Regular Session - June 2, 2004

    

 
                                                        2952



                           NEW YORK STATE SENATE





                          THE STENOGRAPHIC RECORD









                             ALBANY, NEW YORK

                               June 2, 2004

                                 3:07 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:    Reverend Edward

                 Rizzo has joined us this afternoon.  He's

                 pastor of Gospel Community Church in West

                 Sayville, and he will give an invocation.

                            REVEREND RIZZO:    I just ask that

                 you bow your heads, if you will.

                            Father, we thank You as we come to

                 You this day.  And we thank You that your

                 Scriptures remind us that there is no power

                 but of God and that the powers that there be

                 are ordained of God.

                            And we thank You that You have

                 ordained marriage and the family.  We thank

                 You that You have ordained church, and we

                 thank You that You have ordained government.

                            And, Father, the Book of Esther

                 reminds us that You chose her to come into the



                                                        2954



                 Kingdom on a day just as this, O God, for a

                 time just as this.

                            And, Lord, we thank You now for

                 these Senators that You've called into

                 government for a time as this.  We ask You to

                 give them courage to do that which is right

                 and righteous in God's sight.

                            Lord, we ask You to give them

                 strength, strength that they might even be

                 able to go against the policies and the

                 thoughts of even public opinion.

                            And, Father, we ask You to give

                 them wisdom, the wisdom of Solomon, that they

                 might rescue the fallen family even now,

                 O God.  Father, we ask You to give them the

                 wisdom to rescue even those that are innocent,

                 especially the unborn as we stand here.

                            And, Father, we thank You for all

                 You're doing in the midst of all we see in the

                 world.  We ask You to bless the Senators now,

                 men and women here, O God.  We ask You to

                 bless them richly with all this that we've

                 asked.

                            And, Father, we thank You now in

                 the precious name of the one that we believe



                                                        2955



                 gave his life for us.  His name is Jesus.

                            Amen.

                            THE PRESIDENT:    Reading of the

                 Journal.

                            THE SECRETARY:    In Senate,

                 Tuesday, June 1st, the Senate met pursuant to

                 adjournment.  The Journal of Monday, May 31st,

                 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.

                            Motions and resolutions.

                            Senator Fuschillo.

                            SENATOR FUSCHILLO:    Thank you,

                 Madam President.

                            Amendments are offered to the

                 following Third Reading Calendar bills:

                            Sponsored by Senator Rath, page

                 number 23, Calendar Number 556, Senate Print



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                 Number 6129;

                            By Senator Rath, page number 23,

                 Calendar Number 557, Senate Print Number 6131;

                            Sponsored by Senator McGee, page

                 number 48, Calendar Number 1020, Senate Print

                 Number 7010;

                            Sponsored by Senator Bonacic, page

                 number 81, Calendar Number 1338, Senate Print

                 Number 5449.

                            I now move that these bills retain

                 their place on the order of Third Reading

                 Calendar.

                            THE PRESIDENT:    The amendments

                 are received, and the bills will retain their

                 place on the Third Reading Calendar.

                            Senator Bruno.

                            SENATOR BRUNO:    Madam President,

                 I believe that there is a privileged

                 resolution at the desk by Senator Skelos.  I

                 would ask that it now be read in its entirety

                 and move for its immediate adoption.

                            THE PRESIDENT:    The Secretary

                 will read.

                            THE SECRETARY:    By Senators

                 Skelos, Bruno, Hannon and Meier, Legislative



                                                        2957



                 Resolution Number 5313, urging New York

                 State's United States Senators and members of

                 the United States House of Representatives to

                 pursue a more equitable federal Medicaid

                 reimbursement for New York State.

                            "WHEREAS, It is the sense of this

                 Legislative Body to effectuate public policies

                 that best serve the people of New York State;

                 and

                            "WHEREAS, Medicaid is a federal

                 program requiring the states to provide

                 comprehensive health care to their

                 disadvantaged and disabled residents; and

                            "WHEREAS, Notwithstanding a

                 temporary 3 percent increase, the federal

                 government reimburses 50 percent of New York

                 State's Medicaid-eligible expenditures, and

                 New York State requires an aggregate

                 15 percent contribution from its county

                 governments; and

                            "WHEREAS, New York State's

                 reimbursement from the federal government is

                 lower than 39 other states and the District of

                 Columbia; and

                            "WHEREAS, The existing



                                                        2958



                 reimbursement mechanism is solely based on a

                 state's relative wealth, while failing to

                 incorporate other salient factors, including

                 cost of living, cost of care, and concentrated

                 need; and

                            "WHEREAS, Similar states like

                 Florida, Michigan and Pennsylvania are

                 reimbursed at a higher percentage for their

                 Medicaid-eligible expenditures than New York

                 State, and others, like Arkansas, enjoy a

                 reimbursement level in excess of 70 percent;

                 and

                            "WHEREAS, Escalating health care

                 costs, generally, have generated precipitous

                 increases in Medicaid's programmatic expenses;

                 and

                            "WHEREAS, Medicaid's rising

                 programmatic expenses have imposed a

                 tremendous burden on both the New York State

                 budget and budgets adopted by its various

                 counties; and

                            "WHEREAS, The adoption of a more

                 equitable federal Medicaid reimbursement

                 methodology would increase New York State's

                 reimbursement level and enable New York State



                                                        2959



                 to alleviate county budgetary pressures; and

                            "WHEREAS, Such action would augment

                 this Legislative Body's ongoing effort to

                 reduce the Medicaid program's cost and achieve

                 new efficiencies; now, therefore, be it

                            "RESOLVED, That this Legislative

                 Body pause in its deliberations to urge

                 New York State's representatives in the United

                 States Congress to pursue a federal Medicaid

                 reimbursement mechanism that more

                 appropriately reflects New York State's true

                 circumstances; and be it further

                            "RESOLVED, That copies of this

                 resolution, suitably engrossed, be transmitted

                 to New York State's two United States Senators

                 and 29 members of the United States House of

                 Representatives."

                            THE PRESIDENT:    Senator Bruno.

                            SENATOR BRUNO:    Madam President,

                 thank you.

                            I want to really commend Senator

                 Skelos for his leadership on this critical

                 issue of really calling to the federal

                 government's attention how they have

                 disadvantaged the people of New York State.



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                 It is inequitable.  It is unfair.

                            In June, this house created a

                 Medicaid reform task force.  We have 40

                 recommendations, and many of them hopefully

                 will be implemented.  And the bottom line is

                 to provide a quality of health care that the

                 citizens of this state deserve in a way that

                 is affordable.

                            It isn't as if the counties in

                 New York and the people of New York haven't

                 been paying their fair share.  We heard in the

                 resolution that New York State gets reimbursed

                 less than 39 other states.  Now, that is just

                 wrong.  Something like 28 counties in this

                 state had to raise taxes over 10 percent to

                 pay escalating Medicaid costs.

                            Costs of long-term care here in

                 this state in the average are like $70,000 a

                 year; 39 percent increase in prescription

                 drugs that people have to have just to stay

                 well and get well.

                            So we're appealing, through Senator

                 Skelos's resolution, to our delegation -- the

                 Senators, Congressional people -- to the White

                 House, to all of the people that serve in



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                 Washington, for equity and fairness for the

                 people of New York, with a recognition that we

                 are presently paying twice the national

                 average.  I believe it approaches $1,400 per

                 citizen here in this state, versus a national

                 average of half that amount, a little under

                 $700.

                            Senators Meier and Hannon

                 cochaired, with other members serving, to do

                 something about these escalating costs.  So

                 this is an appeal for equity, for fairness for

                 all the people of New York.

                            And again, I applaud Senator Skelos

                 for his leadership, recognizing that there in

                 Nassau County, on the Island, escalating costs

                 are truly prohibitive and we are mandated that

                 we provide a quality of health care that each

                 and every citizen of this state deserves.

                            Thank you for your support.  And

                 thank you, Madam President.

                            THE PRESIDENT:    Senator Skelos.

                            SENATOR SKELOS:    Thank you very

                 much, Madam President.

                            And thank you, Senator Bruno,

                 number one, for establishing the task force



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                 this past June and the great service of

                 Senators Hannon and Meier, the members of the

                 task force, I know Minority Leader David

                 Paterson -- truly a bipartisan task force.

                            You know, a distinguished U.S.

                 Senator, Patrick Moynihan, always pointed out

                 through his years in office that New York

                 State was really gypped by the federal

                 government, that we did not get anywhere near

                 the amount of money back that we had sent to

                 Washington.

                            One of the principal causes of this

                 disparity is really the Medicaid reimbursement

                 formula that fails to take into consideration

                 New York State's higher regional costs and

                 New York City's concentrated needs.

                            Today's resolution really just

                 calls upon our representatives in Washington

                 to point out how we are being shortchanged in

                 New York State and help us resolve an issue

                 that has generated the concern of local

                 elected officials and editorial boards.

                            Unfortunately, what is not

                 mentioned by many of the elected officials and

                 the editorial boards -- and the truth is that



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                 Medicaid is not an unfunded mandate on local

                 governments, it's an underfunded federal

                 mandate on New York State.

                            Despite our higher costs and

                 greater need, New York State receives the

                 minimum 50 percent federal reimbursement.  I

                 believe this year it's 53 percent.  That

                 places us at the bottom 20 percent of states,

                 far below those like Arkansas, that receives

                 well in excess of 70 percent.

                            Our predecessors in the Legislature

                 in the early '60s -- Senator Marchi was

                 there -- created a Medicaid program that

                 provided comprehensive care to those in need.

                 And they also enabled county governments to

                 assess local sales taxes to pay their

                 aggregate 15 percent share.  And because of

                 the rising cost of health care, we've

                 provided, as a Legislature, additional relief

                 through targeted state aid, overburden aid.

                            We also proposed a bipartisan set

                 of reforms, that Senator Bruno mentioned, to

                 rein in the cost and achieve new efficiencies.

                 But that is really only half the equation.  We

                 need help from Washington.



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                            Some have proposed a state takeover

                 of all or part of Medicaid's local costs.

                 Now, this may be attractive, but it fails to

                 recognize the disproportionate burden it would

                 impose on taxpayers in different regions of

                 the state and regional strife that would

                 follow.

                            It also fails to recognize that

                 county governments are the administrators of

                 this program, serving as the first line of

                 defense against fraud and abuse.  Such a state

                 takeover or cap would remove any incentive to

                 control costs and produce an even larger

                 burden in the future.

                            Now, we are one state, and we need

                 a comprehensive solution.  Through the hard

                 work of Senator Hannon and Senator Meier, and

                 the involvement of Minority Leader David

                 Paterson, the Senate, the whole Senate has put

                 forth a bipartisan, a bipartisan plan to lower

                 costs.  This was an important first step.

                            Now we must obtain New York State's

                 fair share from the federal government.

                 Simple math indicates that even a modest

                 increase to a 56.5 percent reimbursement this



                                                        2965



                 year, this raise would bring us to the same

                 level as Florida and Michigan, would allow us

                 to pass almost $3 billion in budget relief to

                 local governments, or reduce their share by

                 roughly 43 percent -- up from 50 percent to

                 56.5 percent.

                            Combined with the savings outlined

                 by the Medicaid reform task force, we could

                 alleviate the budgetary pressures facing so

                 many of our counties and also the state.

                            I cannot overstate -- and I thank

                 you, Senator Bruno, for allowing this

                 resolution to come to a vote -- how important

                 it is that our federal representatives, that

                 the federal government steps to the plate and

                 they understand the need that New York State

                 has for a higher reimbursement rate to

                 alleviate the tax burden on our local

                 governments, to alleviate a burden on the

                 state government, but also to maintain quality

                 of care for those who need it.

                            THE PRESIDENT:    Senator

                 Marcellino.

                            SENATOR MARCELLINO:    Thank you,

                 Madam President.



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                            I rise to support this resolution

                 and to thank my colleague Senator Skelos for

                 taking a leadership position on this very

                 important procedure, and to thank Senator

                 Bruno for throwing his support behind this

                 important measure.

                            The people of this state are in

                 need of assistance, and especially in the

                 districts where I live, where Medicaid funding

                 and Medicaid payout is increasing along with

                 the cost of health care overall.  Medicaid was

                 designed to take care of people in need, not

                 put people into need.

                            And the way the program is funded

                 today, with a lack of funding coming from the

                 federal government, we need more help.  Our

                 counties statewide are in trouble, as Senator

                 Skelos pointed out.  I don't want to repeat

                 all the numbers, but he has them and he's

                 perfectly correct in his research and his

                 statement, and I support it.

                            And I think we should all rise up

                 and reach out to our federally elected

                 officials and say, help us in Washington and

                 get the proper amount of aid to this state



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                 that is richly deserved.

                            Most of the money for Medicaid goes

                 to senior citizens for long-term care.  So

                 when people tell us you should cut programs,

                 you should cut Medicaid, where are we going to

                 cut?  We're going to be cutting those people

                 who are in most need.  And then the very young

                 who are in most need.

                            So it's very difficult to say cut,

                 cut, cut on something like this.  This is a

                 most important program for people who truly

                 require it.

                            What we need is assistance from the

                 federal government.  And we're not looking for

                 a total takeover, we're just looking for a

                 little help.  And if they can come out and, as

                 the Senator pointed out, just give us a slight

                 bump in the federal numbers, that will go a

                 long way to providing tax relief to our

                 counties and municipalities, something they

                 are in dire need of.

                            So, once again, I urge our federal

                 officials to support this measure, and I thank

                 Senator Skelos again for his leadership

                 position on this project.



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                            THE PRESIDENT:    Senator Breslin.

                            SENATOR BRESLIN:    Thank you,

                 Madam President.

                            I too salute Senator Skelos for his

                 initiative with this resolution, and to

                 Senator Bruno, who allowed a joint task force

                 to be formed and operate that included our

                 Minority Leader, David Paterson.

                            Because this is not a partisan

                 issue.  This is an issue of being shortchanged

                 by the federal government.  They look at the

                 incomes of states, where they really should be

                 looking at the poverty of states.

                            And the poverty of New York, with a

                 poverty rate in excess of 11 percent -- in a

                 report issued by the Democratic minority, if

                 they switched it to the poverty, which is the

                 real cause, we could save over a billion

                 dollars a year.  A billion dollars a year, as

                 Senator Skelos so aptly pointed out, would do

                 much to eliminate this financial crisis.

                            And we look to our 62 counties and

                 what they have to do in raising taxes.  And as

                 Senator Bruno aptly pointed out, 39 of which

                 had double-digit tax increases.



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                            And in Albany County, the county

                 that I represent, the entire property tax

                 falls short, falls short of covering just

                 Medicaid.  It's still $14 million short.  And

                 where is that burden placed?  As Senator

                 Marcellino pointed out, it's on the backs of

                 the middle class and the poor, who are

                 homeowners on fixed incomes, and creating a

                 need for them.

                            So we should continue to make this

                 a bipartisan issue and continue to call out to

                 the federal government to be fair in the way

                 it treats Medicaid universally.  So for that

                 reason, I hope all of us in this house join in

                 this resolution in a very nonpartisan way.

                            Thank you, Madam President.

                            THE PRESIDENT:    Senator

                 DeFrancisco.

                            SENATOR DeFRANCISCO:    Yes, I rise

                 to support the resolution.

                            I think every county is going

                 through the same thing at this point in time.

                 Our county happens to be calling for a

                 1 percent increase in the sales tax, which

                 affects everyone, poor and not-so-poor alike,



                                                        2970



                 but the main burden goes on those individuals

                 on a fixed income.

                            The reason they're raising the tax

                 is because of -- that they want to raise the

                 tax, to get our approval, is because of the

                 escalating costs of Medicaid.

                            We definitely should have our fair

                 share.  It's just not right that we are not

                 getting our fair share.  How could we be the

                 37th state as far as the percentages of

                 Medicaid to be given out?

                            Secondly, Senator Bruno rightfully

                 mentioned the 40 reform proposals that are out

                 there from the Senate task force.  We also

                 have an obligation to enact some of those

                 reforms, both houses.  Because we cannot keep

                 passing these costs down to local government.

                 We just cannot do it.

                            So hopefully everyone will be able

                 to sponsor this bill, and hopefully the

                 message will get to Washington loud and clear

                 that we need assistance.  And hopefully we'll

                 show our good faith by trying to curb some of

                 the excesses of costs in the system that we

                 have in our state.



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                            THE PRESIDENT:    Senator Meier.

                            SENATOR MEIER:    Thank you, Madam

                 President.

                            And I also want to thank Senator

                 Skelos for pointing out that there is a third

                 partner who is sometimes overlooked in this

                 whole Medicaid program.  Medicaid in New York

                 is a federal, state, and local partnership.

                            Now, the Legislature, of course, is

                 composed of two houses, and right now this

                 Senate is a house of this Legislature in

                 search of a partner.  We put together, under

                 Senator Bruno's leadership, a joint, a

                 bipartisan task force on Medicaid reform.

                 There are over 40 specific recommendations.

                 The Minority also proposed some additional

                 recommendations in addition to those contained

                 in the major task force report.

                            And one of the interesting things

                 about the task force report is we really did

                 depart from the same old tired debate about

                 Medicaid.

                            There's an old saying -- I wish I

                 had said it; I didn't -- that the definition

                 of insanity is doing the same thing over and



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                 over again and expecting a different result.

                            This report departs from asking the

                 same question over and over again and doing

                 the same thing over and over again.  We

                 identify some very specific savings that can

                 be obtained in this system without depriving a

                 single New Yorker of health care.

                            For example, the nursing home

                 industry itself comes to us and tell us that

                 at least 10 percent and perhaps 20 of percent

                 of the people who now languish in nursing home

                 beds could be moved into a less restrictive,

                 more satisfying to them individually, and less

                 expensive method of care.

                            What we need to do is to pass

                 legislation that frees up the funding stream

                 and frees up the regulatory environment.  When

                 you have a funding stream and a regulatory

                 environment that promotes nursing home beds,

                 guess what?  You get nursing home beds.

                            We have a system right now where

                 sick people who can afford no other way to

                 obtain health care than to go to Medicaid

                 obtain their health care in a very fragmented

                 and ad hoc kind of way.  The emergency room



                                                        2973



                 many times is the primary care provider of

                 choice for these folks.

                            The private sector has successfully

                 employed a concept called disease management,

                 which is not a way that bean-counters use to

                 take health care away from people, but it's a

                 way to give good health care and to manage

                 conditions before they become full-blown and

                 more expensive.

                            The Senate Majority and Minority

                 together have a proposal.  The Minority has

                 some additional proposals.  Other Majority

                 members on this side have introduced bills as

                 well.  The Governor had a task force and a

                 working group that issued a report.  And we

                 hear from the other side, from the Majority in

                 the other house, so far silence.

                            This is an opportunity this year

                 that we cannot miss.  It is time for the

                 federal government to step up to the plate and

                 to recognize the uniqueness of New York.  Yes,

                 we do have concentrations of wealth, but we

                 also have a unique kind of state.  We have the

                 vast urban area of the city of New York and

                 vast rural areas in upstate New York where



                                                        2974



                 delivering health care is very problematic

                 because of lack of resources and distances.

                 We have a concentration of elderly.  We have a

                 concentration of people who suffer with HIV

                 and with disabilities, you name it.  The

                 federal government needs to step up to the

                 plate.

                            We need to find a partner in the

                 Assembly as we negotiate this budget and close

                 out this session to make health care under

                 Medicaid more affordable and to meet our

                 responsibility to our partners in local

                 government, to the poor who rely on Medicaid

                 for health care and deserve decent and humane

                 health care, and to the taxpayers at both the

                 state and local level who foot the bill.

                            This is the year to do it.  It is

                 an opportunity that we dare not miss.

                            Thank you, Madam President.

                            THE PRESIDENT:    Senator

                 Schneiderman.

                            SENATOR SCHNEIDERMAN:    Thank you,

                 Madam President.

                            I think all here are in agreement

                 that the federal government should treat



                                                        2975



                 New York more fairly.  I hope my Republican

                 colleagues will lobby their president.  And we

                 pledge over here that starting in January, we

                 will lobby our president to address this

                 issue.

                            And I'm also sure that as we send

                 new representatives to Washington, Senator

                 Kuhl and others will hopefully resolve this

                 issue.

                            I would like to note, because the

                 minority is happy to participate in efforts

                 like this, it was very, very gracious of

                 Senator Bruno to appoint Senator Paterson.

                            I would like to note, however, that

                 it was in fact in Senator Paterson's minority

                 report on this issue that the issue that most

                 of us are talking about today, increasing the

                 federal reimbursement rate based on poverty,

                 not income, was raised.  And that would result

                 in a reimbursement rate of 57 percent.

                            So I think that the issue has been

                 raised by both parties now, and I do hope that

                 we can move forward.  And I would urge that as

                 we move forward on issues such as this,

                 further bipartisan cooperation in this house



                                                        2976



                 is always welcome.  I hope that we will get

                 results from Washington, and I hope we will

                 get some results by both houses of the

                 Legislature before this session is out.

                            Thank you, Madam President.

                            THE PRESIDENT:    All in favor of

                 the resolution please signify by saying aye.

                            (Response of "Aye.")

                            THE PRESIDENT:    Opposed, nay.

                            (No response.)

                            THE PRESIDENT:    The resolution is

                 adopted.

                            Senator Skelos.

                            SENATOR SKELOS:    Madam President,

                 I'd like to open up the resolution for

                 sponsorship.  If anybody does not wish to

                 sponsor the resolution, they should notify the

                 desk.

                            THE PRESIDENT:    Any member who

                 does not want to sponsor the last resolution,

                 please notify the desk.

                            Senator Skelos.

                            SENATOR SKELOS:    Madam President,

                 if we could adopt the Resolution Calendar,

                 with the exception of Resolutions 5292 and



                                                        2977



                 5310.

                            THE PRESIDENT:    All in favor of

                 so adopting the Resolution Calendar please

                 signify by saying aye.

                            (Response of "Aye.")

                            THE PRESIDENT:    Opposed, nay.

                            (No response.)

                            THE PRESIDENT:    The Resolution

                 Calendar is so adopted.

                            Senator Skelos.

                            SENATOR SKELOS:    At this time if

                 we could have Resolution 5292, by Senator

                 Stachowski, read in its entirety and move for

                 its immediate adoption.

                            THE PRESIDENT:    The Secretary

                 will read.

                            THE SECRETARY:    By Senator

                 Stachowski, Legislative Resolution Number

                 5292, congratulating the St. Francis Varsity

                 Football Team and Coach Jerry Smith upon the

                 occasion of capturing its fourth consecutive

                 MMAA League Championship.

                            "WHEREAS, Excellence and success in

                 competitive sports can be achieved only

                 through strenuous practice, team play and team



                                                        2978



                 spirit, nurtured by dedicated coaching and

                 strategic planning; and

                            "WHEREAS, Athletic competition

                 enhances the moral and physical development of

                 the young people of this state, preparing them

                 for the future by instilling in them the value

                 of teamwork, encouraging a standard of healthy

                 living, imparting a desire for success, and

                 developing a sense of fair play and

                 competition; and

                            "WHEREAS, The St. Francis Varsity

                 Football Team are the MMAA League Champions

                 for the fourth consecutive year.  In addition,

                 it finished with a 9 and 2 record and was

                 voted the Number 1 team in Western New York by

                 the coaches of the section; and

                            "WHEREAS, The athletic talent

                 displayed by this team is due in great part to

                 the efforts of Coach Jerry Smith and his team

                 of outstanding assistant coaches, skilled and

                 inspirational tutors respected for their

                 ability to develop potential into excellence;

                 and

                            "WHEREAS, The team's overall record

                 is outstanding and the team members were



                                                        2979



                 loyally and enthusiastically supported by

                 family, fans, friends and the community at

                 large; and

                            "WHEREAS, The hallmarks of the St.

                 St. Varsity Football Team, from the opening

                 game of the season to participation in the

                 championship, were a brotherhood of athletic

                 ability, of good sportsmanship, of honor and

                 of scholarship, demonstrating that these team

                 players are second to none; and

                            "WHEREAS, Athletically and

                 academically, the team members have proven

                 themselves to be an unbeatable combination of

                 talents, reflecting favorably on their school;

                 and

                            "WHEREAS, Coach Jerry Smith and his

                 dedicated staff have done a superb job in

                 guiding, molding and inspiring the team

                 members toward their goals; and

                            "WHEREAS, Sports competition

                 instills the values of teamwork, pride and

                 accomplishment, and Coach Jerry Smith and his

                 outstanding athletes have clearly made a

                 contribution to the spirit of excellence which

                 is a tradition of their school; now,



                                                        2980



                 therefore, be it

                            "RESOLVED, That this Legislative

                 Body pause in its deliberations to

                 congratulate the St. Francis Varsity Football

                 Team, its members -- Zak Kedron, Ralph

                 Pignataro, Chad Beers, Doug Worthington, Chas

                 Moore, Erick Coins, Pasquale Raimondo, Kevin

                 Rautenstrauch, Chris Murphy, Kyle

                 Scritchfield, Matt Friedman, Dan Marmion,

                 Illio DiPaolo, Andy Schichtel, George Sisson,

                 Ryan Parker, Brent Titus, Pat Haidon, Vince

                 DeMarco, Rick Janiszeski, Sean Trapper, Mickey

                 Barr, Jim King, Geoff Michalek, Kevin Thie,

                 Joshua Bauman, Joe Glomb, Jordan Lambert, Ed

                 Bashan, Adam Urbanczyk, Bill Haas, Joshua

                 Schneider, Darryl Purucker, Alex Handzlik,

                 Mike Hymes, Mark Dulak, Jeremy Seneca, Evan

                 Krug, Mike Strycharz, Andrew Garrigan, Chris

                 Smith, Bill Travis, Colin Casey, Kevin Jewett,

                 and James O'Connor -- Assistant Coaches John

                 Scibetta, Joe Volpe, Steve Otremba, Dennis

                 DiPaolo, Jim DeMarco, and William Stachowski,

                 and Coach Jerry Smith on their outstanding

                 season and overall team record; and be it

                 further



                                                        2981



                            "RESOLVED, That copies of this

                 resolution, suitably engrossed, be transmitted

                 to the St. Francis Varsity Football Team and

                 to Coach Jerry Smith."

                            THE PRESIDENT:    Senator

                 Stachowski.

                            SENATOR STACHOWSKI:    Just

                 briefly, we heard football team after football

                 team all year.  And actually I was reluctant

                 to put this one in, but their banquet is

                 tomorrow, and I figured I'd better take them a

                 resolution back.

                            But they were number one in Western

                 New York.  And you'd say:  Well, jeez, they

                 didn't do well in the state playoffs.  Well,

                 that's only because we're not allowed to play

                 in them.  In Section 6, the Catholic schools

                 aren't allowed to participate with the public

                 schools in the sectionals.

                            So, you know, we'd like to have a

                 situation like Rochester, where even if they

                 wouldn't play us during the year, they would

                 put us in the playoffs.  And we would have

                 been happy with that.

                            And you say:  Well, you were 9 and



                                                        2982



                 2.  Yeah, but the two losses were in

                 Pennsylvania, to two of their teams that made

                 the state playoffs, and both did pretty well

                 in the state playoffs.

                            So it was a pretty interesting

                 group of young men, as good as any I've seen

                 this year.  We did play teams from other

                 areas.  Obviously Aquinas had a bad year and

                 they were not a challenge this year.  They

                 were good other years.  And we played

                 Union-Endicott, and they made the playoffs.

                 And they won't play us again next year, even

                 though they were supposed to, because the

                 experience wasn't good for them.

                            But I just wanted to congratulate

                 Coach Smith and all the young men that played

                 there and at least give their season the

                 recognition that I thought this body should

                 give it.

                            Thank you.

                            ACTING PRESIDENT McGEE:    The

                 question is on the resolution.  All in favor

                 signify by saying aye.

                            (Response of "Aye.")

                            ACTING PRESIDENT McGEE:    Opposed,



                                                        2983



                 nay.

                            (No response.)

                            ACTING PRESIDENT McGEE:    The

                 resolution is adopted.

                            Senator Skelos.

                            SENATOR SKELOS:    Madam President,

                 Resolution 5310, by Senator Alesi, is at the

                 desk.  If we could have the title read and

                 move for its immediate adoption.

                            ACTING PRESIDENT McGEE:    The

                 Secretary will read.

                            THE SECRETARY:    By Senator Alesi,

                 Legislative Resolution Number 5310,

                 memorializing Governor George E. Pataki to

                 proclaim September 12 through 18, 2004, as

                 Local Chamber of Commerce Week in the State of

                 New York.

                            ACTING PRESIDENT McGEE:    The

                 question is on the resolution.  All in favor

                 will signify by saying aye.

                            (Response of "Aye.")

                            ACTING PRESIDENT McGEE:    Opposed,

                 nay.

                            (No response.)

                            ACTING PRESIDENT McGEE:    The



                                                        2984



                 resolution is adopted.

                            Senator Skelos.

                            SENATOR SKELOS:    Madam President,

                 Senator Alesi would like to open the

                 resolution for sponsorship.  If anybody wishes

                 not to sponsor the resolution, they should

                 notify the desk.

                            ACTING PRESIDENT McGEE:    The

                 resolution is open for cosponsorship.  If you

                 do not wish to be a cosponsor, please notify

                 the desk.

                            Senator Skelos.

                            SENATOR SKELOS:    I believe

                 Senator Smith has a motion.

                            ACTING PRESIDENT McGEE:    Senator

                 Ada Smith.

                            SENATOR ADA SMITH:    Thank you,

                 Madam President.

                            On behalf of Senator Breslin, on

                 page number 74 I offer the following

                 amendments to Calendar Number 1336, Senate

                 Print Number 4972, and ask that said bill

                 retain its place on the Third Reading

                 Calendar.

                            ACTING PRESIDENT McGEE:    The



                                                        2985



                 amendments are received and adopted, and the

                 bill will retain its place on Third Reading

                 Calendar.

                            Thank you, Senator Ada Smith.

                            SENATOR ADA SMITH:    Thank you.

                            ACTING PRESIDENT McGEE:    Senator

                 Bonacic.

                            SENATOR BONACIC:    Thank you,

                 Madam President.

                            I wish to call up my bill, Print

                 Number 4443, recalled from the Assembly, which

                 is now at the desk.

                            ACTING PRESIDENT McGEE:    The

                 Secretary will read.

                            THE SECRETARY:    Calendar Number

                 342, by Senator Bonacic, Senate Print 4443, an

                 act to amend the Tax Law.

                            ACTING PRESIDENT McGEE:    Senator

                 Bonacic.

                            SENATOR BONACIC:    Madam

                 President, I now move to reconsider the vote

                 by which the bill was passed.

                            ACTING PRESIDENT McGEE:    The

                 Secretary will call the roll on

                 reconsideration.



                                                        2986



                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 57.

                            ACTING PRESIDENT McGEE:    Senator

                 Bonacic.

                            SENATOR BONACIC:    Madam

                 President, I now offer the following

                 amendments.

                            ACTING PRESIDENT McGEE:    The

                 amendments are received.

                            SENATOR BONACIC:    Thank you.

                            ACTING PRESIDENT McGEE:    Senator

                 Skelos.

                            SENATOR SKELOS:    Madam President,

                 if we could return to reports of standing

                 committees.

                            ACTING PRESIDENT McGEE:    The

                 Secretary will read.

                            THE SECRETARY:    Senator

                 DeFrancisco, from the Committee on Judiciary,

                 reports the following nomination:

                            As a judge of the Rockland County

                 Family Court, Rachelle C. Kaufman, of New

                 City.

                            ACTING PRESIDENT McGEE:    Senator

                 DeFrancisco.



                                                        2987



                            SENATOR DeFRANCISCO:    Yes, I

                 proudly rise to move the nomination of

                 Rachelle C. Kaufman, of New City, as a judge

                 of the Rockland County Family Court.

                            And I'm moving on behalf of Senator

                 Morahan, who did call my office today and

                 indicated his regrets for not being here.  And

                 the judge is aware of the serious situation

                 that kept him back home.

                            Governor Pataki again submitted a

                 name to us that we all should be proud to

                 confirm today.  Despite her relatively short

                 career -- I'm computing she may be the age of

                 my son.  But the fact of the matter is that

                 her twelve-year career in the law has been an

                 incredible twelve years of public service.

                            Assistant district attorney for the

                 district attorney's office and then many years

                 in -- most of the years in Family Court.

                 Senior court attorney to the Honorable

                 Margaret Garvey, who she will be replacing --

                 that's a Family Court judge -- for five years,

                 principal law clerk to a Supreme Court judge,

                 acting village judge, and now a support

                 magistrate.



                                                        2988



                            A special person is this individual

                 to want to take on the rigors of one of the

                 toughest courts, the Family Court, where

                 sometimes the issues are sometimes not

                 resolvable or not resolvable with a lot of

                 problems over many years.  So I'm proud to be

                 able to move the nomination of soon-to-be

                 Judge Kaufman.

                            And I would like to just mention

                 that she is accompanied today by her husband,

                 Glenn; her daughter, Lauren, who is asleep, I

                 think.  She was sleeping there; mother,

                 Camille Congemi; father-in-law, Henry Kaufman;

                 sister and brother-in-law, Lenore and Brian

                 Robins.

                            Thank you, Madam President.

                            ACTING PRESIDENT McGEE:    The

                 question is on the confirmation of Judge

                 Rachelle Kaufman, of New City, as a judge of

                 the Rockland County Family Court.  All in

                 favor will signify by saying aye.

                            (Response of "Aye.")

                            ACTING PRESIDENT McGEE:    Opposed,

                 nay.

                            (No response.)



                                                        2989



                            ACTING PRESIDENT McGEE:    The

                 nominee is confirmed.

                            (Applause.)

                            ACTING PRESIDENT McGEE:    Your

                 Honor, on behalf of the Senate and on behalf

                 of all of us here, let us extend our

                 congratulations and best wishes to you and

                 your family on your appointment.  Thank you.

                            Senator Skelos.

                            SENATOR SKELOS:    Madam President,

                 I believe there's a substitution at the desk,

                 if we could make it at this time.

                            ACTING PRESIDENT McGEE:    The

                 Secretary will read.

                            THE SECRETARY:    On page 21,

                 Senator Maltese moves to discharge, from the

                 Committee on Rules, Assembly Bill Number 9573

                 and substitute it for the identical Senate

                 Bill Number 6375, Third Reading Calendar 482.

                            ACTING PRESIDENT McGEE:

                 Substitution ordered.

                            Senator Seward.

                            SENATOR SEWARD:    Yes, Madam

                 President.  On page 35 I offer the following

                 amendments to Calendar Number 833, Senate



                                                        2990



                 Print Number 6962, and ask that the said bill

                 retain its place on the Third Reading

                 Calendar.

                            ACTING PRESIDENT McGEE:    Thank

                 you, Senator.  The amendments are received and

                 adopted, and the bill will retain its place on

                 Third Reading Calendar.

                            Senator Skelos.

                            SENATOR SKELOS:    Madam President,

                 there will be an immediate meeting of the

                 Rules Committee in the Majority Conference

                 Room.

                            ACTING PRESIDENT McGEE:

                 Immediate meeting of the Rules Committee in

                 the Majority Conference Room.

                            Senator Skelos.

                            SENATOR SKELOS:    And if we could

                 go to the noncontroversial reading of the

                 calendar.

                            ACTING PRESIDENT McGEE:    The

                 Secretary will read.

                            THE SECRETARY:    Calendar Number

                 106, by Senator Bonacic, Senate Print 4327, an

                 act to amend the Public Authorities Law, in

                 relation to the power of the State of New York



                                                        2991



                 Mortgage Agency.

                            ACTING PRESIDENT McGEE:    Read the

                 last section.

                            THE SECRETARY:    Section 5.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT McGEE:    Call the

                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 57.

                            ACTING PRESIDENT McGEE:    The bill

                 is passed.

                            THE SECRETARY:    Calendar Number

                 165, by Senator Skelos, Senate Print 3925A, an

                 act to amend the Correction Law, in relation

                 to the registration of sex offenders.

                            ACTING PRESIDENT McGEE:    Read the

                 last section.

                            THE SECRETARY:    Section 6.  This

                 act shall take effect on the 120th day.

                            ACTING PRESIDENT McGEE:    Call the

                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 55.  Nays,

                 2.  Senators Duane and Montgomery recorded in

                 the negative.



                                                        2992



                            ACTING PRESIDENT McGEE:    The bill

                 is passed.

                            THE SECRETARY:    Calendar Number

                 230, by Senator Maltese, Senate Print 1180A,

                 an act to amend the General Municipal Law, in

                 relation to certain lung disabilities.

                            ACTING PRESIDENT McGEE:    Read the

                 last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect on the first of July.

                            ACTING PRESIDENT McGEE:    Call the

                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 57.

                            ACTING PRESIDENT McGEE:    The bill

                 is passed.

                            THE SECRETARY:    Calendar Number

                 265, by Senator Flanagan, Senate Print 3581A,

                 an act to amend the Public Health Law and the

                 Correction Law, in relation to requiring.

                            ACTING PRESIDENT McGEE:    Read the

                 last section.

                            THE SECRETARY:    Section 6.  This

                 act shall take effect on the 30th day.

                            ACTING PRESIDENT McGEE:    Call the



                                                        2993



                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 57.

                            ACTING PRESIDENT McGEE:    The bill

                 is passed.

                            THE SECRETARY:    Calendar Number

                 301, by Senator Skelos, Senate Print 5902B, an

                 act to amend the Limited Liability Company

                 Law, the Partnership Law, the General

                 Construction Law and others, in relation to

                 publication.

                            ACTING PRESIDENT McGEE:    Read the

                 last section.

                            THE SECRETARY:    Section 23.  This

                 act shall take effect on the first day of the

                 first month which commences not less than 90

                 days.

                            ACTING PRESIDENT McGEE:    Call the

                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 57.

                            ACTING PRESIDENT McGEE:    The bill

                 is passed.

                            THE SECRETARY:    Calendar Number

                 389, by Senator Padavan, Senate Print 6120A,



                                                        2994



                 an act to amend the Executive Law, in relation

                 to extending.

                            SENATOR SCHNEIDERMAN:    Lay it

                 aside.

                            ACTING PRESIDENT McGEE:    The bill

                 is laid aside.

                            THE SECRETARY:    Calendar Number

                 729, by Senator Libous, Senate Print 2355A, an

                 act to amend the Penal Law, in relation to

                 increasing the penalties.

                            ACTING PRESIDENT McGEE:    Read the

                 last section.

                            THE SECRETARY:    Section 5.  This

                 act shall take effect on the first of

                 November.

                            ACTING PRESIDENT McGEE:    Call the

                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 57.

                            ACTING PRESIDENT McGEE:    The bill

                 is passed.

                            THE SECRETARY:    Calendar Number

                 774, by Senator Breslin, Senate Print 6238, an

                 act to amend the Town Law, in relation to

                 including the Schuyler Heights Fire District.



                                                        2995



                            ACTING PRESIDENT McGEE:    Read the

                 last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT McGEE:    Call the

                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 57.

                            ACTING PRESIDENT McGEE:    The bill

                 is passed.

                            THE SECRETARY:    Calendar Number

                 859, by Senator Little, Senate Print 5722A, an

                 act to amend the Tax Law, in relation to

                 authorizing the County of Essex.

                            ACTING PRESIDENT McGEE:    There is

                 a local fiscal impact note at the desk.

                            Read the last section.

                            THE SECRETARY:    Section 6.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT McGEE:    Call the

                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 57.

                            ACTING PRESIDENT McGEE:    The bill

                 is passed.



                                                        2996



                            THE SECRETARY:    Calendar Number

                 860, by Senator Little, Senate Print 6267B, an

                 act to authorize the Commissioner of General

                 Services to convey certain unappropriated

                 state lands.

                            ACTING PRESIDENT McGEE:    Read the

                 last section.

                            THE SECRETARY:    Section 4.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT McGEE:    Call the

                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 57.

                            ACTING PRESIDENT McGEE:    The bill

                 is passed.

                            THE SECRETARY:    Calendar Number

                 912, by Senator Robach, Senate Print 6503, an

                 act to amend the Retirement and Social

                 Security Law, in relation to adjusting.

                            ACTING PRESIDENT McGEE:    Read the

                 last section.

                            THE SECRETARY:    Section 6.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT McGEE:    Call the

                 roll.



                                                        2997



                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 57.

                            ACTING PRESIDENT McGEE:    The bill

                 is passed.

                            THE SECRETARY:    Calendar Number

                 926, by Senator Golden, Senate Print 6655B, an

                 act to amend the Education Law, in relation to

                 crediting of student progress.

                            ACTING PRESIDENT McGEE:    Read the

                 last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT McGEE:    Call the

                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 57.

                            ACTING PRESIDENT McGEE:    The bill

                 is passed.

                            THE SECRETARY:    Calendar Number

                 931, by Senator Kuhl, Senate Print --

                            SENATOR SCHNEIDERMAN:    Lay it

                 aside.

                            ACTING PRESIDENT McGEE:    The bill

                 is laid aside.

                            THE SECRETARY:    Calendar Number



                                                        2998



                 951, by Senator Larkin, Senate Print 6015A, an

                 act to amend the Vehicle and Traffic Law, in

                 relation to fees and charges.

                            ACTING PRESIDENT McGEE:    Read the

                 last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect on the first of January.

                            ACTING PRESIDENT McGEE:    Call the

                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 57.

                            ACTING PRESIDENT McGEE:    The bill

                 is passed.

                            THE SECRETARY:    Calendar Number

                 985, by Senator Trunzo, Senate Print 6548A, an

                 act to amend the Public Authorities Law, in

                 relation to the Islip Resource Recovery Agency

                 Act.

                            ACTING PRESIDENT McGEE:    Read the

                 last section.

                            THE SECRETARY:    Section 4.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT McGEE:    Call the

                 roll.

                            (The Secretary called the roll.)



                                                        2999



                            THE SECRETARY:    Ayes, 57.

                            ACTING PRESIDENT McGEE:    The bill

                 is passed.

                            THE SECRETARY:    Calendar Number

                 1051, by Senator LaValle, Senate Print 6901A,

                 an act authorizing the assessor of the Town of

                 Southold, County of Suffolk.

                            ACTING PRESIDENT McGEE:    Read the

                 last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT McGEE:    Call the

                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 56.  Nays,

                 1.  Senator Bonacic recorded in the negative.

                            ACTING PRESIDENT McGEE:    The bill

                 is passed.

                            THE SECRETARY:    Calendar Number

                 1148, by Senator Balboni, Senate Print 4746A,

                 an act to amend the Military Law, in relation

                 to the waiving of filing fees.

                            ACTING PRESIDENT McGEE:    Read the

                 last section.

                            THE SECRETARY:    Section 2.  This



                                                        3000



                 act shall take effect immediately.

                            ACTING PRESIDENT McGEE:    Call the

                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 57.

                            ACTING PRESIDENT McGEE:    The bill

                 is passed.

                            THE SECRETARY:    Calendar Number

                 1178, by Senator Seward, Senate Print 6474A,

                 an act to amend the Insurance Law, in relation

                 to excess line insurance policies.

                            ACTING PRESIDENT McGEE:    Read the

                 last section.

                            THE SECRETARY:    Section 3.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT McGEE:    Call the

                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 57.

                            ACTING PRESIDENT McGEE:    The bill

                 is passed.

                            THE SECRETARY:    Calendar Number

                 1185, by Senator Kuhl, Senate Print 2581, an

                 act to amend Parks, Recreation and Historic

                 Preservation Law and the General Municipal



                                                        3001



                 Law, in relation to authorizing.

                            SENATOR SCHNEIDERMAN:    Lay it

                 aside.

                            ACTING PRESIDENT McGEE:    The bill

                 is laid aside.

                            THE SECRETARY:    Calendar Number

                 1192, by Senator Alesi, Senate Print 44, an

                 act to amend the Public Health Law, in

                 relation to mandatory reporting of abuse.

                            ACTING PRESIDENT McGEE:    Read the

                 last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect on the first of

                 November.

                            ACTING PRESIDENT McGEE:    Call the

                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 57.

                            ACTING PRESIDENT McGEE:    The bill

                 is passed.

                            THE SECRETARY:    Calendar Number

                 1217, by Senator Nozzolio, Senate Print 5312A,

                 an act authorizing the conveyance of certain

                 state lands to Donald E. Green, in exchange.

                            ACTING PRESIDENT McGEE:    Read the



                                                        3002



                 last section.

                            THE SECRETARY:    Section 4.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT McGEE:    Call the

                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 57.

                            ACTING PRESIDENT McGEE:    The bill

                 is passed.

                            THE SECRETARY:    Calendar Number

                 1220, by Senator DeFrancisco, Senate Print

                 6087, an act to amend the Tax Law, in relation

                 to allowing a taxpayer carrying on business.

                            SENATOR SCHNEIDERMAN:    Lay it

                 aside.

                            ACTING PRESIDENT McGEE:    The bill

                 is laid aside.

                            THE SECRETARY:    Calendar Number

                 1224, by Senator Volker, Senate Print 6522, an

                 act to authorize the City of Buffalo to

                 transfer certain parkland.

                            ACTING PRESIDENT McGEE:    There is

                 a home-rule message at the desk.

                            Read the last section.

                            THE SECRETARY:    Section 4.  This



                                                        3003



                 act shall take effect immediately.

                            ACTING PRESIDENT McGEE:    Call the

                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 57.

                            ACTING PRESIDENT McGEE:    The bill

                 is passed.

                            THE SECRETARY:    Calendar Number

                 1310, by Senator Rath, Senate Print 6763, an

                 act to amend Chapter 479 of the Laws of 2001,

                 amending the State Administrative Procedure

                 Act.

                            ACTING PRESIDENT McGEE:    Read the

                 last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT McGEE:    Call the

                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 57.

                            ACTING PRESIDENT McGEE:    The bill

                 is passed.

                            THE SECRETARY:    Calendar Number

                 1335, by Senator Johnson, Senate Print 4768,

                 an act authorizing the assessor of the Town of



                                                        3004



                 Islip to accept an application.

                            ACTING PRESIDENT McGEE:    Read the

                 last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT McGEE:    Call the

                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 56.  Nays,

                 1.  Senator Bonacic recorded in the negative.

                            ACTING PRESIDENT McGEE:    The bill

                 is passed.

                            THE SECRETARY:    Calendar Number

                 1359, by Senator Fuschillo, Senate Print 7108,

                 an act to authorize the Neighborhood Assembly

                 of God of Nassau County.

                            ACTING PRESIDENT McGEE:    Read the

                 last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT McGEE:    Call the

                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 56.  Nays,

                 1.  Senator Bonacic recorded in the negative.



                                                        3005



                            ACTING PRESIDENT McGEE:    The bill

                 is passed.

                            Senator Hassell-Thompson.

                            SENATOR HASSELL-THOMPSON:    Thank

                 you, Madam President.

                            I rise to request unanimous consent

                 to be recorded in the negative on 1185.

                            ACTING PRESIDENT McGEE:    Senator,

                 that bill was laid aside.  So that will give

                 you the opportunity to vote against it as you

                 wish.

                            SENATOR HASSELL-THOMPSON:    Thank

                 you, Madam President.

                            ACTING PRESIDENT McGEE:    Senator

                 Kuhl.

                            SENATOR KUHL:    Yes, Madam

                 President.  Can we move to reconsider the vote

                 by which Calendar Number 912 passed the house.

                            ACTING PRESIDENT McGEE:    The

                 Secretary will call the roll on

                 reconsideration.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Calendar Number

                 912, by Senator Robach, Senate Print 6503, an

                 act to amend the Retirement and Social



                                                        3006



                 Security Law.

                            ACTING PRESIDENT McGEE:    Senator

                 Kuhl.

                            SENATOR KUHL:    Can we lay that

                 bill aside for the day.

                            ACTING PRESIDENT McGEE:    The bill

                 is laid aside for the day.

                            SENATOR KUHL:    Now could we have

                 the controversial reading of the calendar,

                 Madam President.  But can we start with

                 Calendar Number 931.

                            The person who laid aside Senator

                 Padavan's bill, 389, is out of the house at

                 the moment at Rules Committee.  So can we

                 start with Calendar Number 931 and then

                 proceed.

                            ACTING PRESIDENT McGEE:    Thank

                 you, Senator Kuhl.

                            May we call the roll on

                 reconsideration first, please, Calendar Number

                 912.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 57.

                            ACTING PRESIDENT McGEE:    The bill

                 is laid aside for the day.



                                                        3007



                            THE SECRETARY:    Calendar Number

                 931, by Senator Kuhl, Senate Print 743, an act

                 to amend the Agriculture and Markets Law and

                 the Vehicle and Traffic Law.

                            SENATOR SCHNEIDERMAN:

                 Explanation.

                            ACTING PRESIDENT McGEE:    Senator

                 Kuhl, an explanation has been requested.

                            SENATOR KUHL:    Thank you, Madam

                 President.

                            This bill, very simply stated,

                 would exempt farm-plated vehicles from the

                 Motor Vehicle Identification Act, which

                 included them in coverage, which was adopted

                 by this Legislature back in 1994.

                            ACTING PRESIDENT McGEE:    Senator

                 Schneiderman.

                            SENATOR SCHNEIDERMAN:    Thank you,

                 Madam President.  On the bill.

                            ACTING PRESIDENT McGEE:    Senator

                 Schneiderman, on the bill.

                            SENATOR SCHNEIDERMAN:    This bill

                 has come before us before, and we've discussed

                 it.  The reason that I voted against it last

                 year, as did many of my colleagues, has not



                                                        3008



                 been corrected in this year's version of the

                 bill.

                            And the reason is really very, very

                 simple.  There is no requirement in this

                 legislation that any sort of umbrella

                 liability policy for farmers who are the

                 owners of the vehicles at issue provide

                 insurance for those vehicles.

                            This legislation would exempt an

                 entire category of vehicles that travel

                 frequently on New York's roads from the

                 requirement that they have insurance coverage,

                 as every other vehicle in the state is

                 required to have.

                            There clearly is a situation here

                 that could be addressed, I believe, by a

                 modified bill.  The supporters of the bill

                 argue that farm vehicles are frequently

                 covered for liability purposes under umbrella

                 policies carried by farms to insure tractors

                 and other farm equipment.  But once again,

                 this year's bill does not have any requirement

                 that those sorts of umbrella policies cover

                 these vehicles.

                            I think a modification to this bill



                                                        3009



                 which was suggested last year, that would

                 essentially prohibit the exemption of a farm

                 vehicle from a general liability policy, would

                 enable us to move the bill forward, and I

                 think that we might even get some action on

                 the other side of the Capitol.

                            So with this exemption, this

                 loophole, essentially, in the insurance

                 coverage requirements for all vehicles in the

                 state still in this legislation, I will be

                 voting no and encouraging everyone else to

                 vote no as well.

                            Thank you, Madam President.

                            ACTING PRESIDENT McGEE:    Any

                 other Senator wishing to speak on the bill?

                            Read the last section.

                            Oh, Senator Liz Krueger.

                            SENATOR LIZ KRUEGER:    Thank you,

                 Madam President.  Briefly on the bill.

                            I too will be voting against the

                 bill, as I have in the past.  But I had an

                 experience over Memorial Day weekend -- it was

                 in New Jersey, not New York, in fact.  But I

                 was driving along a country road, and it was

                 right after sunset, but it was a



                                                        3010



                 45-mile-an-hour road, and it was a bit curvy.

                 And I came around a curve and almost hit a

                 farm vehicle that was driving along filled

                 with hay, with no lights in the back, no

                 license plate.  And it dawned on me if I had

                 crashed into that vehicle if it hadn't had

                 liability insurance, what would be the

                 situation that I was in.

                            So it was interesting to me to see

                 right on the calendar today this same bill

                 that we have discussed in previous years, with

                 a new appreciation for what it would mean to

                 be in fact be in an accident with an uninsured

                 farm vehicle that was on the road, having

                 almost had that incident myself.

                            So I hope that my colleagues will

                 continue to reconsider their votes and vote

                 against this bill.

                            Thank you, Madam President.

                            ACTING PRESIDENT McGEE:    Read the

                 last section.

                            THE SECRETARY:    Section 3.  This

                 act shall take effect on the 60th day.

                            ACTING PRESIDENT McGEE:    Call the

                 roll.



                                                        3011



                            (The Secretary called the roll.)

                            THE SECRETARY:    Those recorded in

                 the negative on Calendar Number 931 are

                 Senators Breslin, Brown, DeFrancisco, Dilán,

                 Duane, Hassell-Thompson, L. Krueger, Lachman,

                 Onorato, Parker, Sabini, Sampson,

                 Schneiderman, and Stavisky.  Also Senator

                 Montgomery.  Ayes, 42.  Nays, 15.

                            ACTING PRESIDENT McGEE:    The bill

                 is passed.

                            Senator Kuhl.

                            SENATOR KUHL:    Yes, Madam

                 President.  Can you now call up Calendar

                 Number 389 on the controversial reading,

                 please.

                            ACTING PRESIDENT McGEE:    The

                 Secretary will read Calendar Number 389.

                            THE SECRETARY:    Calendar Number

                 389, by Senator Padavan, Senate Print 6120A,

                 an act to amend the Executive Law, in relation

                 to extending.

                            SENATOR DUANE:    Explanation,

                 please.

                            ACTING PRESIDENT McGEE:    Senator

                 Padavan, an explanation has been requested by



                                                        3012



                 Senator Duane.

                            SENATOR PADAVAN:    Thank you,

                 Madam President.

                            This is a chapter amendment of a

                 bill we passed late in the session last year

                 and that went to the Governor, was signed by

                 him at the end of August, extending the date

                 which was previously mandated to be

                 December 2003, which was an impossible time

                 frame in order to enable the Office of Public

                 Security to meet the mandates of that

                 legislation, which was to come up with an

                 analysis, a report, recommendations relevant

                 to security measures for infrastructures

                 throughout the state, particularly those

                 dealing with utilities, transmission lines and

                 the like.

                            And so one of the provisions of

                 this chapter amendment will extend that date

                 to December 2004.

                            Another provision within the

                 chapter relates to the confidentiality

                 provision of the underlying legislation.  We

                 want to make this report, studies, available

                 as broadly as possible, but at the same time



                                                        3013



                 we don't want them to get in the hands of the

                 bad people, those who would use that

                 information to enhance whatever plans or plots

                 they have to do harm.  And so the

                 confidentiality provision is binding.

                            Those are the two aspects of the

                 chapter amendment that is before us now.

                            ACTING PRESIDENT McGEE:    Senator

                 Duane.

                            SENATOR DUANE:    Thank you, Madam

                 President.

                            According to the sponsor's memo,

                 the justification says as follows, that

                 "Chapter 403 of the Laws of 2003 requires the

                 Office of Public Security -- that is, OPS --

                 to conduct a review and analysis of all

                 measures taken by the PSC and any other agency

                 or authority of the state, or political

                 subdivisions thereof, to protect the security

                 of critical infrastructure related to energy

                 generation and transmission located within the

                 state.

                            "OPS's first report was to be

                 completed by December 31, 2003, and once every

                 three years thereafter.



                                                        3014



                            "The Director of Public Security

                 shall report to the Governor, the Temporary

                 President of the Senate, the Speaker of the

                 Assembly, the Public Service Commission, and

                 any chief operating officer of an affected

                 facility.  Confidentiality protocols would be

                 established for the report and be binding on

                 the recipient of such report.

                            "Chapter 403 of the Laws of 2003

                 was enacted into law on October 26, 2003.

                 This provided the Office for Public Security

                 with a period of only four months to conduct a

                 thorough review of measures being taken to

                 protect the security of critical

                 infrastructure related to the state's

                 generation and transmission facilities.

                            "This bill would provide the Office

                 of Public Security with additional time

                 necessary to conduct its review, compile the

                 required reports, and to establish

                 confidentiality protocols.  This bill would

                 extend the initial report date from

                 December 31, 2003, to December 31, 2004, and

                 would require the Director of Public Security

                 to make a preliminary report to be filed with



                                                        3015



                 the Governor, the Temporary President of the

                 Senate, and the Speaker of the Assembly, the

                 chairman of the PSC and the chief executives

                 or his or her designee of any affected

                 generating or transmission company by

                 October 30, 2004."

                            Is that correct, Senator?

                            SENATOR PADAVAN:    You did an

                 excellent job of reading the memo.

                            SENATOR DUANE:    Thank you.

                            Thank you, Madam President.

                            ACTING PRESIDENT McGEE:    Any

                 other Senator wishing to speak on the bill?

                            Read the last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT McGEE:    Call the

                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 56.  Nays,

                 1.  Senator Duane recorded in the negative.

                            ACTING PRESIDENT McGEE:    The bill

                 is passed.

                            THE SECRETARY:    Calendar Number

                 1185, by Senator Kuhl, Senate Print 2581, an



                                                        3016



                 act to amend the Parks, Recreation and

                 Historic Preservation Law and the General

                 Municipal Law.

                            ACTING PRESIDENT McGEE:    Read the

                 last section.

                            THE SECRETARY:    Section 3.  This

                 act shall take effect on the 180th day.

                            ACTING PRESIDENT McGEE:    Call the

                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 56.  Nays,

                 1.  Senator Duane recorded in the negative.

                            Excuse me.  Ayes, 55.  Nays, 2.

                 Senators DeFrancisco and Duane recorded in the

                 negative.

                            ACTING PRESIDENT McGEE:    The bill

                 is passed.

                            THE SECRETARY:    In relation to

                 Calendar Number 1185, ayes, 54.  Nays, 3.

                 Senators DeFrancisco, Duane and

                 Hassell-Thompson recorded in the negative.

                            ACTING PRESIDENT McGEE:    The bill

                 is passed.

                            Senator Duane, why do you rise?

                            SENATOR DUANE:    Thank you, Madam



                                                        3017



                 President.  When I was out at Rules, I believe

                 I missed Calendar Numbers 1148, 1192, and

                 1310, all of which I'd like to vote no on.

                            And if I may also be recorded in

                 the affirmative on Calendar Number 165, which

                 is a change.

                            Thank you.

                            ACTING PRESIDENT McGEE:    Without

                 objection.  Thank you, Senator Duane.

                            SENATOR KUHL:    Madam President.

                            ACTING PRESIDENT McGEE:    Senator

                 Kuhl.

                            SENATOR KUHL:    It seems as though

                 we've been moving just a little too quickly

                 here.  So could we reconsider the vote by

                 which Calendar Number 1185 passed the house.

                            ACTING PRESIDENT McGEE:    The

                 Secretary will call the roll on

                 reconsideration.

                            THE SECRETARY:    In relation to

                 Calendar Number 1185.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 57.

                            SENATOR KUHL:    Would you

                 recognize Senator Schneiderman, on the bill.



                                                        3018



                            ACTING PRESIDENT McGEE:    Senator

                 Schneiderman.

                            SENATOR SCHNEIDERMAN:    Madam

                 President, on the bill.

                            ACTING PRESIDENT McGEE:    Senator

                 Schneiderman, on the bill.

                            SENATOR SCHNEIDERMAN:    And I

                 appreciate the courtesy of allowing us to

                 bring this back.

                            This is a piece of legislation that

                 some of us voted no on in the past for a very

                 simple reason.  This relates to the

                 Adopt-A-Park program, a fine program run by

                 the Commissioner of Parks, Recreation and

                 Historic Preservation.

                            The reason some of us have voted no

                 against this bill in the past is it exempts

                 state, local governments from any liability

                 for negligence by volunteers working in the

                 parks.  So this would in a sense create a

                 two-tier standard in parks.  In parks that

                 were run by Parks Department employees, there

                 would still be liability if you were injured

                 because there was negligence and you fell into

                 a hole or something.  But this would exempt



                                                        3019



                 parks in programs where they use volunteers

                 instead from such liability.

                            The public really shouldn't have to

                 distinguish between parks where volunteers are

                 working and parks that are being run by

                 professional Parks employees.  There is no

                 reason to remove the protection of liability

                 in case of negligence.  Everyone should have a

                 right to access to the courts.

                            And therefore I have voted no on

                 this bill and would urge others to do

                 likewise.

                            Thank you, Madam President.

                            ACTING PRESIDENT McGEE:    Any

                 other Senator wishing to speak on the bill?

                            Read the last section.

                            THE SECRETARY:    Section 3.  This

                 act shall take effect on the 180th day.

                            ACTING PRESIDENT McGEE:    Call the

                 roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT McGEE:    Senator

                 Kuhl, to explain his vote.

                            SENATOR KUHL:    Thank you, Madam

                 President.



                                                        3020



                            Just so the members of the house

                 are aware, there are two programs presently in

                 existence in the State of New York.  One is

                 Adopt-A-Highway, and you see the signs along

                 the highways which allow volunteers to go out

                 and help not only the State of New York but

                 other municipalities who have the

                 responsibility and the obligation of taking

                 care of those highways and keeping them up and

                 keeping them clean.

                            We have a very strong tourism

                 industry here in this state, and we like to

                 have the State of New York looking as pristine

                 as it possibly can.

                            There's a second program that we

                 adopted in this state several years ago, and

                 it's called the Adopt-A-Cemetery program,

                 where municipalities many times are charged

                 with the upkeep of those facilities and they

                 find it difficult, because of the scenario

                 that they find themselves in, in keeping them

                 up in pristine condition.

                            This is a follow-up, third type of

                 program that would become available to

                 municipalities to help them maintain their



                                                        3021



                 parks.  We've heard earlier a resolution

                 adopted in this house talking about the burden

                 of the Medicaid costs because of the failure

                 of the federal government to subsidize this

                 state like it does other states.

                            We know and we hear time and time

                 again about the mandates that are imposed by

                 this organization, this house, the other

                 house, the state government upon

                 municipalities.  Whether they're well-founded

                 or not, they have burdens and responsibilities

                 to take up.

                            And so this is a way of helping

                 your local communities maintain the facilities

                 as they see fit.

                            Now, the same standards of

                 negligence apply in all of these cases.

                 There's no specificity that's different in

                 this particular case of this bill as the ones

                 that have previously been adopted.  Just so

                 that the members are fully understanding of

                 the bill that they're voting on.

                            I vote aye.

                            ACTING PRESIDENT McGEE:    Senator

                 Hassell-Thompson.



                                                        3022



                            SENATOR HASSELL-THOMPSON:    Thank

                 you.  To explain my vote.

                            Senator Kuhl, I, like you, am very

                 supportive of Adopt-A-Park, Adopt-A-Highway,

                 adopt anything that calls for volunteerism and

                 participation.

                            As a person who served on the city

                 council in the community, Adopt-A-Park went a

                 long way toward developing some of our parks

                 and playgrounds that the municipality could

                 not afford to pay for.

                            However, also having worked with

                 municipalities and not-for-profits, when you

                 have volunteers and those volunteers are not

                 covered, the lawsuits that ensue also make it

                 almost -- almost untenable for us to be able

                 to have volunteers participate.

                            So my continued voting no has

                 nothing to do with the merits of the bill but

                 has everything to do with the liability that's

                 assumed that is not -- that I feel is not

                 covered and does not put municipalities in a

                 good position.

                            Thank you.

                            ACTING PRESIDENT McGEE:    You will



                                                        3023



                 be recorded in the negative, Senator

                 Hassell-Thompson.

                            SENATOR HASSELL-THOMPSON:    Thank

                 you.

                            ACTING PRESIDENT McGEE:    Announce

                 the results.

                            THE SECRETARY:    Those recorded in

                 the negative on Calendar Number 1185 are

                 Senators DeFrancisco, Duane, Hassell-Thompson,

                 L. Krueger, Montgomery, Parker, Schneiderman,

                 A. Smith and Stavisky.  Ayes, 48.  Nays, 9.

                            ACTING PRESIDENT McGEE:    The bill

                 is passed.

                            THE SECRETARY:    Calendar Number

                 1220, by Senator DeFrancisco, Senate Print

                 6087, an act to amend the Tax Law.

                            SENATOR LIZ KRUEGER:

                 Explanation.

                            ACTING PRESIDENT McGEE:    Senator

                 DeFrancisco, an explanation has been requested

                 by Senator Liz Krueger.

                            SENATOR DeFRANCISCO:    Under

                 current law, mortgagors are responsible for

                 paying a special additional mortgage recording

                 tax.  The tax is 25 cents per $100.



                                                        3024



                            It can be recouped by the mortgagor

                 as a tax credit that is refundable when the

                 credit is in excess of ordinary tax on

                 business income.  This refundability is only

                 available under C corporations and

                 S corporations and is not allowed under LLCs.

                            Many organizations have gone into

                 LLCs as the preferred entity.  And all this

                 does is put the LLCs on equal footing as far

                 as this tax rebate, so that whether you get

                 the rebate doesn't depend upon the form of

                 corporation that you determine is best for

                 your company.

                            ACTING PRESIDENT McGEE:    Senator

                 Krueger.

                            SENATOR LIZ KRUEGER:    Thank you,

                 Madam President.  If, through you, the sponsor

                 would yield.

                            ACTING PRESIDENT McGEE:    Senator

                 DeFranscis -- frisco --

                            SENATOR DeFRANCISCO:

                 DeFrancisco.

                            SENATOR LIZ KRUEGER:    Oh, whoever

                 you are.

                            SENATOR DeFRANCISCO:    That's easy



                                                        3025



                 for you to say.

                            ACTING PRESIDENT McGEE:    Would

                 you yield?

                            SENATOR DeFRANCISCO:    Absolutely.

                            ACTING PRESIDENT McGEE:    The

                 Senator yields.

                            (Laughter.)

                            SENATOR LIZ KRUEGER:    I'm sorry.

                 Whoever that Senator is, he yields and I

                 appreciate it.  Thank you.  Excuse me.

                            Senator DeFrancisco, clearly when

                 we increase tax credits there's a cost to the

                 State of New York.  But your bill doesn't show

                 any fiscal implications, and I'm wondering

                 where those numbers are.

                            SENATOR DeFRANCISCO:    I just

                 happen to have that.  I anticipated your

                 question.

                            The Tax and Finance estimates the

                 reduction in revenues in years 2004-2005 is

                 $300,000 and in succeeding years it would be

                 approximately $600,000.

                            SENATOR LIZ KRUEGER:    Thank you.

                            Madam President, on the bill.

                            ACTING PRESIDENT McGEE:    Senator



                                                        3026



                 Krueger, on the bill.

                            SENATOR LIZ KRUEGER:    Thank you.

                            I appreciate the Senator's

                 response.  And it's the reason that I raised

                 the question, because I think we should be

                 looking at our tax credit policies, our

                 business taxes in a whole -- in a broader

                 perspective than an individual tax credit for

                 an individual subset of corporations.

                            In fact, there's been a massive

                 growth in LLCs and in even subchapter K types

                 of limited liability companies over the last

                 decade.  And, frankly, that's grown out of the

                 recognition that there are tax advantages for

                 subchapter K LLC-type businesses over the S

                 and C models.

                            And so businesses have changed

                 their practices and even the way they

                 incorporate in order to minimize their

                 business taxes.  If we were businesses, we too

                 would probably go:  Let's see what we can do

                 to minimize our tax bill to New York State.

                            The other side of the coin,

                 however, is that means that we've seen

                 dramatic decreases in business tax revenue to



                                                        3027



                 the State of New York during a time where we

                 know we're desperate for more revenue.

                            And so it's not so much my concern

                 about the -- I respect the concern you have

                 about the inequity, at least on paper, between

                 the S and the C and the K.  My concern is

                 actually that businesses keep shifting the way

                 they define themselves, how they incorporate

                 themselves, to reduce their tax bills to the

                 State of New York.

                            And while the estimate you received

                 was only for a few hundred thousand dollars if

                 this bill was to pass, when I looked at the

                 Tax Department's information about the

                 mortgage recording credits on the other types

                 of businesses, the Cs and the Ss, I found that

                 it's been almost doubling every year, the

                 amount of tax credits that they have been

                 claiming.

                            So in '98 the tax credit for those

                 who already could draw the additional mortgage

                 recording credit was $2.4 million.  By '99 it

                 was $5.7 million.  By the year 2000, it was

                 about $7 million.  There's been exponential

                 growth in the use of these mortgage recording



                                                        3028



                 tax credits.

                            And for me, I believe the question

                 that should be before this house is evaluating

                 our policies on business tax credits.  I share

                 your view that they should be equitable

                 between different kinds of businesses and

                 corporations.  We shouldn't have one set of

                 tax policy for a company that calls itself a C

                 corporation and another type of tax policy for

                 a company that calls itself a subchapter K

                 LLC.

                            Nonetheless, what is really the

                 issue here is that we've got the business

                 community adjusting their corporate structure

                 to decrease the amount of money they're paying

                 into the New York State tax pool.  It is

                 leaving us with less and less revenue every

                 year.

                            And in fact, I might argue, if we

                 were to have open hearings and discussions

                 about this, you and I might agree that

                 perhaps, rather than providing the tax credit

                 for the subchapter K LLCs, we might agree we

                 should get rid of this tax credit for the

                 other companies as well, and that equity might



                                                        3029



                 be more logically served by doing away with a

                 number of these individual tax credits that in

                 fact are draining money from the state budget

                 and, one could argue, are not decreasing the

                 likelihood that businesses are going to set up

                 or incorporate or do business in the State of

                 New York.

                            So I will vote for the bill because

                 I believe in equity.  But I actually think

                 that the bill before us ought to be a much

                 broader analysis of our business tax policies

                 and the enormous amount of money that in fact

                 we don't collect because of the types of tax

                 credits we have.

                            Using the same charts, for example,

                 we could see that we have an investment tax

                 credit for financial services where we lose

                 $86 million a year to our treasury.  We have

                 the Empire Zone investment tax credits where

                 we're not collecting 162 -- actually,

                 $163 million a year.  We have the alternative

                 minimum tax credits where we're not collecting

                 over $70 million a year from businesses in

                 New York.

                            We should be looking at tax policy



                                                        3030



                 from the perspective of where are we in the

                 year 2005, how have businesses changed their

                 practices since the last time we had a major

                 overhaul of business tax policy in the State

                 of New York, how much money are we not

                 collecting in business taxes because of all

                 these different credits and exemptions out

                 there, and would we be better serving the

                 people of New York State if we in fact had a

                 reform of our business tax structure that both

                 addressed the concerns of equity -- which is

                 clearly where Senator DeFrancisco is going in

                 this bill today -- but also assured that the

                 businesses of the State of New York paid their

                 fair share for the services we all need to

                 invest in for the future of our state.

                            And that the State of New York

                 might in fact be able to draw down

                 significantly larger amounts of revenue from

                 our business tax structure if we were to

                 completely revamp our business tax credit

                 system.

                            Thank you, Madam President.

                            ACTING PRESIDENT McGEE:    Any

                 other Senator wishing to speak on the bill?



                                                        3031



                            Read the last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT McGEE:    Senator

                 DeFrancisco.

                            SENATOR DeFRANCISCO:    I just want

                 to explain my vote --

                            ACTING PRESIDENT McGEE:    One

                 moment, Senator DeFrancisco.

                            Call the roll, please.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT McGEE:    Senator

                 DeFrancisco.

                            SENATOR DeFRANCISCO:    Thank you.

                 I just want to explain my vote.

                            First of all, I don't think there's

                 any corporation that consciously changes from

                 one form to an LLC to save this particular

                 tax.  So that's number one.

                            Number two, I think you're seeing

                 that increase in revenues that were lost by

                 tax credits in this particular -- for this

                 particular tax because, over the years that

                 you're citing, the mortgage rates have been so

                 low that there has been substantial



                                                        3032



                 refinancings, there's been a boom in housing

                 over the many, many years.

                            So I know that there's more and

                 more losses due to this credit.  But that's, I

                 think, more due to the fact that there's so

                 many refinancings and so many house sales in

                 the low interest rate period than it is from

                 companies intentionally trying to take

                 advantage of the law to save this particular

                 tax.

                            ACTING PRESIDENT McGEE:    Announce

                 the results.

                            THE SECRETARY:    Ayes, 57.

                            ACTING PRESIDENT McGEE:    The bill

                 is passed.

                            Senator Kuhl, that completes the

                 controversial reading of the calendar.

                            SENATOR KUHL:    Thank you, Madam

                 President.

                            May we return to the order of

                 motions and resolutions.  I believe that

                 there's a privileged resolution by Senator

                 Maltese at the desk.  I ask that the title be

                 read and move for its immediate adoption.

                            ACTING PRESIDENT McGEE:    The



                                                        3033



                 Secretary will read.

                            THE SECRETARY:    By Senator

                 Maltese, Legislative Resolution Number 5305,

                 expressing support for the Pledge of

                 Allegiance and memorializing Governor George

                 E. Pataki to proclaim June 14, 2004, as Pledge

                 of Allegiance to the Flag Day in the State of

                 New York.

                            ACTING PRESIDENT McGEE:    The

                 question is on the resolution.  All in favor

                 will signify by saying aye.

                            (Response of "Aye.")

                            ACTING PRESIDENT McGEE:    Opposed,

                 nay.

                            (Response of "Nay.")

                            ACTING PRESIDENT McGEE:    The

                 resolution is adopted.

                            Senator Kuhl.

                            SENATOR KUHL:    Madam President,

                 may we now go to the order of reports of

                 standing committees.  I believe there's a

                 report of the Rules Committee at the desk.  I

                 ask the Secretary to read.

                            ACTING PRESIDENT McGEE:    Reports

                 of standing committees.



                                                        3034



                            The Secretary will read.

                            THE SECRETARY:    Senator Bruno,

                 from the Committee on Rules, reports the

                 following bills:

                            Senate Print 1470, by Senator

                 LaValle, an act to amend the General Municipal

                 Law;

                            2526A, by Senator Trunzo, an act in

                 relation to requiring;

                            2739A, by Senator Volker, an act to

                 amend the Retirement and Social Security Law;

                            3587, by Senator Flanagan, an act

                 to amend the Correction Law;

                            3893A, by Senator Volker, an act in

                 relation to granting;

                            5264A, by Senator Alesi, an act to

                 amend the Executive Law;

                            5677A, by Senator Alesi, an act to

                 amend the County Law;

                            5826, by Senator Morahan, an act to

                 amend the Executive Law;

                            5880, by Senator Maziarz, an act

                 authorizing;

                            6153, by Senator Morahan, an act to

                 authorize the Village of Spring Valley;



                                                        3035



                            6247, by Senator Flanagan, an act

                 to allow;

                            6376, by Senator Larkin, an act to

                 amend the Real Property Tax Law;

                            6449A, by Senator Larkin, an act to

                 amend the Racing, Pari-Mutuel Wagering and

                 Breeding Law;

                            6588, by Senator Volker, an act to

                 amend the Civil Service Law;

                            6851, by Senator Spano, an act to

                 amend the Retirement and Social Security Law;

                            7091, by Senator Golden, an act to

                 amend the Executive Law;

                            7329, by Senator Stavisky, an act

                 to amend the Highway Law;

                            7344, by Senator Robach, an act to

                 amend the Civil Service Law and others;

                            And Senate Print 7364, by Senator

                 Larkin, an act to amend the Racing,

                 Pari-Mutuel Wagering and Breeding Law.

                            All bills ordered direct to third

                 reading.

                            ACTING PRESIDENT McGEE:    Senator

                 Kuhl.

                            SENATOR KUHL:    Yes, Madam



                                                        3036



                 President.  I move to accept the report of the

                 Rules Committee.

                            ACTING PRESIDENT McGEE:    All in

                 favor of accepting the report of the Rules

                 Committee will signify by saying aye.

                            (Response of "Aye.")

                            ACTING PRESIDENT McGEE:    Opposed,

                 nay.

                            (No response.)

                            ACTING PRESIDENT McGEE:    The

                 report is accepted.

                            Senator Kuhl.

                            SENATOR KUHL:    Is there any

                 housekeeping at the desk?

                            ACTING PRESIDENT McGEE:    Senator

                 DeFrancisco.

                            SENATOR DeFRANCISCO:    Yes, thank

                 you, Madam President, for recognizing me by my

                 proper name.

                            On behalf of Senator Volker, please

                 remove the sponsor's star from Calendar Number

                 1111.

                            ACTING PRESIDENT McGEE:    So

                 ordered.

                            SENATOR DeFRANCISCO:    And I wish



                                                        3037



                 to call up my bill, Print Number 6043A,

                 recalled from the Assembly, which is now at

                 the desk.

                            ACTING PRESIDENT McGEE:    The

                 Secretary will read.

                            THE SECRETARY:    Calendar Number

                 382, by Senator Skelos, Senate Print 6043A, an

                 act to amend the Penal Law and others.

                            ACTING PRESIDENT McGEE:    Senator

                 DeFrancisco.

                            SENATOR DeFRANCISCO:    May I now

                 move to reconsider the vote by which this bill

                 was passed.

                            ACTING PRESIDENT McGEE:    The

                 Secretary will call the roll on

                 reconsideration.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 57.

                            ACTING PRESIDENT McGEE:    Senator

                 DeFrancisco.

                            SENATOR DeFRANCISCO:    Well, I was

                 now going to offer the following amendments.

                            ACTING PRESIDENT McGEE:    Thank

                 you so much.  Amendments are received.

                            Senator Kuhl.



                                                        3038



                            SENATOR KUHL:    Yes, Madam

                 President.  There being no further business to

                 come before the Senate today, I move we stand

                 adjourned until tomorrow, Thursday, June 3rd,

                 at 11:00 a.m.

                            ACTING PRESIDENT McGEE:    On

                 motion, the Senate stands adjourned until

                 Thursday, June 3rd, at 11:00 a.m.

                            (Whereupon, at 4:26 p.m., the

                 Senate adjourned.)