Regular Session - June 3, 2004

    

 
                                                        3039



                           NEW YORK STATE SENATE





                          THE STENOGRAPHIC RECORD









                             ALBANY, NEW YORK

                               June 3, 2004

                                11:04 a.m.





                              REGULAR SESSION







            LT. GOVERNOR MARY O. DONOHUE, President

            STEVEN M. BOGGESS, Secretary















                                                        3040



                           P R O C E E D I N G S

                            THE PRESIDENT:    The Senate will

                 please come to order.

                            I ask everyone present to please

                 rise and repeat with me the Pledge of

                 Allegiance.

                            (Whereupon, the assemblage recited

                 the Pledge of Allegiance to the Flag.)

                            THE PRESIDENT:    In the absence of

                 clergy, may we bow our heads in a moment of

                 silence, please.

                            (Whereupon, the assemblage

                 respected a moment of silence.)

                            THE PRESIDENT:    Reading of the

                 Journal.

                            THE SECRETARY:    In Senate,

                 Wednesday, June 2nd, the Senate met pursuant

                 to adjournment.  The Journal of Tuesday,

                 June 1st, 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.



                                                        3041



                            Messages from the Governor.

                            Reports of standing committees.

                            Reports of select committees.

                            Communications and reports from

                 state officers.

                            Motions and resolutions.

                            Senator Fuschillo.

                            SENATOR FUSCHILLO:    Thank you,

                 Madam President.

                            On behalf of Senator Skelos, I wish

                 to call up Senate Print Number 556, recalled

                 from the Assembly, which is now at the desk.

                            THE PRESIDENT:    The Secretary

                 will read.

                            THE SECRETARY:    Calendar Number

                 84, by Senator Skelos, Senate Print 556, an

                 act to amend the Family Court Act.

                            SENATOR FUSCHILLO:    I now move to

                 reconsider the vote by which the bill was

                 passed.

                            THE PRESIDENT:    The Secretary

                 will call the roll upon reconsideration.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 40.

                            SENATOR FUSCHILLO:    I now offer



                                                        3042



                 the following amendments.

                            THE PRESIDENT:    The amendments

                 are received.

                            SENATOR FUSCHILLO:    Madam

                 President, on behalf of Senator Marchi, I wish

                 to call up Senate Print Number 6477, recalled

                 from the Assembly, which is now at the desk.

                            THE PRESIDENT:    The Secretary

                 will read.

                            THE SECRETARY:    Calendar Number

                 598, Senate Print 6477, an act to amend the

                 Administrative Code of the City of New York.

                            SENATOR FUSCHILLO:    I mow move to

                 reconsider the vote by which the bill was

                 passed.

                            THE PRESIDENT:    The Secretary

                 will call the roll upon reconsideration.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 40.

                            SENATOR FUSCHILLO:    I now offer

                 the following amendments.

                            THE PRESIDENT:    The amendments

                 are received.

                            SENATOR FUSCHILLO:    Madam

                 President, on behalf of Senator Flanagan, on



                                                        3043



                 page 51 I offer the following amendments to

                 Calendar Number 1085, Senate Print Number

                 7088, and ask that said bill retain its place

                 on Third Reading Calendar.

                            THE PRESIDENT:    The amendments

                 are received, and the bill will retain its

                 place on the Third Reading Calendar.

                            SENATOR FUSCHILLO:    On behalf of

                 Senator Morahan, I move to amend Senate Bill

                 Number 6030A by striking out the amendments

                 made on March 31st and restoring it to its

                 original previous print number, 6030.

                            THE PRESIDENT:    So ordered.

                            SENATOR FUSCHILLO:    Thank you.

                            THE PRESIDENT:    Senator Skelos.

                            SENATOR SKELOS:    Madam President,

                 are there any substitutions at the desk?

                            THE PRESIDENT:    Yes, there are,

                 Senator.

                            SENATOR SKELOS:    Thank you.  If

                 we could make them at this time.

                            THE PRESIDENT:    The Secretary

                 will read.

                            THE SECRETARY:    On page 78,

                 Senator Alesi moves to discharge, from the



                                                        3044



                 Committee on Local Government, Assembly Bill

                 Number 7448B and substitute it for the

                 identical Senate Bill Number 5677A, Third

                 Reading Calendar 1416.

                            On page 78, Senator Maziarz moves

                 to discharge, from the Committee on Civil

                 Service and Pensions, Assembly Bill Number

                 9885 and substitute it for the identical

                 Senate Bill Number 5880, Third Reading

                 Calendar 1418.

                            On page 78, Senator Volker moves to

                 discharge, from the Committee on Civil Service

                 and Pensions, Assembly Bill Number 10318 and

                 substitute it for the identical Senate Bill

                 Number 6588, Third Reading Calendar 1423.

                            And on page 79, Senator Golden

                 moves to discharge, from the Committee on

                 Veterans, Homeland Security and Military

                 Affairs, Assembly Bill Number 10414 and

                 substitute it for the identical Senate Bill

                 Number 7091, Third Reading Calendar 1425.

                            THE PRESIDENT:    Substitutions

                 ordered.

                            Senator Skelos.

                            SENATOR SKELOS:    Madam President,



                                                        3045



                 there's a resolution at the desk, 5350, by

                 Senator Hoffmann.  Could we have the title

                 read and move for its immediate adoption.

                            THE PRESIDENT:    The Secretary

                 will read.

                            THE SECRETARY:    By Senator

                 Hoffmann, Legislative Resolution Number 5350,

                 honoring Charles E. Read upon the occasion of

                 his retirement after 33 distinguished years as

                 an educator.

                            THE PRESIDENT:    All in favor

                 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,

                 if we could go to the noncontroversial reading

                 of the calendar.

                            THE PRESIDENT:    The Secretary

                 will read.

                            THE SECRETARY:    Calendar Number

                 417, by Senator McGee, Senate Print 2777B, an



                                                        3046



                 act to amend the Agriculture and Markets Law,

                 in relation to award of grants.

                            THE PRESIDENT:    Read the last

                 section.

                            THE SECRETARY:    Section 4.  This

                 act shall take effect on the 180th day.

                            THE PRESIDENT:    Call the roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 40.

                            THE PRESIDENT:    The bill is

                 passed.

                            THE SECRETARY:    Calendar Number

                 961, by Senator Trunzo, Senate Print 7189, an

                 act to amend the Executive Law and Chapter 22

                 of the Laws of 2003, amending the Executive

                 Law.

                            THE PRESIDENT:    Read the last

                 section.

                            THE SECRETARY:    Section 5.  This

                 act shall take effect immediately.

                            THE PRESIDENT:    Call the roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 43.

                            THE PRESIDENT:    The bill is

                 passed.



                                                        3047



                            THE SECRETARY:    Calendar Number

                 970, by Member of the Assembly John, Assembly

                 Print Number 10290, an act to amend the Labor

                 Law and the Executive Law.

                            THE PRESIDENT:    Read the last

                 section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            THE PRESIDENT:    Call the roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 43.

                            THE PRESIDENT:    The bill is

                 passed.

                            THE SECRETARY:    Calendar Number

                 1047, by Senator Little, Senate Print 6485, an

                 act to amend the Local Finance Law, in

                 relation to refunding bonds.

                            THE PRESIDENT:    Read the last

                 section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            THE PRESIDENT:    Call the roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 43.

                            THE PRESIDENT:    The bill is



                                                        3048



                 passed.

                            THE SECRETARY:    Calendar Number

                 1083, by Senator Skelos, Senate Print 6143B,

                 an act to amend the Education Law, in relation

                 to prohibiting the purchase.

                            THE PRESIDENT:    Read the last

                 section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect on the first of July.

                            THE PRESIDENT:    Call the roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 44.

                            THE PRESIDENT:    The bill is

                 passed.

                            THE SECRETARY:    Calendar Number

                 1187, by Senator Larkin, Senate Print 6996A,

                 an act to amend the Racing, Pari-Mutuel

                 Wagering and Breeding Law, in relation to

                 proposition wagers.

                            THE PRESIDENT:    Read the last

                 section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect on the 180th day.

                            THE PRESIDENT:    Call the roll.

                            (The Secretary called the roll.)



                                                        3049



                            THE SECRETARY:    Ayes, 43.  Nays,

                 1.  Senator Padavan recorded in the negative.

                            THE PRESIDENT:    The bill is

                 passed.

                            THE SECRETARY:    Calendar Number

                 1225, by Senator Balboni, Senate Print 6545,

                 an act to amend the Executive Law, in relation

                 to the reporting of biological and chemical

                 threats.

                            THE PRESIDENT:    Read the last

                 section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            THE PRESIDENT:    Call the roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 44.

                            THE PRESIDENT:    The bill is

                 passed.

                            THE SECRETARY:    Calendar Number

                 1236, by Senator Little, Senate Print 7168, an

                 act to amend the Executive Law, in relation to

                 including the Fulton chain of lakes.

                            THE PRESIDENT:    Read the last

                 section.

                            THE SECRETARY:    Section 2.  This



                                                        3050



                 act shall take effect immediately.

                            THE PRESIDENT:    Call the roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 44.

                            THE PRESIDENT:    The bill is

                 passed.

                            THE SECRETARY:    Calendar Number

                 1246, by Senator Maltese, Senate Print 6533,

                 an act to amend the Highway Law, in relation

                 to allowing commercial vehicles.

                            THE PRESIDENT:    Read the last

                 section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            THE PRESIDENT:    Call the roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 48.

                            THE PRESIDENT:    The bill is

                 passed.

                            THE SECRETARY:    Calendar Number

                 1351, by Senator DeFrancisco, Senate Print

                 6737, an act in relation to authorizing the

                 Town of Marcellus.

                            THE PRESIDENT:    There is a

                 home-rule message at the desk.



                                                        3051



                            Read the last section.

                            THE SECRETARY:    Section 5.  This

                 act shall take effect immediately.

                            THE PRESIDENT:    Call the roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 48.

                            THE PRESIDENT:    The bill is

                 passed.

                            THE SECRETARY:    Calendar Number

                 1354, by Senator Wright, Senate Print 6857, an

                 act in relation to authorizing the Town of

                 Parish.

                            THE PRESIDENT:    There is a

                 home-rule message at the desk.

                            Read the last section.

                            THE SECRETARY:    Section 5.  This

                 act shall take effect immediately.

                            THE PRESIDENT:    Call the roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 51.

                            THE PRESIDENT:    The bill is

                 passed.

                            THE SECRETARY:    Calendar Number

                 1410, by Senator LaValle, Senate Print 1470,

                 an act to amend the General Municipal Law, in



                                                        3052



                 relation to requirements and benefits.

                            THE PRESIDENT:    Read the last

                 section.

                            THE SECRETARY:    Section 3.  This

                 act shall take effect immediately.

                            THE PRESIDENT:    Call the roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 51.

                            THE PRESIDENT:    The bill is

                 passed.

                            THE SECRETARY:    Calendar Number

                 1411, by Senator Trunzo, Senate Print 2526A,

                 an act in relation to requiring state

                 agencies.

                            THE PRESIDENT:    Read the last

                 section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            THE PRESIDENT:    Call the roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 51.

                            THE PRESIDENT:    The bill is

                 passed.

                            THE SECRETARY:    Calendar Number

                 1412, by Senator Volker, Senate Print 2739A,



                                                        3053



                 an act to amend the Retirement and Social

                 Security Law, in relation to the method of

                 payment.

                            THE PRESIDENT:    Read the last

                 section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            THE PRESIDENT:    Call the roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 53.

                            THE PRESIDENT:    The bill is

                 passed.

                            THE SECRETARY:    Calendar Number

                 1413, by Senator Flanagan, Senate Print 3587,

                 an act to amend the Correction Law, in

                 relation to information disseminated on

                 Level 3 sex offenders.

                            THE PRESIDENT:    Read the last

                 section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect on the 90th day.

                            THE PRESIDENT:    Call the roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 51.  Nays,

                 2.  Senators Duane and Montgomery recorded in



                                                        3054



                 the negative.

                            THE PRESIDENT:    The bill is

                 passed.

                            THE SECRETARY:    Calendar Number

                 1414, by Senator Volker, Senate Print 3893A,

                 an act in relation to granting.

                            THE PRESIDENT:    There is a

                 home-rule message at the desk.

                            Read the last section.

                            THE SECRETARY:    Section 3.  This

                 act shall take effect immediately.

                            THE PRESIDENT:    Call the roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 53.

                            THE PRESIDENT:    The bill is

                 passed.

                            THE SECRETARY:    Calendar Number

                 1415, by Senator Alesi, Senate Print 5264A, an

                 act to amend the Executive Law, in relation to

                 requiring.

                            THE PRESIDENT:    Read the last

                 section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            THE PRESIDENT:    Call the roll.



                                                        3055



                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 53.

                            THE PRESIDENT:    The bill is

                 passed.

                            THE SECRETARY:    Calendar Number

                 1416, substituted earlier today by Member of

                 the Assembly Koon, Assembly Print Number

                 7448C, an act to amend the County Law.

                            THE PRESIDENT:    Read the last

                 section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            THE PRESIDENT:    Call the roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 54.

                            THE PRESIDENT:    The bill is

                 passed.

                            THE SECRETARY:    Calendar Number

                 1418, substituted earlier today by Member of

                 the Assembly Wirth, Assembly Print Number

                 9885, an act authorizing the City of Lockport.

                            THE PRESIDENT:    There is a

                 home-rule message at the desk.

                            Read the last section.

                            THE SECRETARY:    Section 2.  This



                                                        3056



                 act shall take effect immediately.

                            THE PRESIDENT:    Call the roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 54.

                            THE PRESIDENT:    The bill is

                 passed.

                            THE SECRETARY:    Calendar Number

                 1420, by Senator Flanagan, Senate Print 6247,

                 an act to allow Thomas B. Endee to join.

                            THE PRESIDENT:    There is a

                 home-rule message at the desk.

                            Read the last section.

                            THE SECRETARY:    Section 3.  This

                 act shall take effect immediately.

                            THE PRESIDENT:    Call the roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 54.

                            THE PRESIDENT:    The bill is

                 passed.

                            THE SECRETARY:    Calendar Number

                 1421, by Senator Larkin, Senate Print 6376, an

                 act to amend the Real Property Tax Law, in

                 relation to refiling an application.

                            THE PRESIDENT:    Read the last

                 section.



                                                        3057



                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            THE PRESIDENT:    Call the roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 54.

                            THE PRESIDENT:    The bill is

                 passed.

                            THE SECRETARY:    Calendar Number

                 1423, substituted earlier today by Member of

                 the Assembly Higgins, Assembly Print Number

                 10318, an act to amend the Civil Service Law,

                 in relation to including.

                            THE PRESIDENT:    Read the last

                 section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            THE PRESIDENT:    Call the roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 54.

                            THE PRESIDENT:    The bill is

                 passed.

                            THE SECRETARY:    Calendar Number

                 1424, by Senator Spano, Senate Print 6851, an

                 act to amend the Retirement and Social

                 Security Law, in relation to establishing.



                                                        3058



                            THE PRESIDENT:    Read the last

                 section.

                            THE SECRETARY:    Section 5.  This

                 act shall take effect on the first of January

                 next succeeding.

                            THE PRESIDENT:    Call the roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 54.

                            THE PRESIDENT:    The bill is

                 passed.

                            THE SECRETARY:    Calendar Number

                 1425, substituted earlier today by Member of

                 the Assembly Cusick, Assembly Print Number

                 10414, an act to amend the Executive Law, in

                 relation to information.

                            THE PRESIDENT:    Read the last

                 section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            THE PRESIDENT:    Call the roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 54.

                            THE PRESIDENT:    The bill is

                 passed.

                            THE SECRETARY:    Calendar Number



                                                        3059



                 1426, by Senator Stavisky, Senate Print 7329,

                 an act to amend the Highway Law, in relation

                 to the designation.

                            THE PRESIDENT:    Read the last

                 section.

                            THE SECRETARY:    Section 3.  This

                 act shall take effect immediately.

                            THE PRESIDENT:    Call the roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 54.

                            THE PRESIDENT:    The bill is

                 passed.

                            THE SECRETARY:    Calendar Number

                 1427, by Senator Robach, Senate Print 7344, an

                 act to amend the Civil Service Law and others,

                 in relation to compensation.

                            THE PRESIDENT:    Read the last

                 section.

                            THE SECRETARY:    Section 17.  This

                 act shall take effect immediately.

                            THE PRESIDENT:    Call the roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 55.

                            THE PRESIDENT:    The bill is

                 passed.



                                                        3060



                            THE SECRETARY:    Calendar Number

                 1428, by Senator Larkin, Senate Print --

                            SENATOR SCHNEIDERMAN:    Lay it

                 aside.

                            THE PRESIDENT:    The bill is laid

                 aside.

                            Senator Skelos, that completes the

                 noncontroversial reading of the calendar.

                            Senator Duane.

                            SENATOR DUANE:    Thank you, Madam

                 President.  If I could have unanimous consent

                 to be recorded in the negative on Calendar

                 Number 1187.

                            THE PRESIDENT:    Hearing no

                 objection, you will be so recorded as voting

                 in the negative.

                            Senator Skelos.

                            SENATOR SKELOS:    Madam President,

                 if we could go to the controversial reading of

                 the calendar.

                            THE PRESIDENT:    The Secretary

                 will read.

                            THE SECRETARY:    Calendar Number

                 1428, by Senator Larkin, Senate Print 7364, an

                 act to amend the Racing, Pari-Mutuel Wagering



                                                        3061



                 and Breeding Law and others.

                            SENATOR SCHNEIDERMAN:

                 Explanation.

                            THE PRESIDENT:    Senator Larkin,

                 an explanation has been requested.

                            SENATOR LARKIN:    Thank you, Madam

                 President.

                            Senator Schneiderman, as you know

                 and John Sabini knows, we've been working on

                 this for a number of months to try to put a

                 package together that resembles what the needs

                 of the State of New York are with regard to

                 gaming and all aspects of it.

                            With the expansion of gaming, we

                 decided that we needed to revise everything

                 that's done with regard to gaming in the State

                 of New York.  We needed basically to restore

                 the integrity and the confidence that the

                 people of the state have in our gambling

                 industry.

                            This bill also regulates gambling,

                 maximizes the amount of revenue generated for

                 educational programs and for the general

                 operation of our state or local governments.

                            The bill before you, the Gaming



                                                        3062



                 Reform Act of 2004, comprehensively reforms

                 the regulation of all horse-racing activities,

                 OTB operations, the operation of VLTs, Indian

                 casinos, bingo halls, bell jar tickets.  All

                 of these activities give entertainment value

                 to their customers as well as providing

                 well-needed revenue for the state.

                            A couple of things, generalizing

                 this bill here.  We're going to consolidate,

                 under this bill, everything under one agency.

                 Instead of having five or six having something

                 to do, we're going to have one agency.  This

                 bill consolidates the regulation of all gaming

                 activities under one roof and will increase

                 regulatory efficiency, reduce costs, and

                 eliminate redundancy in the current system.

                            The new gaming commission will be

                 granted strong regulatory powers that are

                 above and beyond that we have now.  These

                 additional powers, we feel, will be adequate

                 to regulate gaming and will punish those who

                 violate the laws.

                            We want to strengthen governmental

                 supervision of NYRA or any organization that

                 succeeds NYRA to manage the state racing



                                                        3063



                 franchise.  The bill creates the nonprofit

                 racing agency oversight board.  The oversight

                 board will be five members, three appointed by

                 the Governor, one by the Speaker, and one by

                 the Majority Leader.

                            They're going to have a lot of

                 wide-ranging powers, Senator, concerning

                 annual operating budgets, on the establishment

                 of a financial plan to make NYRA profitable

                 once again, approve NYRA's compliance with all

                 laws, approve or disapprove capital plans

                 submitted by NYRA, establish model governance

                 principles to improve their accountability and

                 transparency.

                            The facility installation of VLTs

                 at Aqueduct, which has been a prime concern.

                 Without it, we will not have the resources.

                 But it excludes from NYRA's definition of

                 operating expenses, because we found in the

                 past that we saw no revenue going to the state

                 because of the manner in which it was

                 functioning.

                            But the purpose of computing the

                 entire adjusted net income, the principal

                 debit repayments from capital improvements



                                                        3064



                 relating to the construction of VLTs at

                 Aqueduct.  As you know, you and John have

                 talked about it, that MGM is willing to come

                 in and be a partner.  But they want to make

                 sure that they're not going to be a partner

                 until the losses come in.

                            And it authorizes the oversight

                 board to operate the VLTs at Aqueduct track in

                 the event of the revocation or expiration of

                 the franchise currently granted to NYRA.

                            Now, we consolidated administration

                 of horse breeding development funds.

                 Heretofore, as you know, we have four funds

                 out there, all going in four different

                 directions.  The bill directs the commissioner

                 of Ag and Markets, in consultation with the

                 new gaming commission, to administer funds to

                 promote the breeding of horses and the conduct

                 of equine research.

                            In my opinion, this is a monumental

                 bill, long overdue.  It should help us reform

                 the horse-racing industry.  It should also

                 help to remove the cloud that has hovered over

                 this important industry for far too long.

                            I would like to personally thank



                                                        3065



                 Senator Bruno and his staff for their advice,

                 consent, in working with us to make sure that

                 this bill appeared before us today.

                            THE PRESIDENT:    Senator Sabini.

                            SENATOR SABINI:    Thank you, Madam

                 President.  On the bill.

                            THE PRESIDENT:    You may proceed.

                            SENATOR SABINI:    Senator Larkin

                 is right.  And I have great respect for his

                 expertise in the areas of racing, wagering and

                 the horse-race industry in this state, which

                 is a very important one.

                            And this bill does two good things,

                 and I'll talk about them first.  NYRA needs

                 some oversight.  We all know that.  It's not a

                 big secret that there have been major problems

                 in NYRA.  And in fact, the thoroughbred

                 industry has not yielded anything to the state

                 in recent years in terms of revenue because of

                 some of the mismanagement and secrecy and just

                 generally bad things going on at NYRA.

                            And the bill also allows Aqueduct

                 to commence with the operation of their VLT

                 program, which will be a great thing for

                 Queens, a great thing for the state in terms



                                                        3066



                 of revenue.  And those are good things.

                            But what the chairman points out,

                 this is a monumental bill.  And it's a bill

                 that has been run through the Rules Committee

                 yesterday.  It's such a monumental bill that

                 all we've heard from the Governor for two

                 years has been how we're going to solve a lot

                 of our problems through enhanced gaming

                 revenue.  That's probably true.

                            But the way to regulate those

                 issues and the way to make sure we get

                 enhanced revenue from gaming is not to create

                 a bureaucracy in basically a day, which is

                 what we're doing here.

                            This creates a panel of gaming

                 czars, in effect, who will be appointed only

                 by the Governor.  The bill -- and others will

                 go into this, I think -- gives this panel

                 broad authority and will leave us, I believe,

                 with the same danger we had going into this

                 fight with NYRA, that will allow the folks

                 appointed by the Governor to have really

                 unlimited authority in the gaming industry.

                            This is too important for us to do

                 in one day or two days.  We haven't heard from



                                                        3067



                 any of the breeders, really, the

                 standardbreds, the thoroughbreds, the track

                 owners.  We have a number of our upstate

                 tracks that are in flux right now.  People are

                 buying them and selling them at a rapid pace.

                 There's a reason for that.  The industry is in

                 a state of flux, especially since no one knows

                 who's regulating it anymore.

                            And while this bill goes to that, I

                 think we need to have more detail and time and

                 input.  There are other audiences we haven't

                 heard from.  This bill will govern things like

                 lottery.  We have lots of Lotto retailers --

                 every one of us has hundreds of them -- who

                 might have something to say about the future

                 of Lotto and Quick Draw and the various other

                 games that are sold through them, and affect

                 their small-business bottom line.

                            We haven't heard from the tribes

                 who operate some of our Native American gaming

                 institutions.  We haven't heard from the

                 municipalities that have been relying on the

                 new jobs generated by some of these casinos

                 for their future economic growth.

                            We haven't heard from any of them,



                                                        3068



                 because we're doing this in classic fashion up

                 here:  run it through in one day.  And while

                 the chairman says they've been working on it

                 for a long time, no one has seen the document

                 until yesterday.

                            If we're going to rely on this

                 industry or these industries -- casinos,

                 racinos, tracks, lottery -- for the future

                 margin of error for our state budget, I think

                 we have to have a little more time to look at

                 who's going to regulate it if we're going to

                 vastly change the regulations and vastly

                 change the governing board and vastly change

                 the composition of who's going to regulate

                 these industries in one day.

                            I think it's a bad idea.  It's bad

                 public policy.  We need to have more

                 discussion, more input.  I don't even think

                 there's an Assembly version of this bill right

                 now, as far as I know.

                            And so while it's a jumping-off

                 point -- and maybe that's a good thing and the

                 way we do business in this town -- I for one

                 don't think this is a good way to do this

                 policy.



                                                        3069



                            There are some good things in this

                 bill.  I believe in the chairman of our

                 committee's sincerity and expertise.  But I

                 think the devil is in the details.

                            And I think it's also important

                 that we have many of the people who are

                 stakeholders in this industry, have them come

                 forward and give us some comment on it and not

                 do this in two days, which is in effect what

                 we're doing being asked to do.

                            So I will be voting in the

                 negative.

                            THE PRESIDENT:    Senator Bruno.

                            SENATOR BRUNO:    Thank you, Madam

                 President.

                            The Senator is right that this is

                 an important piece of legislation.

                            And I listened to Senator Larkin in

                 his very thorough explanation and applaud him

                 for getting this bill together and getting it

                 to the floor.

                            As to timing, the discussion about

                 racing and wagering in New York State has been

                 endless.  Endless.  The last three years, the

                 federal government has been totally involved



                                                        3070



                 in investigating everything having to do with

                 racing -- to the detriment of racing,

                 wagering, and all the people of this state.

                            So this isn't anything new.

                 Discussions have been out there basically

                 stating something different has to be done in

                 this state.

                            New York State is the Empire State.

                 The Empire State.  We lag states like

                 Kentucky, Nevada, California, Florida in so

                 many ways.  Why should we?

                            So the Governor has stepped up with

                 this program bill.  And this program bill was

                 put together with the chair of the committee,

                 with many of the people who have a vested

                 interest in racing and wagering, charitable

                 and for-profit, here in this state, with

                 input, and it was introduced a week whenever

                 ago.

                            So it isn't as if the subject was

                 conceived overnight.  It's been in front of us

                 for years.

                            Now, we have done some major things

                 here to move the economy of this state, to

                 move the health and welfare on behalf of the



                                                        3071



                 people of this state.  We've done it together.

                 This is important.  It's important for a lot

                 of reasons economically.  Just with racing,

                 there's 40,000-plus jobs, as has been stated,

                 at stake.  We do not stand as the premier

                 racing state, for one, or wagering in all of

                 the United States.  We don't.  And we should.

                            So we can debate and we can

                 hesitate.  And what we do best in the

                 Legislature is study, review, nothing.  We do

                 that very well.  We've done it with CFE, we've

                 done it with the budget, we've done it with

                 major issues like Rockefeller reform,

                 Timothy's Law, power siting, you name it.

                 What have we done?  Nothing.  Nothing.  We

                 should be embarrassed.

                            Now, why have we done nothing?

                 Why?  Don't answer it.

                            (Laughter.)

                            SENATOR BRUNO:    I was afraid

                 there'd be an uprising here, Madam President.

                            (Laughter.)

                            SENATOR BRUNO:    The Assembly said

                 in February, in March, they will not do

                 anything until we do CFE.  Okay?  Nothing.  We



                                                        3072



                 met every week with the Speaker, with people,

                 with the committees, with the Governor --

                 together, separately -- since January.  Okay?

                 The Speaker says nothing happens until we do

                 CFE.  Okay?

                            So last week I said:  You know,

                 it's about time we get CFE behind us, isn't

                 it?  Let's get a plan out.

                            Did anybody get a plan out?  No.

                            Who got a plan out?  The Senate got

                 a plan out.  The Governor followed, to his

                 credit.  The Speaker followed yesterday.  We

                 have now three plans out.

                            And the Speaker said:  When we get

                 those plans out, we'll work on the budget.

                            Well, that's great.  We are leaving

                 here June 22nd.  You all plan on that?  You

                 have it in your calendars?

                            Now, Madam President, if I am

                 digressing, I do have a purpose.  Okay?  I

                 have a purpose.

                            UNIDENTIFIED SENATOR:    Don't

                 stop.

                            SENATOR BRUNO:    Thank you.

                            Now, we are trying to get engaged



                                                        3073



                 in CFE.  It's not fair that we leave it to the

                 courts.  We've got to get that done.  We have

                 to get a budget done for the people of the

                 state.

                            And we agreed in December on a

                 calendar, on your behalf -- yours, yours.  How

                 did we get to June 22nd?  How did we get

                 there?  We got there by talking with the

                 Speaker and all of his assistants and the

                 members there and our members here, and said

                 we've got to settle a date to get out of here.

                            Okay.  And we debated for weeks,

                 and we decided -- we were somewhere in the

                 middle of June, here, to get out.  Shelly

                 said:  Nah, it's too early.  Okay?  He said

                 something like later in June.

                            Where there's a will, there's a

                 way.  We want to, we can get out on the 15th,

                 you can get out on the 28th, you can get out

                 on the 22nd.  If you want to get it done.

                            If you don't, you can be here until

                 the Fourth of July, as we have been.  You can

                 be here until August 4th, as we have been, if

                 you don't want to get it done.

                            We want to get it done.  So we



                                                        3074



                 compromised with Shelly.  And I said:

                 "Shelly" -- and I hope Shelly's listening.

                 Listen up, Shell -- "tell us when you want to

                 get out of here."  22nd of June.

                            "Do you promise and commit that if

                 we agree and print a calendar that you'll

                 leave on the 22nd of June with our business

                 finished?"

                            "Yes.  Yes."  We shook hands.

                            Who was there?  Anybody?  I don't

                 remember.

                            Now, I'm just telling you how we

                 got there.  Now, I met with Shelly yesterday.

                 I said:  "Shelly, you're going to get out of

                 here as we had committed on the 22nd?  If we

                 agree on a budget today, it takes two weeks to

                 print it."

                            "Well, we'll work on it.  I got to

                 get out with CFE at 2:00."

                            Okay?  And Shelly, to his credit,

                 goes to the board, you know, and puts out:

                 Reform plus Resources Equals Results for CFE.

                 Okay?

                            And my response was, what reform?

                 What resources?  You're not funding anything.



                                                        3075



                 And what results do you expect by throwing

                 billions of dollars?

                            Now, that is germane.  Because if

                 you don't fund what you spend, that is

                 inequitable, unfair to the people of this

                 state.

                            So that is not a total plan.  I

                 would be amazed if the courts would accept

                 that.  By the way, what I'm telling you I said

                 to Shelly again yesterday.

                            So how does all this relate to what

                 we're doing?  We have to do something.  Racing

                 is not extremely well.  The Belmont is this

                 Saturday.  Anybody who can get there ought to

                 get there and join the 130,000 people.  I'll

                 be watching it on TV, probably having a Lite

                 beer, and watching the crush.  Okay?  And I

                 hope we have a Smarty Jones coming up with the

                 Triple Crown.

                            But let me share something with

                 you.  You don't have a Triple Crown race at

                 Belmont.  Saratoga is the only profitable

                 racetrack here in the Northeast, here in this

                 state.  The only one.  Money is lost at

                 Aqueduct.  Money is lost at Belmont.  They



                                                        3076



                 make it up, and they don't fully make it up.

                            Now, NYRA and racing and wagering

                 should be a cash cow here in this state.  It

                 should produce literally billions of dollars

                 for education.  You want a CFE?  You want to

                 fund high-needs districts?  I do.  You do.

                            Now, when you talk about you want

                 to study, you want to review, you want to

                 wait -- for what?  What we're doing is getting

                 something done.  The Governor, to his credit,

                 put it together.

                            The main part of this bill does

                 five things, if I remember.  One, it deals

                 with lottery, just all of it has to do with

                 VLTs.  One, it deals with charitable --

                 charitable gambling in a division.  One, it

                 deals with racing.  I believe another deals

                 with casinos and the Indians.  And some deals

                 with oversight, with the policing and the

                 implementation.  Those are the five divisions

                 in the oversight.

                            Now, that's what they do in Las

                 Vegas and in Nevada and in most of the states

                 that are successful in managing gambling in

                 their state.  That's what they do.



                                                        3077



                            Now, we don't have pride of

                 authorship here.  You didn't invent it; you

                 didn't invent it.  We're copying the

                 success -- Al Gore didn't invent it either.

                            (Laughter.)

                            SENATOR BRUNO:    Okay?  But we are

                 copying successes.  So you want to study?

                 Study Nevada.  Study New Jersey.  They've done

                 it.  That's what we're doing.  That's one.

                            Second part, NYRA has the problems

                 that have been reviewed for several years.

                 Nobody is closer to racing or NYRA here than I

                 am.  Saratoga is in my district.  I love

                 Saratoga.  I love horses.  I love racing, to

                 watch.  And I love to see revenue created for

                 the people of this state through a sport such

                 as racing.  But it needs help.

                            So NYRA's where NYRA is with a very

                 large board.  And they've been there for

                 decades.  So we commit, through this, an

                 oversight committee of five people, five.

                 Okay?  Three by the Governor, one by myself,

                 one by the Speaker.  Oversight for NYRA.

                            Their franchise expires, you all

                 know, in two years.  Right?  What are we going



                                                        3078



                 to do in two years?  Are you going to re-up

                 them for ten years?  You have that choice.

                 Are you going to replace them?  If so, with

                 what?  If you're going to extend them, in what

                 way?

                            That's what this oversight's main

                 job and mission is, to take a look at what

                 recommendations will you make to the Governor

                 and to the Legislature as to how we continue

                 racing in this state.  Through NYRA, through a

                 combination?  Do we make it for-profit?  Do

                 you do a partnership?

                            And in my estimation, you could do

                 an RFP, this oversight group, and say to the

                 whole world:  Here it is, New York State, the

                 Empire State.  Tell us how you can help us pay

                 for education, for health care through racing

                 and wagering on racing.  Tell us how.  With

                 simulcast.  They tell me it's one of the

                 greatest assets in the world.

                            And guess what?  We are receiving

                 pretzels.  If you like pretzels, it works.

                 Now, I like potato chips, preferably.

                            Now, lighten up, because you're

                 getting too serious.



                                                        3079



                            (Laughter.)

                            SENATOR BRUNO:    But do you get my

                 message?  We can sit around, wring our hands

                 and study and review.  But we have to give

                 credit to Senator Larkin, to the Governor, to

                 all the people that have had input.  So that's

                 the second major piece of this.

                            The third major piece of this bill,

                 MGM has got a deal with Aqueduct to put in

                 5,000 VLTs.  You approved it.  We approved it.

                 Why did we approve it?  Because it shows

                 billions of dollars in cash flow.  For what?

                 For education.

                            Is it operative there?  They were

                 supposed to be operative two years ago.  Are

                 they operative?  No.  Why aren't they

                 operative?  Because MGM said, We can't do a

                 deal with somebody who doesn't have a license

                 to live after two years.  Or three years.

                            This says, to MGM and to the world,

                 if there is a successor to NYRA, they pick up

                 the same obligation that is created with your

                 investment of a hundred and some million for

                 VLTs.  Okay?

                            So I talk to MGM and they say:



                                                        3080



                 This does it.  You do that, we're operative by

                 the end of the year.  And you start getting

                 CFE high-needs districts, you get education

                 funded in this state.  Yonkers is supposed to

                 be up.  Now, we've already done that.  We

                 don't have to do anything else.

                            Now, I hate gambling as a source of

                 revenue for this state.  I hate it more than

                 anybody here in this chamber.  Except Frank

                 Padavan.

                            (Laughter.)

                            SENATOR BRUNO:    Except for Frank.

                 Frank hates it more.  Okay?

                            (Laughter.)

                            SENATOR BRUNO:    But facts of

                 life.  Get in a bus or in your car, and in two

                 hours and 15 minutes you will be in the

                 biggest casino in the whole world.  It's

                 called Foxwood.  Two hours and 15 minutes.

                 Okay?  Right next to it is Mohegan Sun,

                 growing faster than they can build.  Okay?

                 Take a three-hour trip, and you're in Atlantic

                 City.

                            Now, are we going to do anything

                 about that?  You going to stop them from



                                                        3081



                 draining the resources of New Yorkers into

                 Connecticut, into New Jersey?  Are you?  What

                 are they doing with that money?  Paying for

                 education, paying for health care?

                            New York is the second-largest

                 exporter of gamblers in the whole world.  You

                 know that?  So why the hell do we have to

                 export them?

                            Where is Bill?  He's tired of

                 listening to me.

                            (Laughter.)

                            SENATOR BRUNO:    Why do we have to

                 export them?  Think about it.

                            Now, I deal in reality in my life.

                 Reality says people are going to use video

                 lotteries.  People are going to gamble.

                 They're going to go to New Jersey, they're

                 going to go to Foxwood, they're going to go to

                 Las Vegas, they're going to go anywhere they

                 want to go to gamble.

                            So, dealing in reality, I say fine,

                 then let's do it.  Let's do it.  Let's put

                 them where they help the people of this state

                 with education.  That's what this bill is all

                 about.  The main piece implements legislation



                                                        3082



                 for MGM to get activated to produce what will

                 amount to a couple of billion dollars to fund

                 education.

                            Now, you want to study it now

                 through December?  Fine.  If you estimate

                 2,500 machines down there -- Yonkers is trying

                 to get up as well, hopefully by January or

                 February -- you know what that figures out to

                 per day every day we wring our hands, study?

                 It's millions and millions of dollars a week.

                 Going to New Jersey, going to Connecticut,

                 going anywhere other than into education in

                 New York State.

                            Do we need the money?  The Governor

                 says we have a $5 billion deficit.  We think

                 it's four.  Whether it's four or five, we need

                 revenue.  We can't do a CFE if you don't have

                 new revenue.

                            You will be in this chamber next

                 year, all of you.  Maybe one or two

                 exceptions.

                            (Laughter.)

                            SENATOR BRUNO:    And you will be

                 figuring out how you deal with a $6 billion

                 deficit.  And you know what you're going to be



                                                        3083



                 looking at?  Raising taxes.  And we're not

                 going to raise taxes.  We're not raising

                 taxes.

                            So you've got to fund education,

                 health care, the infrastructure, mental

                 health, higher ed, you name it.  But we are

                 not going to raise taxes.  Now, remember where

                 you heard it.  My name is not George Bush, Sr.

                            (Laughter.)

                            SENATOR BRUNO:    Okay?  So you've

                 got to fund -- in the real world, you have to

                 fund what it is that you want to spend.

                            What's our priority in this

                 chamber?  Thank you.  Education.  We're there.

                 Greatest asset that we have in this state, in

                 this country, is our children, our young

                 people.

                            And we have to educate them so they

                 can go out in this world and be competitive

                 and earn their own way and contribute for the

                 welfare of their families and their neighbors,

                 and increase their incomes by getting the best

                 education possible in the whole world.

                            And as they increase their incomes,

                 what do they do?



                                                        3084



                            SENATOR RATH:    They pay taxes.

                            SENATOR BRUNO:    They pay taxes,

                 right.  And that pays for your salaries --

                 whenever we get them -- and pays for

                 education, health care, the -- that's how you

                 create revenue.

                            So that's what this is all about.

                 Bill, we're indebted to you for helping

                 provide the leadership.

                            We're indebted to you, sir, for

                 calling attention to the fact that this is an

                 important piece of legislation.

                            Madam President, I am indebted to

                 you for your patience, and to the rest of you.

                            And I doubt now, Senator

                 Schneiderman, that you have any other

                 questions, since I've gone on at such great

                 length.

                            But thank you.

                            (Applause.)

                            THE PRESIDENT:    Senator

                 Schneiderman.

                            SENATOR SCHNEIDERMAN:    There is

                 so much rich material to mine in those remarks

                 that I'm going to try to limit myself to the



                                                        3085



                 issue before us.

                            I think that to the extent Senator

                 Bruno is expressing frustration at what's

                 going on here this year, and the recitation of

                 all the things on which we've done nothing --

                 honest, candid, it'll make a great campaign

                 ad -- it's something that I think a lot of us

                 feel.

                            And it is clear that this session

                 is -- certainly I haven't been here that long.

                 This is by far the worst session.  We have now

                 crystallized into practice the Albany

                 tradition of putting everything in one pot for

                 the end of the year, where Rockefeller Drug

                 Laws is dependent on power plant siting is

                 dependent on the casino reform.  And we're not

                 functioning as a Legislature.

                            So I always enjoy the Senator's

                 candor.  There is no stronger feeling on your

                 side of the aisle about CFE than on our side

                 of the aisle.  The CFE case, the CFE

                 organization was formed in my district, from

                 parents in Upper Manhattan frustrated with the

                 inadequate schools.  It is a catastrophe.

                            And I would urge all of you, as we



                                                        3086



                 get into this and tempers get hot, that the

                 need for resources is not something that's a

                 matter of frills or luxuries or educational

                 bureaucrats.  The findings of fact in that

                 case laid out a scenario that is a disgrace.

                            And I would respectfully submit

                 that the conditions in many parts of the

                 New York City schools you would not tolerate

                 for a minute if they were widespread in your

                 districts.

                            But in order to fund the CFE case,

                 and I guess we have to acknowledge that one

                 way or the other, whether we like it or not --

                 and I'm, I guess, in line behind Senators

                 Bruno and Padavan in hating gambling as a

                 source of revenue.  But one way or the other,

                 we're going to have gambling in this state.

                            And while the discussion of the

                 issue of gambling has been endless, the

                 discussions of the provisions of this

                 particular legislation, which is tremendously

                 important, have been far from endless.

                            And I certainly am not suggesting

                 that we wait until December or delay unduly.

                 But just since this bill was introduced on



                                                        3087



                 Friday, our little crew over here have found

                 what I think are some serious flaws.  And

                 hopefully they can be amended.  I gather the

                 Assembly has not even printed the bill.  And

                 therefore it's incumbent on us to try and make

                 suggestions to make it better so that there

                 are no excuses for not dealing with it.

                            And in that spirit, I would like to

                 ask if the sponsor would yield for one

                 question.

                            THE PRESIDENT:    Senator Larkin,

                 will you yield for a question?

                            SENATOR LARKIN:    Yes, Madam

                 President.

                            THE PRESIDENT:    You may proceed,

                 Senator Schneiderman, with a question.

                            SENATOR SCHNEIDERMAN:    Thank you,

                 Madam President.

                            In this legislation, after putting

                 out in great detail the extensive powers of

                 this commission that is to be appointed all by

                 the Governor -- no legislative appointments,

                 which is an issue that I have trouble with --

                 no appointment by you.

                            SENATOR BRUNO:    [Inaudible.]



                                                        3088



                            SENATOR SCHNEIDERMAN:    So -- yes.

                 Well, I hope they got that on the record.

                            It provides for extensive powers

                 for this commission.  Then it states, in

                 Section 17, on page 6:  Whenever it deems

                 necessary or convenient, the commission may

                 enter into contracts with any person to carry

                 out its functions, powers, and duties.  That's

                 it.

                            Is there -- and my question for the

                 sponsor is, where in this bill, or anywhere

                 else in current law, is there any provision

                 that will ensure that such contracts are

                 subject to competitive bidding, are reviewed

                 by the State Comptroller or subject to any

                 other limitations?

                            SENATOR LARKIN:    Well, Senator,

                 if you look through the whole 64 pages, you'll

                 see references going back to state agencies.

                 You'll find that the commission by itself is

                 required to, when it talks about ethics, of

                 where they're supposed to be.

                            My honest opinion, in looking at

                 the Delaware, looking at West Virginia,

                 looking at Rhode Island, looking at



                                                        3089



                 New Jersey, this is a model from it which has

                 been proven successful in their respective

                 states.

                            And I believe that when you look at

                 both aspects of it, the commission is going to

                 have -- okay?  I can continue? -- the

                 commission is going to have certain aspects of

                 it.

                            When you're looking at the other

                 part of it, the oversight board will have very

                 specific -- the oversight board, as Senator

                 Bruno mentioned, will have five members, three

                 appointed by the Governor, one by the Speaker,

                 one by the Majority Leader.

                            I think that you'll find that

                 having visited -- I have visited these other

                 facilities, and they're not only comfortable,

                 but they are saying that this system has

                 proved valuable for them in their

                 administration of the commission, their

                 administration of the industry by itself.

                            You have to also understand, when

                 you're talking about what this industry is

                 doing, in the state of Rhode Island they have

                 1,000 machines.  It pays 12 percent of their



                                                        3090



                 entire state budget.  West Virginia has 1500

                 machines; it pays 17.5 percent of their state

                 budget.  And yet their commission is the same

                 members they had when they started.  They do

                 not feel that there's anything that has to be

                 compromised to do this.

                            SENATOR SCHNEIDERMAN:    Thank you.

                            Through you, Mr. President, on the

                 bill.

                            ACTING PRESIDENT MEIER:    Senator

                 Schneiderman, on the bill.

                            SENATOR SCHNEIDERMAN:    This is a

                 very important bill for all the reasons that

                 have been stated.  It is essential that we

                 reform the system of gambling in this state

                 because, whether we like it or not, we're

                 going to have expansions of gambling in

                 New York.

                            However, I would respectfully

                 suggest that in its current form this bill

                 should not become law and that modifications

                 are required and that a few days or even weeks

                 of discussion would benefit all the citizens

                 of this state and would ensure that we in fact

                 have a gambling system that operates



                                                        3091



                 effectively and that keeps things within the

                 bounds of the law.

                            I must say I do not -- I have

                 reviewed the bill, and I do not think that

                 there is any restriction requiring the

                 commission to limit its contracts in any way.

                 There's no requirement for competitive

                 bidding.  And in fact, one of the major

                 criticisms of NYRA was a no-bid contract for a

                 security firm.

                            There are extensive provisions for

                 conflicts of persons appointed by or employed

                 by the commission.  There are no provisions of

                 conflicts for the people to whom the

                 commission is authorized to contract out any

                 of its functions.

                            I think there are a few of my

                 colleagues here who have other concerns about

                 this legislation.  I think there are other

                 states that have better systems in place that

                 more effectively protect the gambling industry

                 from the influences of organized crime or from

                 the lesser forms of corruption that tend to

                 crop up when contracting issues arise.

                            We're going to have to get this



                                                        3092



                 done, and we're going to have to get it done

                 right.  Unfortunately -- or fortunately --

                 when the state government was formed, they

                 established that you can't do something by

                 passing one-house bills.  So like it or not,

                 we've got to get two-house bills passed.

                            And I suggest that some of these

                 provisions that I've mentioned, that Senator

                 Sabini has raised and that others will raise,

                 are going to prevent us from moving forward.

                            This provision in and of itself,

                 though, is like leading with our chin when you

                 walk into -- this is something that I think

                 that there's no way this is going to pass

                 muster with the Assembly.  We need to move

                 along.  There's a lot we need to get done.

                            We have declared -- Senator

                 Paterson has made it very clear, we're

                 prepared to stay as long as it takes, stay

                 weekends, whatever.  We are, in our own modest

                 way, attempting to move things along.  We

                 issued a proposal for how to fund CFE on

                 March 31st showing where to get $10 billion in

                 revenue through tax reforms, largely.

                            We're ready to do business.  We



                                                        3093



                 like it when we're doing business.  When we're

                 not doing business, people get up to mischief.

                 And it's better to be doing legislation than

                 mischief.

                            But this particular piece of

                 legislation, I'm afraid, is doomed to fall

                 into the massive hopper of one-house bills.

                 So take our suggestions as suggestions.  We

                 have to pass something, a bill on this issue

                 this year.  I'm sorry it's in the pot with

                 every other issue.  That's what we've

                 degenerated to here in Albany.  We've got some

                 suggestions to make it better.

                            And we sincerely appreciate the

                 frustration expressed by our leader.  And I

                 think that that is bipartisan frustration.

                 And I think it's frustration that, if anyone

                 in the other house were to speak up as

                 candidly, many people over there feel as well.

                            I will be voting no on this bill,

                 Mr. President, and urging others to do

                 likewise, but with a view to passing an

                 improved bill later this year.

                            Thank you.

                            ACTING PRESIDENT MEIER:    Senator



                                                        3094



                 Larkin.

                            SENATOR LARKIN:    Mr. President,

                 just a reminder --

                            ACTING PRESIDENT MEIER:    Senator

                 Bruno.

                            SENATOR BRUNO:    Mr. President, if

                 Senator Larkin would suffer an interruption,

                 I'd like to ask for an immediate meeting of

                 the Rules Committee in the Majority Conference

                 Room, as we continue discussion.

                            ACTING PRESIDENT MEIER:

                 Immediate meeting of the Rules Committee in

                 the Majority Conference Room.

                            Senator Larkin.

                            SENATOR LARKIN:    For Senator

                 Schneiderman, knowing the state law -- and I

                 understand you are a lawyer -- all public

                 contracts in this state are subject to bids.

                 We didn't start to write each paragraph --

                 yes, it is.

                            And, you know, no matter what

                 you're going to say about this, the leader

                 very clearly said it, and the other states

                 that are looking to increase their revenue

                 source that we also want to do -- we can't go



                                                        3095



                 out here and open up a garage door and shovel

                 money into New York City.

                            If you want money to take care of

                 CFE and other necessities of New York City,

                 you tell me where the revenue is coming from.

                 We've looked at all of these other states.

                 They've been very clear.

                            And we've taken an opportunity,

                 because if we don't do it, if we delay this

                 another two or three or four years, there will

                 be no opportunity for New York to participate.

                 This is very, very important.

                            Some people said, well, we didn't

                 consider all of the other entities on the

                 bill.  I assure you, we have talked to every

                 entity that has anything to do with gambling,

                 period.

                            ACTING PRESIDENT MEIER:    Senator

                 Sabini.

                            SENATOR SABINI:    Thank you, Mr.

                 President.  On the bill.

                            I want to express my agreement with

                 Senator Bruno on virtually everything he said.

                 I agree there is a need.  And this, by freeing

                 up things at Aqueduct and making Aqueduct a



                                                        3096



                 fully operational racino, is a good thing.

                            And I agree that there's a need for

                 reform and oversight.  I agree with everything

                 the Majority Leader said.  And I even agree we

                 shouldn't wait very long.

                            But there's a big chasm between

                 studying and dithering for months, which I

                 agree with him is wrong, and putting in a bill

                 on Friday of a holiday weekend and ramming it

                 through Rules in one day that's this massive.

                            And with all due respect to the

                 comments that have been made by the chairman

                 and the Majority Leader, there are people in

                 the industry who feel that they don't know

                 what's in the bill, because I've talked to

                 them about it.  Some pretty smart people in

                 the industry who don't know what's in the

                 bill.  Maybe, you know -- maybe the

                 thoroughness wasn't all-inclusive.

                            So there's a big chasm between

                 waiting and taking action.  And I think that

                 like perhaps giving us a few days to look at

                 the bill is, by definition, action.  I'm not a

                 supporter of the inaction up here.  Each and

                 every time I've voted against a budget



                                                        3097



                 extender in this house, I've said that the

                 inaction is bipartisan and bicameral.  So I

                 agree that there is problems in both chambers

                 of this Legislature.

                            But again, I think there's a big

                 difference between inaction and maybe us

                 looking for a day or two and making a couple

                 of calls to people who this is affected by.  I

                 know there were some people who were

                 consulted.  Obviously there were some people

                 who were consulted.  And there are lots of

                 people who have the right lobbyists who were

                 consulted.

                            But this is a major overhaul -- as

                 Senator Larkin said, a monumental piece of

                 legislation -- that we will have to live with

                 for a long time if it becomes law.  And all

                 I'm saying is give us a chance to chew it over

                 and digest it, for a little more than the time

                 it takes for the paper to cool from when it

                 gets off the Xerox machine.  Because that's

                 all we've gotten.  That's all we've gotten on

                 this.  And I agree that it's been studied and

                 talked about, but this legislation, this

                 proposal has not.



                                                        3098



                            And so while I agree with Senator

                 Bruno we should act -- and we should -- and

                 it's important, I don't feel that the way this

                 is being done helps matters and, in fact, is

                 just more of what these two houses of the

                 Legislature get criticized for.

                            And that is, you know, let's do

                 something quick under the cover of darkness.

                 And, oh, yeah, we've talked about it, but

                 here's a quick piece of legislation that's

                 really like this.  It's not good law-making,

                 it's not good public policy, it's not good for

                 the stakeholders, it's not good for the

                 taxpayers.

                            Yeah, we need the revenue.  We

                 obviously need the revenue.  But I worry that

                 in creating what we're creating here that we

                 will be revisiting this again and again and

                 saying if we had only known we'd created

                 problematical situations -- yes, it works in

                 other states.  I know that.  I agree with the

                 committee.  I have some expertise in both

                 horse racing and in casino operations.  This

                 is -- but to do it in this manner is, I

                 believe, wrong, and that's my reason for



                                                        3099



                 opposition.

                            I think the Majority Leader's

                 statements were virtually a hundred percent

                 correct.  And I agree with him a hundred

                 percent.  Except that I don't think that by

                 chewing it over for a day or two means we're

                 dithering or waiting or being -- having

                 inaction.  There's a fine line between the

                 two.  And I would like to see us have a little

                 more time to investigate some of the things

                 that are in this bill.

                            And as I say, I've spoken to people

                 in the industries who don't know what's in

                 this bill and aren't happy with some of the

                 details I've brought to their attention.

                            And Senator Bruno has exhibited

                 incredible courage and forthrightness last

                 year, and in his operation this year as well,

                 at least trying to get things moving along.

                 And I respect that.  But I don't think that by

                 doing this in this manner helps public policy,

                 helps Albany, helps our folks back at home.

                            Yeah, we need to get the Aqueduct

                 thing done quickly.  We could have done that

                 in a one-page bill.  That's all we really



                                                        3100



                 needed.  And that's all that MGM wants to come

                 in, because I've talked to them.

                            But this is a lot more than that, a

                 whole lot more than that.  And that's why I

                 feel we need more time to at least figure out

                 what this bill does, because it's very

                 comprehensive.  And if it becomes law -- which

                 I doubt it's going to become law in this form,

                 since there's no Assembly copy -- if it

                 becomes law, it's something we're going to

                 have to live with for a long time.

                            Thank you.

                            ACTING PRESIDENT MEIER:    Senator

                 Padavan.

                            SENATOR PADAVAN:    Thank you, Mr.

                 President.

                            So much has been said here relevant

                 to the efficacy of doing this bill predicated

                 on one underlying premise, that we need the

                 revenue from the gambling -- and I use the

                 word "gambling," not "gaming."  And I use

                 that, I think, with some validity.  We need

                 that revenue to do the things in this state

                 that have to be done, education being

                 paramount.



                                                        3101



                            I've heard that reasoning for

                 decades.  Every time we wanted to do more,

                 whether it was Quick Draw, Super Lotto, you

                 name it -- casinos everywhere in the state --

                 the logic and the reasoning and the

                 justification was we need the money to do such

                 and such and such and such.

                            This turned out to be a failure.

                 This is not money that is generated out of the

                 sky, out of the blue, just falls down upon us

                 like rain and we scoop it up and then we fund

                 education.  It's out of the pockets of our

                 citizens.  Every economic study that's been

                 made, from very reputable sources, academia

                 included, tell us it's a zero-sum game at

                 best.

                            Now, obviously the question has

                 been raised here time and time again:  We need

                 the money; where are we going to get it from?

                 Well, let me suggest several sources.

                            According to our Tax Department,

                 there are billions of dollars in uncollected

                 sales taxes from products -- cigarettes,

                 gasoline and the like -- from Indian

                 reservations in the state that are not being



                                                        3102



                 collected that lawfully should be collected.

                 Why not?  We could use that money.

                            And in the process, by the way,

                 have an ancillary benefit for those businesses

                 in the periphery of those reservations who are

                 suffering, and towns and villages along with

                 them, because of this unfair competition.  A

                 double benefit.  So there's one source of

                 revenue.

                            And then there's a little issue

                 generally categorized as Medicaid reform.  The

                 acting president, Senator Kemp Hannon, and

                 others participated for months, including the

                 Minority Leader.  Came up with 40

                 recommendations.  It's in the report.  All of

                 those recommendations have one focus:  Improve

                 the quality of care, make it more efficient,

                 and in the process save money.

                            You know, we have 7 percent of the

                 Medicaid recipients in this nation, who are

                 collecting or using or drawing 14 percent of

                 the federal money.  That ought to tell you

                 something.

                            Now, how many billions we would

                 save over a five-year period, I don't know.



                                                        3103



                 But a lot of money.  Just read the report; it

                 spells it out.

                            We'd also help local governments.

                 In the City of New York, they collect about

                 15 billion in various taxes -- income,

                 property, sales taxes.  Four billion goes to

                 the cost of Medicaid, someone said earlier.

                 We've got some counties that their entire

                 property tax doesn't even cover their Medicaid

                 bill.  And those reforms would help them as

                 well.  Keep property taxes down, a secondary

                 benefit.  But the primary focus would be to

                 save the state money, which we could then use

                 for other worthwhile purposes.

                            Now, there's a third source of

                 revenue, and those of you in the City of

                 New York know exactly what I'm talking about.

                 And others who might visit the city

                 occasionally also know what I'm talking about.

                 Walk down Canal Street in Lower Manhattan,

                 walk down the Garment District, the Diamond

                 District.  Entire industries, hundreds of

                 millions if not billions of dollars in

                 corporate activity.  No sales taxes, a lot of

                 it.  Canal Street, no income taxes, no



                                                        3104



                 corporate taxes, nothing.

                            All over the city, and perhaps in

                 many other parts of the state, an underground

                 economy.  What are we doing about it?

                 Absolutely nothing.

                            And these are legitimate sources of

                 revenue that we're not collecting.  I would

                 imagine, if we wanted to pore over our

                 budgets, we would find many other areas of

                 efficiency, cost savings, without impacting

                 negatively on the people of this state in any

                 way, shape, or form.

                            So there are other sources of

                 revenue.  And I'm sick and tired of hearing

                 that the only way we can pay our bills and do

                 things for the people of this state is through

                 expanded gambling.

                            If you read that report I sent you

                 a few weeks ago, you saw both sides of the

                 coin.  The economic issues, all negative.  And

                 the social issues, the impact, all negative.

                 No matter which way that coin falls, it falls

                 in the wrong way.

                            Thank you, Mr. President.

                            ACTING PRESIDENT MEIER:    Senator



                                                        3105



                 Liz Krueger.

                            SENATOR LIZ KRUEGER:    Thank you,

                 Mr. President.  On the bill.

                            So much has been said, and I agree

                 with much of what's been said.  But I will go

                 back to Senator Bruno's point about not

                 dithering.

                            We're supposed to be a deliberative

                 body.  And the bill this large and this

                 comprehensive, with no opportunity for the

                 public or the Legislature to truly deliberate,

                 is not meeting our obligations to our people.

                            The examples he gave of things we

                 haven't done -- and he was absolutely right --

                 is an endless list.  But those were all bills

                 that have been out there that can and should

                 continue to be debated so we get them done.

                 We should have done public hearings on any

                 number of the bills he mentioned himself as

                 having frustration with.  He used Timothy's

                 Law as an example there.

                            But this is a bill that just showed

                 up.  So even though everybody has been talking

                 about the issues of NYRA and gambling in this

                 state for an extended period of time, this



                                                        3106



                 bill is brand-new.

                            And, I would argue, even worse than

                 the fact that we're being asked to vote on

                 this so quickly is the fact that when you read

                 the bill, the structure for regulations is

                 also set up as emergency regulations to be put

                 into place within 90 days.

                            So even in the post-legislative

                 process, where in theory the public has an

                 opportunity to review proposed regulations of

                 the new commission, make comments, have an

                 opportunity to be heard and have changes made

                 then, the way this law is set up, they would

                 have no opportunity for public comment or

                 discussion then either, until after the

                 regulations had already gone into effect.

                            And so those two facts -- one, that

                 this bill was moved so quickly through Rules

                 without any opportunity for public input --

                 and as Senator Sabini highlighted so well,

                 many who are the experts and who are in the

                 industry are also in the dark about this bill

                 or have many questions left unsaid -- and that

                 we would them pass it and shift to an

                 emergency regulation arrangement where there



                                                        3107



                 would also be no process or reasonable process

                 for the public and the experts to have

                 input -- tells me this is the wrong bill and

                 the wrong way to do this bill.

                            Because we all know how things

                 operate up here.  And if something is being

                 rushed through literally at night without

                 public comment, you know the answer.  There

                 are things in there you're not going to like.

                 And it's as simple as that.

                            So I have no expertise in gambling

                 or in racing, as a number of my other

                 colleagues do.  And yet my initial read of the

                 bill, and also holding up against state

                 commissions in Nevada and New Jersey and a

                 number of other states, showed me that in fact

                 we're not following the models that other

                 states have found successful.  We're skipping

                 the part where the attorney general's office

                 has a role to review criminal activity or to

                 investigate criminal activities.

                            We build that within the

                 commission.  There's a danger there.

                 New Jersey and Nevada both discovered that and

                 shifted to having external review by their



                                                        3108



                 attorney general or equivalent officer in that

                 state.  Because of course we know that when

                 you've got gambling, you've got criminal

                 activity or disproportionate possibility of

                 organized crime.

                            And so in fact, in the other state

                 commissions they lay out explicitly rules

                 about not allowing loans in gambling, because

                 it's used for money laundering; not allowing

                 political giving by those involved in the

                 gaming industry, because of the obvious

                 conflicts there that have played out in other

                 states.  I don't believe this bill talks about

                 that.

                            In other states, they set up strict

                 post-employment restrictions so that people

                 can't shift between working for the gaming

                 commission and then working for the industry

                 because of the inherent conflicts there.

                            In other states, they have

                 competitive bidding, as Senator Schneiderman

                 so carefully articulated in his concerns.

                 They've got established public discussion of

                 setting standards for the licensing fees, for

                 approval of financing of new facilities to



                                                        3109



                 avoid an arrangement with organized crime, for

                 establishment of the revenue collected in the

                 tax base and where that money is going to go.

                            Maybe all of that is in this bill,

                 Senator Larkin, and in one night's reading I

                 couldn't find it all.  But when I held up this

                 bill against what I saw were established

                 precedents in other states, states who have

                 longer experience than New York in having

                 established a statewide regulatory commission,

                 I see so many things not explained, not

                 clarified.

                            And it shows me that if I have yet

                 to have my education in what we should be

                 looking for, that there are many, many

                 questions left undone.

                            And I also respect so much Senator

                 Padavan's points and his strong philosophical

                 belief that gambling in fact is not a panacea

                 for revenue for this state or any other state,

                 and in fact causes great harm to many people

                 who become compulsive gamblers.

                            And so while there's some small

                 reference in this bill to recognizing the

                 issue of compulsive gambling problems, it



                                                        3110



                 seems to me if this was going to be a serious

                 oversight regulatory commission, we would also

                 be factoring in the costs and some of the

                 options and necessities of programs to help

                 address the problems of gambling for some

                 percentage of people who in fact, when they

                 take up gambling, find themselves addicted and

                 in desperate need of help.

                            And while this references some

                 rules about having people have the right to

                 limit themselves to how much they spend if

                 they recognize that they have a gaming

                 problem, it does nothing to coordinate

                 programs and services that are, in fact,

                 inevitable outcomes of having a broader and

                 broader collection of gambling options in the

                 state of New York, larger numbers of people

                 who end up with problems.

                            And so if I had more time, I'd have

                 more problems with this bill.  I simply tried

                 to isolate some examples of why I think it is

                 so critical that we don't move forward today,

                 that we don't dither, that we have public

                 hearings, that we attempt to have a conference

                 committee that works out differences between



                                                        3111



                 two houses, and that we bring in the public

                 and experts to make sure that when we go

                 forward, we go forward correctly in New York

                 State.

                            So I will be voting no.

                            Thank you, Mr. President.

                            ACTING PRESIDENT MEIER:    Senator

                 Connor.

                            SENATOR CONNOR:    Thank you, Mr.

                 President.

                            Just let me say a number of my

                 colleagues on this side of the aisle have

                 talked about process.  And I certainly share

                 their concerns.

                            Last weekend, my son on Saturday

                 asked me to take him out to Sagamore Hill for

                 a video project he's doing for history.  And I

                 went in the gift shop, and there were all

                 these wonderful different biographies on Teddy

                 Roosevelt, and I couldn't resist buying a few

                 that I had not read.  And I admit that my

                 readings about Teddy Roosevelt, I hadn't

                 really indulged in that in about twenty years.

                            And I spent the last three days

                 reading through these things.  And I was



                                                        3112



                 struck by fact when he was a freshman member

                 of the Assembly -- 1882, '83, '84 -- '82 was

                 his freshman year, I guess -- he introduced

                 some reform legislation.  The then speaker,

                 who was a Republican, kept trying to silence

                 this person.  He came back a year later, the

                 speaker was a Democrat, and they tried to

                 silence him.  In fact, they made him the

                 Republican leader.  I think there were only a

                 handful of Republicans that year.  They were

                 annual elections.

                            But he was able to get the house to

                 order hearings.  And he -- you know, we tend

                 to think, Oh, now we're a full-time

                 Legislature, we're here all the time.  Well,

                 in the sessions he was in, the session broke

                 June 1st one year -- relatively late compared

                 to the stories we've heard from forty or fifty

                 years ago, out by Palm Sunday.  And they would

                 hold session Tuesdays through Friday morning

                 for all those weeks.

                            And travel wasn't so great, so

                 legislators didn't necessarily go home every

                 weekend.  But he would go back to New York and

                 on Fridays and Mondays hold hearings, he and



                                                        3113



                 his colleagues, some of whom were from

                 upstate.

                            So there's a long history of a

                 legislative process that's quite similar to

                 the one that was going on when I arrived here

                 some 26 years ago.  And that is, committees

                 held hearings on significant bills.  The whole

                 place didn't stand around and wait for the

                 budget to resolve everything.  The budget was

                 merely one, albeit a very important bill, that

                 we passed during the session, and we passed it

                 somewhere near the middle of the session.

                            But in the meantime -- and I looked

                 across the aisle.  Committee chairs.  If you

                 were here long enough, remember when committee

                 chairs held hearings and members of the

                 committee, both from the Minority and

                 Majority, went around the state and we heard

                 from those who were interested.  We've lost

                 that, and that's of great concern.

                            The reality we have to deal with

                 now is we get bills like this without a lot --

                 this bill is late.  This bill is years and

                 years late.  You know, it's no secret that

                 back in 1997, with a constitutional amendment



                                                        3114



                 up for second passage here, that I was then

                 the Minority Leader and played a great role in

                 lining up votes to vote that down because I

                 did not believe gambling was a good way for

                 the State of New York to raise revenues and

                 that we ought to plunge into that.

                            Of course, the irony is the

                 absolute increase in gambling since then

                 without a constitutional amendment.  It almost

                 reminds me of a quote from the great Roscoe

                 Conklin, once the Republican boss of New York

                 State and the United States Senator.  And his

                 famous quote was:  "What's the Constitution

                 among friends?"  Meaning, of course, that

                 politics could smooth over all these things.

                            The fact is, though, I have no

                 moral objection to gambling.  I just don't

                 think it's wise for people to frequent

                 casinos.  Because if you know anything about

                 the games, they're not games in the sense of

                 my kids play games where they have a fair

                 chance.  People wouldn't build casinos if the

                 bettors had a fair chance.  As someone once

                 said, the only way to make money in a casino

                 is own one.



                                                        3115



                            But I, once a year, once every two

                 years, find myself somewhere near a casino and

                 I'll go and play for a while.  I enjoy it.

                 I'm always glad there isn't one nearby,

                 because I might go more than once a year or

                 once every two years.

                            But back when, when Turning Stone

                 first opened, when Mario Cuomo did the secret

                 compacts with the Mohawks and with the

                 Oneidas, the New York Oneidas, I requested

                 from the Governor's office a copy of the

                 compact.  And I've related this before on the

                 floor.  And I had to ask several times, and it

                 was given to me and I was told "Keep it

                 quiet," and it was stamped "Secret."

                            Of course, subsequent actions in

                 the Legislature and in the courts have spoken

                 about that process that that Executive engaged

                 in.  But then Turning Stone was opened, it was

                 then in a Quonset hut -- I mean, no golf

                 courses, no fancy hotel.  It was something

                 that had been built right off the Thruway.

                 Was going to be a shopping mall.

                            So I went up there with a couple of

                 colleagues.  We introduced ourselves to the



                                                        3116



                 guy who was the night manager, an experienced

                 professional in that industry from Las Vegas.

                 Which was a good sign, because if you're going

                 to have these things, you want the game to be

                 honest and run the way it's supposed to be

                 run, the games.

                            And I said -- and one of the things

                 in the compact that struck me is, oh, deal

                 with regulation.  Governor Cuomo put in there

                 that the State Racing and Wagering Commission

                 would regulate the casino, and the tribes

                 agreed to that.

                            What struck me was I understand

                 they know how to make sure that all the horses

                 have their urinalysis at the track.  What do

                 they know about running a casino?  What do

                 they know about observing the pit crews and

                 the dealers to make sure -- now, we know

                 casinos take their own measures.  But then you

                 have to be very -- they take their own

                 measures by very, very knowledgeable

                 professionals who understand all the games and

                 have the cameras in the sky and the ceilings

                 and so on.

                            But it seems to me you need a high



                                                        3117



                 degree of expertise if you're going to be the

                 people who oversee that.  And of course the

                 State Police was involved, because they can do

                 background checks.  And somebody should do

                 that, certainly.  It needs to be done on

                 employees.

                            But nowhere in these compacts,

                 nowhere subsequently in the law is it really

                 spelled out the way it is in Atlantic City or

                 in Nevada that you do checks on contractors

                 and suppliers and all sorts of people.

                 Because there's a lot of money in gambling.

                 And we know where there's a lot of money

                 changing hands, there's always a temptation

                 for all sorts of criminal elements to get

                 involved, to get their piece.

                            So I was concerned that this agency

                 was involved.  The Racing and Wagering

                 Commission, been around for years.  Supposedly

                 it was adopted with bipartisanship built in.

                 Now, for the many, many years I was here --

                 because it says that no more than three

                 members shall be from the same political

                 party.

                            That meant something when Governors



                                                        3118



                 Carey and Cuomo were here and the Republicans

                 controlled the State Senate.  The State Senate

                 wasn't about to confirm someone other than a

                 Democrat that those Governors picked for the

                 two other-than-the-same-party-spots.  They

                 went to Republicans.

                            What have we seen under this

                 administration?  Well, someone I know and

                 admire, we saw an appointee for other than one

                 of the Republican spots who we were told, when

                 the papers were sent to the Senate, she's a

                 blank or whatever the other party was that the

                 courts are -- Freedom Party.

                            Okay.  My then staff discovered the

                 morning before the vote or the night before

                 the vote that she was in fact an enrolled

                 Republican.  So the morning before this Senate

                 confirmed her as the other than a Republican,

                 she went to the Albany County Board of

                 Elections and changed her enrollment from

                 Republican to blank.

                            I don't think that was the intent

                 of the law.  I think the intent of the law was

                 to have bipartisanship for a reason.  And the

                 reason wasn't just so everybody got a piece of



                                                        3119



                 the pie.  The reason was so that there was

                 some check and balance within that commission.

                            Once upon a time -- and I'll say

                 this on the Senate floor, and I won't repeat

                 it anywhere else.  I've been to Saratoga

                 racetrack but a few times.  But back in the

                 early days of my leadership, I did go up there

                 one day for a racing meet.  There was some

                 event afterwards.

                            And I sat there and looked down,

                 and I saw someone I knew who was a Racing and

                 Wagering commissioner.  And I noticed that he

                 had a friend with him.  Nothing wrong with

                 that.  But I noticed tickets and money being

                 passed back and forth before and after the

                 races between the friend and the

                 commissioners, who are totally barred,

                 supposedly, from any wagering.

                            Now, I did report that.  And to the

                 credit of the Executive, this person within a

                 few months was no longer on the commission.

                 Quietly resigned.

                            So we are dealing with an area with

                 great temptation.  And I don't think we

                 need -- I'm concerned to set up a regulatory



                                                        3120



                 thing that's just another layer of political

                 "let's take care of somebody and put him on

                 this great commission."

                            I want to see all gaming in

                 New York State -- and I agree with this

                 concept of an overall commission to regulate

                 all gaming.  I want to see it being

                 professional, bipartisan.  You don't put

                 people on this kind of commission who love

                 going to casinos or love betting on horses.

                 You know?  They're barred by law.

                            I assume the same prohibitions

                 would apply to them as now apply to the

                 existing racing commission.  So why tempt

                 somebody?  I can't imagine, if you love to go

                 and play the horses, why you would want to be

                 a racing commissioner and never be allowed to

                 do that.

                            But it requires a little bit of

                 foresight and straightforward behavior by the

                 Executive and the confirming body.

                            I personally don't think that the

                 overall regulatory commission ought to be one

                 of those entities that has one from the

                 Speaker and one from the Majority Leader and



                                                        3121



                 one from each Minority Leader and one or two

                 from the Governor.  That is an appropriate way

                 for certain advisory bodies, oversight groups

                 and so on, to be constructed.  I don't think a

                 hard regulatory body ought to be -- ought to

                 represent those constituencies, the political

                 constituencies.

                            I think this at least should say no

                 more than three of the members should be from

                 the same political party.  And I think there

                 ought to be a commitment that we don't wink

                 because it's our Governor and say somebody

                 doesn't belong to a political party because an

                 hour before she changed her enrollment.

                            Some of these other bodies, and I'm

                 familiar with them, the Breeding and

                 Development Fund and some of the others,

                 they -- they did have that kind of

                 representation.  But they weren't regulatory,

                 they were to promote the industry or promote

                 financing in the industry.

                            I am inclined to vote for this bill

                 because I think this issue ought to go forward

                 to the Assembly and it ought to be negotiated.

                 If it comes back with some agreement that



                                                        3122



                 doesn't represent some of these concerns I

                 have, I will not vote for it.

                            Secondly -- because we've kind of

                 mixed up the terms of debate here -- because I

                 support this, and hopefully am able to support

                 the final product which incorporates some of

                 my concerns, does not mean I support at all

                 the proposals from the Governor and others

                 that we solve the education funding problem by

                 more gambling.

                            The fact that I support this kind

                 of regulation is only because I recognize it's

                 there.  Gambling is there.  Other casinos are

                 there.  I've even voted to confirm some

                 things.  I voted for some VLT and Indian

                 casino stuff in the big rush post-9/11:  Oh,

                 we need revenues.  I don't look back.  That

                 was a different time and concern.

                            But I am not prepared to vote for

                 huge expansions of gambling so that the poor

                 get to pay for the poor schools they've been

                 saddled with under the guise of, oh, we can't

                 raise taxes or we can't find other revenue.

                            And Senator Padavan pointed out,

                 for example, the Indian taxation issue.  In



                                                        3123



                 1995, in the budget negotiations, when I was

                 first Minority Leader, oh, that's when the new

                 Governor said it will be five men in the room,

                 and the Minority Leaders got to go.  And I put

                 on the table let's tax Indian cigarette sales.

                 It was then worth, I don't know, 400 million

                 in revenues.

                            Why did I put it forward?  Because

                 one of the major accomplishments of a

                 relatively short-term Attorney General, Oliver

                 Koppell, was that he argued in front of the

                 U.S. Supreme Court and won that issue.  The

                 Governor said, Oh, we can't do that.  How are

                 we going to collect it?  There will be

                 violence.

                            And I hear that again.  Nine years

                 later, people say:  Oh, well, we can't collect

                 it, there will be violence.

                            You can't collect it on the

                 reservation.  Where do they get the

                 cigarettes?  Most of them don't manufacture

                 their own cigarettes.  They get them from a

                 distributor.  They get them from Philip Morris

                 to a distributor to them.  They're taxed at

                 the distributors.



                                                        3124



                            That's how we tax everybody anyway

                 on cigarettes.  We don't send the tax

                 collector to the bodega on the corner and have

                 the person take the tax money out.  When they

                 buy from their distributor, they buy it with

                 the tax already on it.

                            And that's how you tax it, you

                 just -- and then to the extent that the

                 reservation says, can document, We sold this

                 percentage to Native Americans on the

                 reservation, tax-exempt, they get a credit or

                 a rebate on the taxes.

                            We do that with other forms of

                 organizations that are exempt from sales tax.

                 They file and say, you know, we get part of

                 this back.  This is simple.  It's not rocket

                 science.  It's just a lack of political will.

                            And now it's not $400 million.

                 Because as I've said before on this floor, as

                 we increase the taxes on cigarettes because we

                 don't want people to smoke, people go on the

                 Internet, people go here and there, people --

                 I saw a startling figure on the percentage of

                 tobacco sold in New York State that's actually

                 coming from Indian reservations.  It's --



                                                        3125



                 it's -- it's like -- I believe I saw that it

                 was more than half now.

                            And I talk to friends who say, "Oh,

                 I get my cigarettes over the Internet."  And

                 when I have those relapses and smoke myself,

                 which happens every year or two, till I quit

                 again, I've had friends say, "Well, you're

                 paying $7.50 a pack for them.  I'll give you

                 here" -- I said, I can't do that.  I wouldn't

                 do that.  Never done that.  You know?

                            Why not?  I said, "Well, I don't

                 want to read about myself on the front page of

                 the newspaper for saving 75 cents in tax on a

                 pack of cigarettes."

                            But, you know, all my friends and

                 acquaintances who don't hold public office, to

                 them, they think it's idiotic.  Why would you

                 spend $7 and some cents a pack when you can

                 get it for 4, or whatever it is?

                            When we raised those taxes, by the

                 way, we made more money for these tax-dodgers,

                 because they were able to raise their price

                 and make more profit, because all they've got

                 to do is keep it under the legitimate price.

                 So there is revenue there.



                                                        3126



                            And Senator Padavan is right that

                 there is a lot of tax-dodging in the so-called

                 underground economy.  And I recently, I guess

                 last year, had a chat with the district

                 attorney in New York County, Mr. Morgenthau.

                 And his attitude was:  If you would give my

                 office the funding, I could save you -- I

                 could recoup for the State of New York

                 hundreds of millions of dollars just on the

                 island of Manhattan on tax-dodgers.

                            And we've all read the cases he's

                 brought against wealthy people who buy

                 millions in art and claim they live in

                 Connecticut and don't pay sales tax on it.

                 He's brought several major, significant

                 cases -- not nickel and dime, millions of

                 dollars in illegal -- and not just tax

                 avoidance, illegal tax-dodging.

                            So there are revenues out there if

                 there's the political will to collect them.

                            I believe that we ought to do

                 something like this.  We can do it better.

                 I'm not going to vote against this, because

                 this is, in concept, something I like.  And I

                 don't mind the fact that the Governor, for the



                                                        3127



                 top agency, the Governor appoints, the Senate

                 confirms, as long as there is that bipartisan

                 restriction.

                            And, you know, by the way, I would

                 say to the Majority here, because we've

                 engaged in this many times, this idea that you

                 set up entities and the Speaker and the

                 Majority Leader will get to a point, but not

                 the Minority Leaders -- and that's a recent

                 phenomenon, last 10 years, 15 years.

                            If you look at entities created

                 before that, back into the last century, they

                 always had, where appropriate, where it was

                 the type of entity, the four leaders appoint

                 and the Governor.  And the reason was to

                 ensure bipartisanship.

                            Now, I have heard Majority members

                 of this floor say, Well, we're putting this

                 into the law and it is bipartisan, the Speaker

                 gets an appointment.  Now, I'm not naive

                 politically.  And unfortunately, we more and

                 more -- unfortunately for these -- this

                 institution, the Legislature, I suppose, we

                 more and more have a public that's not naive.

                            To say that, well, it's bipartisan



                                                        3128



                 because the two -- each majority gets to

                 appoint and the Governor does, it flies in the

                 face of our whole constitutional democratic

                 underpinning.  The only way you ensure in law

                 bipartisanship is to give the minorities an

                 appointment.

                            Unless you believe it's not just

                 through gerrymandering and the extreme

                 partisan powers asserted by both majorities --

                 both majorities -- that indeed we have

                 absolute permanent majorities and that the

                 Assembly is constitutionally Democratic and

                 the Senate, which was commented on the century

                 before last, actually, is really

                 constitutionally Republican.  I don't think

                 that squares with the civics class that we

                 want and have taught to our children in

                 school.

                            So when you set these things up and

                 you assume it will be bipartisan -- yup,

                 today.  Maybe next year, maybe the next year.

                 But there could come a time when the same

                 political party is in power on the second

                 floor and in both houses.  And then you won't

                 set up these entities to be other than I think



                                                        3129



                 the intention is.  They will not have any

                 bipartisan cast.  Their legitimacy will be in

                 question.

                            I'm going to vote for this.  But I

                 do have these serious concerns.  But I do

                 think we need to move forward with a real

                 regulatory authority.  And as Senator Liz

                 Krueger pointed out, New Jersey has a separate

                 division of gaming enforcement in the attorney

                 general's office where they hire professionals

                 who know what they're doing to look over the

                 commission that regulates gaming.  I think

                 that kind of check and balance in this area.

                            You know, now we're still on the

                 rush to create more gaming.  But down the

                 road -- and it's not like we haven't had any

                 scandals.  I mean, you know, NYRA -- you know,

                 we've seen what's just happened to NYRA.  How

                 embarrassing.  As Stanley Fink used to say,

                 they're our tracks.  They're not NYRA's

                 tracks.  The State of New York gave an

                 exclusive franchise to NYRA to operate them.

                 And it's really very embarrassing that that's

                 gone on there.

                            So looking forward, when more and



                                                        3130



                 more gambling -- human nature.  This

                 Legislature has never, never found it within

                 its ability to repeal human nature.  Human

                 nature says when all that money is involved

                 and when gambling proliferates and there's a

                 lot of places to be looking and watching at

                 once, there will be scandals, there will be

                 theft, there will be corruption.

                            And it's our obligation to ensure

                 that we set up a regulatory entity that has

                 teeth, muscle, checks and balances, and that

                 can work.  Whether you're for more gambling or

                 less gambling or not, it's there, and you do

                 have to have that kind of oversight.

                            ACTING PRESIDENT MEIER:    Senator

                 Schneiderman.

                            SENATOR SCHNEIDERMAN:    Thank you,

                 Mr. President.  We've, I think, as my

                 contracts professor used to say, thoroughly

                 ventilated this issue.

                            I remain opposed.  I would like to

                 note that in addition to the revenue that is

                 available should we simply enforce the law and

                 collect the sales tax on reservations, again,

                 Senator Paterson on March 31st laid out other



                                                        3131



                 sources of billions of dollars in potential

                 revenue to fund the CFE decision, including

                 combined reporting of taxes by all corporate

                 subsidiaries, closing corporate loopholes,

                 reforming Empire Zones, bulk drug purchasing,

                 and preferred drug lists.

                            We can fund schools with something

                 other than gambling if we want to.  We can

                 fund schools at the levels proposed even by

                 the Assembly Speaker.  That also is a matter

                 of political will.

                            This legislation I remain opposed

                 to, although I must acknowledge that I'm

                 afraid that one way or another, in spite of

                 the constitution, as Senator Connor pointed

                 out, gambling is coming to our state.

                            Thank you, Mr. President.

                            ACTING PRESIDENT MEIER:    Read the

                 last section.

                            THE SECRETARY:    Section 13.  This

                 act shall take effect on the 90th day.

                            ACTING PRESIDENT MEIER:    Call the

                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Those recorded in



                                                        3132



                 the negative on Calendar Number 1428 are

                 Senators Andrews, Duane, L. Krueger,

                 Montgomery, Padavan, Parker, Sabini,

                 Schneiderman.  Also Senator Onorato.  Ayes,

                 50.  Nays, 9.

                            ACTING PRESIDENT MEIER:    The bill

                 is passed.

                            Senator Volker.

                            SENATOR VOLKER:    Mr. President,

                 would you recognize Senator Saland, please.

                            ACTING PRESIDENT MEIER:    Senator

                 Saland.

                            SENATOR SALAND:    Mr. President, I

                 would request unanimous consent to be recorded

                 in the negative on Calendar 1187, Senate

                 6996A.

                            ACTING PRESIDENT MEIER:    Without

                 objection, Senator Saland will be recorded in

                 the negative with regard to Calendar 1187.

                            Senator Volker.

                            SENATOR VOLKER:    Motions and

                 resolutions, please.  Senator Kuhl has some

                 motions.

                            ACTING PRESIDENT MEIER:    Motions

                 and resolutions.



                                                        3133



                            Senator Kuhl.

                            SENATOR KUHL:    Yes, Mr.

                 President.

                            On page 15, I offer the following

                 amendments to Calendar Number 366, Senate

                 Print 5745B, and ask that said bill retain its

                 place on the Third Reading Calendar.  And

                 that's on behalf of Senator Golden.

                            ACTING PRESIDENT MEIER:    The

                 amendments are received and adopted, and the

                 bill will retain its place on the Third

                 Reading Calendar.

                            SENATOR KUHL:    Also, Mr.

                 President, on behalf of Senator Volker, I wish

                 to call up his bill, Senate Print 2739A,

                 recalled from the Assembly, which is now at

                 the desk.

                            ACTING PRESIDENT MEIER:    The

                 Secretary will read.

                            THE SECRETARY:    Calendar Number

                 1412, by Senator Volker, Senate Print 2739A,

                 an act to amend the Retirement and Social

                 Security Law.

                            ACTING PRESIDENT MEIER:    Senator

                 Kuhl.



                                                        3134



                            SENATOR KUHL:    Mr. President, I

                 now ask the vote be reconsidered by which the

                 bill passed the house, and ask that the bill

                 be restored to the order of third reading.

                            ACTING PRESIDENT MEIER:    Call the

                 roll on reconsideration.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 59.

                            ACTING PRESIDENT MEIER:    The bill

                 is restored to the order of third reading.

                            Senator Kuhl.

                            SENATOR KUHL:    Yes, Mr.

                 President.  I now move to discharge the bill

                 from the Committee on Rules, Assembly Print

                 3262A, and substitute it for Senator Volker's

                 identical bill.

                            ACTING PRESIDENT MEIER:

                 Substitution ordered.

                            SENATOR KUHL:    I now move that

                 the substitution have its third reading at

                 this time.

                            ACTING PRESIDENT MEIER:    The

                 Secretary will read.

                            THE SECRETARY:    Calendar Number

                 1412, by Member of the Assembly Smith,



                                                        3135



                 Assembly Print Number 3262A, an act to amend

                 the Retirement and Social Security Law.

                            ACTING PRESIDENT MEIER:    Read the

                 last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MEIER:    Call the

                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 59.

                            ACTING PRESIDENT MEIER:    The bill

                 is passed.

                            Senator Kuhl.

                            SENATOR KUHL:    Yes, Mr.

                 President.  On behalf of Senator Flanagan, I

                 wish to call up his bill, Senate Print 6247,

                 which is now at the desk.

                            ACTING PRESIDENT MEIER:    The

                 Secretary will read.

                            THE SECRETARY:    Calendar Number

                 1420, by Senator Flanagan, Senate Print 6247,

                 an act to allow.

                            ACTING PRESIDENT MEIER:    Senator

                 Kuhl.

                            SENATOR KUHL:    Yes, I move to



                                                        3136



                 reconsider the vote by which the bill passed

                 the house, and ask that the bill be restored

                 to the order of third reading.

                            ACTING PRESIDENT MEIER:    Call the

                 roll on reconsideration.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 59.

                            ACTING PRESIDENT MEIER:    The bill

                 is restored to the order of third reading.

                            Senator Kuhl.

                            SENATOR KUHL:    And now, Mr.

                 President, I move to discharge, from the

                 Committee on Rules, Assembly Print Number 9865

                 and substitute it for Senator Flanagan's

                 identical bill.

                            ACTING PRESIDENT MEIER:

                 Substitution ordered.

                            SENATOR KUHL:    I move that the

                 substituted bill now have its third reading.

                            ACTING PRESIDENT MEIER:    There is

                 a home-rule message at the desk.

                            The Secretary will read.

                            THE SECRETARY:    Calendar Number

                 1420, by Member of the Assembly Raia, Assembly

                 Print Number 9865, an act to allow.



                                                        3137



                            ACTING PRESIDENT MEIER:    Read the

                 last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MEIER:    Call the

                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 59.

                            ACTING PRESIDENT MEIER:    The bill

                 is passed.

                            Senator Kuhl.

                            SENATOR KUHL:    Yes.  Now, Mr.

                 President, on behalf of Senator McGee, I wish

                 to call up her bill, Senate Print 2777B, which

                 is now at the desk.

                            ACTING PRESIDENT MEIER:    The

                 Secretary will read.

                            THE SECRETARY:    Calendar Number

                 417, by Senator McGee, Senate Print 2777B, an

                 act to amend the Agriculture and Markets Law.

                            ACTING PRESIDENT MEIER:    Senator

                 Kuhl.

                            SENATOR KUHL:    I now ask that the

                 vote by which this bill passed the house be

                 reconsidered, and that the bill be restored to



                                                        3138



                 the order of third reading.

                            ACTING PRESIDENT MEIER:    The

                 Secretary will call the roll on

                 reconsideration.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 59.

                            ACTING PRESIDENT MEIER:    The bill

                 is restored to the order of third reading.

                            SENATOR KUHL:    Mr. President, I

                 now move to discharge, from the Committee on

                 Rules, Assembly Print Number 9520A and

                 substitute it for Senator McGee's identical

                 bill.

                            ACTING PRESIDENT MEIER:

                 Substitution ordered.

                            The Secretary will read.

                            THE SECRETARY:    Calendar Number

                 417, by Member of the Assembly Gunther,

                 Assembly Print Number 9520A, an act to amend

                 the Agriculture and Markets Law.

                            ACTING PRESIDENT MEIER:    Read the

                 last section.

                            THE SECRETARY:    Section 4.  This

                 act shall take effect on the 180th day.

                            ACTING PRESIDENT MEIER:    Call the



                                                        3139



                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 59.

                            ACTING PRESIDENT MEIER:    The bill

                 is passed.

                            Senator Kuhl.

                            SENATOR KUHL:    Now, Mr.

                 President, on behalf of Senator Trunzo, I wish

                 to call up his bill, Senate Print 7189,

                 recalled from the Assembly, which is now at

                 the desk.

                            ACTING PRESIDENT MEIER:    The

                 Secretary will read.

                            THE SECRETARY:    Calendar Number

                 961, by Senator Trunzo, Senate Print 7189, an

                 act to amend the Executive Law and others.

                            ACTING PRESIDENT MEIER:    Senator

                 Kuhl.

                            SENATOR KUHL:    I move to

                 reconsider the vote by which this bill was

                 passed and ask that the bill be restored to

                 the order of third reading.

                            ACTING PRESIDENT MEIER:    The

                 Secretary will call the roll on

                 reconsideration.



                                                        3140



                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 59.

                            ACTING PRESIDENT MEIER:    The bill

                 is restored to the order of third reading.

                            Senator Kuhl.

                            SENATOR KUHL:    Now, Mr.

                 President, I move to discharge, from the

                 Committee on Rules, Assembly Print Number

                 11129 and substitute it for Senator Trunzo's

                 identical bill.  And I move that the

                 substituted bill have its third reading at

                 this time.

                            ACTING PRESIDENT MEIER:

                 Substitution ordered.

                            The Secretary will read.

                            THE SECRETARY:    Calendar Number

                 961, by the Assembly Committee on Rules,

                 Assembly Print Number 11129, an act to amend

                 the Executive Law.

                            ACTING PRESIDENT MEIER:    Senator

                 Volker.

                            SENATOR VOLKER:    Is there a

                 message of appropriation at the desk, please?

                            ACTING PRESIDENT MEIER:    There

                 is.



                                                        3141



                            SENATOR VOLKER:    Move to accept

                 it.

                            ACTING PRESIDENT MEIER:    All

                 those in favor of accepting the message of

                 appropriation signify by saying aye.

                            (Response of "Aye.")

                            ACTING PRESIDENT MEIER:    Those

                 opposed, nay.

                            (No response.)

                            ACTING PRESIDENT MEIER:    The

                 message is accepted.

                            The bill is before the house.

                            SENATOR VOLKER:    Read the last

                 section.  Go ahead.

                            ACTING PRESIDENT MEIER:    Read the

                 last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MEIER:    Call the

                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 59.

                            ACTING PRESIDENT MEIER:    The bill

                 is passed.

                            Senator Kuhl.



                                                        3142



                            SENATOR KUHL:    Yes, lastly, on

                 behalf of Senator Robach, Mr. President, I

                 wish to call up his bill, Senate Print 7344,

                 recalled from the Assembly, which is now at

                 the desk.

                            ACTING PRESIDENT MEIER:    The

                 Secretary will read.

                            THE SECRETARY:    Calendar Number

                 1427, by Senator Robach, Senate Print Number

                 7344, an act to amend the Civil Service Law

                 and others.

                            ACTING PRESIDENT MEIER:    Senator

                 Kuhl.

                            SENATOR KUHL:    Mr. President, I

                 now move to reconsider the vote by which this

                 bill passed the house, and ask that the bill

                 be restored to the order of third reading.

                            ACTING PRESIDENT MEIER:    Call the

                 roll on reconsideration.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 59.

                            ACTING PRESIDENT MEIER:    The bill

                 is restored to the order of third reading.

                            Senator Kuhl.

                            SENATOR KUHL:    And, Mr.



                                                        3143



                 President, I now move to discharge, from the

                 Committee on Rules, Assembly Print 11281 and

                 substitute it for Senator Robach's identical

                 bill, and move that the substituted Assembly

                 bill have its third reading at this time.

                            ACTING PRESIDENT MEIER:

                 Substitution ordered.

                            The Secretary will read.

                            THE SECRETARY:    Calendar Number

                 1427, by the Assembly Committee on Rules,

                 Assembly Print Number 11281, an act to amend

                 the Civil Service Law.

                            ACTING PRESIDENT MEIER:    Senator

                 Volker.

                            SENATOR VOLKER:    Is there a

                 message of appropriation at the desk, please?

                            ACTING PRESIDENT MEIER:    There is

                 a message at the desk.

                            SENATOR VOLKER:    Move to accept.

                            ACTING PRESIDENT MEIER:    All

                 those in favor of accepting the message of

                 appropriation signify by saying aye.

                            (Response of "Aye.")

                            ACTING PRESIDENT MEIER:    Those

                 opposed, nay.



                                                        3144



                            (No response.)

                            ACTING PRESIDENT MEIER:    The

                 message is accepted.

                            The bill is before the house.

                            Read the last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MEIER:    Call the

                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 59.

                            ACTING PRESIDENT MEIER:    The bill

                 is passed.

                            Senator Volker.

                            SENATOR VOLKER:    Would you

                 recognize Senator Hassell-Thompson.

                            ACTING PRESIDENT MEIER:    I will

                 gladly recognize the distinguished Senator.

                            The chair recognizes Senator

                 Hassell-Thompson.

                            SENATOR HASSELL-THOMPSON:    Thank

                 you, Mr. President.  Thank you, Senator

                 Volker.

                            Mr. President, I rise to request

                 unanimous consent to be recorded in the



                                                        3145



                 negative on Calendar Number 1428.

                            ACTING PRESIDENT MEIER:    Without

                 objection, Senator Hassell-Thompson will be

                 recorded in the negative on Calendar 1428.

                            Senator Volker.

                            SENATOR VOLKER:    Mr. President,

                 may we please return to reports of standing

                 committees.  I believe there's a report of the

                 Rules Committee at the desk.

                            ACTING PRESIDENT MEIER:    Reports

                 of standing committees.

                            The Secretary will read.

                            THE SECRETARY:    Senator Bruno,

                 from the Committee on Rules, reports the

                 following bills:

                            Senate Print 14A, by Senator

                 Seward, an act to amend the County Law;

                            175, by Senator Hoffmann, an act to

                 amend the Tax Law;

                            326B, by Senator DeFrancisco, an

                 act to amend the County Law;

                            494, by Senator Johnson, an act to

                 amend the Executive Law;

                            531, by Senator Padavan, an act to

                 amend the Vehicle and Traffic Law;



                                                        3146



                            744, by Senator Kuhl, an act to

                 amend the Tax Law;

                            756A, by Senator LaValle, an act to

                 amend the Environmental Conservation Law;

                            978, by Senator Farley, an act to

                 amend the Retirement and Social Security Law;

                            994, by Senator Trunzo, an act to

                 amend the Real Property Tax Law;

                            2770, by Senator McGee, an act to

                 amend the Education Law;

                            2917B, by Senator Spano, an act to

                 amend the Education Law;

                            3027, by Senator Nozzolio, an act

                 to amend the Real Property Tax Law;

                            4523A, by Senator Marcellino, an

                 act to amend the Tax Law;

                            4598A, by Senator Maziarz, an act

                 to amend the Parks, Recreation and Historic

                 Preservation Law;

                            4720A, by Senator Kuhl, an act to

                 amend the Private Housing Finance Law;

                            4731A, by Senator McGee, an act to

                 amend the Civil Service Law;

                            5755, by Senator Seward, an act to

                 amend the Insurance Law;



                                                        3147



                            5827, by Senator Morahan, an act to

                 amend the Executive Law;

                            5980, by Senator LaValle, an act to

                 amend the Criminal Procedure Law;

                            6065, by Senator Leibell, an act to

                 amend the Correction Law;

                            6074A, by Senator Maziarz, an act

                 to amend the Tax Law;

                            6188, by Senator Maltese, an act to

                 amend the Education Law;

                            6781, by Senator Golden, an act to

                 amend Chapter 841 of the Laws of 1987;

                            7040, by Senator Paterson, an act

                 to amend the Parks, Recreation and Historic

                 Preservation Law;

                            7114, by Senator Leibell, an act to

                 amend the Criminal Procedure Law;

                            7194, by Senator Wright, an act to

                 authorize the Village of Cleveland;

                            7306, by Senator Wright, an act to

                 amend the Tax Law;

                            7315, by Senator Balboni, an act to

                 amend the Patriot Plan;

                            7319, by Senator Golden, an act to

                 amend the Executive Law;



                                                        3148



                            7345, by Senator Volker, an act to

                 amend the Criminal Procedure Law;

                            And Senate Print 7355, by Senator

                 Little, an act to amend the General Municipal

                 Law.

                            All bills ordered direct to third

                 reading.

                            ACTING PRESIDENT MEIER:    Without

                 objection, all bills are ordered directly to

                 third reading.

                            SENATOR VOLKER:    Move to accept

                 the report of the Rules Committee.

                            ACTING PRESIDENT MEIER:    All

                 those in favor of accepting the report of the

                 Rules Committee signify by saying aye.

                            (Response of "Aye.")

                            ACTING PRESIDENT MEIER:    Those

                 opposed, nay.

                            (No response.)

                            ACTING PRESIDENT MEIER:    The

                 report of the Rules Committee is accepted.

                            Senator Volker.

                            SENATOR VOLKER:    Is there any

                 housekeeping at the desk?

                            ACTING PRESIDENT MEIER:    No,



                                                        3149



                 there is not.

                            SENATOR VOLKER:    I have one

                 little bit of housekeeping here.

                            On behalf of Senator Bruno, I hand

                 up the following notice of leadership change.

                            ACTING PRESIDENT MEIER:    The

                 report will be filed with the Journal.

                            Senator Volker.

                            SENATOR VOLKER:    There being no

                 further business, I move we adjourn until

                 Monday, June 7th, at 3:00 p.m., intervening

                 days being legislative days.

                            ACTING PRESIDENT MEIER:    On

                 motion, the Senate stands adjourned until

                 Monday, June 7th, at 3:00 p.m.  Intervening

                 days will be legislative days.

                            (Whereupon, at 12:54 p.m., the

                 Senate adjourned.)