Regular Session - January 20, 2004

    

 
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                           NEW YORK STATE SENATE





                          THE STENOGRAPHIC RECORD









                             ALBANY, NEW YORK

                             January 20, 2004

                                 3:06 p.m.





                              REGULAR SESSION







            LT. GOVERNOR MARY O. DONOHUE, President

            STEVEN M. BOGGESS, Secretary















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                           P R O C E E D I N G S

                            THE PRESIDENT:    The Senate will

                 please come to order.

                            I ask everyone present to please

                 rise and repeat with me the Pledge of

                 Allegiance.

                            (Whereupon, the assemblage recited

                 the Pledge of Allegiance to the Flag.)

                            THE PRESIDENT:    In the absence of

                 clergy, may we bow our heads in a moment of

                 silence, please.

                            (Whereupon, the assemblage

                 respected a moment of silence.)

                            THE PRESIDENT:    Reading of the

                 Journal.

                            THE SECRETARY:    In Senate,

                 Monday, January 19, the Senate met pursuant to

                 adjournment.  The Journal of Sunday,

                 January 18, 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.



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                            Messages from the Governor.

                            Reports of standing committees.

                            Reports of select committees.

                            Communications and reports from

                 state officers.

                            Motions and resolutions.

                            Senator Farley.

                            SENATOR FARLEY:    Thank you, Madam

                 President.

                            On behalf of Senator Volker, on

                 page 4 I offer the following amendments to

                 Calendar 5, Senate Print 5883, and I ask that

                 that bill retain its place.

                            THE PRESIDENT:    The amendments

                 are received, and the bill will retain its

                 place on the Third Reading Calendar.

                            SENATOR FARLEY:    On behalf of

                 Senator Larkin, Madam President, on page 4 I

                 offer the following amendments to Calendar 8,

                 Senate Print 1382, and I ask that that bill

                 retain its place.

                            THE PRESIDENT:    The amendments

                 are received, and the bill will retain its

                 place on the Third Reading Calendar.

                            SENATOR FARLEY:    On behalf of



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                 Senator Spano, Madam President, on page 8 I

                 offer the following amendments to Calendar

                 Number 50, Senate Print 3704, and I ask that

                 that bill retain its place on the Third

                 Reading Calendar.

                            THE PRESIDENT:    The amendments

                 are received, and the bill will retain its

                 place on the Third Reading Calendar.

                            SENATOR FARLEY:    On behalf of

                 Senator Little, on page 9 I offer the

                 following amendments to Calendar Number 61,

                 Senate Print 1414, and I ask that that bill

                 retain its place.

                            THE PRESIDENT:    The amendments

                 are received, and the bill will retain its

                 place on the Third Reading Calendar.

                            SENATOR FARLEY:    Thank you.

                            THE PRESIDENT:    Senator Skelos.

                            SENATOR SKELOS:    Madam President,

                 there will be an immediate meeting of the

                 Rules Committee in the Majority Conference

                 Room.

                            THE PRESIDENT:    There will be an

                 immediate meeting of the Rules Committee in

                 the Majority Conference Room.



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                            Senator Skelos.

                            SENATOR SKELOS:    While we're on

                 motions and resolutions, I believe there's a

                 substitution at the desk, if we could make it

                 at this time.

                            THE PRESIDENT:    Motions and

                 resolutions.

                            The Secretary will read.

                            THE SECRETARY:    On page 10,

                 Senator Leibell moves to discharge, from the

                 Committee on Civil Service and Pensions,

                 Assembly Bill Number 9349 and substitute it

                 for the identical Senate Bill Number 5893,

                 Third Reading Calendar 64.

                            THE PRESIDENT:    Substitution

                 ordered.

                            Senator Skelos.

                            SENATOR SKELOS:    Madam President,

                 I believe there are four privileged

                 resolutions at the desk by Senator Kruger.

                 Could we have the titles read and move for

                 their immediate adoption.

                            THE PRESIDENT:    The Secretary

                 will read.

                            THE SECRETARY:    By Senator



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                 Kruger, Legislative Resolution Number 3152,

                 commending Tommy and Perrie Gelb upon the

                 occasion of their being honored by Masores

                 Bais Yaakov with the Hakoras Hatov

                 Presentation at its 16th Annual Dinner on

                 January 21, 2004.

                            By Senator Kruger, Legislative

                 Resolution Number 3153, commending Rabbi and

                 Mrs. Eli Shulman upon the occasion of their

                 designation by Masores Bais Yaakov as the

                 recipients of the Harbotzas Torah Award at its

                 16th Annual Dinner on January 21, 2004.

                            By Senator Kruger, Legislative

                 Resolution Number 3154, commending Sruli and

                 Miriam Schubert upon the occasion of their

                 designation by the Masores Bais Yaakov as the

                 recipients of the Keser Shem Tov Award at its

                 16th Annual Dinner on January 21, 2004.

                            And by Senator Kruger, Legislative

                 Resolution Number 3155, commending Zevi and

                 Lilliane Samel upon the occasion of their

                 designation by Masores Bais Yaakov as the

                 recipients of the Parents of the Year Award at

                 its 16th Annual Dinner on January 21, 2004.

                            THE PRESIDENT:    On the



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                 resolutions, all in favor please signify by

                 saying aye.

                            (Response of "Aye.")

                            THE PRESIDENT:    Opposed, nay.

                            (No response.)

                            THE PRESIDENT:    The resolutions

                 are adopted.

                            Senator Schneiderman.

                            SENATOR SCHNEIDERMAN:    Yes, Madam

                 President.  I would move that the following

                 bill be discharged from its committee and be

                 recommitted with instructions to strike the

                 enacting clause:  Senate Number 1024, by

                 Senator A. Smith.

                            THE PRESIDENT:    So ordered.

                            SENATOR SCHNEIDERMAN:    And, Madam

                 President, I'd also like to acknowledge that

                 we are honored today to have a visit from the

                 consul general of the Dominican Republic, Jose

                 Pimentel; the vice consul; and other

                 colleagues.

                            Bienvenidos, amigos.

                            We are very, very honored by their

                 presence and welcome them here, and I'm

                 pleased to show them the courtesy of the



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                 house.

                            Thank you.

                            THE PRESIDENT:    Senator Bruno.

                            SENATOR BRUNO:    Madam President,

                 can we at this time have the noncontroversial

                 reading of the calendar.

                            THE PRESIDENT:    The Secretary

                 will read.

                            THE SECRETARY:    Calendar Number

                 15, by Senator Larkin, Senate Print 5659, an

                 act to amend the Real Property Tax Law, in

                 relation to the collection and disposition of

                 delinquent taxes.

                            THE PRESIDENT:    Read the last

                 section.

                            THE SECRETARY:    Section 9.  This

                 act shall take effect on the first of January.

                            THE PRESIDENT:    Call the roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 50.

                            THE PRESIDENT:    The bill is

                 passed.

                            THE SECRETARY:    Calendar Number

                 16, by Senator LaValle, Senate Print 294, an

                 act to amend the Education Law, in relation to



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                 the inclusion of fiscal notes.

                            SENATOR SCHNEIDERMAN:    Lay it

                 aside.

                            THE PRESIDENT:    The bill is laid

                 aside.

                            THE SECRETARY:    Calendar Number

                 39, by Senator Volker, Senate Print 2945, an

                 act to amend the Criminal Procedure Law, in

                 relation to the receiving of business records.

                            THE PRESIDENT:    Read the last

                 section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect on the first of

                 November.

                            THE PRESIDENT:    Call the roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 50.

                            THE PRESIDENT:    The bill is

                 passed.

                            THE SECRETARY:    Calendar Number

                 42, by Senator Skelos, Senate Print 3827A, an

                 act to amend the Criminal Procedure Law and

                 the Family Court Act, in relation to evidence

                 of identification.

                            THE PRESIDENT:    Read the last



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                 section.

                            THE SECRETARY:    Section 6.  This

                 act shall take effect on the first of

                 November.

                            THE PRESIDENT:    Call the roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 50.

                            THE PRESIDENT:    The bill is

                 passed.

                            THE SECRETARY:    Calendar Number

                 63, by Senator Farley, Senate Print 5871, an

                 act to amend Chapter 729 of the Laws of 1994

                 relating to affecting the health insurance

                 benefits and contributions.

                            THE PRESIDENT:    Read the last

                 section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect May 15, 2004.

                            THE PRESIDENT:    Call the roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 50.

                            THE PRESIDENT:    The bill is

                 passed.

                            THE SECRETARY:    Calendar Number

                 64, substituted earlier today by Member of the



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                 Assembly Sweeney, Assembly Print Number 9349,

                 an act to amend the Retirement and Social

                 Security Law, in relation to employment.

                            THE PRESIDENT:    Read the last

                 section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            THE PRESIDENT:    Senator Bruno.

                            SENATOR BRUNO:    Madam President,

                 can I ask for an immediate meeting of the

                 Banking Committee in the Majority Conference

                 Room.

                            THE PRESIDENT:    There will be an

                 immediate meeting of the Banking Committee in

                 the Majority Conference Room.

                            Call the roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 50.

                            THE PRESIDENT:    The bill is

                 passed.

                            Senator Bruno, that completes the

                 reading of the noncontroversial calendar.

                            SENATOR BRUNO:    Madam President,

                 can we at this time have the controversial

                 reading of the calendar.



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                            THE PRESIDENT:    The Secretary

                 will read.

                            THE SECRETARY:    Calendar Number

                 16, by Senator LaValle, Senate Print 294, an

                 act to amend the Education Law, in relation to

                 the inclusion of fiscal notes.

                            SENATOR SCHNEIDERMAN:

                 Explanation.

                            THE PRESIDENT:    Senator LaValle,

                 an explanation has been requested.

                            SENATOR LaVALLE:    Thank you,

                 Madam President.

                            This is a bill that we passed and

                 debated last year.  It's a bill that's

                 sponsored in the Assembly by Assemblyman

                 Schimminger.  It's a very simple bill but yet

                 is probably one of the more important bills

                 that this house can pass, that I believe would

                 give us the kinds of information and the

                 public the kinds of information it needs in

                 making public policy decisions.

                            The bill would, for the State

                 University, City University, and the Board of

                 Regents, mandate that prior to the adoption of

                 any resolution or alteration or amendment to



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                 their rules or regulations that, where they

                 are expending money, that they must attach to

                 their resolution a fiscal note.  And that's

                 something that we do here in the Legislature

                 and I think it's very, very important.

                            This bill, as I have indicated,

                 deals with SUNY, CUNY, and the Board of

                 Regents.  The question that has come up, and

                 we talked about this in last year's debate, is

                 that the increase in the Regents standards --

                 and the question from our local school boards

                 and taxpayers is that there was a mandate.

                            And the question was how much was

                 that mandate.  How much do we, in terms of our

                 state aid formulas, need to generate to cover

                 that mandate, and how much must our local

                 school districts generate to cover that

                 mandate.

                            The same is true when something is

                 passed by resolution by the SUNY board or the

                 CUNY board, and a program, and then we as a

                 Legislature are required to give that system

                 additional aid to deal with that program.

                            And so as I indicated at the onset,

                 we really, I believe, will help in the



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                 process, by disseminating information, in

                 making better public policy.  Disclosure is

                 never bad.  The more light we shed on the

                 process, the better it is, because it provokes

                 public debate and discussion on whether too

                 little money is being allocated, too much is

                 being allocated for a particular purpose.

                            But we should not be flying in the

                 dark by not knowing how much a resolution that

                 is passed by the SUNY board, the CUNY board,

                 or the Board of Regents, what the effect that

                 will be on us as a Legislature or on the local

                 taxpayer.

                            THE PRESIDENT:    Senator

                 Oppenheimer.

                            SENATOR OPPENHEIMER:    Thank you,

                 Senator -- Madam President.

                            I have really just one question for

                 the sponsor if he would yield for a question.

                            THE PRESIDENT:    Senator LaValle,

                 will you yield for a question?

                            SENATOR LaVALLE:    Yes, I will.

                            THE PRESIDENT:    Thank you,

                 Senator LaValle.

                            SENATOR OPPENHEIMER:    The



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                 question is -- I see I voted against it last

                 year.  And I guess the problem I had last

                 year -- and it's still a problem, so I have to

                 question you -- is why are we singling out

                 just SUNY, CUNY, and the Board of Regents?

                 Why aren't we applying -- I mean, actually,

                 that's why I voted against it.

                            If we were to apply this to all of

                 our agencies, I could strongly support it.  I

                 think transparency is fabulous.  But I don't

                 understand why we just selected these three

                 for special treatment.

                            SENATOR LaVALLE:    Senator, as you

                 know, as we introduce legislation, as

                 individual sponsors we focus on a particular

                 problem because of our committee

                 responsibilities.

                            Being chairman of the Senate

                 Committee on Higher Education, member of the

                 Education Committee, I felt that the input

                 that I was getting over and over again, both

                 locally and from members, when it dealt with

                 higher education, you know, why do we have to

                 increase X aid to the City University or the

                 State University?  You have to go back and



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                 look at the programs that they enacted.

                            I am sure locally in your district

                 when the Regents standards were enacted that

                 you were asked over and over again, you know,

                 where's the money coming from?  How much money

                 is this going to cost?

                            And so in doing due diligence, we

                 tried to find out when we could have, at the

                 very beginning, should we have had that

                 information.

                            This might be -- you might

                 introduce a bill to do it for all state

                 agencies.  And it may not be a bad idea.  But

                 here, because of my responsibilities and

                 interests, the interests of people in the

                 district I represent, it was very, very

                 important to isolate this into these three

                 areas.

                            SENATOR OPPENHEIMER:    That

                 definitely clarifies.  Thank you, Senator.

                            And I think the Senator has

                 specifically said what was concerning me.  And

                 of course, since he's chair of the Higher

                 Education Senate Committee, that is why he has

                 introduced this bill.  And I may just support



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                 it now.

                            Thank you.

                            THE PRESIDENT:    Does any other

                 member wish to be heard on this bill?

                            Then the debate is closed.

                            Read the last section.

                            THE SECRETARY:    Section 4.  This

                 act shall take effect immediately.

                            THE PRESIDENT:    Call the roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 51.  Nays,

                 2.  Senators Andrews and Hassell-Thompson

                 recorded in the negative.

                            THE PRESIDENT:    The bill is

                 passed.

                            Senator Duane, why do you rise?

                            SENATOR DUANE:    Thank you, Madam

                 President.  If I could have unanimous consent

                 to be recorded in the negative on Calendar

                 Number 39.

                            THE PRESIDENT:    Hearing no

                 objection, you will be so recorded as voting

                 in the negative, Senator.

                            Senator Bruno, that completes the

                 reading of the controversial calendar.



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                            SENATOR BRUNO:    Madam President,

                 can we at this time return to the reports of

                 standing committees.

                            And I believe that there is a

                 report from the Rules Committee at the desk.

                 I ask that it be read now.

                            THE PRESIDENT:    Reports of

                 standing committees.

                            The Secretary will read.

                            THE SECRETARY:    Senator Bruno,

                 from the Committee on Rules, reports the

                 following bills:

                            Senate Print Number 1A, by Senator

                 Bruno, Concurrent Resolution of the Senate and

                 Assembly proposing amendments to Article 7 of

                 the Constitution.

                            And Senate Print 2A, by Senator

                 Bruno, an act to amend the State Finance Law.

                            Both bills ordered direct to third

                 reading.

                            THE PRESIDENT:    Senator Bruno.

                            SENATOR BRUNO:    I move to accept

                 the report of the Rules Committee.

                            THE PRESIDENT:    All in favor of

                 accepting the Rules report please signify by



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                 saying aye.

                            (Response of "Aye.")

                            THE PRESIDENT:    Opposed, nay.

                            (No response.)

                            THE PRESIDENT:    The report is

                 adopted.

                            Senator Bruno.

                            SENATOR BRUNO:    Madam President,

                 can we at this time take up Calendar Number

                 66.

                            THE PRESIDENT:    The Secretary

                 will read.

                            THE SECRETARY:    Calendar Number

                 66, by Senator Bruno, Senate Print 2A, an act

                 to amend the State Finance Law, in relation to

                 changing the state fiscal year to May 1st

                 through April 30th.

                            SENATOR SCHNEIDERMAN:

                 Explanation.

                            THE PRESIDENT:    Senator Bruno, an

                 explanation has been requested.

                            SENATOR BRUNO:    Thank you, Madam

                 President and colleagues.

                            This bill before us relates to

                 budget reform.  This is in bill form, change



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                 the law.  And following this, we hope to take

                 up a resolution that would make the law

                 permanent by changing the Constitution, going

                 through the due process.

                            But on this specific bill before

                 us, I would ask again for your support.  I

                 believe this is the tenth time that we are

                 doing a budget reform bill as part of the

                 first or second bill that we do in the Senate.

                            And it's no secret to any of us in

                 the process that the budget negotiations, as

                 it presently exists, doesn't work.  This is

                 18 years -- we're in the 19th year -- when we

                 have not had an on-time budget.  So if you

                 can't get it done in 18 years, through a

                 couple of governors and speakers and leaders

                 here in this house, it doesn't work.

                            So we need to mandate a change,

                 because what sets the tone for all the people

                 of this state is our budget.  And it's

                 important to get a budget that is done on

                 time, in a professional manner.  And this is

                 the year to get that done.

                            Now, the Assembly, last year, did a

                 budget reform package.  We have incorporated,



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                 I believe, a lot of what has the Assembly has

                 done.  The Governor has prioritized, has done

                 it again as he presented his budget earlier

                 today, to get a budget reform package in

                 place.

                            Here's what this does, in two

                 minutes.  Moves the whole process up.  It just

                 moves the process up.  Starts October 15th,

                 meeting with agencies, getting all the

                 information.  By November 15th, we start the

                 process of negotiating and deliberating and

                 refining the information.  Where we many

                 times -- well, then the Governor submits his

                 budget, instead of by January 20th, by

                 January 15th.

                            So you start in October instead of

                 starting in January, and continue through

                 November.  And when the Governor submits his

                 budget, we usually get hung up on revenues,

                 what is available to budget.  We always get

                 hung up on that.

                            So what we are saying in this bill

                 is that let the Comptroller, elected by the

                 people of this state, be the arbitrator.  So

                 that if we can't agree by -- one date says



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                 March 1st.  It may be March 5th.  But by

                 March 5th, the latest -- is it the 1st or the

                 5th?  It's in two different places.

                            If by March 1st we don't come to an

                 agreement among ourselves, then by the 5th --

                 thank you -- the Comptroller will arbitrate a

                 number.  And that kicks us into the public

                 process of conference committees by

                 March 16th.  We'll have an open public

                 discussion of the budget.

                            Now, if we come to an agreement, we

                 have a budget by May 1st.  Not April 1st,

                 May 1st.  If we don't come to an agreement by

                 May 1st, last year's budget kicks in.  We'll

                 have a budget.

                            The change would be that if

                 revenues are short, there's flexibility to

                 make adjustments for that.  And it creates a

                 summary form in that it creates a surplus that

                 has to be part of your budget, and it mandates

                 sort of a three-year projection of what

                 changes we make and how it affects the

                 governor's budget.  So that we do that

                 analysis.

                            And then it talks about the



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                 Governor, after all of this takes place,

                 readjusting, sending us back a finalized

                 version of what it is that is the law.

                            That's it.  Pretty well simple,

                 pretty direct.  It works.  I think we've had

                 support on both sides of the aisle.  This is

                 the year to get it done.  The Speaker has said

                 we're going to have an on-time budget.  The

                 Governor says we should have an on-time

                 budget.  We know we want an on-time budget.

                 This will be the year to put this in place,

                 because it's not controversial at this stage

                 of our lives.

                            Thank you, Madam President.

                            THE PRESIDENT:    Senator Diaz.

                            SENATOR DIAZ:    Thank you, Madam

                 President.  Will the sponsor yield for a

                 question, please?

                            THE PRESIDENT:    Senator Bruno,

                 will you yield for a question from Senator

                 Diaz?

                            SENATOR BRUNO:    Yes, Madam

                 President.

                            THE PRESIDENT:    You may proceed

                 with a question, Senator Diaz.



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                            SENATOR DIAZ:    Senator Bruno, we

                 left here June 19th of last year.

                            SENATOR BRUNO:    Yes.

                            SENATOR DIAZ:    There were some

                 monies assigned or designated to some

                 community organizations.  As of today, as of

                 today, those community organizations have not

                 received their money.

                            How your proposed plan will take

                 care of that?  Is there any provision in your

                 plan to solve this problem that community

                 organizations doesn't have to suffer what they

                 have been through this year?  Because it is a

                 shame that as of today, community

                 organizations and community groups that need

                 the money to function, they have not received

                 their money yet.

                            SENATOR BRUNO:    Once we get by

                 April 1st, March 31st without a budget,

                 presently, everything sort of gets done by

                 emergency bill.  What we're saying is that we

                 move that to May 1st, which gives us a greater

                 opportunity to get together.

                            But once it goes into place, well,

                 then those items that you're referring to



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                 would go into the process.

                            SENATOR DIAZ:    From the previous

                 year?

                            SENATOR BRUNO:    From that year,

                 and hopefully be expedited through the system.

                 Because it goes through budget to the agencies

                 and then to your constituents.

                            And we would have a mechanism of

                 tracking that for all of us.

                            SENATOR DIAZ:    Madam President, I

                 think that as long as those communities --

                            SENATOR HASSELL-THOMPSON:    On the

                 bill.

                            SENATOR DIAZ:    On the bill.

                            THE PRESIDENT:    You're on the

                 bill, Senator?

                            SENATOR DIAZ:    On the bill.

                            THE PRESIDENT:    You may proceed

                 on the bill.

                            SENATOR DIAZ:    Madam President,

                 as long as those community organizations that

                 I represent in my district that as of today

                 they have not gotten their money, if this bill

                 provides some mechanism for them to not to go

                 through what they have been going through this



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                 year, I think that that is a beautiful bill

                 and I will support it.

                            THE PRESIDENT:    Senator Hoffmann.

                            SENATOR HOFFMANN:    Thank you,

                 Madam President.

                            I want to compliment Senator Bruno

                 and my other colleagues on both sides of the

                 aisle with working so tenaciously to get this

                 very important package of bills on the floor.

                            And I know that in my district

                 there are few issues of greater importance to

                 the people who pay taxes in this state and the

                 people who rely on services from this state.

                            I have a few remarks that deal with

                 both bills, and I'll place them together

                 because it's difficult to separate them.

                            We're dealing, on the one hand,

                 with a constitutional amendment of very

                 practical but somewhat sweeping consequences

                 in changing the date for budget deadlines and

                 all of the commensurate submission deadlines

                 that go with that.  And, on the other hand,

                 S2, which we'll be taking up in just a few

                 moments, deals with the implementation.

                            There are key aspects to this that



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                 are going to be so beneficial to all of our

                 constituents that we really need to develop a

                 comfort level in explaining them and

                 demystifying this process.

                            When people are angry with us at

                 home, they don't understand day to day and

                 minute to minute what our committee processes

                 are, what the relations are between the two

                 houses of the Legislature or the Executive and

                 the Legislature, both branches.  They simply

                 tar us all with the same brush.

                            And we often hear that people want

                 to throw all the bums out.  And who can blame

                 them?  Because in the end, if we don't do our

                 job correctly, it is government that has

                 failed them, and they're not able to

                 differentiate where the blame game is.

                            These bills together will eliminate

                 that situation.  These two measures, when

                 implemented, will create a framework where we

                 will have the kind of communications between

                 the government that is in the executive branch

                 and the government in the legislative branch.

                 It will create the kind of cooperative spirit

                 that has been altogether too haphazard, at



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                 least within the last 19 years.

                            For instance, the consensus

                 forecasting process to be completed by

                 March 1st will give us all a set of figures

                 that we can analyze.  We will have the same

                 numbers.  We will have the same information.

                 It will be a starting point where we will all

                 be able to talk as reasonable people about

                 what we expect to do, what we believe we need

                 to do.

                            By asking the Governor to give us a

                 four-year financial projection, we will all

                 then have the ability to make long-term

                 determinations that right now are all too much

                 guesswork for everybody.

                            By requiring the executive branch

                 to give information about journal voucher

                 transfers, there will no longer be any mystery

                 about where the money went.

                            There has been so much confusion

                 about one agency not having the funds that the

                 Legislature thought were appropriated to that

                 agency, not being able to implement activities

                 within an agency because in effect the

                 responsibility had been shifted to another



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                 agency or the funds had been drained off for

                 another, maybe worthy project -- but the

                 Legislature that had empowered those agencies

                 to do that job was left wondering what was

                 happening.

                            These are far too complex matters

                 to burden each taxpayer with.  They need the

                 satisfaction of knowing that we care enough to

                 identify what's wrong with this process and

                 that we're prepared to fix it.

                            Now, together, these may look like

                 very weighty measures.  There are pages and

                 pages of hard work that have been refined over

                 a number of years.  But I'm proud of the fact

                 that they are S1 and S2 in this house and that

                 we are starting off this year on the right

                 foot and we are sending a message to the

                 taxpayers of this state that we will not

                 tolerate the kind of late and irresponsible

                 budget activities that have all too often been

                 commonplace in this capital.

                            Thank you, Madam President.

                            And thank you again, Senator Bruno,

                 for your leadership.

                            THE PRESIDENT:    Senator



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                 Schneiderman.

                            SENATOR SCHNEIDERMAN:    Thank you,

                 Madam President.  On the bill.

                            We're now voting on Senate 2A,

                 Calendar 66, which passed unanimously last

                 year and many of us have been pleased to

                 support.  We will then move on to Senate 1A,

                 that has generated a slightly more lively

                 debate.

                            But I certainly think that there's

                 very little argument with the provisions here.

                 I note that most of them, in one form or

                 another, with slight variations, have been

                 proposed at one time or another in both

                 houses, in the Assembly and the Senate.

                            And it would be nice, as we'll

                 discuss in the debate on S1, if we could

                 actually get something done by way of budget

                 reform this year.  Certainly there's no

                 objection on my part to any of the revisions

                 in this bill.

                            I hope, though, that we can

                 recognize the need, as we move forward, to

                 actually do something different than we have

                 in past years as far as moving this process of



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                 budget reform along this year.

                            Thank you, Madam President.

                            THE PRESIDENT:    Senator Robach.

                            SENATOR ROBACH:    I'm going to get

                 up and agree with Senator Joe Bruno and Eric

                 Schneiderman.  I hope that's a harbinger of

                 things to come.

                            This bill, for me, I guess I take a

                 little bit of a different approach, having

                 come from the other house.  I am very happy to

                 be here now, where this has been driven.  I'm

                 talking about both these bills, S1 and S2.

                 And I don't think, historically, that the

                 houses have taken a similar view.  But I am

                 encouraged to hear Senator Bruno tell me that

                 we are moving in that direction.

                            Everywhere I go, the public expects

                 us to be a little bit more pragmatic, a little

                 bit more logical.  And I've never been able to

                 answer the question as to why we don't get a

                 budget done on time.  And the answer is

                 because we have to have something, as my

                 grandmother would say, something where the

                 rubber hits the road, something that's real.

                            To comment on Senator Diaz's



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                 question, there is no doubt in my mind that

                 for a long time -- in my days in the Assembly,

                 I was told:  Go back and tell people that the

                 reason why the budget is late is so we can

                 work to get you more of what you want.

                            The reality really is we owe the

                 public just the opposite.  We have to tell

                 them, whether they're a school district,

                 whether they're a healthcare provider, whether

                 they're a not-for-profit agency, whether

                 they're a municipality, what we're going to

                 give them, what our budget holds, and do that

                 in a timely fashion.

                            These two bills do that.  They make

                 structural reform, they put teeth in it.  And

                 I'm hopeful that, as other comments indicated,

                 this will pass unanimously here and hopefully

                 something similar or exactly these bills will

                 pass the other house to again really make the

                 change the public is asking for once and for

                 all.

                            Thank you, Madam President.

                            THE PRESIDENT:    Senator Krueger.

                            SENATOR LIZ KRUEGER:    Thank you,

                 Madam President.  On the bill briefly.



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                            THE PRESIDENT:    You may proceed.

                            SENATOR LIZ KRUEGER:    Thank you.

                            Yes, I am in support of this bill,

                 as I was last year, Senator Bruno.  And we had

                 a discussion about this bill last year, and I

                 urged you to consider some additional reforms.

                 And I still have a package of about eight

                 budget reform bills that I hope you will take

                 a look at.

                            And I read your package that you

                 released last week.  And truthfully I hoped to

                 find things that I would feel strongly I

                 disagreed with you on.  But again, perhaps not

                 a surprise, I'm such a strong believer in the

                 need to reform our budget process that I find

                 myself in agreement with most of the proposals

                 you were making.

                            And so while I will be voting for

                 your bill today, what I would urge is for us

                 to reevaluate how we go forward.  Last year we

                 started out early passing this bill, and yet

                 we finished session not having accomplished

                 anything.  And you in your own materials talk

                 about ten years of dedication to some level of

                 reform to our budget process.  And yet it's



                                                        154



                 ten years later, and we haven't gotten there.

                            I would argue -- or not argue, I

                 would propose that the Democrats in the

                 Senate, the Republicans in the Senate, the

                 Democrats in the Assembly and the Republicans

                 in the Assembly all have budget reform

                 proposals.  There's probably a package of

                 30 bills between the four caucuses.

                            That if we want to really move

                 beyond unanimously passing your bill here

                 today, what you should do in your leadership

                 position is immediately call for, I would

                 argue, a five-way meeting of Senate

                 Republicans, Senate Democrats, Assembly

                 Democrats, Assembly Republicans, and of course

                 the Governor, who's an important player in

                 this, sit down in a room, use the word

                 "conference" or not as you choose, figure out

                 where we agree and we disagree, and get

                 something moved that's a same-as bill early in

                 the session, not this bill today and something

                 else in the Assembly.

                            Because I frankly don't want to go

                 back and explain, as Nancy Larraine Hoffmann

                 pointed out, Senator Hoffmann, and Senator



                                                        155



                 Robach, how do we explain to our constituents

                 why we never come to closure, why we never

                 pass legislation that we all seem to agree on.

                            So I will hope that what I believe

                 will be almost unanimous support today for S2A

                 could translate into a call almost immediately

                 by you, and perhaps Senator David Paterson,

                 for both houses and Governor Pataki to sit

                 down with your package of bills and proposals,

                 ours and both caucuses in the Assembly, and

                 then let's get same-as bills through both

                 houses up here ASAP.

                            That's how we'll prove to our

                 constituents that it's not just another year

                 like the ten years before of people saying

                 they want budget reform and not moving it

                 forward.

                            So that is my recommendation as an

                 addition to what we do here today.

                            Thank you, Madam President.

                            THE PRESIDENT:    Does any other

                 member wish to be heard?

                            Then the debate is closed.

                            Read the last section.

                            THE SECRETARY:    Section 19.  This



                                                        156



                 act shall take effect immediately.

                            THE PRESIDENT:    Call the roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 59.

                            THE PRESIDENT:    The bill is

                 passed.

                            Senator Onorato.

                            SENATOR ONORATO:    Madam

                 President, may we have I have unanimous

                 consent to be recorded in the negative on

                 Calendar 16.

                            THE PRESIDENT:    Hearing no

                 objection, you will be so recorded as voting

                 in the negative.

                            Senator Bruno.

                            SENATOR BRUNO:    Madam President,

                 can we ask for an immediate meeting of the

                 Local Government Committee in the Majority

                 Conference Room.

                            THE PRESIDENT:    Immediate meeting

                 of the Local Government Committee in the

                 Majority Conference Room.

                            SENATOR BRUNO:    And Senator

                 Montgomery to be recognized.

                            THE PRESIDENT:    Senator



                                                        157



                 Montgomery.

                            SENATOR MONTGOMERY:    Thank you,

                 Senator Bruno.

                            Madam President, I would like

                 unanimous consent to be recorded in the

                 negative on Calendars 16 and 42.

                            THE PRESIDENT:    Hearing no

                 objection, you will be so recorded as voting

                 in the negative.

                            Senator Bruno.

                            SENATOR BRUNO:    Madam President,

                 can we at this time take up Calendar 65.

                            THE PRESIDENT:    The Secretary

                 will read.

                            THE SECRETARY:    Calendar Number

                 65, by Senator Bruno, Senate Print 1A,

                 Concurrent Resolution of the Senate and

                 Assembly proposing amendments to Article 7 of

                 the Constitution.

                            THE PRESIDENT:    Senator

                 Schneiderman.

                            SENATOR SCHNEIDERMAN:    Yes, Madam

                 President, on the bill.  As Senator Bruno has

                 explained S1A and S2A together, I don't think

                 we need a further explanation.



                                                        158



                            While I supported Senator Bruno and

                 enjoyed joining him basking in all of the warm

                 sentiment that we just received in the debate

                 on Senate 2A, I voted against the predecessor

                 to this bill, and I'll be voting against this

                 bill again.  And I think the arguments that

                 have been made really fall into two

                 categories.

                            First of all, what is in this bill

                 that is not in Senate 2A -- that is really

                 something that I don't see how we as a house

                 of the Legislature can support -- is a

                 provision that transfers massive power from

                 the Legislature to the Governor.

                            This provides that if the

                 Legislature -- if we fail to agree to an

                 on-time budget, which the Governor presumably

                 can hold up through his own intransigence, the

                 previous year's fiscal budget goes into place

                 and the Governor is empowered, free of any

                 constraints by the Legislature, to reduce

                 spending.

                            So with reference to the community

                 programs that Reverend Diaz was talking about,

                 the community programs might go through if



                                                        159



                 they were in last year's budget, or the

                 Governor might decide to cut them, and we

                 don't have any control over that.

                            That's a fundamental flaw, in my

                 view, in this legislation.  It was a flaw

                 before, it's a flaw now.  I don't think it's

                 going to pass the Assembly, so I don't think

                 we're going to have to deal with it.

                            But I would urge that this is the

                 kind of thing that requires us to not just to

                 dig our heels in and continue to push the same

                 piece of legislation, but to actually look at

                 the underlying structural balance of the

                 government, the need to keep the Legislature

                 and the Governor involved in the budget

                 process.

                            The second problem I have here

                 really has more to do with the process.  And

                 it's nice that we're here saying, you know, we

                 passed these bills, Senate 1 and Senate 2 --

                 although, as Senator Bruno has acknowledged,

                 we've been doing that for ten years.  It

                 doesn't seem that the number of the bills is

                 having a big impact on this.

                            And I think that the truth of the



                                                        160



                 matter is that we now have degenerated into a

                 pattern with the Assembly where they're

                 passing one-house budget reform bills, we're

                 passing one-house budget reform bills, and

                 there appears to be very little effort to get

                 outside of this stalemate.

                            This bill is not here as a result

                 of extensive inquiry and hearings by the

                 Finance Committee, an effort to evaluate all

                 of the fine academic literature on the budget

                 process that's out there.  This bill was

                 amended Friday, it's just been rushed through

                 Finance and Rules, there haven't been hearings

                 of the Finance Committee.

                            And since last year, when we passed

                 a virtually identical bill, there's been a lot

                 of discussion of the problems with New York

                 State's budget process.  I note in particular

                 the November 13th paper by the Citizens Budget

                 Commission by Professor Gerald Benjamin:

                 "Reform in New York:  The Budget, the

                 Legislature, and the Governance Process,"

                 which provides detailed analysis and

                 recommendations, none of which is addressed in

                 this bill, which just reiterates what we did



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                 last year.

                            I note that in the last few weeks,

                 there have been editorials across the state.

                 We find that the New York Times is in

                 agreement with the Elmira Star Gazette in

                 calling for reform of the budget process.

                            And unfortunately, as pointed out

                 in some of these editorials, we're approaching

                 an extremely unfortunate and dubious

                 anniversary.  If we don't pass the budget on

                 time this year, it will be twenty years of

                 late budgets.  Twenty years of late budgets.

                            The process clearly is broken.  But

                 I would suggest that the effort to throw bills

                 out on the table without really further

                 evaluating them doesn't necessarily move the

                 process forward.

                            Somehow we have to get together

                 with the Assembly to come up with something

                 that can actually pass both houses.  And until

                 we're meeting with them, until we're really

                 moving something different than the same bills

                 they passed last year and the same bills we

                 passed last year, I don't think we can fairly

                 say to the public we are really doing



                                                        162



                 everything we can do to reform the broken

                 budget process.

                            So I will once again be voting no

                 on this bill.  I do think that there are

                 things we can do to get the budget passed on

                 time.  Most drastically, I commend to you all

                 Senator Paterson's bill requiring that we

                 remain in session every day until the budget

                 is passed if we miss the deadline.  I assure

                 you that that would probably have a dramatic

                 effect.

                            Short of such drastic action,

                 there's a lot we can do.  We're not doing it

                 with this bill.  And I vote no and suggest

                 that everyone vote no.

                            Thank you, Madam President.

                            THE PRESIDENT:    Does any other

                 member wish to be heard?

                            Senator Sabini.

                            SENATOR SABINI:    Thank you, Madam

                 President.  On the bill.

                            THE PRESIDENT:    You may proceed

                 on the bill.

                            SENATOR SABINI:    I commend the

                 sponsor for his judgment and leadership last



                                                        163



                 year in the budget crisis that we weathered

                 through, and admire, really, the tack that

                 this body took under his leadership.

                            And I, for one, said repeatedly

                 last year that there really is no pride in us

                 passing budgets late.  I agree with the

                 principle of that.

                            As Senator Robach points out, you

                 know, there's lots of rationales to pass the

                 budget late, but the public, the people we

                 represent, buy none of them.  The only people

                 who haven't figured out that it's a shell game

                 are the members of the Legislature and the

                 interest groups who feed at the troughs that

                 we fill for them every year.

                            And so I too would like to see

                 budget reform.  But the best budget reform, I

                 think, is political will.  The women and men

                 of the Legislature can pass an on-time budget

                 if we want to.  We really don't need a

                 contraption to do it.  We have it now; it's

                 called a deadline.  And we can meet it if we

                 choose to meet it.  But we choose not to

                 because it's convenient, it serves our

                 interests, it serves the interests of the



                                                        164



                 people who lobby us.

                            And while I think we do need some

                 reform, I think that the default process in

                 this bill allows whatever house of the

                 Legislature is of the same party as the

                 Governor to in effect play stallball against

                 the other, to play four corners, to keep the

                 process stymied until such time as the

                 Governor gets what he wants.  And I suspect

                 that this bill would not be proposed, if the

                 Governor was of another party, by the

                 Majority.

                            So I share the desire to change the

                 process.  I will continue to speak out against

                 late budgets.  But I don't think that

                 ultimately this bill is the answer.

                            I hope that as a collective group,

                 as Senator Liz Krueger said, using the wisdom

                 of the members of the Legislature in both

                 houses in both parties, we can come up with a

                 package that can pass and mean something to

                 the people of the State of New York.

                            But until such time as we do that,

                 I fear that this bill really gives one house

                 and the Governor way too much say over what



                                                        165



                 ultimately will be the budget and encourages,

                 in effect, legislative inaction rather than

                 legislative action on fiscal matters of this

                 state.

                            Thank you.

                            THE PRESIDENT:    Does any other

                 member wish to be heard?

                            Senator Diaz.

                            SENATOR DIAZ:    Thank you, Madam

                 President.  On the bill.

                            THE PRESIDENT:    You may proceed

                 on the bill.

                            SENATOR DIAZ:    I am relatively

                 new, a new legislator.  I served one year in

                 the City Council of the City of New York, and

                 this is my second year here.

                            But I have learned to be afraid of

                 three words in this process.  And those three

                 words, I heard the Governor use them again and

                 again this morning in his budget explanation.

                 The three words are "reform" -- I have learned

                 that when we hear "reform," meaning minority

                 cuts, minority groups get hurt.

                            The other word is "restructuring

                 government."  I'm afraid of that word too.  I



                                                        166



                 have learned that every time that something

                 like that happens.

                            And the other word is "cost

                 savings."

                            Reform, restructuring, and cost

                 savings, those three words panic me, because

                 they always hurt my community.

                            And listening to the Governor this

                 morning talking about reform, restructuring,

                 cost savings, I'm afraid to give him more

                 power than what he has.  So I cannot support

                 this one.

                            Thank you very much.

                            THE PRESIDENT:    Does any other

                 member wish to be heard?

                            Senator Bruno.

                            SENATOR BRUNO:    Can I, just by

                 way of explanation -- because I appreciate

                 your support for Senate 2A on both sides of

                 the aisle.

                            If the Governor, because of a

                 shortfall, if this were in place, wants to cut

                 or has to cut something, he would have to do

                 it across the board, for discretionary funds

                 only.  Which means that if there were items



                                                        167



                 both sides of the aisle, if he had to cut, it

                 might be a 3 percent cut, both sides of the

                 aisle, the Assembly as well, uniformly.  The

                 Governor cannot pick and choose.

                            If he likes Senator Diaz, he

                 supports him, if he doesn't think too kindly

                 of another one, he doesn't -- it doesn't work

                 that way.  And he can only touch discretionary

                 funds, not the mandated programs.

                            So I just clarify that, Madam

                 President, and again appreciate the support

                 and would recommend we move the bill.

                            THE PRESIDENT:    The Secretary

                 will call the roll on the resolution.

                            (The Secretary called the roll.)

                            THE PRESIDENT:    Senator

                 DeFrancisco, to explain your vote.

                            SENATOR DeFRANCISCO:    Yes, I'm

                 going to vote yes.  I just wanted to make a

                 couple of points.

                            There's been some criticism about

                 the language of this particular bill.  And in

                 order to have conference committees, you've

                 got to have bills in order for you to be in a

                 position to negotiate those bills.



                                                        168



                            And it's easy to blame either the

                 Governor or the Assembly or anyone else.  But

                 when we pass this set of bills every year the

                 first time, the first bill that we do, and the

                 Assembly I think for the first or maybe second

                 time passes actual bills when we're closing

                 session, well after the budget is over, it's

                 pretty tough to negotiate.

                            So no matter whose fault it is, the

                 fact is it's got to be resolved.  Enough is

                 enough.  The Senate has shown their goodwill.

                 A couple of years ago, remember, we called

                 budget hearings.  We were asking the Assembly

                 to show up.  Well, we should all get together,

                 Democrat or Republican, to get this thing off

                 the dime, get committees going and have this

                 thing resolved once and for all.

                            Although the public is frustrated,

                 I don't think anyone could experience the

                 frustration of all of us who have to go

                 through this process each year.

                            THE PRESIDENT:    Senator

                 DeFrancisco, you will be so recorded as voting

                 in the affirmative.

                            Senator Oppenheimer, to explain



                                                        169



                 your vote?

                            SENATOR OPPENHEIMER:    Well, I

                 would like to be recorded as a no vote.

                            THE PRESIDENT:    The Secretary

                 will announce the results.

                            THE SECRETARY:    Those recorded in

                 the negative on Calendar Number 65 are

                 Senators Andrews, Breslin, Connor, Diaz,

                 Dilán, Duane, Gonzalez, Hassell-Thompson, L.

                 Krueger, Montgomery, Onorato, Oppenheimer,

                 Parker, Paterson, Schneiderman, A. Smith,

                 Stachowski, Stavisky.  Also Senator Lachman.

                 Also Senator Sabini.

                            Ayes, 39.  Nays, 20.

                            THE PRESIDENT:    The resolution is

                 adopted.

                            Senator Connor.

                            SENATOR CONNOR:    Thank you, Madam

                 President.  May I have unanimous consent to be

                 recorded in the negative on Calendar Number

                 16.

                            THE PRESIDENT:    Hearing no

                 objection, you will be so recorded as voting

                 in the negative, Senator.

                            Senator Skelos.



                                                        170



                            SENATOR SKELOS:    Madam President,

                 if we could return to reports of standing

                 committees, I believe there's several reports

                 at the desk.  And I ask that they be read at

                 this time.

                            THE PRESIDENT:    Reports of

                 standing committees.

                            The Secretary will read.

                            THE SECRETARY:    Senator Farley,

                 from the Committee on Banks, reports the

                 following bills:

                            Senate Print 2242, by Senator

                 Farley, an act to amend the Banking Law;

                            2262, by Senator Farley, an act to

                 amend the Banking Law;

                            2264, by Senator Farley, an act to

                 amend the Banking Law;

                            3425, by Senator Farley, an act to

                 amend the Banking Law;

                            And Senate Print 4575, by Senator

                 Farley, an act to amend the Banking Law.

                            Senator Little, from the Committee

                 on Local Government, reports:

                            Senate Print 136, by Senator

                 Maltese, an act to amend the Municipal Home



                                                        171



                 Rule Law;

                            2960, by Senator Alesi, an act to

                 amend the General Municipal Law;

                            3556, by Senator Bruno, an act

                 authorizing;

                            4925, by Senator Little, an act to

                 amend the Local Finance Law;

                            And Senate Print 5884, by Senator

                 Trunzo, an act to amend the General Municipal

                 Law.

                            All bills ordered direct to third

                 reading.

                            THE PRESIDENT:    Without

                 objection, all bills ordered direct to third

                 reading.

                            Senator Skelos.

                            SENATOR SKELOS:    Madam President,

                 is there any housekeeping at the desk?

                            THE PRESIDENT:    No, there isn't,

                 Senator Skelos.

                            Senator Brown.

                            SENATOR BROWN:    Thank you, Madam

                 President.  I request unanimous consent to be

                 recorded in the negative on Calendar Number

                 65.



                                                        172



                            THE PRESIDENT:    Hearing no

                 objection, you will be so recorded as voting

                 in the negative.

                            SENATOR BROWN:    Thank you.

                            THE PRESIDENT:    Senator Skelos.

                            SENATOR SKELOS:    Madam President,

                 there being no further business, I move we

                 adjourn until Wednesday, January 21st,

                 11:00 a.m.

                            THE PRESIDENT:    On motion, the

                 Senate stands adjourned until Wednesday,

                 January 21st, at 11:00 a.m.

                            (Whereupon, at 3:58 p.m., the

                 Senate adjourned.)