -- I

                 do this all the time -- Senator Seward's -- I

                 call him that, and I apologize -- Senator

                 Seward's full explanation -- Senator Seward in

                 terms of his explanation.





                                                          7617



                            Having had the opportunity on a

                 couple of occasions to talk with some agents

                 about this problem, I certainly know that

                 there is a tremendous amount of necessity and

                 support, so that there is not -- number one,

                 there's not such a backlog in the numbers of

                 applications that come through at any one

                 time.  But also, I also appreciated the fact

                 that you were cognizant too of the possible

                 abuse that could in fact occur with temporary

                 licensure issuance, and so that that is a

                 piece of what will be addressed.

                            So I certainly support this, and I

                 appreciate your consideration in the way that

                 you answered my questions.  Thank you.

                            Thank you, Mr. President.

                            ACTING PRESIDENT MEIER:    Does any

                 other Senator wish to be heard on the bill?

                            Hearing none, debate is closed.

                            Read the last section.

                            THE SECRETARY:    Section 4.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MEIER:    Call the

                 roll.

                            (The Secretary called the roll.)





                                                          7618



                            THE SECRETARY:    Ayes, 59.

                            ACTING PRESIDENT MEIER:    The bill

                 is passed.

                            Senator Alesi.

                            SENATOR ALESI:    Thank you, Mr.

                 President.  May we return to motions and

                 resolutions, please.

                            ACTING PRESIDENT MEIER:    Order of

                 motions and resolutions.

                            Senator Alesi.

                            SENATOR ALESI:    Mr. President, I

                 believe there is a privileged resolution at

                 the desk by Senator Morahan.  May we have its

                 title read and move for its immediate

                 adoption.

                            ACTING PRESIDENT MEIER:    The

                 Secretary will read the title.

                            THE SECRETARY:    By Senator

                 Morahan, Legislative Resolution Number 1905,

                 commending Dr. Larry R. Pedersen upon the

                 occasion of his designation for special

                 recognition by the members of Rockland's

                 school-community partnership on May 17, 2001.

                            ACTING PRESIDENT MEIER:    The

                 question is on the resolution.  All those in





                                                          7619



                 favor signify by saying aye.

                            (Response of "Aye.")

                            ACTING PRESIDENT MEIER:    Opposed,

                 nay.

                            (No response.)

                            ACTING PRESIDENT MEIER:    The

                 resolution is adopted.

                            Senator Alesi.

                            SENATOR ALESI:    Mr. President,

                 would you please recognize Senator Dollinger.

                            ACTING PRESIDENT MEIER:    Senator

                 Dollinger.

                            SENATOR DOLLINGER:    Thank you,

                 Mr. President.

                            I hereby give written notice,

                 pursuant to Rule XI, that I will move to amend

                 the rules of the Senate and add a new rule,

                 XV, which creates ethical standards for

                 officers, employees and members of the New

                 York State Senate.

                            I would ask that that notice be

                 recorded in the Journal, Mr. President.

                            ACTING PRESIDENT MEIER:    The

                 notice is at the desk and it will be recorded

                 in the Journal.





                                                          7620



                            SENATOR DOLLINGER:    Thank you.

                            ACTING PRESIDENT MEIER:    Senator

                 Alesi.

                            SENATOR ALESI:    Thank you, Mr.

                 President.  Are there any substitutions at the

                 desk?

                            ACTING PRESIDENT MEIER:    There

                 are.  Shall we read them now, Senator?

                            SENATOR ALESI:    Will you please

                 do them now.

                            ACTING PRESIDENT MEIER:    The

                 Secretary will read the substitutions.

                            THE SECRETARY:    On page 31,

                 Senator Spano moves to discharge, from the

                 Committee on Rules, Assembly Bill Number 7404

                 and substitute it for the identical Senate

                 Bill Number 4383, Third Reading Calendar 550.

                            ACTING PRESIDENT MEIER:

                 Substitution ordered.

                            Senator Alesi.

                            SENATOR ALESI:    Thank you, Mr.

                 President.  May we have Calendar Number 734,

                 by Senator Larkin.

                            ACTING PRESIDENT MEIER:    The

                 Secretary will read Calendar 734.





                                                          7621



                            THE SECRETARY:    Calendar Number

                 734, by Senator Larkin, Senate Print 4252, an

                 act to amend the Racing, Pari-Mutuel Wagering

                 and Breeding Law, in relation to reports.

                            SENATOR PATERSON:    Explanation.

                            ACTING PRESIDENT MEIER:    Senator

                 Larkin, an explanation has been requested by

                 Senator Paterson of Calendar 734.

                            SENATOR LARKIN:    Yes, Mr.

                 President.

                            Senator Paterson, this is a Racing

                 and Wagering Department bill.  It amends the

                 law to shift various financial reporting dates

                 from March 1 and March 31 into a consolidated

                 date of July 1st.

                            The problem is that some of these

                 reports were due in February, some were due in

                 March.  But in order to get them into the

                 Racing and Wagering Board like they are and to

                 the Legislature and to the Division of the

                 Budget, it was very clear that these reports

                 were mixed and that a complete report was

                 never sent forward, because it was always

                 delayed because some of the information was

                 not available.





                                                          7622



                            And what we've done is we've put

                 four sections into this bill.  In order to

                 give the report a bit of accuracy, where here

                 before all it had was some information on the

                 status of the tracks, whether it was

                 simulcasting or not, we have four sections to

                 the bill.

                            In the first section, we shift from

                 March 31st to July 1st the board's report to

                 the Director of the Budget and the Legislature

                 about the extent of NYRA's utilization,

                 retained percentages, and breakage for

                 operations.

                            In Section 2 we shift from March 1

                 to July 1 the board's report to the Director

                 of the Budget and Legislature concerning

                 similar rate and pool distributions, as I said

                 in the previous section.  This only

                 involves -- this section involves the harness

                 tracks.

                            The next one would shift it from 31

                 March to 1 July, a similar harness track

                 report, as stated.  The only difference is

                 that includes their simulcasting revenues.

                            And the fourth part shifts from 31





                                                          7623



                 March to July 1st the board's report to the

                 Division of the Budget and the Legislature

                 with regard to an evaluation of simulcasting,

                 its capability with the well-being of horse

                 racing, breeding, and pari-mutuels.

                            This is something we didn't have

                 before.  So many times when we were asked at

                 the end of the session to do certain things

                 for the tracks, whether it was the breeders,

                 back stretch, or whatever else we were adding

                 to, we really didn't have all of the factual

                 data, because the reports were not submitted

                 in a manner so they could be consolidated.

                            ACTING PRESIDENT MEIER:    Senator

                 Paterson.

                            SENATOR PATERSON:    Mr. President,

                 if Senator Larkin will yield for a question.

                            ACTING PRESIDENT MEIER:    Senator

                 Larkin, do you yield for a question?

                            SENATOR LARKIN:    Yes, Mr.

                 President.

                            ACTING PRESIDENT MEIER:    The

                 Senator yields.

                            SENATOR PATERSON:    Senator, I'm a

                 little unclear on what it was about the





                                                          7624



                 reports.  Was it that by the time we passed

                 the budget the information was obsolete?  Or

                 was it that the information was hurried and

                 when it got into the report it wasn't

                 sufficiently compiled?

                            SENATOR LARKIN:    It really wasn't

                 compiled, David.

                            What happened was when you started

                 to see that they had a deadline of submitting

                 a report on the 15th of March, and they were

                 told to have their part of it done by the 1st

                 of March, they didn't have all of the

                 information, whether it was the part that was

                 simulcasting -- and it was all frustrated.

                            So what we did, in working with the

                 Racing and Wagering Board, was put it all

                 together so that now when we get a report from

                 them, we will have an up-to-date report and it

                 will actually tell us what the financial

                 status of it is and what they're doing with

                 their operational monies.

                            SENATOR PATERSON:    Mr. President,

                 if Senator Larkin would continue to yield.

                            ACTING PRESIDENT MEIER:    Senator

                 Larkin, do you -





                                                          7625



                            SENATOR LARKIN:    Yes, Mr.

                 President.

                            ACTING PRESIDENT MEIER:    The

                 Senator yields.

                            SENATOR PATERSON:    Thank you.

                            Senator, what happens if we pass

                 the budget before the report comes in on

                 July 1?

                            SENATOR LARKIN:    That wouldn't

                 have any bearing on us, David.  What we're

                 talking about is their operation and the

                 reports that they'll submit to us.

                            Go back to what I said before.

                 Remember, David, we used to have it the last

                 day of the last night.  They would say, we're

                 going to make some changes and cuts and do

                 something for the breeders or the harness or

                 the back stretch or whatever it might be with

                 regard to the industry.  And we didn't have

                 all of the data.

                            We did things, but now this will

                 make sure that when they submit this report,

                 it will consolidate everything on the 1st day

                 of July.

                            When we start to look at anything





                                                          7626



                 that they come to us in January or February

                 saying, Well, we need to have something, we

                 will actually have in hand a fully documented

                 report, including all aspects of the industry.

                            ACTING PRESIDENT MEIER:    Senator

                 Paterson.

                            SENATOR PATERSON:    Mr. President,

                 I know exactly and I've been here to witness

                 what Senator Larkin is talking about.  If he

                 would yield for another question.

                            ACTING PRESIDENT MEIER:    Senator

                 Larkin?

                            SENATOR LARKIN:    Yes.

                            ACTING PRESIDENT MEIER:    Senator

                 Larkin yields.

                            SENATOR PATERSON:    Then do we

                 need any of this information essentially to

                 accommodate the Racing and Wagering portion of

                 the budget that we pass?

                            SENATOR LARKIN:    Well, take it

                 away from the budget, David.  We need to

                 see -- because they're a public authority, we

                 need to see what they're doing, how they're

                 doing.

                            Every aspect of this here has





                                                          7627



                 something to do with the Racing and Wagering

                 Board.  And the Racing and Wagering Board

                 should have the capability of evaluating

                 what's going on in the industry.

                            And what we're going to do is

                 instead of having them submit reports to the

                 Division of the Budget and the Legislature as

                 we've asked for, we're now going to be able to

                 get a report from them.  And the report that

                 we'll get in July will be a total report,

                 rather than the one we got on March 15th,

                 which was a report but it did not include

                 up-to-date financial statement capabilities

                 and stability of the industry.

                            SENATOR PATERSON:    Mr. President,

                 I may have gone to the back stretch when I

                 haven't settled into the gate.  I may not

                 understand exactly what is going on.

                            If Senator Larkin would yield for a

                 final question.

                            ACTING PRESIDENT MEIER:    Senator

                 Larkin, do you yield for what is promised to

                 be a final question?

                            SENATOR LARKIN:    Yes, Mr.

                 President.





                                                          7628



                            ACTING PRESIDENT MEIER:    Senator

                 Larkin yields.

                            SENATOR PATERSON:    I was under

                 the impression, Mr. President, that the

                 April 1st deadline that we work with or the

                 March 31st deadline that we work with right

                 now was scheduled specifically to coincide

                 specifically with the statutory deadline of

                 the budget.

                            But from what I'm getting from

                 Senator Larkin, that may not actually be the

                 case, which would really urge us that we need

                 the information, but we don't necessarily need

                 it for that process.

                            Is that a correct assumption,

                 Senator?

                            SENATOR LARKIN:    Well, in part,

                 David.

                            Years ago, they used to have this

                 in because they would make some comment on the

                 budget, as I mentioned before, where they

                 would make some shifts and do some changes.

                            But the point is that the data that

                 they were giving us was never complete,

                 because they in turn did not have all of the





                                                          7629



                 information.  They were getting a report

                 together which in some cases was not factual.

                            Here, what we're doing is moving it

                 to July 1st so everybody will have had their

                 opportunity.  And we won't be playing with the

                 budget, we'll be dealing with an agency of the

                 government that has to do with Racing and

                 Wagering.  It will take in their simulcasting

                 and every other aspect of the tracks, so that

                 when we get a report on July 1st we should

                 know what that agency is doing and what the

                 industry is doing.

                            SENATOR PATERSON:    Thank you, Mr.

                 President.  On the bill.

                            ACTING PRESIDENT MEIER:    Senator

                 Paterson, on the bill.

                            SENATOR PATERSON:    I guess that

                 it really is the end of session each year

                 where we really need that information.  So the

                 change in the period which is seasonable for

                 the information to be accumulated and filed

                 into a report probably is not affecting our

                 process any more by July 1st and may actually

                 give us more relevant information on than

                 March 31st.





                                                          7630



                            Thank you, Mr. President.

                            ACTING PRESIDENT MEIER:    Senator

                 Dollinger.

                            SENATOR DOLLINGER:    Will the

                 sponsor yield to just one question, Mr.

                 President?

                            ACTING PRESIDENT MEIER:    Senator

                 Larkin, do you yield for a question?

                            SENATOR LARKIN:    Yes.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR DOLLINGER:    Do we

                 actually get these reports?

                            SENATOR LARKIN:    Yes.

                            SENATOR DOLLINGER:    Could you

                 produce a couple, let's say the last two

                 years' worth, and just make them available to

                 me?  I'd love to see them.

                            SENATOR LARKIN:    Yes, I'll send

                 it to you.

                            SENATOR DOLLINGER:    Thank you

                 very much, Mr. President.

                            I'm going to vote in favor of this

                 bill.  I don't have a problem pushing the date

                 back to July 1st.





                                                          7631



                            I do find it a bit, I guess,

                 quizzical just in my own mind that they can't

                 get the report done by March 31st and they can

                 get it done by July 1st.

                            We -- as some people may know, I've

                 begun to rail against constantly requiring

                 state agencies to give us reports that we

                 never see, that we never actually get.  I

                 would be pleased as punch if the Racing and

                 Wagering Board were delivering the reports so

                 that we could make the analysis necessary to

                 figure out whether we should play with the

                 simulcast revenues or the betting pools or the

                 percentage pools.

                            I think that stuff is critically

                 important to figuring out the health of the

                 gaming and wagering business, figuring out

                 what role the state should have in it.

                            I'm pleased -- if the Racing and

                 Wagering Board is actually producing these

                 reports, I commend them.  Unfortunately, many

                 other state agencies are not.  And that's why

                 I asked the question.

                            Thank you, Mr. President.

                            ACTING PRESIDENT MEIER:    Does any





                                                          7632



                 other Senator 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, 59.

                            ACTING PRESIDENT MEIER:    The bill

                 is passed.

                            Senator Alesi.

                            SENATOR ALESI:    Thank you, Mr.

                 President.  Is there any housekeeping at the

                 desk?

                            ACTING PRESIDENT MEIER:    There is

                 none.

                            SENATOR ALESI:    Thank you, Mr.

                 President.

                            There being no further business, I

                 move we adjourn until Monday, May 21st, at

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

                 legislative days.

                            ACTING PRESIDENT MEIER:    On

                 motion, the Senate stands adjourned until





                                                          7633



                 Monday, May 21st, at 3:00 p.m.  Intervening

                 days will be legislative days.

                            (Whereupon, at 3:38 p.m., the

                 Senate adjourned.)