Regular Session - March 25, 2002

                                                            1536







                           NEW YORK STATE SENATE











                          THE STENOGRAPHIC RECORD



















                             ALBANY, NEW YORK



                              March 25, 2002



                                 3:10 p.m.











                              REGULAR SESSION















            LT. GOVERNOR MARY O. DONOHUE, President



            STEVEN M. BOGGESS, Secretary



































                                                        1537







                           P R O C E E D I N G S



                            THE PRESIDENT:    The Senate will



                 please come to order.



                            I ask everyone present to please



                 rise and repeat with me the Pledge of



                 Allegiance.



                            (Whereupon, the assemblage recited



                 the Pledge of Allegiance to the Flag.)



                            THE PRESIDENT:    With us again



                 today to give the invocation is the Reverend



                 Peter Young, from Blessed Sacrament Church in



                 Bolton Landing, New York.



                            REVEREND YOUNG:    Let us pray.



                            God has given us many different



                 gifts, but it is always Your spirit to guide



                 us.  There are many different ways of serving



                 as Senators, but it is always You, O God, that



                 have granted them to be used for the good of



                 our New York State citizens.



                            God has gifted each Senator with



                 their unique potential to help their



                 constituents.  Let us take a moment to thank



                 God for our talents and our skills.  God, we



                 thank You for these gifts unique to each



                 Senator.











                                                        1538







                            Let us not be jealous of talent



                 that we don't have, but rather let us rejoice



                 in You, who have made us and dedicated our



                 gifts to the good of our New York State



                 citizens.



                            Amen.



                            THE PRESIDENT:    Reading of the



                 Journal.



                            THE SECRETARY:    In Senate,



                 Sunday, March 24, the Senate met pursuant to



                 adjournment.  The Journal of Saturday,



                 March 23, was read and approved.  On motion,



                 Senate adjourned.



                            THE PRESIDENT:    Without



                 objection, the Journal stands approved as



                 read.



                            Presentation of petitions.



                            Messages from the Assembly.



                            Messages from the Governor.



                            Reports of standing committees.



                            Reports of select committees.



                            Communications and reports from



                 state officers.



                            Motions and resolutions.



                            Senator Farley.







                                                        1539







                            SENATOR FARLEY:    Thank you, Madam



                 President.



                            THE PRESIDENT:    You're welcome.



                            SENATOR FARLEY:    On behalf of



                 Senator Trunzo, on page 23 I offer the



                 following amendments to Calendar 375, Senate



                 Print 5025, and I ask that that bill retain



                 its place on the Third Reading Calendar.



                            THE PRESIDENT:    The amendments



                 are received, Senator, and the bill will



                 retain its place on the Third Reading



                 Calendar.



                            SENATOR FARLEY:    Madam President,



                 I move that the following bill be discharged



                 from its respective committee and be



                 recommitted with instructions to strike the



                 enacting clause:  Senate 1996A.  That's on



                 behalf of Senator Kuhl.



                            THE PRESIDENT:    So ordered.



                            Senator Skelos, we have a



                 substitution.



                            SENATOR SKELOS:    Please make the



                 substitution, Madam President.



                            THE PRESIDENT:    The Secretary



                 will read.











                                                        1540







                            THE SECRETARY:    On page 27,



                 Senator Hannon moves to discharge, from the



                 Committee on Health, Assembly Bill Number



                 3638A and substitute it for the identical



                 Senate Bill Number 4359A, Third Reading



                 Calendar 411.



                            THE PRESIDENT:    The substitution



                 is ordered.



                            Senator Skelos.



                            SENATOR SKELOS:    Madam President,



                 there's a privileged resolution at the desk



                 that I've sponsored.  May we please have the



                 title read and move for its immediate



                 adoption.



                            THE PRESIDENT:    The Secretary



                 will read.



                            THE SECRETARY:    By Senator



                 Skelos, Legislative Resolution Number 4572,



                 memorializing Governor George E. Pataki to



                 proclaim March 25, 2002, as Greek Independence



                 Day in New York State and honoring the



                 Federation of Hellenic-American Societies of



                 Greater New York.



                            THE PRESIDENT:    The question is



                 on the resolution.  All in favor signify by











                                                        1541







                 saying aye.



                            (Response of "Aye.")



                            THE PRESIDENT:    Opposed, nay.



                            (No response.)



                            THE PRESIDENT:    The resolution is



                 adopted.



                            SENATOR SKELOS:    Madam President,



                 I'd like to open the resolution for



                 sponsorship.  If anybody cares not to sponsor



                 it, they should notify the desk.



                            THE PRESIDENT:    All members who



                 do not wish to be sponsors please notify the



                 desk.



                            Senator Skelos.



                            SENATOR SKELOS:    Madam President,



                 if we could go to the noncontroversial



                 calendar.



                            THE PRESIDENT:    The Secretary



                 will read.



                            THE SECRETARY:    Calendar Number



                 25, by Senator Leibell, Senate Print 2499A, an



                 act to amend the Real Property Tax Law, in



                 relation to providing.



                            SENATOR HEVESI:    Lay it aside,



                 please.











                                                        1542







                            THE PRESIDENT:    The bill is laid



                 aside.



                            THE SECRETARY:    Calendar Number



                 35, by Senator Alesi, Senate Print 473A, an



                 act to amend the Education Law, in relation to



                 requiring cardiac pulmonary resuscitation



                 training.



                            THE PRESIDENT:    Read the last



                 section.



                            THE SECRETARY:    Section 2.  This



                 act shall take effect on the first day of



                 August.



                            THE PRESIDENT:    Call the roll.



                            (The Secretary called the roll.)



                            THE SECRETARY:    Ayes, 54.



                            THE PRESIDENT:    The bill is



                 passed.



                            THE SECRETARY:    Calendar Number



                 102, by Senator Hannon, Senate Print 2820A, an



                 act to amend the Public Health Law, in



                 relation to establishing a program.



                            THE PRESIDENT:    Read the last



                 section.



                            THE SECRETARY:    Section 2.  This



                 act shall take effect immediately.











                                                        1543







                            THE PRESIDENT:    Call the roll.



                            (The Secretary called the roll.)



                            THE SECRETARY:    Ayes, 54.



                            THE PRESIDENT:    The bill is



                 passed.



                            Senator Skelos.



                            SENATOR SKELOS:    Madam President,



                 there will be an immediate meeting of the



                 Education Committee in the Majority Conference



                 Room.



                            THE PRESIDENT:    There will be an



                 immediate meeting of the Education Committee



                 in the Majority Conference Room.



                            The Secretary will read.



                            THE SECRETARY:    Calendar Number



                 108, by Senator Velella, Senate Print 67A, an



                 act to amend the General City Law and the



                 Penal Law, in relation to creating.



                            SENATOR PATERSON:    Lay it aside.



                            THE PRESIDENT:    The bill is laid



                 aside.



                            THE SECRETARY:    Calendar Number



                 173, by Senator Lack, Senate Print 1263A, an



                 act to amend the Labor Law, in relation to



                 direct sellers.











                                                        1544







                            THE PRESIDENT:    Read the last



                 section.



                            SENATOR PATERSON:    Lay it aside,



                 please.



                            THE PRESIDENT:    The bill is laid



                 aside.



                            THE SECRETARY:    Calendar Number



                 194, by Senator Volker, Senate Print 3679, an



                 act to amend the Criminal Procedure Law, in



                 relation to the disclosure.



                            THE PRESIDENT:    Read the last



                 section.



                            THE SECRETARY:    Section 2.  This



                 act shall take effect immediately.



                            THE PRESIDENT:    Call the roll.



                            (The Secretary called the roll.)



                            THE SECRETARY:    Ayes, 54.



                            THE PRESIDENT:    The bill is



                 passed.



                            THE SECRETARY:    Calendar Number



                 203, by Senator Kuhl, Senate Print 2212, an



                 act to amend the Agriculture and Markets Law,



                 in relation to producer referendum under the



                 Rogers-Allen Law.



                            THE PRESIDENT:    Read the last











                                                        1545







                 section.



                            THE SECRETARY:    Section 4.  This



                 act shall take effect immediately.



                            THE PRESIDENT:    Call the roll.



                            (The Secretary called the roll.)



                            THE SECRETARY:    Ayes, 55.



                            THE PRESIDENT:    The bill is



                 passed.



                            THE SECRETARY:    Calendar Number



                 270, by Senator Balboni, Senate Print 849, an



                 act to amend the Banking Law, in relation to



                 the maintenance of assets.



                            SENATOR DOLLINGER:    Lay it aside,



                 please.



                            THE PRESIDENT:    The bill is laid



                 aside.



                            THE SECRETARY:    Calendar Number



                 272, by Senator Farley, Senate Print 2964, an



                 act to amend the Banking Law, the Education



                 Law, and the Surrogate's Court Procedure Act,



                 in relation to providing.



                            THE PRESIDENT:    Read the last



                 section.



                            THE SECRETARY:    Section 6.  This



                 act shall take effect immediately.











                                                        1546







                            THE PRESIDENT:    Call the roll.



                            (The Secretary called the roll.)



                            THE SECRETARY:    Ayes, 55.



                            THE PRESIDENT:    The bill is



                 passed.



                            THE SECRETARY:    Calendar Number



                 292, by Senator Skelos, Senate Print 389, an



                 act to amend the Insurance Law, in relation to



                 policy coverage.



                            THE PRESIDENT:    Read the last



                 section.



                            THE SECRETARY:    Section 3.  This



                 act shall take effect on the 180th day.



                            THE PRESIDENT:    Call the roll.



                            (The Secretary called the roll.)



                            THE SECRETARY:    Ayes, 55.



                            THE PRESIDENT:    The bill is



                 passed.



                            THE SECRETARY:    Calendar Number



                 323, by Senator Rath, Senate Print 6162, an



                 act to amend the Local Finance Law, in



                 relation to the issuance.



                            THE PRESIDENT:    Read the last



                 section.



                            THE SECRETARY:    Section 2.  This











                                                        1547







                 act shall take effect immediately.



                            THE PRESIDENT:    Call the roll.



                            (The Secretary called the roll.)



                            THE SECRETARY:    Ayes, 55.



                            THE PRESIDENT:    The bill is



                 passed.



                            THE SECRETARY:    Calendar Number



                 325, by Senator Johnson, Senate Print 6281, an



                 act to amend the Local Finance Law, in



                 relation to the period.



                            THE PRESIDENT:    Read the last



                 section.



                            THE SECRETARY:    Section 2.  This



                 act shall take effect immediately.



                            THE PRESIDENT:    Call the roll.



                            (The Secretary called the roll.)



                            THE SECRETARY:    Ayes, 55.



                            THE PRESIDENT:    The bill is



                 passed.



                            THE SECRETARY:    Calendar Number



                 327, by Senator Larkin, Senate Print 1039, an



                 act to amend the Vehicle and Traffic Law, in



                 relation to the authorizing.



                            THE PRESIDENT:    There is a



                 home-rule message at the desk.











                                                        1548







                            Read the last section.



                            THE SECRETARY:    Section 2.  This



                 act shall take effect immediately.



                            THE PRESIDENT:    Call the roll.



                            (The Secretary called the roll.)



                            THE SECRETARY:    Ayes, 55.



                            THE PRESIDENT:    The bill is



                 passed.



                            THE SECRETARY:    Calendar Number



                 330, by Senator Trunzo, Senate Print 5027, an



                 act to amend the Public Authorities Law, in



                 relation to extending.



                            THE PRESIDENT:    Read the last



                 section.



                            THE SECRETARY:    Section 2.  This



                 act shall take effect immediately.



                            THE PRESIDENT:    Call the roll.



                            (The Secretary called the roll.)



                            THE SECRETARY:    Ayes, 55.



                            THE PRESIDENT:    The bill is



                 passed.



                            THE SECRETARY:    Calendar Number



                 337, by Senator Saland, Senate Print 395, an



                 act to amend the Family Court Act, in relation



                 to evidence.











                                                        1549







                            SENATOR PATERSON:    Lay it aside,



                 please.



                            THE PRESIDENT:    The bill is laid



                 aside.



                            THE SECRETARY:    Calendar Number



                 418, by Senator Marcellino, Senate Print 392B,



                 an act to amend the Penal Law, in relation to



                 surreptitious video surveillance without



                 consent.



                            THE PRESIDENT:    Read the last



                 section.



                            THE SECRETARY:    Section 3.  This



                 act shall take effect on the first day of



                 November.



                            THE PRESIDENT:    Call the roll.



                            (The Secretary called the roll.)



                            THE SECRETARY:    Ayes, 55.



                            THE PRESIDENT:    The bill is



                 passed.



                            Senator Skelos, that completes the



                 reading of the noncontroversial calendar.



                            SENATOR SKELOS:    Madam President,



                 if we could go to the controversial calendar.



                            We'll start with Calendar 108.  I



                 believe Senator Hevesi is at a committee











                                                        1550







                 meeting and would like to debate Calendar



                 Number 25.



                            THE PRESIDENT:    The Secretary



                 will read.



                            THE SECRETARY:    Calendar Number



                 108, by Senator Velella, Senate Print 67A, an



                 act to amend the General City Law and the



                 Penal Law, in relation to creating the crimes



                 of urinating or defecating in public.



                            SENATOR PATERSON:    Explanation.



                            THE PRESIDENT:    Senator Velella,



                 an explanation has been requested.



                            SENATOR VELELLA:    Senator, this



                 legislation enables a municipality to set up



                 an urban commercial zone to regulate the



                 conduct of individuals within that zone



                 regarding lying down or sleeping on the



                 sidewalks.



                            The second part of the bill would



                 allow municipalities to make it a misdemeanor



                 for a second offense, and a violation on a



                 first offense, for intentionally urinating or



                 defecating in a public place or on a public



                 sidewalk.



                            And the third part prohibits











                                                        1551







                 aggressive begging.



                            That's the same explanation that I



                 have given over the last several years,



                 Senator.



                            THE PRESIDENT:    Senator Paterson.



                            SENATOR PATERSON:    Madam



                 President, if Senator Velella would yield for



                 a question.



                            THE PRESIDENT:    Senator Velella,



                 will you yield?



                            SENATOR VELELLA:    Yes.



                            THE PRESIDENT:    You may proceed,



                 Senator Paterson.



                            SENATOR PATERSON:    Senator



                 Velella, last year I asked you about the



                 crimes of harassment, menacing, disorderly



                 conduct, laws that are already on the books



                 that -- and I left one out, actually -- that I



                 think -- accosting; it just came to me -- laws



                 that I think already cover these types of



                 circumstances.



                            With the distinct advantage of



                 hindsight, thinking about what I asked you



                 last year, have you had any further thought?



                            SENATOR VELELLA:    Senator, I take











                                                        1552







                 every question and every comment you make



                 very, very important.  And I give a lot of



                 consideration to that.



                            And I have spent the last year



                 looking at the vagrants of my city and looking



                 at the beggars that aggressively annoy people,



                 and I haven't found them deterred by the



                 existing statutes.  That's why we need this



                 statute.



                            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 8.  This



                 act shall take effect on the first day of



                 November.



                            THE PRESIDENT:    Call the roll.



                            (The Secretary called the roll.)



                            THE PRESIDENT:    The Secretary



                 will announce the results.



                            THE SECRETARY:    Those recorded in



                 the negative on Calendar Number 108 are



                 Senators Andrews, Breslin, Duane, L. Krueger,



                 Paterson, and Senator Schneiderman.  Also



                 Senator Connor.  Ayes, 49.  Nays, 7.











                                                        1553







                            THE PRESIDENT:    The bill is



                 passed.



                            THE SECRETARY:    Calendar Number



                 173, by Senator Lack, Senate Print 1263A, an



                 act to amend the Labor Law, in relation to



                 direct sellers.



                            THE PRESIDENT:    Read the last



                 section.



                            SENATOR DOLLINGER:    Explanation,



                 please.



                            THE PRESIDENT:    Senator Skelos.



                            SENATOR SKELOS:    Madam President,



                 Senator Montgomery would like to debate that



                 bill.  If we could lay it aside temporarily.



                 She's at the Education Committee meeting also.



                            THE PRESIDENT:    The bill is laid



                 aside temporarily.



                            Senator Smith.



                            SENATOR ADA SMITH:    Thank you,



                 Madam President.  I request unanimous consent



                 to be recorded in the negative on Calendar



                 Number 108.



                            THE PRESIDENT:    You will be so



                 recorded, Senator.



                            Senator Duane.











                                                        1554







                            SENATOR DUANE:    Madam President,



                 I would like to be, just to be a little



                 unique, to be -- I would -- I request



                 unanimous consent to be recorded in the



                 negative on Calendar Number 194.



                            THE PRESIDENT:    You will be so



                 permitted and recorded, Senator.



                            Senator Santiago.



                            SENATOR SANTIAGO:    I request



                 unanimous consent to be recorded in the



                 negative on Calendar Number 108, please.



                            THE PRESIDENT:    You will be so



                 recorded.



                            Senator Hassell-Thompson.



                            SENATOR HASSELL-THOMPSON:    Yes,



                 thank you, Madam President.  I too would like



                 to request unanimous consent to be recorded in



                 the negative on Calendar 108.



                            THE PRESIDENT:    You will be so



                 recorded.



                            SENATOR HASSELL-THOMPSON:    Thank



                 you.



                            THE PRESIDENT:    Senator Krueger.



                            SENATOR LIZ KRUEGER:    Yes, Madam



                 President, I would like unanimous consent to











                                                        1555







                 be recorded in the negative on Calendar 194.



                            THE PRESIDENT:    You will be so



                 recorded, Senator.



                            Senator Skelos.



                            SENATOR SKELOS:    Madam President,



                 if we could please take up Calendar Number



                 337, by Senator Saland.



                            THE PRESIDENT:    The Secretary



                 will read.



                            THE SECRETARY:    Calendar Number



                 337, by Senator Saland, Senate Print 395, an



                 act to amend the Family Court Act, in relation



                 to evidence of child neglect.



                            SENATOR PATERSON:    Explanation.



                            SENATOR SKELOS:    Madam President,



                 if we could lay that bill aside temporarily.



                 I think we have members at committee meetings.



                 So if we could just stand at ease pending the



                 return of a number of individuals.



                            THE PRESIDENT:    The Senate will



                 stand at ease.



                            SENATOR SKELOS:    Madam President.



                            THE PRESIDENT:    Senator Skelos.



                            SENATOR SKELOS:    If we could call



                 up Senator Saland's bill, Calendar Number 337.











                                                        1556







                            THE PRESIDENT:    The Secretary



                 will read.



                            THE SECRETARY:    Calendar Number



                 337, by Senator Saland, Senate Print 395, an



                 act to amend the Family Court Act, in relation



                 to evidence of child neglect.



                            SENATOR PATERSON:    Explanation,



                 please.



                            THE PRESIDENT:    Senator Saland,



                 an explanation has been requested.



                            SENATOR SALAND:    Thank you, Madam



                 President.



                            THE PRESIDENT:    You're welcome.



                            SENATOR SALAND:    Madam President,



                 this bill is a proposal that deals primarily



                 with the subject of an individual who is



                 involved in or participating in a recognized



                 drug rehabilitation program.



                            And what it proposes to do is to



                 take it from part of the fact-finding



                 considerations, which effectively create the



                 status of an affirmative defense where someone



                 is alleged to have neglected their child



                 because of their dealing with or misusing a



                 drug or drugs so as to impair their judgment











                                                        1557







                 and their ability to care for their child, and



                 to say that instead of voluntarily enrolling



                 in a drug rehab program and have that



                 considered during the course of the



                 fact-finding, as I mentioned earlier, as an



                 affirmative defense, we want to bring it to



                 the end of the dispositional part of the



                 proceeding and say that after the proceeding



                 has been conducted -- after all, this is about



                 neglect or abuse -- and after the case has run



                 its course and a disposition about to be had,



                 that at that point if in fact the parent of



                 the child or guardian of the child that is



                 determined to be neglected or abused has



                 voluntarily engaged in some type of a drug



                 rehab program, that at that point the court



                 will make a determination as to the weight or



                 value of that participation.



                            Assumedly, somebody who regularly



                 attends such a program would find that the



                 court would be predisposed to recognizing the



                 participation and maintaining the family.



                            If, however, that person has a



                 history of engaging in drug rehab program



                 activity and then withdrawing from a











                                                        1558







                 program -- perhaps withdrawing after, under



                 the current law, a fact-finding hearing has



                 resulted in the use of that drug rehab program



                 as an affirmative defense -- the court would



                 then be able to either not provide that kind



                 of weight to the drug rehab program or



                 effectively monitor the involvement in a drug



                 rehab program and ensure that the person who



                 is seeking to use it, as previously had been



                 used as an affirmative defense, would in fact



                 maintain the continuity within the program.



                            The bottom line being that this has



                 been an abuse or a neglect proceeding and the



                 idea is what serves the best interests of the



                 child.  And certainly to the extent that



                 families can be reunited and a parent has a



                 drug problem, what is of the utmost importance



                 is that that parent continue regularly in some



                 type of program.



                            SENATOR SKELOS:    Mr. President.



                            ACTING PRESIDENT MEIER:    Senator



                 Skelos.



                            SENATOR SKELOS:    If I could



                 interrupt for a moment, there will be an



                 immediate meeting of the Rules Committee in











                                                        1559







                 the Majority Conference Room.



                            ACTING PRESIDENT MEIER:    Meeting



                 of the Rules Committee in the Majority



                 Conference Room.



                            Senator Paterson.



                            SENATOR PATERSON:    Mr. President,



                 if Senator Saland would yield for a question.



                            ACTING PRESIDENT MEIER:    Senator



                 Saland, do you yield for a question?



                            SENATOR SALAND:    Yes, Mr.



                 President.



                            ACTING PRESIDENT MEIER:    The



                 sponsor yields.



                            SENATOR PATERSON:    Senator, I



                 would imagine that the theoretical best



                 interests of the child would be to be with the



                 parent.  That's not always the case, and



                 that's why we have to have these proceedings.



                            But certainly, in the fact-finding



                 phase of the proceeding, the ability to raise



                 the affirmative defense that you are



                 voluntarily seeking counseling for substance



                 abuse, for alcoholism, in my opinion would



                 certainly serve as an incentive to people who



                 are wrought with that type of personal issue











                                                        1560







                 and need this type of service.



                            What I'm afraid of is that



                 otherwise -- in other words, to make your



                 suggestion law, it would delay the inevitable



                 confrontation where the parent has to take



                 this action until later on.  In other words,



                 there's no real incentive to mention it early



                 on in the procedure.



                            And since one of the real problems



                 with substance abusers is that they don't



                 recognize their problem and that they don't



                 necessarily want to treat it -- and I know



                 here that your interests and all of our



                 interests should focus on the welfare of the



                 child more than this problem.  But isn't this



                 problem in a sense an antecedent to the



                 possible development of the child?



                            In other words, isn't it really



                 that we would want to try to give the



                 biological parent every possible opportunity



                 to serve in that function in a way that



                 doesn't create a safety problem to the child,



                 rather than taking some of the actions that we



                 might have to take later on in a further



                 proceeding?











                                                        1561







                            SENATOR SALAND:    Well, let me



                 just say two things in response to that,



                 Senator Paterson.



                            You will recall a couple of years



                 ago we did the ASFA legislation.  At that time



                 what we did is we recognized that certainly



                 while family preservation was important,



                 nothing was more important than the safety and



                 well-being of a child.  That, to some extent,



                 really was a change in New York's law, because



                 previously primacy was given to family



                 preservation.



                            And while we still recognize the



                 importance of family preservation, again, it's



                 not where a child is at risk or his or her



                 well-being is at risk.



                            What I would suggest to you would



                 be that under the evidentiary section of the



                 Family Court Act dealing with family offenses,



                 under 1046, the law provides currently that



                 "proof that a person repeatedly misuses a drug



                 or drugs or alcoholic beverages shall be prima



                 facie evidence that a child who is the legal



                 responsibility of such person is a neglected



                 child."











                                                        1562







                            We have no desire to prevent



                 somebody from rebutting that presumption by



                 saying "I'm in a program and I'm being



                 rehabilitated as part of that program."  And



                 by all means, they should have the opportunity



                 to do that.



                            What I'm saying further, however,



                 is that by merely saying that, that should not



                 be used as a means by which you effectively



                 give yourself, for lack of any other term -



                 and it really doesn't apply -- it applies more



                 in a criminal sense than in a Family Court



                 sense -- but the equivalent of an immunity



                 bath.



                            And what we are saying is as part



                 and parcel of the court's consideration, when



                 it goes to disposition, that's when it should



                 consider -- that's when it should consider



                 whether the person who's the respondent in the



                 proceeding has in fact been in good faith



                 voluntarily engaged and hasn't used it in



                 effect as a shield to avoid a disposition that



                 might result in the removal of the child or in



                 some type of structured arrangement that might



                 not be what the parent was hoping would be the











                                                        1563







                 outcome.



                            SENATOR HANNON:    Mr. President.



                            ACTING PRESIDENT MEIER:    Senator



                 Hannon.



                            SENATOR HANNON:    May I interrupt



                 for a moment to announce that there will be an



                 immediate meeting, in the Majority Conference



                 Room, of the Committee on Investigations,



                 Taxation and Government Operations.



                            ACTING PRESIDENT MEIER:



                 Immediate meeting of the Committee on



                 Investigations, Taxation and Government



                 Operations in the Majority Conference Room.



                            SENATOR DUANE:    Mr. President.



                            ACTING PRESIDENT MEIER:    Senator



                 Duane, why do you rise?



                            SENATOR DUANE:    Mr. President,



                 I'm about to speak on this bill, and I was -



                 I'm the ranking member of Investigations.  I



                 was hoping they could wait until I've finished



                 debating and speaking on this bill.



                            ACTING PRESIDENT MEIER:    Senator



                 Paterson.



                            SENATOR PATERSON:    Mr. President,



                 I think Senator Duane raises a very good











                                                        1564







                 point.  We've had this problem all day, that



                 we just don't have members here because we are



                 continuing to call committee meetings.



                            I'm certainly willing to yield to



                 the Senator to conduct his questioning now of



                 Senator Saland, if he chooses.  But that means



                 that he's not in the committee meeting, which



                 I'm sure they would want him to be at.  So I



                 guess -



                            ACTING PRESIDENT MEIER:    Senator



                 Hannon.



                            SENATOR HANNON:    We'll ask



                 Senator Spano, the chair of that committee, to



                 hold off and then take advantage of Senator



                 Paterson's offer to ask Senator Duane if he



                 would like to, with your concurrence, Mr.



                 President, go now.



                            ACTING PRESIDENT MEIER:    Senator



                 Duane.



                            SENATOR DUANE:    Thank you, Mr.



                 President.  And thank you to the Majority and



                 to my colleague Senator Paterson for their



                 work just now on my behalf to be two places at



                 one time.  Which I wish I could, but I can't,



                 so -











                                                        1565







                            SENATOR SALAND:    Can I just ask



                 Senator Duane -- there's either something



                 wrong with his mike or -- I'm having a problem



                 hearing him.



                            SENATOR DUANE:    Through you, Mr.



                 President, it was said that there was a



                 problem with the mikes last week.  Is that



                 still the -- all right, thank you.  And I'm so



                 tall, and it's so far down.



                            (Laughter.)



                            SENATOR DUANE:    Actually, this



                 will be on the bill, Senator Saland.



                            On the bill, Mr. President.



                            ACTING PRESIDENT MEIER:    Senator



                 Duane, on the bill.



                            SENATOR DUANE:    All right.  All



                 right.  Calm down.



                            (Laughter.)



                            SENATOR DUANE:    I previously have



                 debated Senator Saland on this bill.  And he



                 does make his point of view about the purpose



                 of this bill very clear.  And I have a lot of



                 respect for that.



                            But I just disagree with it.  And I



                 have said that before, but I do want to put on











                                                        1566







                 the record again why I disagree with this



                 bill.



                            My concerns have to do with making



                 sure that a mother who enters into a recovery



                 program has that counted in her favor.  As I



                 understand it, the way this bill is crafted,



                 going into a recovery program is neither



                 treated as a good thing nor a bad thing, it's



                 just treated as a neutral element for the



                 judge to be making a determination.



                            And therefore, if a woman decides



                 to go into a drug or alcohol treatment program



                 and she slips or she has a relapse, then



                 that's counted against her.  But her actually



                 trying to recover is not counted for her.



                            And my understanding of drug and



                 alcohol treatment programs is that sometimes



                 it takes a while for the recovery to kick in,



                 and often people don't make it the first time,



                 don't make it in a 28-day program -- or now



                 sometimes it's a two-week program -- and that



                 recovery actually takes a bigger investment,



                 both by the person and by the recovery -- and,



                 by the way, our responsibility to invest in



                 recovery programs.











                                                        1567







                            So if it's neutral for someone to



                 go into the program and if they have a relapse



                 that's counted against them, then in a way



                 they'd be better off not going into the



                 program.  So I think there's a disincentive to



                 go into a recovery program.



                            Also, I'm concerned that in a way,



                 sometimes the people that are brought forward



                 on abuse and neglect don't have the resources,



                 frankly, to hide the dysfunction that might be



                 happening in their families.



                            But I think that there are many,



                 many middle- and upper-middle-class families



                 where one of the spouses has an alcohol or



                 drug problem, yet they're not reported to the



                 authorities, so they're not in danger of



                 losing their children.  And so if when they're



                 in a recovery program they have a relapse, it



                 doesn't really count for anything, even though



                 the children would suffer the same or not



                 suffer the same by the parent having the



                 relapse.



                            So I'm concerned about the families



                 that -- where the children are in this system



                 and being brought to Family Court.











                                                        1568







                            But really the thing that I am most



                 concerned about is that we need to do



                 everything we possibly can to encourage a



                 parent with a drug or alcohol problem to go



                 into a program.  And by making that be



                 something advantageous for them getting their



                 children back, I think is very helpful.



                            Because remember, if a parent, if a



                 mom is in a drug or alcohol treatment program,



                 they have a relapse, then their children are



                 taken away from them, there's no incentive at



                 all, then, to recover, because the damage has



                 been done and they'll -- and I'm sure that



                 they're depressed, which is one of the things



                 alcohol and drugs are used to cover up.



                            So at that point, if their children



                 are taken away, there is no hope and there's



                 no reason to go into drug or alcohol



                 treatment.  Because I'm sure that mom would



                 fear that she's going to have another relapse



                 and then that will be counted twice against



                 her.  So it would become sort of a vicious



                 cycle where a mom has a lot, a lot of trouble



                 to get her children back.



                            I mean, if I had my children taken











                                                        1569







                 away from me, I think that would make it



                 difficult for me to decide to not drink,



                 because there's a certain hopelessness to



                 having your children removed.



                            I understand that we're trying to



                 save the childhood of children and what



                 happens to them in families.  But I think that



                 instead of making -- instead of using the



                 disincentive model to do this, I think that we



                 need to focus on incentives for parents and



                 especially moms to get their children back.



                            So I'm going to vote no on it.



                            Thank you, Mr. President.



                            ACTING PRESIDENT MEIER:    Senator



                 Paterson.



                            SENATOR PATERSON:    Mr. President,



                 if Senator Saland would continue to yield.



                            ACTING PRESIDENT MEIER:    Senator



                 Saland, do you continue to yield?



                            SENATOR SALAND:    Yes, Mr.



                 President.



                            ACTING PRESIDENT MEIER:    The



                 sponsor yields.



                            SENATOR PATERSON:    Senator, I



                 want to make sure that -- I just want to kind











                                                        1570







                 of qualify this.  This is what I believe that



                 you said.  And if you didn't, it's certainly



                 acceptable.



                            But I thought that you said in your



                 earlier remarks that you could understand and



                 you could accept that someone might raise, in



                 the disposition phase of this case, the fact



                 that they are seeking treatment for their



                 substance abuse.  If that is the case, if you



                 actually did indicate that, I think therein



                 lies my problem with the legislation.



                            There's nothing in the law now, as



                 I understand it, that creates a rebuttable



                 presumption that you can raise the issue of



                 volunteerism in any substance abuse and get



                 any consideration for it.  So the only



                 consideration you can receive under the law



                 right now is the affirmative defense that



                 takes place in the fact-finding phase of the



                 trial, which is that you are seeking this type



                 of counseling.



                            Would you be willing to indicate in



                 the actual legislation that down the line, in



                 the disposition phase, that there be any



                 protection for the respondent?  Because if you











                                                        1571







                 did, it certainly would cause one to view this



                 legislation through a different spectrum.



                            I think your earnest attempt to



                 protect the children was recognized.  Senator



                 Duane alluded to it as well.  But I just think



                 that if someone really is trying to drive an



                 addiction out of their life, it might be



                 something we might want to give some type of



                 consideration to.  Because just that decision,



                 and the consistency of following through on



                 it, might establish that the individual is



                 assuming the full consequences of parenting.



                            SENATOR SALAND:    Senator



                 Paterson, there is no intention here, and it's



                 certainly not my intention, to say that



                 somebody within the fact-finding portion of



                 the hearing cannot raise their participation



                 in a drug rehab program.



                            What I am doing, however, or



                 proposing to do with this legislation is to



                 say that the mere fact that you raise it does



                 not rebut the presumption under 1046 that



                 says, as I read it before, and I'll read in



                 part, "proof that a person repeatedly misuses



                 a drug or alcoholic beverage shall be prima











                                                        1572







                 facie evidence that a child of or who is the



                 legal responsibility of such person is a



                 neglected child."



                            What I'm saying is you can



                 introduce it.  It doesn't give you what I



                 termed before a, quote, unquote, an immunity



                 bath.  And then when you get to the



                 dispositional hearing, the new language would



                 say that the court shall consider whether the



                 respondent has enrolled in a recognized



                 rehabilitative program and is participating



                 therein in a regular and satisfactory manner.



                            And what I'm attempting to do is to



                 say it's important to be involved in a rehab



                 program where you have a drug or alcohol



                 problem.  You should not, however, in fits and



                 starts have the ability to stymie the best



                 interests of the child.



                            To me it's not unlike being stopped



                 along a road where you're driving erratically



                 and someone approaches you, a law enforcement



                 officer, and wants to serve you with a ticket



                 or a citation or charge you with driving while



                 ability impaired or intoxicated, and you say,



                 "Well, no, I'm in a rehab program.  I'm taking











                                                        1573







                 some type of course for my drinking and



                 driving problem.  Let me go."



                            It's certainly a consideration.



                 But it should not provide some immunity from



                 what is the underlying charge.



                            What this is about and what this



                 section of the law is about is dealing with



                 issues of abuse and neglect, Article 10.  I



                 don't want to deny somebody the right to



                 either (a) become involved in a rehab program



                 or (b) advise the court that they're involved.



                            I don't want it to be used as a



                 means to stymie, as the present law provides,



                 the continuation of a proceeding by asserting



                 that as, in effect, an affirmative defense.  I



                 want the court to make that consideration.



                            I believe it's in the best



                 interests of the child that a court make that



                 consideration.  And that, first and foremost,



                 that should always be our concern.



                            ACTING PRESIDENT MEIER:    Does any



                 other Senator wish to be heard?



                            Senator Montgomery.



                            SENATOR MONTGOMERY:    Yes, Mr.



                 President.  I would like to ask Senator Saland











                                                        1574







                 a question.



                            ACTING PRESIDENT MEIER:    Senator



                 Saland, do you yield for a question?



                            SENATOR SALAND:    Yes, Mr.



                 President.



                            ACTING PRESIDENT MEIER:    The



                 sponsor yields.



                            SENATOR MONTGOMERY:    Yes, Senator



                 Saland, you -- I'm trying to understand this,



                 not being a lawyer.  So please forgive me, I'm



                 not probably going to be clear with my



                 question.  But I'll try.

                            You say that you will remove the



                 assumption or presumption that one will not be



                 presumed necessarily to be neglectful if they



                 are enrolled in a program for rehabilitation.



                 That aspect you are removing and putting that



                 in essentially at the time of the disposition



                 phase of the case.



                            I'm wondering why it's not sort of



                 reversed, that in fact the presumption remains



                 that you are not necessarily neglectful, that



                 you are in treatment with the hope that you



                 will be recovering, but that at the time of



                 disposition -- in other words, you would leave











                                                        1575







                 the action at the phase of disposition to



                 determine the extent to which the treatment



                 warrants a person's being considered in



                 neglect or not.



                            Why do you want to remove some



                 measure of protection from a person who may in



                 fact be genuinely attempting to recover before



                 the disposition phase?



                            SENATOR SALAND:    I'm not removing



                 the ability of a person to submit as part of



                 their case that they were alleged to be



                 neglectful because of their drug or alcohol



                 abuse.



                            What I'm saying is that it does not



                 in and of itself rebut the presumption or the



                 prima facie finding, under the law as it



                 stands now, that a person has been neglectful



                 because they no longer have the ability to



                 supervise due to their excessive use of drugs



                 and alcohol.



                            And under the law now, if you come



                 forward and say "I'm voluntarily involved in a



                 drug and alcohol program," that in and of



                 itself is enough to rebut that prima facie



                 finding.











                                                        1576







                            Now, I'm perfectly happy and



                 believe that a person with that type of a



                 problem should have the opportunity to present



                 that as part of his or her case.  I do not



                 think, however, that that should be a means by



                 which you stymie the ability to successfully



                 consider whether all of the factors involved



                 in a neglect case are such that a child should



                 (a) be removed or (b) be put in some other



                 type of supervised arrangement.



                            And when the guardian or parent



                 comes forward and says, "I'm in the XYZ



                 program," that has the ability and has served



                 to accomplish the effective conclusion of a



                 proceeding.  Because that in and of itself



                 rebuts the presumption.  And that makes it



                 extremely difficult to go further.



                            I'm saying let the court be the



                 determinant of whether their participation is



                 genuine, is it regular, are they involved.



                 And I believe that the best interests of the



                 child are served by doing that.  So the parent



                 or guardian still has the opportunity to



                 allege that they're in a program, but the



                 court is going to have the final say as to











                                                        1577







                 whether their involvement is meaningful, if it



                 serves to better the best interests of the



                 child, whether in fact it's being used merely



                 as some type of a subterfuge to get around



                 what would otherwise be a finding contrary to



                 the respondent's interest but perhaps in the



                 best interests of the child.



                            I'm not eliminating it, I'm just



                 moving it to another place in the law.



                            SENATOR MONTGOMERY:    Mr.



                 President, just on the bill.



                            ACTING PRESIDENT MEIER:    Senator



                 Montgomery, on the bill.



                            SENATOR MONTGOMERY:    Yes, I



                 understand -- the more we have this debate and



                 discussion, the more I understand exactly what



                 Senator Saland is trying to do.  And I



                 certainly agree with the intent that he has.



                            I do, however, wish that we



                 could -- that the way to remedy the problem



                 that he has identified is that he would



                 propose a way of forcing the second phase even



                 though there is a presumption or there is not



                 a presumption of neglect.



                            In other words, if there were some











                                                        1578







                 mechanism to make it an automatic requirement



                 that in any case, that that case would be -



                 would go before the judge, rather than having

                 the presumption in fact cut off any further



                 action that the state could take.



                            But having the ability to use this



                 process to in fact encourage parents to engage



                 or at least continue to engage in treatment I



                 think is extremely important.  In fact, I've



                 had a number of instances where parents have



                 said to me that they did not want to go into



                 treatment because of the fear of losing their



                 children.



                            So we have had these kinds of



                 regulations where there was an automatic



                 presumption of guilt, of neglect, children



                 being removed from parents.  And once people



                 understand that that is what's going to



                 happen, they don't want to go into treatment.



                            It also happens in cases of



                 domestic violence.  If a woman thinks that her



                 children will be removed because she is



                 victimized by domestic violence, she won't



                 seek help.



                            So these kinds of -- these laws, be











                                                        1579







                 they law or regulation, really in fact operate



                 to discourage people from doing the very thing



                 that we would like them to do.



                            So I'm going to continue to oppose



                 this, because I just think that it defeats



                 what Senator Saland actually would like to see



                 happen.  And I think that there is another way



                 of doing it without automatically, up-front



                 penalizing a person because they have an



                 illness which happens to be drug or alcohol



                 abuse.



                            So I'm going to vote no again.



                            ACTING PRESIDENT MEIER:    Senator



                 Hassell-Thompson, and then Senator Krueger.



                            SENATOR HASSELL-THOMPSON:    Thank



                 you, Mr. President.  If the sponsor would



                 yield to just a couple of questions.



                            ACTING PRESIDENT MEIER:    Senator



                 Saland, do you yield for a question from



                 Senator Hassell-Thompson?



                            SENATOR SALAND:    Yes, Mr.



                 President.



                            ACTING PRESIDENT MEIER:    The



                 sponsor yields.



                            SENATOR HASSELL-THOMPSON:    Thank











                                                        1580







                 you, Mr. President.



                            Senator Saland, my question really



                 is one for clarity.  Is it your contention



                 that the existing legislation says that the



                 person who comes forward and voluntarily says



                 that they are participating in a drug or



                 alcoholism program automatically presumes that



                 they are exempt from child abuse?  Is that -



                            SENATOR SALAND:    What happens is



                 in the absence of any other evidence, by



                 making that allegation, you've effectively



                 defeated the prima facie presumption that I've



                 referred to several times previously here.



                            SENATOR HASSELL-THOMPSON:    Mr.



                 President, if the Senator would continue to



                 yield.



                            ACTING PRESIDENT MEIER:    Senator



                 Saland, do you continue to yield?



                            SENATOR SALAND:    Yes, Mr.



                 President.



                            ACTING PRESIDENT MEIER:    The



                 sponsor yields.



                            SENATOR HASSELL-THOMPSON:    The



                 word "allegation," could you explain how you



                 meant the word "allegation" in the statement











                                                        1581







                 that you just made?



                            SENATOR SALAND:    Let me read the



                 section, because I've read it in part and



                 referred to having read it in part before.  It



                 says -- and this is the part that I've read



                 before -- "Proof that a person repeatedly



                 misuses a drug or drugs or alcoholic beverages



                 shall be prima facie evidence."



                            Let me -- I'll read now the entire



                 section, because I omit a portion.  "Proof a



                 person repeatedly misuses a drug or drugs or



                 alcoholic beverages to the extent that it has



                 or would ordinarily have the effect of



                 producing in the user thereof a substantial



                 state of stupor, unconsciousness,



                 intoxication, hallucination, disorientation,



                 or incompetence, or a substantial impairment



                 of judgment or a substantial manifestation of



                 irrationality, shall be prima facie evidence



                 that a child of or who is the legal



                 responsibility of such person is a neglected



                 child."



                            And then it goes on to say "except



                 that such drug or alcoholic beverage misuse



                 shall not be prima facie evidence of neglect











                                                        1582







                 when such person is voluntarily and regularly



                 participating in a recognized rehabilitative



                 program."



                            Now, we're not talking about



                 somebody who may have had too much to drink on



                 occasion, we're not talking about somebody who



                 may have merely staggered down the hallway on



                 occasion, we're talking about somebody who is



                 hallucinating, somebody who's disoriented,



                 somebody whose judgment is substantially



                 impaired.



                            And I am saying that where you have



                 people who fall into those categories, that in



                 fact it should not be enough to defeat the



                 prima facie finding or determination as it's



                 set forth in our current law by merely saying



                 "I have participated or am participating in a



                 voluntary rehab program."



                            I am saying, however, that by all



                 means you should introduce that, because the



                 question of whether you've done it in good



                 faith, the question of whether you are



                 regularly participating is an important



                 determinant that a court is going to have to



                 rule on in determining what's in the best











                                                        1583







                 interests of the child.



                            But to merely in and of itself be



                 able to refute that prima facie finding in the



                 law as exists today by saying "I'm in the



                 program" in my opinion certainly does not



                 serve the best interests of the child.



                            SENATOR HASSELL-THOMPSON:    I'm



                 still not able to get the answer to the



                 specifics of the question that I'm asking, but



                 I'll let that go.



                            But I would like, Mr. President, to



                 speak on the bill.



                            ACTING PRESIDENT MEIER:    Senator



                 Hassell-Thompson, on the bill.



                            SENATOR HASSELL-THOMPSON:    Thank



                 you.



                            Senator Saland, I have no



                 disagreement with your findings.  I also

                 understand that you have had some experience



                 with many of these cases.  I would also like



                 to offer, however, the fact that I also have



                 had many years of experience, and I think that



                 you will be -- it would be just disingenuous



                 for any of us to believe that a person going



                 into court merely says that "I am in a











                                                        1584







                 program" -- and I think that's where you use



                 the word "alleged."  It's more than an



                 alleged; they have to show proof to the judge,



                 to the court, and to the court guardians that



                 they are in fact in treatment.



                            So that prima facie -- in this



                 case, it's more than prima facie.  There is



                 proof that has to be shown.



                            What I think becomes my issue is



                 that we think of alcoholism and substance



                 abuse treatment perhaps as a cure.  Anyone who



                 becomes an abuser of alcohol and substance



                 abuse is never cured.  They are in a constant



                 state of recovery.  There is no cure for



                 alcoholism and substance abuse.



                            Therefore, by virtue of the fact



                 that it is a constant and ongoing recovery



                 process, there are always opportunities and



                 disadvantages of relapse.  And in the case of



                 relapse, even though someone may have



                 successfully completed a year, two years in a



                 TC -- which is a treatment center -- for



                 alcohol or substance abuse, even after two



                 years, they are still always in a perpetual



                 state of recovery.  By virtue of that, relapse











                                                        1585







                 is always possible.



                            By putting -- by changing the law



                 in the way in which I believe your intent -



                 which is a good one, and I don't question



                 that.  Because I've worked with families that



                 in many cases I have suggested to them and to



                 the courts that perhaps their children should



                 be in a temporary custody situation because of



                 their inability to give the kind of care



                 that's possible.



                            But that is on a case-by-case



                 basis.  And many of the families who go into



                 treatment -- because we have said on this



                 floor, that we do not put sufficient money



                 into substance abuse treatment programs, and



                 that we are not giving the courts the kind of



                 judiciary discretion that they need in order



                 to be able to investigate and monitor these



                 cases in the way that they do.



                            Then we then continue to shift the



                 blame and the responsibility for rebuttal onto



                 parents in most cases who have the least



                 resources and least ability to rebut.  And so



                 that we find ourselves with hundreds of



                 children being put into foster care with no











                                                        1586







                 hope of being returned to families.



                            Part of why I must continue to vote



                 no is that only until this Senate sees the



                 relationship between the numbers of penal laws



                 that we pass and the support services that



                 families need in a budgetary process will I



                 then believe that we're on the right track



                 toward really trying to resolve the problems



                 of our children.



                            But to penalize their parents and



                 take away the only incentive that they have to



                 keep families intact, and perhaps reason for



                 continuing to stay in treatment, does not do



                 that.



                            Thank you, Mr. President.



                            ACTING PRESIDENT MEIER:    Senator



                 Krueger.



                            SENATOR LIZ KRUEGER:    Mr.



                 President, I'd like permission to speak on the



                 bill.



                            ACTING PRESIDENT MEIER:    Senator



                 Krueger, on the bill.



                            SENATOR LIZ KRUEGER:    Well, I



                 believe that Senator Saland has made some



                 excellent arguments for his desire to change











                                                        1587







                 our law.



                            I have to say where I think I



                 disagree most strongly is in the bill analysis



                 saying there are no fiscal implications of



                 this bill either at the state level or the



                 local level.  To me, listening to this debate



                 today, this proposed legislation is to some



                 degree parallel to our decision in New York



                 State to increase educational standards



                 without providing additional resources for our



                 educational system.



                            It's clear to me this bill would



                 place more demands on our Family Court systems



                 to extend proceedings and to increase the



                 oversight responsibilities of the courts -



                 the Family Courts that in my city are so



                 overwhelmed that they cannot get attorneys to



                 take cases.



                            It would put more demands on a



                 system that does not have attorneys and will



                 not pay the attorneys a fair rate to represent



                 families in dire consequences.  It will put



                 more demands on our child welfare system to



                 investigate participation in drug treatment



                 and to assure that we have the increase











                                                        1588







                 available in alcohol and drug treatment



                 program slots that meets the requirements of



                 this new law, since we're no longer going to



                 make the presumption of voluntary



                 participation.



                            It will also result in more



                 children being kept in the foster care system



                 longer, as these cases are evaluated and



                 unfortunately, as I expect, backed up further



                 and further in the Family Court system.



                            So I don't want to disagree with



                 the Senator that this bill is intended to



                 provide greater protection for children who



                 are at risk, greater protection to children



                 who otherwise might end up remaining in



                 families where there are not the basic



                 standards of care because of the substance



                 abuse or alcoholism problem of the adults.



                            But I fear that the bill as laid



                 out, without monies attached for an expansion



                 in Family Court, in child welfare, and in drug



                 treatment, will simply result in more children



                 being backed up in the child welfare system.



                            And unfortunately, in my own city



                 of New York, the assumption that taking a











                                                        1589







                 child away from a bad situation in their home



                 is going to result in their being put in a



                 better and more protective situation is a



                 false assumption, as we know from year in and



                 year out of child welfare crises in the city



                 of New York, and I believe throughout the



                 state.



                            So while I do agree with the



                 arguments you make in the bill that we want to



                 ensure that the children of our state are



                 protected and that their families, when they



                 suffer from substance abuse and alcoholism,



                 get the treatment they need, I fear that your



                 bill will actually do more harm without



                 financial commitments by the state than it



                 will do good.



                            And that is why I'd like to explain



                 my vote no on this bill.



                            Thank you.



                            ACTING PRESIDENT MEIER:    Does any



                 other Senator wish to be heard on the bill?



                            The debate is closed.



                            Read the last section.



                            THE SECRETARY:    Section 4.  This



                 act shall take effect 120 days.











                                                        1590







                            ACTING PRESIDENT MEIER:    Call the



                 roll.



                            (The Secretary called the roll.)



                            ACTING PRESIDENT MEIER:    The



                 Secretary will announce the results.



                            THE SECRETARY:    Those recorded in



                 the negative on Calendar Number 337 are



                 Senators Andrews, Duane, Hassell-Thompson, L.



                 Krueger, Montgomery, Santiago, A. Smith, and



                 Stavisky.  Ayes, 51.  Nays, 8.



                            ACTING PRESIDENT MEIER:    The bill



                 is passed.



                            Senator Hannon.



                            SENATOR HANNON:    Mr. President,



                 can we go to the regular order, please.



                            ACTING PRESIDENT MEIER:    The



                 Secretary will continue to read in regular



                 order.



                            THE SECRETARY:    Calendar Number



                 25, by Senator Leibell, Senate Print 2499A, an



                 act to amend the Real Property Tax Law, in



                 relation to providing a tax exception.



                            SENATOR HEVESI:    Explanation.



                            ACTING PRESIDENT MEIER:    Senator



                 Leibell, an explanation has been requested of











                                                        1591







                 Calendar 25 by Senator Hevesi.



                            SENATOR LEIBELL:    Thank you, Mr.



                 President.



                            This bill adds a new section, 466C,



                 to the Real Property Tax Law to provide a tax



                 exemption on real property owned by members of



                 volunteer fire companies or volunteer



                 ambulance services in Putnam County.



                            Specifically, this bill would



                 permit a member of a volunteer fire department



                 or ambulance corps in the county to apply for



                 and receive a real property tax exemption of



                 10 percent on any Putnam County property owned



                 and occupied by such volunteer firefighter or



                 ambulance corps member on his or her personal



                 residence.



                            The difficulty has been in



                 attracting and retaining the quality volunteer



                 firefighters and emergency personnel that we



                 need within the county.  It is believed that



                 this will help us maintain an effective



                 emergency detection system.  It will allow us



                 to recruit, train, and maintain.



                            In the absence of these



                 community-based volunteers, Putnam County











                                                        1592







                 could be faced with a huge financial burden of



                 paid departments or a dangerous reduction of



                 services.



                            SENATOR HEVESI:    Thank you, Mr.



                 President.



                            ACTING PRESIDENT MEIER:    Senator



                 Hevesi.



                            SENATOR HEVESI:    Will the sponsor



                 please yield?



                            ACTING PRESIDENT MEIER:    Senator



                 Leibell, do you yield for a question?



                            SENATOR LEIBELL:    Yes.



                            ACTING PRESIDENT MEIER:    The



                 sponsor yields.



                            SENATOR HEVESI:    Thank you, Mr.



                 President.



                            I voted for this bill last year.  I



                 understand full well what you're trying to



                 accomplish here.  I'm just trying to get a



                 more accurate handle on a couple of things.



                            So my first question to you is, in



                 Putnam County is there a professional fire



                 department or ambulance corps?



                            SENATOR LEIBELL:    They're all



                 professionals.  It's just that they're all











                                                        1593







                 volunteer too.  They're not paid.



                            SENATOR HEVESI:    Thank you.



                            Mr. President, would the sponsor



                 continue to yield?



                            SENATOR LEIBELL:    Yes, Mr.



                 President.



                            SENATOR HEVESI:    Thank you.



                            Is the problem in Putnam County



                 particularly acute, where there is a real



                 threat that if you don't attract additional



                 volunteers that you really will not be able to



                 appropriately staff the ambulance and



                 firefighting corps?



                            SENATOR LEIBELL:    Well, first let



                 me say that this is not the only time this



                 sort of legislation has been done.  There are



                 two fairly recent examples in other counties.



                 I believe Rockland and Chautauqua Counties



                 have passed similar legislation in the last



                 couple of years in this house, and they were



                 enacted into law.



                            But, yes, it is a more unique



                 situation, possibly, because it has become



                 over the course of years a commuting area.



                 The vast majority of our workers on any given











                                                        1594







                 workday commute some substantial distances,



                 whether it's to White Plains or New York City



                 or elsewhere.  Which leaves it more difficult



                 to find volunteers.  The commuting time for



                 those people limits their ability to volunteer



                 as members of ambulance corps and fire



                 departments.



                            SENATOR HEVESI:    Mr. President,



                 would the sponsor yield to what probably will



                 be a final question?



                            ACTING PRESIDENT MEIER:    Senator



                 Leibell, do you yield?



                            SENATOR LEIBELL:    Yes, Mr.



                 President.



                            ACTING PRESIDENT MEIER:    The



                 sponsor yields.



                            SENATOR HEVESI:    Thank you, Mr.



                 President.



                            My understanding is that this



                 legislation simply authorizes Putnam County,



                 if they choose to do so, to offer this



                 property tax break.  That being the case,



                 there is no fiscal impact to the citizens of



                 the state of New York, and there's only a



                 fiscal impact to the citizens in Putnam County











                                                        1595







                 if they choose to do so.



                            And that being the case, why



                 wouldn't we offer this option to every



                 locality, every county in New York State?



                            SENATOR LEIBELL:    It probably -



                 it possibly should be.  And maybe individual



                 senators could look at doing this and see if



                 it would work in their areas.



                            I can only speak to this area,



                 which has requested it.  And you're correct,



                 it would not be a burden to the State



                 Treasury, and it would be a local option.



                            SENATOR HEVESI:    Okay.  Thank



                 you, Mr. President.



                            On the bill.



                            ACTING PRESIDENT MEIER:    Senator



                 Hevesi, on the bill.



                            SENATOR HEVESI:    Thank you, Mr.



                 President.  I fully well appreciate what the



                 sponsor is trying to do here.  And I think



                 it's a terrific idea.



                            But I also think it's a terrific



                 idea not just for the volunteers who would



                 give of their services and risk their lives in



                 Putnam County, but everywhere else.











                                                        1596







                            And I guess this issue is



                 particularly important to me for two reasons.



                 One is that Senator Rath had another



                 well-intentioned piece of legislation that was



                 a little bit more conspicuous in what it did,



                 in that it provided a similar tax break for



                 every locality except for the City of



                 New York.  This one just provides it for



                 Putnam County, but the exclusion is



                 nonetheless there.



                            And I'll tell you why this is



                 important to me and why, though I voted for



                 this last year, I have a difficult time voting



                 for it again.  In the wake of 9/11, we had



                 such an incredible response of not just our



                 professional firefighting units in New York



                 City, but volunteers.  In fact, the Forest



                 Hills Volunteer Ambulance Corps, in my



                 district, were one of the first responders.



                 And when the South Tower collapsed, their rig



                 was destroyed.



                            Now, by the grace of God, the



                 members of that volunteer ambulance corps in



                 my district, some of the members of whom I



                 know personally, they survived.  But how do I











                                                        1597







                 now tell them that I'm going to vote for a tax



                 break, a significant and worthy tax break, for



                 somebody in some other county in New York



                 State, but that they don't deserve it?



                            You know, so I'm left to grapple



                 with the question that often we have to



                 grapple with, do you vote no on an imperfect



                 piece of legislation?  I think I'm going to



                 vote no in this case.  Because I don't know



                 how I would face these folks and tell them



                 that it's okay to offer this benefit to



                 certain individuals, but not to you.



                            And as well-intentioned as it is by



                 Senator Leibell, and as deserving as I'm sure



                 the volunteers in Putnam County are, not to



                 simply offer this option -- which doesn't



                 disenfranchise anybody else, doesn't hurt the



                 State's Treasury, doesn't do anything



                 negative -- that we don't include this in the



                 bill is unfair.



                            And maybe I would have let it slide



                 if this was the first time we were seeing a



                 bill like this.  But Senator Rath had a print



                 where we had this exact same problem and



                 didn't correct it.  And so I have to really











                                                        1598







                 make my thoughts known on this a little



                 poignantly this time by voting no on the bill.



                 We should extend this benefit for everybody at



                 the local option.



                            Thank you, Mr. President.



                            ACTING PRESIDENT MEIER:    Senator



                 Oppenheimer.



                            SENATOR OPPENHEIMER:    On the



                 bill, please.



                            ACTING PRESIDENT MEIER:    Senator



                 Oppenheimer, on the bill.



                            SENATOR OPPENHEIMER:    This is a



                 very good bill, and a bill that I would



                 suggest every member who has volunteer fire



                 departments should ask their county if they



                 are interested in also considering a bill



                 similar to this.



                            I would suggest that Senator Hevesi



                 might want to put in a bill where this would



                 be available in the county of Queens.  There's



                 nothing to prevent us from putting in bills



                 that would offer this as an option to those



                 communities that wish to opt into it.



                            I can only say that we have



                 experienced a serious decrease in the number











                                                        1599







                 of volunteers.  My village happens to be a



                 hundred percent volunteer fire department.  It



                 is very difficult, when you are a commutation



                 community and many people are going into the



                 city, and the young people nowadays seem to



                 have less interest in joining the volunteer



                 fire departments because they have so many



                 other burdens on their shoulders.  Many of



                 them have two jobs, and many of them have



                 families, and it's just hard to fit everything



                 in.



                            Even though I must admit that the



                 community spirit has really increased since



                 9/11, and those communities that are in the



                 southern and central part of Westchester



                 actually have experienced, for the first time,



                 a sizeable number of volunteers coming



                 forward.  That is not true in the northern



                 part of Westchester, nor in Putnam, where your



                 bill is.



                            But many people feel that,



                 considering what had happened and that in many



                 instances they lost friends or they lost



                 family, they want to do something that they



                 feel is important for their community.  And











                                                        1600







                 it's something rather of recent occurrence,



                 and it has proceeded from 9/11.  So we are



                 seeing that at least right now.



                            But I don't know where we will be



                 another year or two from now, when those



                 heartwarming feelings and really desire to go



                 beyond yourself and help other people and help



                 your community, when perhaps that spirit is



                 not so high.



                            So this is a good bill.  It does



                 help to -- I think it will help in attracting



                 people.  After all, our property taxes are so



                 killer in our area that this might be of some



                 benefit.  And anything we can do to draw upon



                 the younger people who heretofore did join our



                 fire departments as volunteers, anything we



                 can do to attract them is worth trying.



                            And I think this is a fine bill.



                 And any other county that wishes to have a



                 similar bill, any other legislator can put in



                 a similar bill for their communities, their



                 area.  And it's -- after all, it's at local



                 option, so it doesn't harm anyone.



                            I'll be voting yes.



                            ACTING PRESIDENT MEIER:    Does any











                                                        1601







                 other Senator wish to be heard on the bill?



                            The debate is closed.



                            Read the last section.



                            THE SECRETARY:    Section 2.  This



                 act shall take effect on the first day of



                 January.



                            ACTING PRESIDENT MEIER:    Call the



                 roll.



                            (The Secretary called the roll.)



                            THE SECRETARY:    Ayes, 58.  Nays,



                 1.  Senator Hevesi recorded in the negative.



                            ACTING PRESIDENT MEIER:    The bill



                 is passed.



                            THE SECRETARY:    Calendar Number



                 173, by Senator Lack, Senate Print 1263A, an



                 act to amend the Labor Law, in relation to



                 direct sellers.



                            ACTING PRESIDENT MEIER:    Senator



                 Hannon.



                            SENATOR HANNON:    Lay it aside for



                 the day, please.



                            ACTING PRESIDENT MEIER:    Lay the



                 bill aside for the day.



                            THE SECRETARY:    Calendar Number



                 270, by Senator Balboni, Senate Print 849 -











                                                        1602







                            ACTING PRESIDENT MEIER:    I'm



                 sorry, Senator Stavisky.



                            SENATOR STAVISKY:    Mr. President,



                 I request unanimous consent on Calendar Number



                 108, Senate Print 00067A, in the negative.



                            ACTING PRESIDENT MEIER:    Without



                 objection, Senator Stavisky will be recorded



                 in the negative on Calendar 108.



                            Senator Montgomery, why do you



                 rise?



                            SENATOR MONTGOMERY:    Yes, Mr.



                 President.  I would like unanimous consent to



                 be recorded in the negative also on



                 Calendar 108.



                            ACTING PRESIDENT MEIER:    Without



                 objection, Senator Montgomery will be recorded



                 in the negative on Calendar 108.



                            The Secretary will continue to



                 read.



                            THE SECRETARY:    Calendar Number



                 270, by Senator Balboni, Senate Print 849, an



                 act to amend the Banking Law, in relation to



                 the maintenance of assets.



                            SENATOR DOLLINGER:    Explanation,



                 Mr. President.











                                                        1603







                            ACTING PRESIDENT MEIER:    Senator



                 Balboni, an explanation has been requested



                 with regard to Calendar 270 by Senator



                 Dollinger.



                            SENATOR BALBONI:    Mr. President,



                 this bill seeks to amend Section 202B of the



                 Banking Law, which was created in 1960 for the



                 purposes of requiring foreign banking



                 corporations to maintain assets within the



                 state.



                            This amendment seeks to drive



                 monies from that regulatory and statutory



                 system into a new type of investment from the



                 foreign bank perspective, and that is programs



                 that fund student loans and affordable



                 housing; namely, the SALLIE MAE and the



                 Federal Home Loan Banks program.



                            You will hear comments today from,



                 I suspect, Senator Dollinger that will talk



                 about his concern about who is allowed to now



                 be the pledgeable asset for purposes of



                 foreign banks.  And I would just remind



                 everyone here who's listening to this debate



                 that this amendment does not affect the



                 regulatory structure that is currently in











                                                        1604







                 place, it merely changes the pledgeable assets



                 for the purpose, the narrow purpose of foreign



                 banking corporations.



                            And though there may be justifiable



                 concerns about unaffiliated issuers, which I



                 believe is the crux of the difficulty,



                 nonetheless the regulatory scheme is not at



                 issue with this particular legislation,



                 because we use the same regulatory scheme that



                 has been in place since 1960.



                            Thank you, Mr. President.



                            ACTING PRESIDENT MEIER:    Senator



                 Dollinger.



                            SENATOR DOLLINGER:    Through you,



                 Mr. President, will Senator Balboni yield to a



                 question?



                            ACTING PRESIDENT MEIER:    Oh, I'm



                 sure he will.



                            Senator Balboni, do you yield for a



                 question from Senator Dollinger?



                            SENATOR BALBONI:    Mr. President,



                 I sought to forestall any of these questions



                 with my analysis.  Obviously, my analysis of



                 the Senator's objections was not effective.



                 Therefore, I will yield.











                                                        1605







                            ACTING PRESIDENT MEIER:    The



                 sponsor yields.



                            SENATOR DOLLINGER:    Thank you,



                 Mr. President.  It's only the first inning.



                 The first pitch has just been thrown.



                            SENATOR BALBONI:    Uh-oh.



                            SENATOR DOLLINGER:    Senator



                 Balboni, one of the things I'm trying to find



                 out is, are state-chartered banks, are they



                 now able -- do they have to make a pledge



                 requirement to the Superintendent of Banks?



                            SENATOR BALBONI:    I do not know.



                 I assume they do.



                            SENATOR DOLLINGER:    Through you,



                 Mr. President, if Senator Balboni will



                 continue to yield.



                            ACTING PRESIDENT MEIER:    Senator



                 Balboni, do you continue to yield?



                            SENATOR BALBONI:    Yes, I do, Mr.



                 President.



                            ACTING PRESIDENT MEIER:    The



                 sponsor yields.



                            SENATOR DOLLINGER:    Do you know



                 whether state-chartered banks, in filing a



                 security pledge with the Superintendent of











                                                        1606







                 Banks, can include unaffiliated issuers and



                 their instruments in the pledge?



                            SENATOR BALBONI:    Mr. President,



                 through you.  No, only because I didn't amend



                 that section of law.



                            As you know, this section of law,



                 202B, only refers to foreign banking



                 facilities.  And therefore, we didn't look



                 into the state banking or the -- I should say



                 the domestic banking side of this.



                            And I might just ask, I'm really



                 not quite sure of where you're going with the



                 questioning.  But that's -- the narrow



                 perspective of this particular bill is what



                 assets foreign banking institutions can use as



                 pledgeable assets for the purpose of driving



                 more money into student loans and affordable



                 housing programs.  Which I know, Senator, you



                 think is a good idea.



                            SENATOR DOLLINGER:    No question



                 about that.



                            Through you, Mr. President, if



                 Senator Balboni will continue to yield.



                            ACTING PRESIDENT MEIER:    Senator



                 Balboni, do you continue to yield?











                                                        1607







                            SENATOR BALBONI:    I do, Mr.



                 President.



                            ACTING PRESIDENT MEIER:    The



                 sponsor yields.



                            SENATOR DOLLINGER:    Senator,



                 you've suggested that you don't know whether



                 state-chartered banks have to pledge these



                 assets.  Yet the memorandum that you offer in



                 support of this bill says that state-chartered



                 banks are at a marked disadvantage to



                 federally chartered banks because of the small



                 scope of securities that state-chartered banks



                 are permitted to pledge.



                            Do you know what assets



                 state-chartered banks are permitted to pledge?



                 And if you don't, how could you make that



                 statement in support of the bill?



                            SENATOR BALBONI:    Mr. President,



                 through you.  No, I don't.



                            And I'll tell you why I don't.



                 Because I don't do this for a living.  But the



                 guys at the Banking Department, they do.  And



                 the folks who invest in these products, they



                 do.  And that's where I got this idea from.



                            SENATOR DOLLINGER:    Okay.











                                                        1608







                 Through you, Mr. President, will the Senator



                 yield to another question?



                            ACTING PRESIDENT MEIER:    Senator



                 Balboni, do you continue to yield?



                            SENATOR BALBONI:    I yield.



                            ACTING PRESIDENT MEIER:    The



                 sponsor yields.



                            SENATOR DOLLINGER:    This bill -



                 in the bill memorandum you also suggest that



                 foreign banking institutions may invest in



                 SALLIE MAE and Federal Home Loan Bank



                 securities.



                            SENATOR BALBONI:    Mm-hmm.



                            SENATOR DOLLINGER:    Is there



                 anything that currently prevents them from



                 doing that?



                            SENATOR BALBONI:    No.  And, Mr.



                 President, through you, nor is that suggested



                 by this particular amendment.



                            This particular amendment refers



                 specifically to the characterization or the



                 utilization of those investments towards the



                 pledgeable asset requirement by the state law;



                 again, Section 202B.



                            SENATOR DOLLINGER:    Okay.











                                                        1609







                 Through you, Mr. President, if Senator Balboni



                 will continue to yield.



                            ACTING PRESIDENT MEIER:    Senator



                 Balboni, do you continue to yield?



                            SENATOR BALBONI:    I continue to



                 yield.



                            ACTING PRESIDENT MEIER:    The



                 sponsor yields.



                            SENATOR DOLLINGER:    We went



                 through this last time, and I just want to



                 make sure I understand it now.



                            Who are the unaffiliated issuers



                 that this bill will allow to be substituted



                 for either Federal Home Loan Bank Board or



                 SALLIE MAE or the other federally insured



                 instruments that are required to be pledged



                 now by foreign banks?



                            SENATOR BALBONI:    Mr. President,



                 through you.  It depends.



                            SENATOR DOLLINGER:    Through you,



                 Mr. President, if the sponsor would continue



                 to yield.



                            ACTING PRESIDENT MEIER:    Senator



                 Balboni, do you yield?



                            SENATOR BALBONI:    I do, Mr.











                                                        1610







                 President.



                            ACTING PRESIDENT MEIER:    The



                 sponsor yields.



                            SENATOR DOLLINGER:    Would that



                 include marketable securities that are not



                 guaranteed for repayment by the federal



                 government, the state government, or any other



                 level of government?



                            SENATOR BALBONI:    Mr. President,



                 through you.  That would include any of these



                 unaffiliated issuers who meet the requirements



                 of the regulators of the Banking Board,



                 specifically, who, through the vote mechanism



                 described in this section of law, would make



                 the determination as to whether or not in fact



                 these are proper and appropriate investments



                 for the utilization of this -- against the



                 pledgeable requirement of this particular



                 section of law.



                            SENATOR DOLLINGER:    Through you,



                 Mr. President, if Senator Balboni will



                 continue to yield.

                            ACTING PRESIDENT MEIER:    Senator



                 Balboni, do you yield?



                            SENATOR BALBONI:    Mr. President.











                                                        1611







                 I do.



                            ACTING PRESIDENT MEIER:    The



                 sponsor yields.



                            SENATOR DOLLINGER:    Would it



                 include certificates of participation, known



                 as COPs?



                            SENATOR BALBONI:    Once again -



                            SENATOR DOLLINGER:    Are you



                 familiar with COPs and the way that it works?



                 I mean, it's a nonrecourse guarantee from



                 government that isn't backed by full faith and



                 credit or by taxing revenue but is a



                 conventional financing instrument sometimes



                 used by government.



                            Could those be pledged as part of



                 the assets?



                            SENATOR BALBONI:    Mr. President,



                 again, through you, it depends.  It depends on



                 who applies and what they find appropriate.



                            SENATOR DOLLINGER:    Okay.



                 Through you, Mr. President, if Senator Balboni



                 would continue to yield.



                            ACTING PRESIDENT MEIER:    Senator



                 Balboni, do you yield?



                            SENATOR BALBONI:    Mr. President,











                                                        1612







                 I do.



                            ACTING PRESIDENT MEIER:    The



                 sponsor yields.



                            SENATOR DOLLINGER:    Senator



                 Balboni, could it include derivatives?  Are



                 you familiar with what derivatives are as a



                 form of government financing?



                            SENATOR BALBONI:    Mr. President,



                 through you.  Again, it depends.



                            And, you know, Mr. President, I



                 would like to thank the Senator at this



                 particular point in time for his attempts to



                 educate myself as to the financial instruments



                 available for this type of marketing.



                            I would also like to inform the



                 body that I'm sure that Senator Dollinger will



                 be holding a Financing 101 after session



                 itself today, which I would ask for mandatory



                 participation.



                            But as for the purpose of this



                 particular amendment, again, my suggestion



                 would be that let's not blur the lines between



                 what is a regulatory requirement and duty and



                 a statutory requirement and duty.



                            And what we are doing here, again,











                                                        1613







                 for everybody watching at home and in the



                 chamber, this is a bill designed to change the



                 pledgeable assets universe to include products



                 such as SALLIE MAE and the Federal Home Loan



                 Bank issuances.  And there are others also.



                            But once again, the filter through



                 which those assets could wind up as being a



                 part of the pledgeable asset requirement for a



                 foreign bank will be the Banking Board's



                 determination that they are in fact of the



                 proper grade, that they have the proper



                 scrutiny by the rating agencies, and they have



                 the proper guarantees.



                            SENATOR DOLLINGER:    Through you,



                 Mr. President, just on the bill briefly.



                            ACTING PRESIDENT MEIER:    Senator

                 Dollinger, on the bill.



                            SENATOR DOLLINGER:    As for all of



                 those who are watching back home, I think my



                 wife and your wife are the only two who are



                 watching, and they're the only ones who have



                 an interest, perhaps, in this.



                            But let me explain why I'm going to



                 vote against this bill again.  I'm not opposed



                 when a foreign bank comes to do business in











                                                        1614







                 New York and the Banking Board in this state



                 says:  "Wait a minute, you're not from New



                 York State, you're from a northern



                 jurisdiction.  If you're going to come in and



                 do business with us, you have to pledge some



                 assets that we can readily turn into cash for



                 reasonable value.  You have to pledge that for



                 us in the event that something happens and



                 your financial wherewithal is compromised,



                 whether it's through liquidation or



                 dissolution or receivership."



                            We require them to pledge this at



                 the Bank Board.  So the very first thing the



                 Superintendent of Banks can do, if a foreign



                 bank that does business in this state is in



                 trouble, he can grab cash to claim part of the



                 security that depositors or those who have



                 funds deposited in a foreign bank might lose.



                 So that's critically important to our banking



                 system that we do that.



                            This bill does two beneficial



                 things which I'm more than willing to buy



                 into, Senator Balboni.  Which is to take the



                 Home Loan Bank Board issuance, all their debt,



                 which is federally guaranteed, or SALLIE MAE,











                                                        1615







                 the student loans -- those are all federally



                 pledged as well.  They are, in essence, just



                 like the instruments that are described at



                 length on page 1 of this bill:  instruments



                 guaranteed for payment by governments of any



                 type in the United States.  I'm perfectly



                 willing to do those two things.



                            What I am unwilling to do, Mr.



                 President, why I think this bill steps too



                 far, is because it says despite the fact that



                 we require foreign banks to give the best kind



                 of security for our citizens' protection, this



                 bill says that you can also include not only



                 these government types of securities, but you



                 can include those of any unaffiliated issuer.



                 Who is the unaffiliated issuer?



                            With all due respect to Senator



                 Balboni, I've been here for two years of



                 debates and I've never heard a good definition



                 of who is an unaffiliated issuer.  What do



                 they issue?  What kind of commercial paper is



                 it, and is it at the same level of security as



                 all these government notes that we require



                 that a foreign bank deposit as a condition of



                 doing business in this state?











                                                        1616







                            I would also suggest to Senator



                 Balboni that there is one other flaw in your



                 bill.  You suggest that the Superintendent of



                 Banks is going to review the value of that



                 collateral before it's deposited, and that it



                 has to meet certain standards.  That's correct



                 in part.  Except if you read the bill, it says



                 that the Superintendent has to say it's



                 received the highest rating of an independent



                 rating service designated by the Banking



                 Board.



                            Which means it's not going to be



                 done by the Superintendent, it's going to be



                 done by a ratings service, whoever they may



                 be.  That's not the same thing as having the



                 Superintendent do it.



                            And secondly, it says if the



                 obligation is rated by more than one such



                 service -- in other words, there are two



                 services, Moody's or some other



                 organization -- then the highest rating of at



                 least two such services will dictate whether



                 it can be used as an asset for the purposes of



                 collateralizing their activity here in the



                 State of New York.











                                                        1617







                            Frankly, Senator Balboni, I get



                 nervous when I see the word unaffiliated or



                 affiliated issuer.  I think about derivatives



                 in the county of Orange in California.  I



                 wouldn't doubt that there are a number of



                 other counties and governments that have



                 speculated in non-government-backed



                 instruments during the course of the last



                 decade.



                            I don't want the Superintendent of



                 Banks, who is otherwise requiring foreign



                 banks -- these are banks that don't have a



                 connection to New York.  They come in, they



                 start doing businesses, they start taking



                 deposits from our citizens.  We require them



                 to put the best kind of security up so that



                 our depositors are secure.



                            This bill steps away from that



                 ironclad assurance that we will be able to



                 recover against those banks.  I think what



                 we're doing, with all due respect, Senator



                 Balboni, is we are diluting the power of the



                 Banking Department in this state to provide



                 adequate security for depositors here.  I



                 don't know of any rationalization for it.











                                                        1618







                            I know that you've said it promotes



                 affordable housing.  I'm not quite so sure I



                 see how that happens.  I understand that this



                 says they can go out and buy the debt



                 instruments from agencies that are involved in



                 affordable housing.  I hardly think that will



                 promote affordable housing.



                            I just believe that this bill steps



                 away from our long tradition of having the



                 most secure banking system in the nation.



                 It's one of the things that has made us the



                 financial powerhouse that we are.  This bill



                 is a step away from the notion that you can



                 safely deposit your money in New York, whether



                 you do it with a domestic bank or a foreign



                 bank.



                            I'm unwilling to retreat from our



                 system, which has stood us in good stead for



                 the better part of two centuries.



                            ACTING PRESIDENT MEIER:    Any



                 other Senator wish to be heard on the bill?



                            The debate is closed.



                            Read the last section.



                            THE SECRETARY:    Section 2.  This



                 act shall take effect 120 days.











                                                        1619







                            ACTING PRESIDENT MEIER:    Call the



                 roll.



                            (The Secretary called the roll.)



                            ACTING PRESIDENT MEIER:    Senator



                 Balboni, to explain his vote.



                            SENATOR BALBONI:    Unaffiliated



                 issuer, for the record, was an amendment that



                 was suggested by the Banking Department and



                 refers to no self-dealing by the particular



                 issuer.  There's your definition, Senator



                 Dollinger.



                            But I would charge you with the



                 following responsibility.  You have raised



                 objections regarding this particular bill, but



                 you've said you back the concept.



                            Mr. President, I suggest that



                 Senator Dollinger should go over to the State



                 Assembly and Aurelia Greene, who is the



                 sponsor of this bill in that house, and take



                 out that portion of the bill that he objects



                 to, but nonetheless get them to move on this



                 issue at all.



                            Because though you might not



                 understand the efficacy with funding these



                 types of programs, I assure you that the











                                                        1620







                 people who get the loans for their first home



                 and get their student loans from these



                 programs surely do understand this investment,



                 and they want this kind of money to go in



                 there.



                            So unfortunately, I am frustrated,



                 not so much that we have to do this bill again



                 here, but because there is absolutely no



                 movement on behalf of the State Assembly -- as



                 you might imagine are other things, like the



                 budget.



                            I vote in favor of it.



                            ACTING PRESIDENT MEIER:    Senator



                 Balboni will be recorded in the affirmative.



                            SENATOR DOLLINGER:    Just to



                 explain my vote, Mr. President.



                            ACTING PRESIDENT MEIER:    I'm



                 sure.  Senator Dollinger, to explain his vote.



                            SENATOR DOLLINGER:    Senator



                 Balboni once again leaps from bill to budget



                 with seeming aplomb, much like the cat always



                 landing on its feet.  So my plaudit to him.



                            But, Senator Balboni, I would



                 suggest that this bill does not deal with the



                 issue of affordable housing.  This bill simply











                                                        1621







                 says that the instruments from the Home Loan



                 Bank Board can be pledged as security when



                 foreign banks come to New York.



                            I still think that's a good idea.

                 I'm willing to back the bill on that basis.



                 But I still haven't gotten a definition, Mr.



                 President, of who this affiliated issuer is.



                 I think that's a scary notion, and let's not



                 water down our security provisions in our



                 banking institutions.



                            Thank you, Mr. President.  I vote



                 no.



                            ACTING PRESIDENT MEIER:    Senator



                 Dollinger will be recorded in the negative.



                            The Secretary will announce the



                 results.



                            THE SECRETARY:    Those recorded in



                 the negative on Calendar Number 270 are



                 Senators Dollinger, Duane, and Paterson.



                            Ayes, 56.  Nays, 3.



                            ACTING PRESIDENT MEIER:    The bill



                 is passed.



                            Senator Marcellino.



                            SENATOR MARCELLINO:    Mr.



                 President, are we through with the calendar?











                                                        1622







                            ACTING PRESIDENT MEIER:    Yes,



                 that concludes the calendar, Senator.



                            SENATOR MARCELLINO:    Thank you,



                 sir.  May we now return to the reports of



                 standing committees.



                            I believe you have a report of the



                 Rules Committee, and I ask that it be read.



                            ACTING PRESIDENT MEIER:    That's



                 correct.



                            Reports of standing committees.



                            The Secretary will read.



                            THE SECRETARY:    Senator Bruno,



                 from the Committee on Rules, reports the



                 following bill direct to third reading:



                            Senate Print 6622, by Senator Kuhl,



                 an act to amend the General Municipal Law.



                            SENATOR MARCELLINO:    Move to



                 accept the report of the Rules Committee.



                            ACTING PRESIDENT MEIER:    All in



                 favor of accepting the report of the Rules



                 Committee signify by saying aye.



                            (Response of "Aye.")



                            ACTING PRESIDENT MEIER:    Those



                 opposed, nay.



                            (No response.)











                                                        1623







                            ACTING PRESIDENT MEIER:    The



                 report is accepted.



                            Senator Marcellino.



                            SENATOR MARCELLINO:    Yes, Mr.



                 President.  At this time can we take up Senate



                 Bill 6622, by Senator Kuhl.



                            ACTING PRESIDENT MEIER:    The



                 Secretary will read.



                            THE SECRETARY:    Calendar Number



                 436, by Senator Kuhl, Senate Print 6622, an



                 act to amend the General Municipal Law, in



                 relation to the designation.



                            ACTING PRESIDENT MEIER:    Read the



                 last section.



                            THE SECRETARY:    Section 2.  This



                 act shall take effect immediately.



                            ACTING PRESIDENT MEIER:    Call the



                 roll.



                            (The Secretary called the roll.)



                            THE SECRETARY:    Ayes, 59.



                            ACTING PRESIDENT MEIER:    The bill



                 is passed.



                            Senator Marcellino.



                            SENATOR MARCELLINO:    Can we



                 continue with the other committee reports that











                                                        1624







                 you have at the desk at this time.



                            ACTING PRESIDENT MEIER:    Reports



                 of standing committees.



                            The Secretary will read.



                            THE SECRETARY:    Senator Kuhl,



                 from the Committee on Education, reports the



                 following bills:



                            Senate Print 4854B, by Senator



                 Balboni, an act to amend the Education Law and



                 the Public Health Law;



                            6301, by Senator McGee, an act to



                 legalize, validate, ratify and confirm;



                            6359, by Senator Bruno, an act to



                 adjust certain state aid payments;



                            And Senate Print 6458, by Senator



                 Bonacic, an act to amend Chapter 447 of the



                 Laws of 2001.



                            Senator Spano, from the Committee



                 on Investigations, Taxation and Government



                 Operations, reports:



                            Senate Print 240, by Senator C.



                 Kruger, an act to amend the Alcoholic Beverage



                 Control Law;



                            384, by Senator Skelos, an act to



                 amend the Executive Law;











                                                        1625







                            493, by Senator Marcellino, an act



                 to amend the Tax Law;



                            1036, by Senator Larkin, an act to



                 amend the Tax Law;



                            1246, by Senator Skelos, an act to



                 amend the Tax Law;



                            1427, by Senator LaValle, an act to



                 amend the Tax Law;



                            3451, by Senator Marchi, an act to



                 amend the Legislative Law;



                            4180A, by Senator Spano, an act to



                 amend the Public Lands Law;



                            4278, by Senator Velella, an act to



                 amend the Alcoholic Beverage Control Law;



                            4691, by Senator Leibell, an act to



                 amend the Public Officers Law;



                            5056, by Senator Saland, an act to



                 amend the Tax Law;



                            6059, by Senator Volker, an act to



                 amend the Alcoholic Beverage Control Law;



                            6161, by Senator Rath, an act to



                 amend the Legislative Law;



                            6169, by Senator Balboni, an act to



                 amend the Tax Law;



                            6103A, by Senator Alesi, an act to











                                                        1626







                 amend the General Municipal Law;



                            6343, by Senator Seward, an act to



                 authorize;



                            6444, by Senator Nozzolio, an act



                 to amend the Tax Law;



                            And Senate Print 6518, by Senator



                 Spano, an act to amend the Arts and Cultural



                 Affairs Law.



                            All bills ordered direct to third



                 reading.



                            ACTING PRESIDENT MEIER:    Without



                 objection, all bills directly to third



                 reading.



                            Senator Marcellino.



                            SENATOR MARCELLINO:    Mr.



                 President, is there any further housekeeping



                 at the desk?



                            ACTING PRESIDENT MEIER:    We have



                 three substitutions, Senator.



                            SENATOR MARCELLINO:    Please make



                 the substitutions, sir.



                            ACTING PRESIDENT MEIER:    The



                 Secretary will read the substitutions.



                            THE SECRETARY:    On page 5,



                 Senator McGee moves to discharge, from the











                                                        1627







                 Committee on Alcoholism and Drug Abuse,



                 Assembly Bill Number 60A and substitute it for



                 the identical Senate Bill Number 2512B, Third



                 Reading Calendar 56.



                            On page 9, Senator Morahan moves to



                 discharge, from the Committee on Veterans and



                 Military Affairs, Assembly Bill Number 7407B



                 and substitute it for the identical Senate



                 Bill Number 3720B, Third Reading Calendar 145.



                            And on page 26, Senator Morahan



                 moves to discharge, from the Committee on



                 Aging, Assembly Bill Number 2029 and



                 substitute it for the identical Senate Bill



                 Number 1376, Third Reading Calendar 403.



                            ACTING PRESIDENT MEIER:



                 Substitutions ordered.



                            Senator Marcellino.



                            SENATOR MARCELLINO:    Yes, Mr.



                 President.  Can you recognize Senator Breslin



                 at this time for a motion to petition out of



                 committee.



                            ACTING PRESIDENT MEIER:    Senator



                 Breslin.



                            SENATOR BRESLIN:    Mr. President,



                 I believe I have a motion at the desk.  I











                                                        1628







                 request that it be read and I also request



                 that I heard on the motion.



                            ACTING PRESIDENT MEIER:    The



                 Secretary will read.



                            THE SECRETARY:    Senate Print



                 1980, by Senator Breslin, an act to amend the



                 General Obligations Law, the Civil Practice



                 Law and Rules, and the Public Health Law.



                            ACTING PRESIDENT MEIER:    Senator



                 Breslin.



                            SENATOR BRESLIN:    Mr. President,



                 Bill 1980 is what has been commonly referred



                 to as HMO liability.  It's a consumer bill.



                 It's a bill that would bring HMOs into



                 responsibility for their actions relative to



                 negligence.



                            Doctors can be sued, hospitals can



                 be sued, nurses can be sued, even lawyers can



                 be sued.  Health maintenance organizations are



                 trying to cut costs and generally do a good



                 job.  But when they substitute prescriptions,



                 release someone early from a hospital, don't



                 order necessary tests, all of which are done



                 on a cost-cutting basis, they should be held



                 responsible for their actions.











                                                        1629







                            Each of my six years here I have



                 introduced this legislation, and in each of



                 those six years it has failed to come for a



                 vote on this floor.  Senator Velella has also



                 introduced legislation comparable to the one



                 that passed the Assembly 134 to 10 last year.



                 It's incumbent on this body, the Senate, to



                 come into the new century and to provide the



                 kind of care and legislation necessary to



                 protect patients.



                            Health care costs increased by just



                 under 7 percent in the year 2001, the largest



                 increase since 1993.  What will that do?  It



                 will make HMOs try to cut corners further.



                            And it is important on us -- and



                 remember, this doesn't increase costs, it



                 makes the HMOs more accountable.  And if you



                 make them more accountable, they make the



                 right decisions.  And I urge this house to



                 pass and approve this motion.



                            Thank you, Mr. President.



                            ACTING PRESIDENT MEIER:    With



                 regard to Senate Bill 1980, please raise your



                 hands.  The Secretary will record those



                 raising their hands.











                                                        1630







                            The Secretary will read the results



                 of those agreeing to the petition.



                            THE SECRETARY:    Those recorded in



                 agreement are Senators Breslin, Brown, Connor,



                 Dollinger, Andrews, Duane, Hassell-Thompson,



                 Hevesi, L. Krueger, Lachman, Montgomery,



                 Onorato, Oppenheimer, Paterson, Sampson,



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



                 Stachowski, Stavisky.  Also Senator Gentile.



                            ACTING PRESIDENT MEIER:    The



                 petition is not agreed to.



                            Senator Marcellino.



                            SENATOR MARCELLINO:    Mr.



                 President, there being no further business, I



                 move we adjourn until Tuesday, March 26th, at



                 11:00 a.m. sharp.



                            ACTING PRESIDENT MEIER:    On



                 motion, the Senate stands adjourned until



                 Tuesday, March 26th, at 11:00 a.m.



                            (Whereupon, at 4:45 p.m., the



                 Senate adjourned.)