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
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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
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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
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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
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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
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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
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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,
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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
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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
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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
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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
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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,
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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.)