Regular Session - June 16, 2004

    

 
                                                        3776



                           NEW YORK STATE SENATE





                          THE STENOGRAPHIC RECORD









                             ALBANY, NEW YORK

                               June 16, 2004

                                11:10 a.m.





                              REGULAR SESSION







            SENATOR THOMAS P. MORAHAN, Acting President

            STEVEN M. BOGGESS, Secretary















                                                        3777



                           P R O C E E D I N G S

                            ACTING PRESIDENT MORAHAN:    The

                 Senate will come to order.

                            I ask everyone present to rise and

                 repeat with me the Pledge of Allegiance to the

                 Flag.

                            (Whereupon, the assemblage recited

                 the Pledge of Allegiance to the Flag.)

                            ACTING PRESIDENT MORAHAN:    In the

                 absence of clergy, I ask that we bow our heads

                 for a moment of silence.

                            (Whereupon, the assemblage

                 respected a moment of silence.)

                            ACTING PRESIDENT MORAHAN:

                 Reading of the Journal.

                            THE SECRETARY:    In Senate,

                 Tuesday, June 15, the Senate met pursuant to

                 adjournment.  The Journal of Monday, June 14,

                 was read and approved.  On motion, Senate

                 adjourned.

                            ACTING PRESIDENT MORAHAN:

                 Without objection, the Journal stands approved

                 as read.

                            Presentation of petitions.

                            Messages from the Assembly.



                                                        3778



                            Messages from the Governor.

                            Reports of standing committees.

                            Reports of select committees.

                            Communications and reports from

                 state officers.

                            Motions and resolutions.

                            Senator Bonacic.

                            SENATOR BONACIC:    Thank you, Mr.

                 President.

                            Amendments are offered to the

                 following Third Reading Calendar bills:

                            By Senator Leibell, page 4,

                 Calendar Number 51, Senate Print 4330;

                            Senator Padavan, page 33, Calendar

                 Number 979, Senate Print 5931A;

                            Senator Saland, page 55, Calendar

                 Number 1397, Senate Print 6674;

                            And last but not least, Senator

                 Skelos's bill, page 44, Calendar Number 1190,

                 Senate Print 6610.

                            Mr. President, I now move that

                 these bills retain their place on the order of

                 third reading.

                            ACTING PRESIDENT MORAHAN:    The

                 amendments are received, and the bills will



                                                        3779



                 retain their place on the Third Reading

                 Calendar.

                            SENATOR BONACIC:    Thank you, Mr.

                 President.

                            ACTING PRESIDENT MORAHAN:    You're

                 welcome, Senator Bonacic.

                            Senator McGee.

                            SENATOR McGEE:    Mr. President, on

                 behalf of Senator Balboni, I wish to call up

                 his bill, Print Number 7180, recalled from the

                 Assembly, which is now at the desk.

                            ACTING PRESIDENT MORAHAN:    The

                 Secretary will read.

                            THE SECRETARY:    Calendar Number

                 834, by Senator Balboni, Senate Print 7180, an

                 act to amend the General Business Law.

                            SENATOR McGEE:    Mr. President, I

                 now move to reconsider the vote by which this

                 bill was passed.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll on reconsideration.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 40.

                            SENATOR McGEE:    Mr. President, I

                 now offer the following amendments.



                                                        3780



                            ACTING PRESIDENT MORAHAN:    The

                 amendments are received.

                            SENATOR McGEE:    Mr. President, on

                 behalf of Senator Leibell, I wish to call up

                 his bill, Print Number 1332, recalled from the

                 Assembly, which is now at the desk.

                            ACTING PRESIDENT MORAHAN:    The

                 Secretary will read.

                            THE SECRETARY:    Calendar Number

                 427, by Senator Leibell, Senate Print 1332, an

                 act to amend the Eminent Domain Procedure Law.

                            SENATOR McGEE:    Mr. President, I

                 now move to reconsider the vote by which this

                 bill was passed.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll on reconsideration.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 40.

                            SENATOR McGEE:    Mr. President, I

                 now offer the following amendments.

                            ACTING PRESIDENT MORAHAN:    The

                 amendments are received.

                            SENATOR McGEE:    Mr. President, on

                 behalf of Senator Robach, I wish to call up

                 Calendar Number 520, Assembly Print Number



                                                        3781



                 9045A.

                            ACTING PRESIDENT MORAHAN:    The

                 Secretary will read.

                            THE SECRETARY:    Calendar Number

                 520, by the Assembly Committee on Rules,

                 Assembly Print Number 9045A, an act to amend

                 the Public Health Law.

                            SENATOR McGEE:    I now move to

                 reconsider the vote by which this Assembly

                 bill was substituted for Senator Robach's

                 bill, Senate Print Number 5446B, on June 7th.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll on reconsideration.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 40.

                            SENATOR McGEE:    I now move that

                 Assembly Bill Number 9045A be recommitted to

                 the Committee on Rules, and Senator Robach's

                 Senate bill be restored to the order of Third

                 Reading Calendar.

                            ACTING PRESIDENT MORAHAN:    So

                 ordered.

                            SENATOR McGEE:    Mr. President, I

                 now offer the following amendments.

                            ACTING PRESIDENT MORAHAN:    The



                                                        3782



                 amendments are received.

                            SENATOR McGEE:    Mr. President, on

                 behalf of Senator Trunzo, on page number 37 I

                 offer the following amendments to Calendar

                 Number 1050, Senate Print Number 6865, and ask

                 that said bill retain its place on Third

                 Reading Calendar.

                            ACTING PRESIDENT MORAHAN:    The

                 amendments are received, and the bill will

                 retain its place on the Third Reading

                 Calendar.

                            SENATOR McGEE:    Thank you very

                 much, Mr. President.

                            ACTING PRESIDENT MORAHAN:

                 Senator Spano.

                            SENATOR SPANO:    Are there any

                 substitutions at the desk?

                            ACTING PRESIDENT MORAHAN:    The

                 Secretary will read.

                            THE SECRETARY:    On page 59,

                 Senator Oppenheimer moves to discharge, from

                 the Committee on Rules, Assembly Bill Number

                 8685 and substitute it for the identical

                 Senate Bill Number 5549, Third Reading

                 Calendar 1546.



                                                        3783



                            On page 59, Senator Meier moves to

                 discharge, from the Committee on Rules,

                 Assembly Bill Number 9684 and substitute it

                 for the identical Senate Bill Number 6963,

                 Third Reading Calendar 1552.

                            On page 59, Senator Meier moves to

                 discharge, from the Committee on Rules,

                 Assembly Bill Number 10389B and substitute it

                 for the identical Senate Bill Number 6964B,

                 Third Reading Calendar 1553.

                            On page 60, Senator Meier moves to

                 discharge, from the Committee on Rules,

                 Assembly Bill Number 10416 and substitute it

                 for the identical Senate Bill Number 6966,

                 Third Reading Calendar 1554.

                            On page 60, Senator Padavan moves

                 to discharge, from the Committee on Rules,

                 Assembly Bill Number 10914 and substitute it

                 for the identical Senate Bill Number 6999,

                 Third Reading Calendar 1555.

                            On page 60, Senator Wright moves to

                 discharge, from the Committee on Rules,

                 Assembly Bill Number 7201B and substitute it

                 for the identical Senate Bill Number 7321A,

                 Third Reading Calendar 1557.



                                                        3784



                            And on page 61, Senator Bruno moves

                 to discharge, from the Committee on Judiciary,

                 Assembly Bill Number 10966 and substitute it

                 for the identical Senate Bill Number 7460,

                 Third Reading Calendar 1564.

                            ACTING PRESIDENT MORAHAN:

                 Substitutions ordered.

                            Senator Skelos.

                            SENATOR SKELOS:    Mr. President,

                 if we could go to the noncontroversial reading

                 of the calendar.

                            ACTING PRESIDENT MORAHAN:    The

                 Secretary will read.

                            THE SECRETARY:    Calendar Number

                 31, by Senator McGee, Senate Print 1262, an

                 act to amend the Vehicle and Traffic Law, in

                 relation to providing.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 3.  This

                 act shall take effect on the first of

                 September.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)



                                                        3785



                            ACTING PRESIDENT MORAHAN:

                 Announce the results.

                            THE SECRETARY:    Ayes, 40.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 128, by Senator Balboni, Senate Print 525A, an

                 act to amend the Insurance Law and the Public

                 Health Law, in relation to the

                 confidentiality.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 4.  This

                 act shall take effect on the 120th day.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.

                            THE SECRETARY:    Ayes, 40.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 259, by Senator Volker, Senate Print 1388A, an

                 act to amend the County Law, in relation to



                                                        3786



                 providing.

                            SENATOR VOLKER:    Mr. President.

                            ACTING PRESIDENT MORAHAN:

                 Senator Volker.

                            SENATOR VOLKER:    Will you lay

                 that bill aside for the day, please.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is laid aside for the day.

                            THE SECRETARY:    Calendar Number

                 269, by Member of the Assembly Heastie,

                 Assembly Print Number 9534, an act to amend

                 the Public Health Law, in relation to

                 prohibiting.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect on the first of January.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.

                            THE SECRETARY:    Ayes, 40.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.



                                                        3787



                            THE SECRETARY:    Calendar Number

                 270, by the Assembly Committee on Rules,

                 Assembly Print Number 9212, an act to amend

                 the Public Health Law, in relation to clinical

                 laboratory tests.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.

                            THE SECRETARY:    Ayes, 40.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 344, by Senator Mendez, Senate Print 2683A, an

                 act to amend the Workers' Compensation Law, in

                 relation to the provision.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 4.  This

                 act shall take effect immediately.



                                                        3788



                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.

                            THE SECRETARY:    Ayes, 41.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 385, by Senator Volker, Senate Print 6118, an

                 act to amend the Penal Law, in relation to

                 aggregate weight standards.

                            SENATOR SCHNEIDERMAN:    Lay it

                 aside.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is laid aside.

                            THE SECRETARY:    Calendar Number

                 405, by Senator Libous, Senate Print 4615, an

                 act to amend the Mental Hygiene Law and the

                 Public Health Law, in relation to peace

                 officer powers.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 4.  This

                 act shall take effect immediately.



                                                        3789



                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.

                            THE SECRETARY:    Ayes, 40.  Nays,

                 1.  Senator A. Smith recorded in the negative.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 442, by Member of the Assembly --

                            SENATOR PADAVAN:    Lay that aside

                 for the day, please.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is laid aside for the day.

                            THE SECRETARY:    Calendar Number

                 454, by Member of the Assembly Gunther,

                 Assembly Print Number 9495A, an act to amend

                 the Real Property Tax Law, in relation to the

                 partial payment.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MORAHAN:    Call



                                                        3790



                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.

                            THE SECRETARY:    Ayes, 41.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 481, by Senator Mendez, Senate Print --

                            SENATOR SCHNEIDERMAN:    Lay it

                 aside.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is laid aside.

                            THE SECRETARY:    Calendar Number

                 542, by Senator Leibell, Senate Print 4373B,

                 an act to make certain parents, widows and

                 children of certain firefighters.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 5.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:



                                                        3791



                 Announce the results.

                            THE SECRETARY:    Ayes, 41.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 545, by Senator Golden, Senate Print 5816, an

                 act to amend the Administrative Code of the

                 City of New York, in relation to the removal.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 3.  This

                 act shall take effect on the 30th day.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.

                            THE SECRETARY:    Ayes, 41.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 576, by the Assembly Committee on Rules,

                 Assembly Print Number 11083A, an act to

                 authorize Bethel Gospel Fellowship, Inc.

                            ACTING PRESIDENT MORAHAN:    Read



                                                        3792



                 the last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.

                            THE SECRETARY:    Ayes, 40.  Nays,

                 1.  Senator Bonacic recorded in the negative.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 590, by Senator Bonacic, Senate Print 4759A,

                 an act to amend the Social Services Law, in

                 relation to requiring investigation.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 3.  This

                 act shall take effect on the 120th day.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.



                                                        3793



                            THE SECRETARY:    Ayes, 41.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 598, by the Assembly Committee on Rules,

                 Assembly Print Number 10903A, an act to amend

                 the Administrative Code of the City of

                 New York, in relation to adjusting.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.

                            THE SECRETARY:    Ayes, 41.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 646, by Member of the Assembly Sweeney,

                 Assembly Print Number 9415A, an act to

                 authorize the Long Island Citizens for

                 Community Values.



                                                        3794



                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.

                            THE SECRETARY:    Ayes, 40.  Nays,

                 1.  Senator Bonacic recorded in the negative.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 647, by Member of the Assembly Sweeney,

                 Assembly Print Number 9414A, an act to

                 authorize the Yoga Anand Ashram.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 41.  Nays,



                                                        3795



                 1.  Senator Bonacic recorded in the negative.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 661, by Senator Volker --

                            SENATOR SCHNEIDERMAN:    Lay it

                 aside.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is laid aside.

                            THE SECRETARY:    Calendar Number

                 679, by Senator Maziarz, Senate Print 4994, an

                 act to amend the General Business Law, in

                 relation to free trial offers.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect on the 30th day.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.

                            THE SECRETARY:    Ayes, 42.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.



                                                        3796



                            THE SECRETARY:    Calendar Number

                 680, by Senator Larkin, Senate Print 5866A, an

                 act to amend the General Business Law and

                 others, in relation to repeal of such

                 provisions.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 5.  This

                 act shall take effect on the 180th day.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.

                            THE SECRETARY:    Ayes, 42.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 691, by Senator Seward, Senate Print 6554A, an

                 act to legalize, validate, ratify and confirm

                 certain actions.

                            ACTING PRESIDENT MORAHAN:    There

                 is a home-rule message at the desk.

                            Read the last section.

                            THE SECRETARY:    Section 5.  This



                                                        3797



                 act shall take effect immediately.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.

                            THE SECRETARY:    Ayes, 43.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 756, by Member of the Assembly Oaks, Assembly

                 Print Number 9476B, an act to amend the

                 Highway Law, in relation to designating.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.

                            THE SECRETARY:    Ayes, 45.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.



                                                        3798



                            THE SECRETARY:    Calendar Number

                 788, by Senator Nozzolio, Senate Print 3829,

                 an act to amend the Executive Law, in relation

                 to personal interviews.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.

                            THE SECRETARY:    Ayes, 44.  Nays,

                 1.  Senator Montgomery recorded in the

                 negative.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 806, by Member of the Assembly P. Rivera,

                 Assembly Print Number 9757, an act to amend

                 the Mental Hygiene Law.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 2.  This



                                                        3799



                 act shall take effect immediately.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.

                            THE SECRETARY:    Ayes, 45.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 895, by Senator Golden, Senate Print 6516A, an

                 act to amend the General Municipal Law, in

                 relation to allowing.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.

                            THE SECRETARY:    Ayes, 45.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.



                                                        3800



                            THE SECRETARY:    Calendar Number

                 896, by Senator Bonacic, Senate Print 6539, an

                 act to amend the Volunteer Firefighters'

                 Benefit Law, in relation to payment.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.

                            THE SECRETARY:    Ayes, 45.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 912, by the Assembly Committee on Rules,

                 Assembly Print Number 10887, an act to amend

                 the Retirement and Social Security Law, in

                 relation to adjusting.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.



                                                        3801



                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.

                            THE SECRETARY:    Ayes, 46.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 944, by Senator LaValle --

                            SENATOR SKELOS:    Lay it aside for

                 the day.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is laid aside for the day.

                            THE SECRETARY:    Calendar Number

                 964, by Senator Mendez, Senate Print 2685 --

                            SENATOR SCHNEIDERMAN:    Lay it

                 aside.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is laid aside.

                            THE SECRETARY:    Calendar Number

                 972, by Senator Mendez, Senate Print 6814, an

                 act to amend the Labor Law, in relation to the

                 payment of wages.

                            ACTING PRESIDENT MORAHAN:    Read



                                                        3802



                 the last section.

                            THE SECRETARY:    Section 7.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.

                            THE SECRETARY:    Ayes, 46.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 995, by Member of the Assembly Dinowitz,

                 Assembly Print Number 9265, an act to amend

                 the Vehicle and Traffic Law.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect on the 30th day.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.

                            THE SECRETARY:    Ayes, 46.



                                                        3803



                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 997, by Senator Hannon, Senate Print 6110, an

                 act to repeal Subdivision 5 of Section 508 of

                 the Vehicle and Traffic Law.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect on the same date and in

                 the same manner as Chapter 415 of the Laws of

                 2003.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.

                            THE SECRETARY:    Ayes, 46.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 1006, by Senator Balboni, Senate Print 3852B,

                 an act to amend the New York State Defense

                 Emergency Act, in relation to persons.

                            ACTING PRESIDENT MORAHAN:    Read



                                                        3804



                 the last section.

                            THE SECRETARY:    Section 3.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.

                            THE SECRETARY:    Ayes, 46.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 1026, by Senator Spano, Senate Print 6236, an

                 act to amend the Social Services Law, in

                 relation to requiring agencies.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect on the first of January

                 next succeeding.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.



                                                        3805



                            THE SECRETARY:    Ayes, 46.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 1035, by Member of the Assembly McEneny,

                 Assembly Print Number 7502A, an act to

                 authorize The Center for the Advancement of

                 Family and Youth.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.

                            THE SECRETARY:    Ayes, 45.  Nays,

                 1.  Senator Bonacic recorded in the negative.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 1112, by Senator Volker, Senate Print --

                            SENATOR SCHNEIDERMAN:    Lay it

                 aside.



                                                        3806



                            ACTING PRESIDENT MORAHAN:    The

                 bill is laid aside.

                            THE SECRETARY:    Calendar Number

                 1150, by Senator Wright, Senate Print 6509A,

                 an act to amend the New York State Defense

                 Emergency Act, in relation to driver's

                 license.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.

                            THE SECRETARY:    Ayes, 46.  Nays,

                 1.  Senator Duane recorded in the negative.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 1163, by Senator Little, Senate Print 6602, an

                 act to amend the Real Property Tax Law, in

                 relation to the apportionment.

                            ACTING PRESIDENT MORAHAN:    Read



                                                        3807



                 the last section.

                            THE SECRETARY:    Section 3.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.

                            THE SECRETARY:    Ayes, 47.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 1186, by Senator Little, Senate Print 6260, an

                 act to amend the Parks, Recreation and

                 Historic Preservation Law, in relation to

                 allowing.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.



                                                        3808



                            THE SECRETARY:    Ayes, 48.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 1188, by Senator Morahan, Senate Print 1318,

                 an act to amend the General Business Law, in

                 relation to prohibiting late charges.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect in 30 days.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.

                            THE SECRETARY:    Ayes, 48.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 1198, by Senator Hannon, Senate Print 6891, an

                 act to amend Chapter 590 of the Laws of 2002.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 2.  This



                                                        3809



                 act shall take effect immediately.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.

                            THE SECRETARY:    Ayes, 48.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 1230, by Senator Spano, Senate Print 6822B, an

                 act to amend the Tax Law, in relation to taxes

                 on cigarettes.

                            SENATOR SCHNEIDERMAN:    Lay it

                 aside.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is laid aside.

                            THE SECRETARY:    Calendar Number

                 1261, by Senator Morahan, Senate Print 6648,

                 an act to authorize payment of transportation.

                            ACTING PRESIDENT MORAHAN:    There

                 is a local fiscal impact note at the desk.

                            Read the last section.

                            THE SECRETARY:    Section 3.  This

                 act shall take effect immediately.



                                                        3810



                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.

                            THE SECRETARY:    Ayes, 48.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 1286, by Member of the Assembly Abbate,

                 Assembly Print Number 5921, an act to amend

                 the Civil Service Law, in relation to powers.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.

                            THE SECRETARY:    Ayes, 48.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number



                                                        3811



                 1288, by Senator Robach, Senate Print 6388A,

                 an act to amend the Civil Service Law, in

                 relation to resolution.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 3.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.

                            THE SECRETARY:    Ayes, 48.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 1290, by Senator Robach, Senate Print 6415, an

                 act to amend the Civil Service Law, in

                 relation to the representation.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.



                                                        3812



                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 48.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 1308, by Member of the Assembly Christensen,

                 Assembly Print Number 345A, an act to amend

                 the State Administrative Procedure Act.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect on the 180th day.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.

                            THE SECRETARY:    Ayes, 48.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 1343, by Senator Kuhl, Senate Print 6472A, an

                 act to authorize the Village of Montour Falls,

                 Schuyler County.

                            ACTING PRESIDENT MORAHAN:    There



                                                        3813



                 is a home-rule message at the desk.

                            Read the last section.

                            THE SECRETARY:    Section 5.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.

                            THE SECRETARY:    Ayes, 48.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 1365, by Member of the Assembly Thiele,

                 Assembly Print Number 10398A, an act in

                 relation to the application for an

                 agricultural assessment.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:



                                                        3814



                 Announce the results.

                            THE SECRETARY:    Ayes, 48.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 1376, by Member of the Assembly Lifton,

                 Assembly Print Number 5776, an act to amend

                 the Mental Hygiene Law and others, in relation

                 to establishing.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 4.  This

                 act shall take effect on the first of January.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.

                            THE SECRETARY:    Ayes, 49.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 1388, by Senator Saland, Senate Print 5382A,

                 an act to amend the Education Law, in relation

                 to contact lenses.



                                                        3815



                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 7.  This

                 act shall take effect on the 90th day.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.

                            THE SECRETARY:    Ayes, 49.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 1417, by Senator Morahan, Senate Print 5826,

                 an act to amend the Executive Law, in relation

                 to prohibiting parole.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 4.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.



                                                        3816



                            THE SECRETARY:    Those recorded in

                 the negative on Calendar Number 1417 are

                 Senators Duane, L. Krueger, and Montgomery.

                 Ayes, 46.  Nays, 3.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 1432, by Senator Johnson, Senate Print 494, an

                 act to amend the Executive Law and others, in

                 relation to personal injury.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 4.  This

                 act shall take effect on the first of January.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.

                            THE SECRETARY:    Ayes, 49.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 1442, by Senator Maziarz, Senate Print 4598B,

                 an act to amend the Parks, Recreation and



                                                        3817



                 Historic Preservation Law, in relation to

                 creating.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 4.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.

                            THE SECRETARY:    Ayes, 49.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 1444, by Senator McGee, Senate Print 4731B, an

                 act to authorize.

                            ACTING PRESIDENT MORAHAN:    There

                 is a home-rule message at the desk.

                            Read the last section.

                            THE SECRETARY:    Section 3.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)



                                                        3818



                            ACTING PRESIDENT MORAHAN:

                 Announce the results.

                            THE SECRETARY:    Ayes, 49.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 1445, by the Assembly Committee on Rules,

                 Assembly Print Number 9189A, an act to amend

                 the Insurance Law, in relation to making

                 technical corrections.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.

                            THE SECRETARY:    Ayes, 49.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 1463, by Senator Padavan, Senate Print 2297,

                 an act to amend the Agriculture and Markets



                                                        3819



                 Law, in relation to prohibiting.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.

                            THE SECRETARY:    Ayes, 49.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 1468, by Senator Volker, Senate Print --

                            SENATOR SCHNEIDERMAN:    Lay it

                 aside.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is laid aside.

                            THE SECRETARY:    Calendar Number

                 1486, by Senator Hannon, Senate Print 6227A,

                 an act authorizing the assessor of the County

                 of Nassau to accept an application.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.



                                                        3820



                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.

                            THE SECRETARY:    Ayes, 48.  Nays,

                 1.  Senator Bonacic recorded in the negative.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 1522, by Senator Paterson, Senate Print 5394B,

                 an act to establish a date of commencement.

                            ACTING PRESIDENT MORAHAN:    There

                 is a home-rule message at the desk.

                            Read the last section.

                            THE SECRETARY:    Section 3.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.

                            THE SECRETARY:    Ayes, 49.



                                                        3821



                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 1537, by Senator Saland, Senate Print 7408, an

                 act to amend the County Law, in relation to

                 wireless communications.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:    There

                 is a local fiscal impact note at the desk.

                            Announce the results.

                            THE SECRETARY:    Ayes, 49.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 1543, by Senator Meier, Senate Print 1266, an

                 act to amend the Family Court Act, in relation

                 to orders of disposition.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.



                                                        3822



                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.

                            THE SECRETARY:    Ayes, 49.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 1544, by Senator Meier, Senate Print 3106, an

                 act to amend the General Municipal Law, in

                 relation to allowing.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.

                            THE SECRETARY:    Ayes, 49.

                            ACTING PRESIDENT MORAHAN:    The



                                                        3823



                 bill is passed.

                            The Secretary will read Calendar

                 Number 1498, by Senator Alesi.

                            THE SECRETARY:    Calendar Number

                 1498, by Senator Alesi, Senate Print 7341A, an

                 act to authorize the County of Monroe.

                            ACTING PRESIDENT MORAHAN:    There

                 is a home-rule message at the desk.

                            Read the last section.

                            THE SECRETARY:    Section 5.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.

                            THE SECRETARY:    Ayes, 49.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 1546, substituted earlier today by the

                 Assembly Committee on Rules, Assembly Print

                 Number 8685, an act authorizing the City of

                 New Rochelle.

                            ACTING PRESIDENT MORAHAN:    Read



                                                        3824



                 the last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.

                            THE SECRETARY:    Ayes, 48.  Nays,

                 1.  Senator Bonacic recorded in the negative.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 1548, by Senator Golden, Senate Print 6297A,

                 an act in relation to requiring certain state

                 and federal education aid.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect on the first of July.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.



                                                        3825



                            THE SECRETARY:    Ayes, 49.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 1551, by Senator Robach, Senate Print 6618, an

                 act --

                            SENATOR SKELOS:    Lay it aside for

                 the day.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is laid aside for the day.

                            THE SECRETARY:    Calendar Number

                 1552, substituted earlier today by Member of

                 the Assembly Destito, Assembly Print Number

                 9684, an act to amend the Real Property Tax

                 Law.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect on the first of January.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.

                            THE SECRETARY:    Ayes, 49.



                                                        3826



                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 1553, substituted earlier today by Member of

                 the Assembly Destito, Assembly Print Number

                 10389B, an act to amend the Real Property Tax

                 Law.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 49.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 1554, substituted earlier today by Member of

                 the Assembly Destito, Assembly Print Number

                 10416, an act in relation to authorizing.

                            ACTING PRESIDENT MORAHAN:    There

                 is a home-rule message at the desk.

                            Read the last section.

                            THE SECRETARY:    Section 2.  This



                                                        3827



                 act shall take effect immediately.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.

                            THE SECRETARY:    Ayes, 49.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 1555, substituted earlier today by the

                 Assembly Committee on Rules, Assembly Print

                 Number 10914, an act to amend Chapter 890 of

                 the Laws of 1982.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.

                            Senator Duane, to explain his vote.

                            SENATOR DUANE:    Thank you, Mr.



                                                        3828



                 President.

                            I think that the issue of security

                 would be better left to the Department of

                 Homeland Security.  So I'm going to be voting

                 in the negative on this bill.

                            This isn't 1557?  Oops, sorry.

                 Well, remember me for the next one.

                            ACTING PRESIDENT MORAHAN:    Next

                 bill, thank you.

                            Announce the results.

                            THE SECRETARY:    In relation to

                 Calendar Number 1555, ayes, 50.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 1557, substituted earlier today by Member of

                 the Assembly Galef, Assembly Print Number

                 7201B, an act to amend the Penal Law, in

                 relation to authorizing.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.



                                                        3829



                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Senator Duane, to explain his vote.

                            SENATOR DUANE:    Always a

                 surprise, Mr. President.

                            I just think that the security of

                 these plants would be better left to homeland

                 security.  So I'm going to be voting in the

                 negative.

                            Thank you, Mr. President.

                            ACTING PRESIDENT MORAHAN:    You're

                 welcome, Senator Duane.  You will be recorded

                 in the negative.

                            Announce the results.

                            THE SECRETARY:    Ayes, 49.  Nays,

                 1.  Senator Duane recorded in the negative.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 1558, by Senator Nozzolio, Senate Print 7417,

                 an act to amend the Criminal Procedure Law, in

                 relation to exempting.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 2.  This



                                                        3830



                 act shall take effect immediately.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.

                            THE SECRETARY:    Ayes, 49.  Nays,

                 1.  Senator Duane recorded in the negative.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 1559, by Senator Kuhl, Senate Print 7421, an

                 act to amend the Vehicle and Traffic Law, in

                 relation to requiring.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 3.  This

                 act shall take effect on the 120th day.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.

                            THE SECRETARY:    Ayes, 50.

                            ACTING PRESIDENT MORAHAN:    The



                                                        3831



                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 1560, by Senator McGee, Senate Print 7426, an

                 act to authorize the Delevan Baptist Church to

                 file a real property tax exemption.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.

                            THE SECRETARY:    Ayes, 49.  Nays,

                 1.  Senator Bonacic recorded in the negative.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 1563, by Senator Nozzolio, Senate Print 7456,

                 an act to amend the Penal Law, in relation to

                 clandestine laboratory operations.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 4.  This



                                                        3832



                 act shall take effect on the first of

                 November.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.

                            THE SECRETARY:    Ayes, 49.  Nays,

                 1.  Senator Duane recorded in the negative.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 1564, substituted earlier today by the

                 Assembly Committee on Rules, Assembly Print

                 Number 10966, an act to amend the Judiciary

                 Law.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.



                                                        3833



                            THE SECRETARY:    Ayes, 50.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 1565, by Senator Mendez, Senate Print 7464, an

                 act to amend the Administrative Code of the

                 City of New York, in relation to the

                 administration.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 4.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.

                            THE SECRETARY:    Ayes, 51.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 1568, by Senator Bruno, Senate Print 7471, an

                 act to amend the Tax Law, in relation to

                 reducing.

                            SENATOR SCHNEIDERMAN:    Lay it



                                                        3834



                 aside.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is laid aside.

                            Senator Duane, why do you rise?

                            SENATOR DUANE:    Why,

                 surprisingly, do I rise?  If I may have

                 unanimous consent to be recorded in the

                 negative on Calendar Numbers 31, 128, 788,

                 895, and 1006.

                            ACTING PRESIDENT MORAHAN:

                 Senator Duane will be recorded in the negative

                 without objection on 31, 128, 788, 895, and

                 1006.

                            Senator Montgomery.

                            SENATOR MONTGOMERY:    Yes, Mr.

                 President, I would like unanimous consent to

                 be recorded in the negative on Calendar 31.

                            ACTING PRESIDENT MORAHAN:

                 Senator Montgomery will be recorded in the

                 negative, without objection, on Calendar

                 Number 31.

                            Senator Skelos, that completes the

                 noncontroversial reading of the calendar.

                            SENATOR SKELOS:    Thank you, Mr.

                 President.  If we could go to the



                                                        3835



                 controversial reading of the calendar.

                            ACTING PRESIDENT MORAHAN:    The

                 Secretary will read.

                            THE SECRETARY:    Calendar Number

                 385, by Senator Volker, Senate Print 6118, an

                 act to amend the Penal Law.

                            SENATOR SCHNEIDERMAN:

                 Explanation.

                            ACTING PRESIDENT MORAHAN:

                 Senator Volker, an explanation has been

                 requested by Senator Schneiderman.

                            SENATOR VOLKER:    Mr. President,

                 this is one of a series of bills that I have

                 sponsored which relates to the budget.  I

                 think a few of us remember that.  You don't

                 remember the budget?  And this provision

                 actually is in the budget.

                            And according to the DOB, the

                 implementation of the aggregate weight

                 standard would reduce the State Police

                 Laboratory spending by a million dollars.

                            New York is currently the only

                 state in the union that uses both an aggregate

                 and a pure weight standard in determining the

                 level of drugs.  This bill would eliminate the



                                                        3836



                 pure weight standard.

                            Now, there's an argument about who

                 gains by this, defense attorneys or

                 prosecution.  It actually is kind of a

                 question as to whether -- in some cases, it

                 can actually favor defense attorneys and other

                 ways it could certainly favor the prosecution.

                            I think the reason some defense

                 attorneys don't like this is because they

                 would prefer, very honestly, to have the

                 confusion.  I mean, obviously, some confusion

                 can help you in certain cases.

                            But the truth is, from the criminal

                 justice standpoint, it seems to me that since

                 the whole rest of the country is using

                 aggregate weight standards, it certainly makes

                 sense for us to do the same thing.

                            And that is basically what this

                 bill does.  And as I said, this bill also

                 reflects a provision that is in the budget,

                 which is Senate 6056A, Assembly 956.  And it's

                 one of the Governor's Article 7 bills, just so

                 that you know.  So what we're really

                 discussing here is something that's in the

                 budget, which eventually I have no doubt we



                                                        3837



                 will pass.

                            ACTING PRESIDENT MORAHAN:

                 Senator Schneiderman.

                            SENATOR SCHNEIDERMAN:    Thank you.

                 If the sponsor would yield for a question.

                            ACTING PRESIDENT MORAHAN:

                 Senator Volker, will you yield for a question?

                            SENATOR VOLKER:    Yes.

                            ACTING PRESIDENT MORAHAN:    The

                 Senator yields.

                            SENATOR SCHNEIDERMAN:    We've had

                 a lot of discussions about reform of drug laws

                 this year.  I continue to be hopeful that we

                 will reform our drug sentencing laws.

                            My question is, how would this

                 bill -- what would be the net effect of this

                 bill as far as increasing the number of people

                 incarcerated, increasing or decreasing the

                 length of sentences?

                            SENATOR VOLKER:    In all

                 honesty -- and we tried to kind of figure it

                 out, because we have been looking at these

                 issues a great deal -- we don't think it would

                 have any real impact.

                            It probably would have the major



                                                        3838



                 impact on major drug sellers.  I don't see

                 where it would have any particular impact on

                 minor drug possessors or drug sellers.  But it

                 seems to me, if there was an impact, it would

                 probably be on the higher side; that is, on

                 the major drug seller side.

                            But we don't believe that this

                 truly has any net effect other than the --

                 actually, it will be cheaper for the State

                 Police Lab.

                            SENATOR SCHNEIDERMAN:    Through

                 you, Mr. President, if the sponsor would

                 continue to yield.

                            SENATOR VOLKER:    Sure.

                            SENATOR SCHNEIDERMAN:    My

                 understanding, though, is that the pure weight

                 standard requires the police to analyze how

                 much of the pure drug there is.  So if you had

                 a bag of cocaine that was very pure, there

                 would be a different standard for that than a

                 bag of cocaine that some cheap street hustler

                 had cut with baking soda and was full of all

                 sorts of other stuff.

                            SENATOR VOLKER:    That's true.

                 That's true.



                                                        3839



                            SENATOR SCHNEIDERMAN:    Is that

                 correct?  And that would be eliminated when we

                 go to the aggregate weight standard.

                            SENATOR VOLKER:    That is true.

                            But I think that what you have to

                 realize is it's very difficult to determine

                 pure weight standards in any case.  And what

                 we're saying here is we're kind of leveling

                 the playing field, sort of.

                            And the problem with pure weight

                 versus aggregate weight is there's really a

                 debate about what even constitutes totally

                 pure weight and whether it really is a better

                 quality or not.  And that's actually one of

                 the most difficult things to deal with.

                            So what we're saying here is we're

                 sort of leveling the playing field and just

                 saying:  Look, you have the drugs, whatever

                 they are is what they are, and that is what

                 you're going to use in prosecution cases.

                            SENATOR SCHNEIDERMAN:    Thank you.

                            Mr. President, on the bill.

                            ACTING PRESIDENT MORAHAN:

                 Senator Schneiderman, on the bill.

                            SENATOR SCHNEIDERMAN:    I



                                                        3840



                 appreciate the difficulty we have with

                 requiring our law enforcement authorities to

                 analyze what exactly is in drugs seized from

                 suspects in a case.

                            My concern with this legislation,

                 however, is that we've had a discussion over

                 the years, and Senator Volker has participated

                 in much of it, about the discrimination in the

                 sentencing laws.  That drugs, cocaine that

                 might be used by more affluent people is

                 treated -- it's much more pure, and yet it's

                 treated on the same basis as far as sentencing

                 from the point of view of weight as cheap

                 crack cocaine that's sold in poor

                 neighborhoods.

                            So the net effect of this is to

                 sentence more harshly people in poorer

                 communities, mostly communities of color,

                 frankly because their drugs are of a lower

                 quality and so they weigh more for, you know,

                 the actual amount of cocaine in the drug.

                            So the concern is that this would

                 appear to have the effect of increasing the

                 penalties on poorer people, people in

                 low-income communities, because they simply



                                                        3841



                 have a lower quality of drugs, heavier gross

                 weight for the amount of actual drug that is

                 at issue in any particular prosecution.

                            So while I realize that it is a

                 burden on law enforcement authorities to try

                 to analyze what's in the drug, it appears to

                 me that the overall effect of this switch is

                 to make it more likely that poor people,

                 people who are in poorer neighborhoods who

                 don't have access to as high-quality drugs,

                 would be punished more than people who have

                 access to the pure drugs.

                            And also, I would urge that the

                 purer the drug, probably the farther up the

                 chain you're going as far as getting towards

                 drug kingpins.  I mean, the drug kingpins are

                 probably the people that have the purest drug,

                 and it's being cut and broken up and turned

                 into other forms of drugs and combined with

                 other products as it goes down the line.

                            So based on that, and based on the

                 fact that we have still what many of us view

                 as a crisis as far as our drug sentencing laws

                 go -- we have many too many nonviolent

                 offenders sentenced for drug offenses -- I'm



                                                        3842



                 hopeful, as I know that the sponsor is

                 hopeful, that we will not adjourn this year

                 without reforming our sentencing laws.

                            But I see this bill, frankly, as a

                 step backwards, as I think this would make the

                 system less fair, I think it would make it

                 more prejudicial, I think it would make it

                 more likely that poor people would receive

                 less favorable treatment.

                            So on that basis, I am going to be

                 voting no.  Thank you.

                            ACTING PRESIDENT MORAHAN:

                 Senator Volker.

                            SENATOR VOLKER:    Mr. President.

                            ACTING PRESIDENT MORAHAN:    Is

                 this on the bill?

                            SENATOR VOLKER:    I've heard that

                 argument.  And I have to tell you, in talking

                 to people in the State Police and in the DAs',

                 they don't see that at all.  They don't care

                 about that issue.

                            And remember, on the lower level,

                 when you're talking about arrests, I know we

                 say that there's some big charge out there to

                 get people who are on a lower level.  The



                                                        3843



                 truth is most of those people get arrested

                 dozens of times before they ever go to jail.

                            Nobody is out there trying to --

                 the people we want and I think the people the

                 State Police want are the major sellers.  They

                 want to get the people -- and it's true

                 occasionally they use the lower sellers to get

                 at these people.

                            One of the things that's funny is

                 when I listen to people come in here and talk

                 about the Rockefeller Drug Laws, which of

                 course is a very small number of people, they

                 say:  Well, we don't have any big sellers in

                 jail.  They have no idea who we have in jail.

                 We have some of the biggest sellers in the

                 nation, thankfully, in jail.  If we can reach

                 them, we grab them.

                            And one of the ways they are

                 grabbed is, is -- one fellow and his brother

                 are in jail for possessing 24 pounds of

                 cocaine.  Because of course they couldn't get

                 them for sale.  And of course they claimed

                 that they were set up.  I said, yeah, well,

                 people hang around with 24 pounds of cocaine

                 on a regular basis, and they claim they were



                                                        3844



                 set up?  I said, I don't know who the people

                 are that would set you up with 24 pounds of

                 cocaine, but none of them are in my area.

                            But my point, I think, is I don't

                 agree with that assessment.  Now, I think this

                 is more for bigger dealers.  And I really mean

                 that, that this will make it easier -- and I'm

                 the first to admit that -- better and easier

                 and cleaner to prosecute people with larger

                 quantities of drugs, purity or no purity.

                            Because when you come right down to

                 it, the purity does impact to a certain extent

                 on the people who are taking the drugs, but it

                 really, when you come down to it, has little

                 impact on the actual value of the drugs when

                 you put it all together.

                            So my argument is this is not

                 intended, and I don't intend it to make it

                 more difficult for the street people.  I think

                 this really is designed for dealers more than

                 anything, and not for users.

                            ACTING PRESIDENT MORAHAN:    Thank

                 you, Senator Volker.

                            Senator Schneiderman.

                            SENATOR SCHNEIDERMAN:    Thank you.



                                                        3845



                 I appreciate the sponsor's intention.  And I

                 don't doubt his sincerity.

                            I would note, however, that this

                 bill states very explicitly that it relates

                 to -- and this is in lines 8 and 9 on the

                 first page, it refers to criminal possession

                 of a controlled substance in the fifth degree.

                 We're talking about low-level drug offenders.

                            And we're talking about something

                 that whatever the State Police intend,

                 whatever good intentions people have, the fact

                 of the matter is that well-to-do people in a

                 suburban community who might have a small

                 amount of very pure cocaine are far less

                 likely to get into the system anyway.  They

                 can afford better lawyers and all that.

                            But we shouldn't be compounding

                 that problem by saying that, you know, if

                 you're living in a poor community where you

                 have less pure crack cocaine or some other

                 product, or some kind of bizarre speedball

                 combination, that you're going to be

                 prosecuted based on aggregate weight when in

                 fact you have a smaller amount of the drug.

                 And it just increases the disparity.



                                                        3846



                            This is not a bill -- and maybe you

                 could redraft it to refer only to high-level

                 drug offenses.  But when you're talking about

                 possession of a controlled substance in the

                 fifth degree, you're talking about very

                 low-level offenders.

                            So I would urge that as we go

                 forward -- and I suspect this is going to be

                 sitting in the grand hopper of one-house bills

                 for a while -- maybe we could amend it to try

                 and address that issue.

                            I will be voting no.  Thank you,

                 Mr. President.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 10.  This

                 act shall take effect on the first of

                 November.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.

                            THE SECRETARY:    Those recorded in

                 the negative on Calendar Number 385 are



                                                        3847



                 Senators Diaz, Dilan, Duane, L. Krueger,

                 Montgomery, Parker, Paterson, and

                 Schneiderman.  Also Senator A. Smith.  Ayes,

                 45.  Nays, 9.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 481, by Senator Mendez, Senate Print 6338, an

                 act directing the Commissioner of Labor.

                            SENATOR SCHNEIDERMAN:

                 Explanation.

                            ACTING PRESIDENT MORAHAN:

                 Senator Mendez, an explanation has been

                 requested by Senator Schneiderman.

                            SENATOR MENDEZ:    Yes.  This bill

                 will require the Commissioner of Labor to

                 study the effect of offshore outsourcing of

                 information technology jobs on the future

                 New York job market state of affairs.  And

                 they should report, after conducting the

                 study, by February 1st of 2005.

                            The summary of the provisions are

                 the report should include trends in offshore

                 outsourcing of information technology jobs,

                 including customer services and technical



                                                        3848



                 employees, identification of benefits and

                 risks of offshore outsourcing and strategies

                 for addressing those risks, determining state

                 and federal policies regarding offshore

                 outsourcing of technology jobs, and providing

                 policy recommendations for enhancing

                 New York's competitiveness in this market.

                            ACTING PRESIDENT MORAHAN:

                 Senator Schneiderman.

                            SENATOR SCHNEIDERMAN:    Thank you,

                 Mr. President.  Thank the sponsor for her

                 explanation.

                            On the bill.

                            This issue of outsourcing and of

                 New York State's failure to deal with

                 outsourcing was raised by Senator Paterson in

                 a rather comprehensive report he issued, along

                 with legislation, in February.  And I would

                 urge that while it's -- what this bill does,

                 directing that a report be issued, there are

                 facts that we know that we need to take action

                 on before a report comes back.

                            The fact of the matter is we are

                 still subsidizing the export of jobs in this

                 state.  And Senator Paterson's proposals would



                                                        3849



                 take action immediately, not wait for a

                 report.  And I would urge that it's something

                 that we should be tending to sooner rather

                 than later.

                            Forrester Research estimates that

                 over 830,000 jobs will move overseas by the

                 end of 2005.  We can't act until our jobs

                 deficit is even deeper if we're going to go

                 this route of waiting for a report.  We

                 shouldn't be telling laid-off New Yorkers to

                 feel better because a report is going to come

                 out telling them the IT sector is hurting when

                 it is issued in February.

                            It is absolutely clear that our

                 economic development programs in the State of

                 New York to this day are providing tax

                 benefits to companies that are shipping jobs

                 out of the state.  It is time, in this year's

                 budget, to end taxpayer subsidies for moving

                 American jobs overseas, to protect the

                 security of sensitive private medical and

                 financial records when they are transferred

                 overseas, to prevent the Governor from

                 committing the state to government procurement

                 agreements with foreign countries without



                                                        3850



                 ratification by the Legislature.

                            There are concrete steps we should

                 take this year.  I have no problem with us

                 directing the Department of Labor to do a

                 report, so I'm going to vote for this bill.

                 But if this is all we do on the issue of

                 outsourcing this session, I think we have

                 failed to take action which is there to be

                 taken.  Bills are drafted, policies are clear.

                 We have to do more than this before we

                 adjourn.

                            Thank you, Mr. President.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.

                            THE SECRETARY:    Ayes, 54.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number



                                                        3851



                 661, by Senator Volker, Senate --

                            SENATOR LIZ KRUEGER:

                 Explanation.

                            ACTING PRESIDENT MORAHAN:

                 Senator Volker, an explanation has been

                 requested.

                            SENATOR SPANO:    Lay it aside

                 temporarily.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is laid aside temporarily.

                            The Secretary will read.

                            THE SECRETARY:    Calendar Number

                 964, by Senator Mendez, Senate Print 2685, an

                 act to amend the Labor Law.

                            SENATOR LIZ KRUEGER:

                 Explanation.

                            ACTING PRESIDENT MORAHAN:

                 Senator Mendez, an explanation has been

                 requested by Senator Krueger.

                            SENATOR LIZ KRUEGER:    I meant to

                 say I have an amendment at the desk first.  I

                 apologize.

                            ACTING PRESIDENT MORAHAN:    Okay,

                 your apology is accepted.

                            SENATOR LIZ KRUEGER:    Thank you,



                                                        3852



                 Mr. President.

                            Mr. President, I believe I have an

                 amendment at the desk.  I'd like to waive

                 reading.

                            ACTING PRESIDENT MORAHAN:    Okay,

                 we'll waive the reading and Senator Krueger

                 will speak on the amendment.

                            SENATOR LIZ KRUEGER:    Thank you.

                            I have an amendment at the desk

                 which would actually amend Senator Mendez's

                 bill with another bill that she has previously

                 submitted and sponsored, which is S3351.

                            Senator Mendez's bill on the floor

                 today requires that there be a written

                 agreement of some sort between workers on

                 farms and their employers, an agreement that

                 would be prescribed by the Labor Commissioner

                 at some point in time.

                            I believe that a previous bill,

                 S3351, the Farmworkers Fair Labor Practices

                 Act, would be a far superior model for us to

                 go forward, and would include within it the

                 section on a conformed-upon workers agreement

                 by the Labor Commissioner.

                            But in addition, my amendment, the



                                                        3853



                 Farmworkers Fair Labor Practice Act, would

                 grant collective rights to farm laborers;

                 would require employers of farm laborers to

                 allow at least 24 consecutive hours of rest

                 each week; would provide for an 8-hour workday

                 for farm laborers; would require overtime pay

                 at 1 times the normal rate and make

                 provisions for unemployment insurance laws

                 applicable to farm laborers; would actually

                 define the work agreement, the subsection that

                 today's bill speaks about; would provide for a

                 sanitary code that applies to all farm and

                 food processing labor camps intended to house

                 migrant workers; would provide for the

                 eligibility of farm laborers to receive

                 workers' compensation benefits if hurt on the

                 job; would require employers of farm laborers

                 to provide such laborers with claim forms for

                 workers' compensation claims under certain

                 conditions; and would require reporting of

                 injuries to employers of farmworkers.

                            Basically, this act would provide

                 farmworkers the same legal rights and

                 protections as workers as almost every other

                 worker in the state of New York.



                                                        3854



                            We know why workers' protections

                 are so important.  We all stand up in

                 recognition of equal rights for workers in

                 this state, fair labor practices for workers

                 in this state, reasonable hours, protections

                 from harm and injury.  And yet we still, in

                 the state of New York, do not stand up and

                 support parallel protections and parallel laws

                 for farmworkers.

                            Perhaps because disproportionately

                 large numbers of them tend to be new Americans

                 or immigrant workers, they're often extremely

                 poor, they only get to work part-time each

                 year, they wander from location to location.

                            It is these most vulnerable of the

                 workers in New York State that we should be

                 standing up to support by ensuring that there

                 are equal rights and protections for them as

                 workers.

                            I hope my colleagues will join me

                 in supporting this amendment, which in fact is

                 a recognition of previous work done by Senator

                 Mendez, since it was originally her bill.  And

                 I hope she will support it.

                            Thank you, Mr. President.



                                                        3855



                            ACTING PRESIDENT MORAHAN:    Thank

                 you, Senator Krueger.

                            Senator Schneiderman.

                            SENATOR SCHNEIDERMAN:    Thank you.

                 I just want to rise to speak in support of

                 this amendment.

                            We're talking about something here

                 that is supported by an extraordinarily broad

                 coalition -- the New York State Catholic

                 Conference, labor/religion coalitions, unions,

                 other religious organizations.

                            And quite frankly, what we're

                 talking about here is an issue of fundamental

                 civil rights.  We shouldn't, in the state of

                 New York, with a budget in excess of a

                 $100 billion a year, with all the

                 extraordinary wealth we have, have 80,000

                 workers who can't get the basic rights that

                 are provided to all other workers in our

                 state.

                            So I would urge that this amendment

                 be adopted and that we move forward with

                 Senate 3351.  We can get support on the other

                 side of the Capitol.  We talk a lot about

                 things that aren't getting done on the other



                                                        3856



                 side.  This is something that can get done on

                 the other side, where the Senate is the

                 obstacle.

                            We should not let this session pass

                 without addressing the fundamental denial of

                 civil rights to tens of thousands of workers

                 in this state.  I urge everyone to support

                 this amendment.

                            Thank you, Mr. President.

                            ACTING PRESIDENT MORAHAN:    Those

                 Senators in agreement with the amendment

                 please signify by raising your hands.

                            THE SECRETARY:    Those recorded in

                 agreement are Senators Andrews, Breslin,

                 Brown, Connor, Diaz, Dilan, Duane, L. Krueger,

                 Lachman, Montgomery, Onorato, Oppenheimer,

                 Parker, Paterson, Sabini, Schneiderman, A.

                 Smith, and Stavisky.

                            ACTING PRESIDENT MORAHAN:    The

                 amendment is lost.

                            Read the last section.

                            THE SECRETARY:    Section 4.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.



                                                        3857



                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.

                             Senator Hoffmann, to explain her

                 vote.

                            SENATOR HOFFMANN:    Yes, Mr.

                 President.  Typically, legislation that deals

                 directly with agriculture has a review by the

                 Agriculture Committee.  Because these issues

                 deal with working agreements, they have gone

                 through the Labor Committee.  So I am going to

                 reserve judgment on them today.

                            I will say, however, that Farm

                 Bureau has taken no position on these bills.

                 And I am content to let the new chair of the

                 Labor Committee see them pass into law today,

                 with the understanding that we will watch them

                 closely.

                            And as Ag chair, I reserve the

                 right to weigh in at some future date if they

                 seem to impose any kind of inappropriate

                 restrictions on farmers or not address the

                 root issues of farmworker and farm owner

                 relationships in an appropriate way.

                            So I compliment Senator Mendez on



                                                        3858



                 her new chairmanship.  I look forward to a

                 fruitful working relationship with her in the

                 future.

                            But we are in dangerous territory

                 here, because, as we have just seen by the

                 recently defeated amendment, there are people

                 in other parts of the state who don't

                 understand what life on the farm is all about.

                            It's relatively easy for somebody

                 who lives in Manhattan to try to impose

                 restrictions that are tantamount to an

                 eight-hour factory shift on farms.  But in

                 reality, we do have to make hay while the sun

                 shines, and that often means long --

                 ridiculously long, grueling long hours for all

                 people who are employed in agriculture.

                            We have a very awesome Labor

                 Department, with a strict Labor Commissioner

                 who enforces all labor laws to the very best

                 of her ability on this state.  And wherever

                 there are abuses, they should be corrected and

                 they should be carefully monitored by the

                 Labor Department.

                            But we cannot impose unreasonable

                 burdens on the farmers of this state, who are



                                                        3859



                 already suffering a competitive disadvantage

                 from Third World countries.  And I will always

                 defend the rights of our farmers to do what

                 they do best, manage the environment and grow

                 our food.  They deserve our respect, and they

                 should not have unreasonable burdens put upon

                 them.

                            Thank you, Mr. President.

                            ACTING PRESIDENT MORAHAN:

                 Senator Stavisky, to explain her vote.

                            SENATOR STAVISKY:    To explain my

                 vote, Mr. President.

                            We in Queens County -- and I say

                 this as someone who grew up in Manhattan and

                 spent most of my early years in Manhattan --

                 we have a farm in Queens County.  And on

                 behalf of the people who work in the farm,

                 this is an important issue and I vote yes.

                            ACTING PRESIDENT MORAHAN:    Thank

                 you, Senator Stavisky.  You will be recorded

                 in the affirmative.

                            Announce the results.

                            THE SECRETARY:    Ayes, 53.  Nays,

                 1.  Senator --

                            ACTING PRESIDENT MORAHAN:



                                                        3860



                 Senator Montgomery, to explain her vote.

                            SENATOR MONTGOMERY:    Yes, Mr.

                 President, to explain my vote.

                            I'm certainly voting for this

                 legislation.  However, I would like to make a

                 comment regarding our respect for the farmers,

                 as my colleague has so eloquently articulated.

                            And I want you and I want her to

                 know that when I look on this side of the

                 aisle, you should not in any way think that we

                 do not have every respect and regard for the

                 farmers.  In fact, we understand that this is

                 a farming state and so downstate is not the

                 only part of the New York State.  And we

                 respect that very much.

                            But I'm voting yes on this

                 legislation.

                            Thank you, Mr. President.

                            ACTING PRESIDENT MORAHAN:

                 Senator Montgomery will be recorded in the

                 affirmative.

                            Announce the results.

                            THE SECRETARY:    Ayes, 53.  Nays,

                 1.  Senator McGee recorded in the negative.

                            ACTING PRESIDENT MORAHAN:    The



                                                        3861



                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 661, by Senator Volker, Senate Print --

                            SENATOR LIZ KRUEGER:

                 Explanation, please.

                            ACTING PRESIDENT MORAHAN:

                 Senator Volker, an explanation has been asked

                 for by Senator Krueger.

                            SENATOR VOLKER:    Mr. President,

                 this is a bill sponsored by the Republican --

                 I mean Democrat Attorney General Eliot

                 Spitzer --

                            (Laughter.)

                            SENATOR SCHNEIDERMAN:    Dream on,

                 Dale.

                            SENATOR VOLKER:    Yeah, I know, I

                 know.

                            -- that is basically a reform.  I

                 have had legislation in the past, by the way,

                 and this bill is a reform of the old "Bawdy

                 House Law," which some of us -- and I myself

                 was at one time, I think, involved in a case

                 involving -- let me clarify this.  I was

                 involved in a prosecution or an eviction

                 process because of a problem involving a house



                                                        3862



                 that was involved with both prostitution,

                 drugs.  You name it, and the house had it.

                            The problem with the "Bawdy House

                 Law" is that most of it is about -- oh, I

                 don't know how many years old it is.  It's

                 very old.  What this bill really tries to do,

                 and it really is not -- the biggest thing it

                 provides is the evidentiary presumptions as

                 far as drugs.

                            Just about everything else -- it

                 does upgrade the terminology as far as

                 prostitution; brings in, I think, into the

                 twentieth century some of the provisions

                 relating to the Real Property Law; and allows

                 more definitively a person who is not either a

                 tenant or a landlord or whatever to make a

                 motion to evict someone or to bring an action

                 where the house is being used, as we used to

                 say, for ill repute or for drug use or

                 whatever.

                            I would think this bill would

                 probably have more relationship to the urban

                 areas, although the way things have been going

                 there's a lot of rural housing now that could

                 come into this category also.



                                                        3863



                            Really, a lot of what's in here is

                 really redone old law, and it's reauthorized.

                 The big difference in this bill relates to the

                 references to drugs, where in the mid-1800s,

                 when this first started, obviously, it was

                 houses of prostitution and other various

                 things.

                            ACTING PRESIDENT MORAHAN:

                 Senator Krueger.

                            SENATOR LIZ KRUEGER:    Thank you,

                 Mr. President.  If the sponsor would yield,

                 please.

                            ACTING PRESIDENT MORAHAN:

                 Senator Volker, will you yield?

                            SENATOR VOLKER:    Yes.

                            SENATOR LIZ KRUEGER:    Thank you.

                 I appreciated the explanation, Senator.

                            And my concerns relate to the

                 process under which this bill would apply.

                            SENATOR VOLKER:    Right.

                            SENATOR LIZ KRUEGER:    Certainly

                 none of us would want to support, you know,

                 the activity of a crackhouse, as described in

                 the memo, or, I suppose, a house of

                 prostitution.



                                                        3864



                            But when you look at the language

                 of this bill, under this, one could be evicted

                 from their home if they were found guilty of

                 two misdemeanor criminal drug charges -- say,

                 the sale of one cigarette of marijuana twice

                 in the course of a year.

                            Is that your understanding of --

                 that this bill could be used to evict based on

                 misdemeanor charges?

                            SENATOR VOLKER:    No.  The crime

                 you're talking about, by the way, is a

                 violation.

                            But I think that you would not be

                 able to consider this a bawdy house.  I

                 think -- keep in mind that there is -- what

                 you're trying to do here is to deal with

                 unlawful trade or manufacturing business.

                            In fact, someone talked to me and I

                 suppose you could somehow stretch this to do a

                 daycare center, although I don't know how

                 exactly you'd do that.  Somebody brought that

                 up to me, and I said, Well, you'd have to

                 commit some pretty serious crimes before any

                 judge is going to -- if you look at the list

                 here, these are pretty serious crimes --



                                                        3865



                 before a judge would even consider using --

                 you could bring an action under any case, but

                 you have to have pretty serious crimes before

                 any judge is going to take the potential

                 penalties that are involved here.

                            You have to have some flexibility.

                 Because, remember, you're going into court on

                 an issue of what may be a lot of potential

                 offenses.  And you have to give some

                 flexibility.

                            One of the reasons we haven't

                 amended the "Bawdy House Law" is -- in part is

                 because it's difficult to know exactly how to

                 amend it.  You don't want to make it too

                 restrictive, because you want to give a judge

                 the opportunity to have some say.

                            And yet on the other hand, if you

                 make it too loose -- and I think this bill,

                 the Attorney General, I think, labored with

                 this.  And I think the Attorney General and

                 myself, I think we feel that this does have

                 enough flexibility in it to deal with the most

                 severe cases and yet allow a judge to hold

                 back on cases that are really not that severe.

                            SENATOR LIZ KRUEGER:    Mr.



                                                        3866



                 President, if the sponsor would continue to

                 yield.

                            ACTING PRESIDENT MORAHAN:

                 Senator Volker, do you continue to yield?

                            SENATOR VOLKER:    Why, certainly.

                            ACTING PRESIDENT MORAHAN:    The

                 Senator yields.

                            SENATOR LIZ KRUEGER:    Thank you.

                            I do think the bill includes

                 nonfelony convictions as well as felony

                 convictions.  So a concern, in fact, is why

                 are we making this law so broad, why don't we

                 keep it specific to felony convictions.

                            But my greater concern -- and it's

                 a pattern that in fact already is in existence

                 because of a similar law that now is in effect

                 for families living in public housing, it's a

                 federal HUD law for tenants within public

                 housing -- when I read this bill, I read it to

                 be if anyone in the household has the

                 conviction, the entire household would be

                 evicted.

                            So in a scenario -- and actually,

                 this case on public housing went to the

                 Supreme Court, so there are quite a few briefs



                                                        3867



                 with examples about this.  If a grandmother

                 and her grandchildren -- and perhaps three

                 generations in New York City is not uncommon,

                 particularly in low-income communities for

                 families to be doubled and tripled up

                 multigenerationally.  If a teenager member of

                 the family or an uncle who they agreed to

                 allow to stay in the living room is in fact

                 found guilty of these drug convictions --

                 which, again, may or may not be particularly

                 severe -- as I read your bill, the entire

                 family would be evicted, not that individual

                 member of the household.

                            And I'm wondering if you could

                 clarify where that bill would protect an

                 entire household from being evicted from their

                 home based on the actions of one family

                 member, the actions that may not have ever

                 been known by the rest of the family.

                            SENATOR VOLKER:    Mr. President, I

                 don't agree with that.

                            And in fact, if you look, it's

                 talking about the law-breaking tenant or

                 individual.  If the whole family obviously is

                 involved in drug sales -- and by the way,



                                                        3868



                 there is no drug sale or intent to sell that's

                 less than a felony, just so that you know.

                            SENATOR LIZ KRUEGER:    Okay.

                            SENATOR VOLKER:    So as far as

                 drugs are concerned, it wouldn't even apply to

                 that.

                            The issue, though, is that I

                 suppose you could argue that in some cases

                 someone could bring an action that could

                 endanger the entire household.

                            The problem is, though, and the

                 answer to that is I guess we have to give

                 judges at least some flexibility to make those

                 kind of determinations.  There's nothing that

                 says the judge has to throw everybody out; it

                 just said that you could make a pitch in

                 behalf of someone who is complaining the house

                 is being used for illegal activity.

                            You, for instance, might have one

                 person in the house who is convicted twice of

                 drug, intent to sell.  Because in New York

                 City there's a lot of people who do that and

                 are washed out or whatever because of

                 treatment situations and whatever.

                            But the problem, I think, for



                                                        3869



                 someone making the challenge, you should have

                 the ability to -- for somebody to bring an

                 action to get rid of that person.  And I think

                 this bill would enable a judge to order that

                 person out of that house but not necessarily

                 to order everybody else.  And no judge, I'm

                 sure, that has any kind of common sense would

                 do that.

                            The problem is if you try to

                 restrict the ability of a judge to make those

                 kinds of decisions -- it seems to me that's

                 the argument, by the way, being made now:  how

                 do we deal with the issue of drugs in general.

                 And the interesting thing is you're making an

                 argument that is being made against me.  And

                 that argument is that we should give the

                 judges more flexibility.

                            Well, we are doing that here.  And

                 of course the issue of prosecution still lies

                 within the purview of the district attorney.

                 But the issue of what happens after the

                 prosecution lies within the purview of the

                 judge.

                            SENATOR LIZ KRUEGER:    Thank you.

                 Mr. President, on the bill, please.



                                                        3870



                            ACTING PRESIDENT MORAHAN:

                 Senator Krueger, on the bill.

                            SENATOR LIZ KRUEGER:    Thank you.

                            I appreciate the Senator's

                 explanation and his intentions.  I think where

                 I disagree with him, particularly with the

                 last question about the discretion of the

                 judge to evict only the guilty party, relates

                 to the differences between our criminal law

                 and our real property law.

                            In our criminal law, you're going

                 after an individual.  In real property law and

                 in lease agreements, it's actually the lease

                 that is ordered to be broken under this bill.

                 It assigns the liability and the right of the

                 property owner whose tenants uses premises for

                 an illicit business to, in fact, break the

                 lease on the grounds that the tenant has

                 violated the law.

                            You don't break a lease for the

                 grandchild in the apartment or the uncle

                 staying in the apartment, you break a lease

                 for the physical apartment.  Therefore,

                 everyone would lose their tenancy.  And in

                 fact, that was the basis of the argument



                                                        3871



                 before the Supreme Court in U.S. Department of 

                 Housing and Urban Development and Oakland 

                 Housing Authority against Rucker, et al.

                 Rucker was a case decided in 2001.

                            And in fact, there the Supreme

                 Court said we can't even take up the argument

                 of a case where a grandchild was found guilty

                 of drugs and grandmother claimed that she

                 didn't know anything about it and that she was

                 happy to order the grandchild out, but she

                 lost her tenancy rights in public housing.

                 And the court basically concluded that they

                 didn't have any grounds to argue one way or

                 the other about the appropriateness of this,

                 because under property law and tenancy you

                 evict the tenants in the apartment.

                            And it's for that reason that I'll

                 vote against this bill.  And I hope that

                 somebody might go back, including I will visit

                 this with the Attorney General, since it's an

                 Attorney General's program bill, that we need

                 to redefine the language in this bill such

                 that we don't find ourselves with a growing

                 population of innocent family members, who may

                 often not even know of the activities that



                                                        3872



                 were taking place, losing their homes.

                            It has been a very real issue in

                 the City of New York already, with our public

                 housing under the existing federal law

                 established by HUD.  We cannot afford to throw

                 people out into the streets in New York City,

                 particularly low-income people who are often

                 the families living in a doubled-up and

                 tripled-up and a multigenerational family

                 situation.  We cannot afford to allow them to

                 lose their tenancy rights and lose their

                 homes, even if one member of that family is

                 guilty of bad behavior and in fact might

                 justifiably be requested or in some way forced

                 to leave the apartment.

                            Because I certainly understand the

                 other side of the argument.  If you are

                 neighboring tenants, if you are a property

                 owner, you do not want to be living next to

                 somebody who's dealing drugs.  That's obvious.

                            But I also think that there's too

                 great a risk, if this bill becomes law, that

                 in the goal of removing somebody who's dealing

                 drugs or, I suppose, involved in

                 prostitution -- but again, you were focusing



                                                        3873



                 on the dealing-drugs side -- that at the cost

                 of one person rightly losing their home, you

                 can have three, four, five, six other people

                 also losing their homes.  And the way this law

                 is written, I don't believe we could protect

                 those other family members.

                            So I'll vote against this bill,

                 more because I believe it's a flawed bill in

                 the writing, and hope that we will, between

                 now and getting a same-as version in the

                 Assembly, or a version in the Assembly, be

                 able to work out these details.

                            Thank you very much, Mr. President.

                            ACTING PRESIDENT MORAHAN:    Thank

                 you, Senator Krueger.

                            Senator Brown.

                            SENATOR BROWN:    Thank you, Mr.

                 President.  On the bill.

                            You know, I think it's very valid

                 for Senator Krueger to raise concerns about

                 innocent people potentially being caught up in

                 this bill.  But as a former city council

                 member from Buffalo, this is also a situation

                 that we've dealt with pretty extensively in

                 Buffalo.



                                                        3874



                            And I can tell you that people in

                 that community are dealing with some pretty

                 horrific situations of people dealing drugs,

                 dealing guns, being involved in all kinds of

                 criminal behavior.  And if you are living in a

                 residential setting where you have to deal

                 with those kinds of conditions day in, day

                 out -- in some cases, people that have owned

                 their own homes and been law-abiding citizens

                 for 50 years.

                            And while I agree that there do

                 have to be checks and balances and we do have

                 to look at this legislation to try to protect

                 people who are innocent in homes where illegal

                 activities might be taking place, what about

                 the innocent people that have to live near and

                 around these homes where this criminal

                 activity is taking place?  What about the

                 rights of those individuals?

                            I think there has to be more

                 personal responsibility on the part of those

                 people that are living in those homes where

                 those illegal actions are taking place.

                            And I can tell you, in situation

                 after situation that I dealt with in the city



                                                        3875



                 of Buffalo, the block club organizations, the

                 tenant associations, police agencies made

                 numerous attempts to notify tenants, to notify

                 grandmothers, to notify mothers of illegal

                 activity taking place on those premises.  And

                 even with those repeated notifications, the

                 activity still persisted.

                            And I think there has to become a

                 point where people have to take some

                 responsibility, not only for their own actions

                 but for the actions of their family members

                 and the grave consequences that those actions

                 have on neighborhoods, on communities, and on

                 society.

                            So based on that, Mr. President,

                 while I do share Senator Krueger's concerns

                 that we do more to try to protect people who

                 are innocent in this legislation, I'm going to

                 support this bill.

                            ACTING PRESIDENT MORAHAN:

                 Senator Brown will be recorded in the

                 affirmative.

                            Read the last section.

                            THE SECRETARY:    Section 4.  This

                 act shall take effect immediately.



                                                        3876



                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.

                            THE SECRETARY:    Ayes, 54.  Nays,

                 1.  Senator L. Krueger recorded in the

                 negative.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            The Secretary will read.

                            THE SECRETARY:    Calendar Number

                 1112, by Senator Volker, Senate Print 1108, an

                 act to amend the Civil Practice Law and Rules.

                            SENATOR MONTGOMERY:    Explanation.

                            ACTING PRESIDENT MORAHAN:

                 Senator Volker, an explanation has been asked

                 for.

                            SENATOR VOLKER:    Mr. President,

                 this is a bill that in all honesty should have

                 been disposed of many, many years ago.

                            The history of this bill is that

                 we, about ten -- at least ten years ago -- in

                 fact, I'm looking; it actually was more than

                 ten years ago -- we made an attempt to deal



                                                        3877



                 with an issue in New York City, primarily,

                 involving a union official and a -- it was a

                 bargaining issue more than anything.  And the

                 city reached out and tried to get a union

                 official to testify who had advised a law

                 enforcement officer in regards to some issue.

                 And I fail to remember.

                            Anyways, the bill was amended down

                 dramatically to where now all this bill says

                 is it establishes a privilege for

                 communication made by an officer of the

                 bargaining unit, which in this case would

                 probably be a patrolman, let's say, and an

                 actual union elected official.  There's only a

                 handful of elected union officials.

                            And the reason for this is to try

                 to get some parity with other areas so that if

                 somebody talks to a president of a union, vice

                 president or whatever, and usually there's a

                 designated person who's elected to try to

                 advise someone.

                            Now, the answer is some of the

                 city's people said, Well, why can't they get

                 an attorney?  Well, that's true.  Eventually

                 they're going to get an attorney.



                                                        3878



                            But when it happens immediately --

                 and usually there's some sort of situation

                 that occurs where some sort of advice is asked

                 for.

                            I can tell you, I was in this

                 position way back where people would ask me.

                 Of course, I was a lawyer at the time too, so

                 every police officer in Western New York, it

                 seemed, was asking questions.

                            But the big thing here, I must say,

                 is this bill was agreed on in 1995 and was

                 vetoed by mistake.  And the person who was the

                 counsel at the time admitted it.  And in the

                 meantime, there were a number of other issues

                 that came up in New York City that had nothing

                 to do with this.  And this is the real reason

                 that this bill is here.  We passed it on many

                 occasion.  It is really is not a

                 supersignificant bill.

                            But I think the principle is a good

                 one.  And all we're asking here is that a --

                 and there are a handful of elected officials

                 who are part of a union who are asked advice

                 by patrolmen, is not subject to be reached in

                 a criminal or civil investigation.



                                                        3879



                            We're not asking -- you can still

                 reach, subpoena, all that sort of stuff with

                 the person involved, with other law

                 enforcement officers, but only a very select

                 few of people who are part of the union.

                            ACTING PRESIDENT MORAHAN:

                 Senator Montgomery.

                            SENATOR MONTGOMERY:    Yes, Mr.

                 President.  I'd like to speak on the

                 legislation.

                            ACTING PRESIDENT MORAHAN:

                 Senator Montgomery, on the bill.

                            SENATOR MONTGOMERY:    Yes, Mr.

                 President.  I just am looking at the fact that

                 we've had this bill before us in the past and

                 a number of us have voted in the negative.

                            And I think that even though

                 Senator Volker indicates that he has

                 substantially amended his legislation to make

                 it simpler and more direct, it's still -- the

                 main issue here is whether or not we are going

                 to authorize or allow a police officer who has

                 been charged with some illegal, possibly

                 illegal activity or certainly questionable

                 behavior as it relates to their professional



                                                        3880



                 responsibility, will we now allow them an

                 additional privilege of being able to speak to

                 a union representative in the same way and

                 give the same privilege to that communication

                 as we do to that same police officer and his

                 legal professional representative.

                            I think that for New York City in

                 particular, we already have a problem with the

                 48-hour rule, which allows that officer

                 48 hours' time before he or she is required to

                 speak to anyone.  And so now, in addition to

                 being able to speak to an attorney and have

                 that communication privileged, we're now

                 including a union official as if that person

                 is also a legal representative.

                            So I think that based on the fact

                 that we want more transparency, we want more

                 openness, we want the police officers to be

                 above the law, we don't want to now go and

                 give additional opportunity for a police

                 officer -- and we're talking now not about a

                 police officer who is carrying out his duty

                 forthrightly, above board and professionally,

                 but we're talking about someone who has a

                 question about their behavior.



                                                        3881



                            And so we're saying to the public

                 that, in these cases, we want to give the

                 police officers one more additional privilege.

                 They have the 48-hour rule, they have other

                 protections, they have the same protections as

                 any other citizen.  Now we want to give them

                 even more ability to be cloaked in silence and

                 privileged communication.

                            I think that we should continue to

                 oppose this legislation because it does not

                 help to improve or to move in the direction

                 which certainly I would like to see and I

                 think many of us would like to see.  We want

                 to see a better relationship between community

                 and police officers.  But when we introduce

                 this legislation or legislation that attempts

                 to create this kind of secrecy around police

                 behavior, it automatically creates a sense of

                 mistrust with the community, between community

                 and police.

                            So I'm going to oppose this.  I

                 think it's the wrong direction to take.  And

                 it certainly does not help, but probably

                 ultimately will hurt our attempt to improve

                 the relationships between communities,



                                                        3882



                 especially in New York City, and the police

                 themselves.

                            ACTING PRESIDENT MORAHAN:

                 Senator Montgomery will be recorded in the

                 negative.

                            Senator Krueger.

                            SENATOR LIZ KRUEGER:    Thank you,

                 Mr. President.  If the sponsor would please

                 yield.

                            ACTING PRESIDENT MORAHAN:

                 Senator Volker, will you yield for a question

                 by Senator Krueger?

                            SENATOR VOLKER:    Oh, sure.

                 Certainly.

                            Let me just say that you're

                 absolutely wrong, Senator, but I'll get into

                 that later.  Go ahead.  I'll tell you why.

                            SENATOR LIZ KRUEGER:    I can't be

                 wrong yet.  Give me a chance.

                            SENATOR VOLKER:    No, no, not you,

                 her.  The criminal act and all that sort of

                 stuff.

                            But anyways, go ahead.  I'm sorry.

                            SENATOR LIZ KRUEGER:    On my

                 reading of this bill, Senator, you would



                                                        3883



                 provide the equivalent privileges as are

                 currently afforded to an attorney and member

                 of the clergy or a physician.  Is that a good

                 analogy?

                            SENATOR VOLKER:    No, it's not a

                 good analogy.

                            SENATOR LIZ KRUEGER:    Okay.

                            SENATOR VOLKER:    Remember, first

                 of all, here there's no -- it doesn't have to

                 be a criminal act or -- it could be, in fact,

                 an order by another law enforcement person,

                 whatever.

                            The problem -- the 48-hour rule has

                 nothing to do with this.  That's apparently,

                 and I don't know, that's apparently some sort

                 of reg that -- probably about a contract.

                            And it -- by the way, the 48-hour

                 rule I assume wouldn't even apply here,

                 because if the person within that 48 hours

                 talks to this union official, that would be

                 reachable.  Whether -- you know, it's just

                 that you don't have to talk to anybody for 48

                 hours.

                            I think what that is, is -- I'm

                 just guessing on the 48-hour rule -- is that,



                                                        3884



                 you know -- and many of these cases, by the

                 way, involve shift issues.  You know what I'm

                 saying?  I mean, the guy, he's supposed to be

                 in for his shift, and there's confusion about

                 his shift, so he talks to the union official

                 and then they bring him up on charges because

                 he wasn't there at the proper time.

                            There's a lot of -- this is

                 bargaining stuff.  And that's why the -- this

                 is not necessarily a crime at all.  This is

                 the sort of thing that people -- and it's hard

                 to imagine.  You know, police departments are

                 semimilitary operations.  And I know because I

                 dealt with some of them.

                            I was president of a police union,

                 and I'll be very honest with you.  And I was a

                 patrolman, and I was not the most popular

                 police officer in the department because I had

                 a tendency to speak my mind.  And sometimes I

                 spoke my mind too firmly with the village

                 board, and they didn't like it.

                            I'm only saying this because this

                 is not necessarily a criminal situation at

                 all.  This has to do with the workings of a

                 police department.  And I only mention that --



                                                        3885



                 and I don't mean to encroach on your question.

                 But I think that the problem is here -- we

                 have looked at this in terms of some police

                 officers accused of a crime.  That's not

                 necessarily true at all.  It could be -- it

                 could be all kinds of things that happen.

                            And the difference is in the

                 military, it's all set out as to what your

                 rights and duties are.  That's not set out --

                 and I don't know about this 48-hour rule, but

                 I assume that was negotiated in the contract.

                 And I only mention that because -- and I

                 didn't mean to -- go ahead.  Ask me a

                 question.

                            ACTING PRESIDENT MORAHAN:    Thank

                 you, Senator Volker.

                            SENATOR LIZ KRUEGER:    Mr.

                 President, if, through you, the sponsor would

                 continue to yield.

                            ACTING PRESIDENT MORAHAN:

                 Senator Volker, will you continue to yield?

                            SENATOR VOLKER:    I certainly

                 will, Mr. President.

                            ACTING PRESIDENT MORAHAN:    The

                 Senator continues to yield, Senator Krueger.



                                                        3886



                            SENATOR LIZ KRUEGER:    Thank you.

                            You've shifted the direction on me,

                 because I actually really assumed you meant

                 privilege the same way we mean it for an

                 attorney or a member of clergy.

                            But in your explanation you were

                 talking more about this as not related to an

                 accusation for a criminal charge but, rather,

                 something internal to almost your collective

                 bargaining issues as a union member.

                            So I think I'll shift my question

                 to, then, why don't you make your law explicit

                 to confidentiality in relationship to labor

                 disputes, as opposed to leaving it open to

                 criminal charges?  That would make it a

                 clearer and cleaner debate.

                            And if you're correct that mostly

                 we're talking about that type of issue, why

                 even open up the bailiwick of special

                 privilege if criminal charges are involved?

                            SENATOR VOLKER:    Because the

                 answer to that is that the criminal charges

                 tend to overlap on these kind of issues.

                            In other words, a police officer

                 can actually be brought up on criminal charges



                                                        3887



                 in an issue that has nothing to do with

                 someone on the outside.  In other words, if

                 you don't perform your duties in the way in

                 which you are supposed to do, you can actually

                 be charged in department charges, which are

                 the same thing as criminal charges.  I mean,

                 you could lose 30 days' pay, you could lose --

                 and you could also, for one reason or another,

                 dereliction of duty, someone then may come in

                 and say, well, he wasn't there when he should

                 have been and something happened.

                            I mean, so the department not only

                 could bring charges, but someone else could,

                 for instance, based on that.  Some attorney

                 may come in -- which often happens when they

                 find out something is going on, particularly

                 when they have a police officer who's not the

                 most popular police officer in the world who's

                 been involved in another case, maybe -- they

                 then come in and say, Well, you know, I've got

                 somebody who says that he wasn't at his post

                 at the right time and someone got hurt, and

                 therefore he was in dereliction of his duty.

                            I guess my answer is there are so

                 many potential issues that are involved when



                                                        3888



                 you're talking about police officers, they do

                 not and they rarely involve any real criminal

                 prosecution.  Because in the end, you don't

                 need the -- you can go in and try to grab the

                 union official.  In the end, it really isn't

                 going to matter.  Because if you're going to

                 prosecute him, you're going to prosecute him

                 on other types of things anyways.

                            And most of the time the union

                 official would tell him:  Go to this attorney,

                 Fred somebody or whatever, that would be the

                 main part of it.  And, you know, that's really

                 what it is.

                            SENATOR LIZ KRUEGER:    Thank you.

                            On the bill briefly, Mr. President.

                            ACTING PRESIDENT MORAHAN:

                 Senator Krueger, on the bill.

                            SENATOR LIZ KRUEGER:    Thank you.

                            Well, I actually think Senator

                 Volker makes two sets of arguments.  One, a

                 reasonable one.  If you're in a dispute with

                 your employer or your police agency, that

                 there's a reasonable argument for being able

                 to have a confidential conversation with your

                 union representative.



                                                        3889



                            But then there's the other

                 universe, where you're actually brought up on

                 criminal charges, where I think the obvious

                 advice is get an attorney and get one as fast

                 as possible.

                            And I find it fairly unlikely that

                 on an immediate-response basis, too many

                 police officers are actually being brought up

                 on criminal charges for union-collective-

                 bargaining-related issues.  Even if that

                 happened later in the process, I don't see

                 that as a very realistic model to be happening

                 on a day-to-day basis where, because you were

                 derelict in duty, some citizen came along and

                 filed criminal charges right away, and by that

                 time you should certainly have a lawyer.

                            So I will vote against the bill,

                 because I still think fundamentally this is

                 not the type of privilege we should be

                 offering uniquely to police officers in the

                 context of criminal charges for bad behavior

                 and misbehavior.

                            And on the other hand, I think

                 Senator Volker makes a reasonable argument for

                 a different bill, if he were to choose to



                                                        3890



                 sponsor it, that was specific to disputes with

                 your union as opposed to outside criminal

                 agencies that might be bringing charges

                 against you, including your own police

                 department.

                            So that he should really relook at

                 this bill, make a more specific bill to

                 noncriminal charges brought against police

                 members, union-related, collective bargaining,

                 not-getting-to-your-job-on-time-related

                 issues.  And that he could probably get that

                 bill passed.

                            And I don't see it's too likely

                 that this bill is going to pass two houses,

                 and I'll continue to vote no against it.

                            Thank you, Mr. President.

                            ACTING PRESIDENT MORAHAN:    Thank

                 you, Senator Krueger.

                            Read the last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:



                                                        3891



                 Announce the results.

                            THE SECRETARY:    Those recorded in

                 the negative on Calendar Number 1112 are

                 Senators Andrews, Brown, DeFrancisco, Diaz,

                 Dilan, Duane, L. Krueger, Montgomery, Parker,

                 Paterson, Schneiderman, and A. Smith.  Ayes,

                 43.  Nays, 12.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            Ladies and gentlemen, I'm sorry to

                 interrupt for a moment.

                            We have a young man who just

                 returned from 14 months in Iraq, Specialist

                 Yablonski, a native New Yorker who has won the

                 Combat Infantry Badge, which means you're

                 under direct fire by the enemy.  He's also

                 Airborne, United States Army.

                            Welcome, and welcome home.

                            (Standing ovation.)

                            ACTING PRESIDENT MORAHAN:

                 Senator DeFrancisco.

                            SENATOR DeFRANCISCO:    Mr.

                 President, may I have unanimous consent to be

                 recorded in the negative on Calendar Number

                 344, Senate Print 2683A.



                                                        3892



                            ACTING PRESIDENT MORAHAN:

                 Senator DeFrancisco will be recorded in the

                 negative on 344.

                            Senator Spano.

                            SENATOR SPANO:    I'd like to

                 announce there will be a meeting of the Rules

                 Committee at 1 o'clock in Room 332, the

                 Majority Conference Room.

                            ACTING PRESIDENT MORAHAN:    There

                 will a meeting at 1 o'clock of the Rules

                 Committee in the Majority Conference Room,

                 Room 332.

                            The Secretary will read.

                            THE SECRETARY:    Calendar Number

                 1230, by Senator Spano, Senate Print 6822B, an

                 act to amend the Tax Law.

                            SENATOR SCHNEIDERMAN:

                 Explanation.

                            ACTING PRESIDENT MORAHAN:

                 Senator Spano, an explanation has been

                 requested by Senator Schneiderman.

                            SENATOR SPANO:    Mr. President,

                 last year the Legislature enacted provisions

                 in the budget that required the Department of

                 Taxation and Finance to put a system in place



                                                        3893



                 to collect non-Indian taxes without violating

                 reservation sovereignty.

                            This bill codifies the existing

                 Department of Taxation and Finance regulations

                 and requires taxes to be collected at a

                 distributor level.

                            ACTING PRESIDENT MORAHAN:    Thank

                 you, Senator Spano.

                            Senator Schneiderman.

                            SENATOR SCHNEIDERMAN:    Thank you.

                 If the sponsor would yield for a question.

                            ACTING PRESIDENT MORAHAN:

                 Senator Spano, will you yield for a question?

                            SENATOR SPANO:    Yes.

                            ACTING PRESIDENT MORAHAN:

                 Senator Spano yields.

                            SENATOR SCHNEIDERMAN:    I just

                 want to understand what we're adding to the

                 law.  My recollection is that last year the

                 Legislature agreed to collect the revenues

                 owed to the State of New York from the

                 taxation of cigarettes, also fuel on Indian

                 reservations.

                            What is this legislation adding to

                 the work we already did last year?



                                                        3894



                            SENATOR SPANO:    So far the

                 department has either refused or been unable

                 to implement the system that was presented to

                 them in the budget last year.

                            This bill codifies this in statute

                 and also gives them another opportunity to

                 require that the sales tax be collected at the

                 distributor level.

                            The Governor and the agency had a

                 concern about the safety of the State Police

                 and our police officers and the security of

                 our police officers if they attempted to

                 collect this tax.

                            This will protect the safety of

                 those police officers by changing the method

                 of collection to make it similar to the method

                 of collection that exists right now for

                 gasoline, which would be at the manufacturer

                 level.  This will be at the distributor level.

                            ACTING PRESIDENT MORAHAN:    Thank

                 you, Senator Spano.

                            Senator Schneiderman.

                            SENATOR SCHNEIDERMAN:    Through

                 you, Mr. President, if the sponsor would

                 continue to yield.



                                                        3895



                            ACTING PRESIDENT MORAHAN:

                 Senator Spano, do you continue to yield?

                            SENATOR SPANO:    Yes.

                            ACTING PRESIDENT MORAHAN:    The

                 Senator continues to yield.

                            SENATOR SCHNEIDERMAN:    As I read

                 the existing law, there is nothing to stop the

                 Governor and the department from collecting

                 taxes at the distributor level before we pass

                 this bill.  They simply declined to do so.  Is

                 that not correct?

                            SENATOR SPANO:    The department --

                 upon the passage of the budget, the department

                 did come up with regulations to do this, but

                 they have not been collecting this.  This

                 codifies it so it takes away the discretion

                 away from the agency.

                            SENATOR SCHNEIDERMAN:    Thank you.

                            Mr. President, on the bill.

                            ACTING PRESIDENT MORAHAN:

                 Senator Schneiderman, on the bill.

                            SENATOR SCHNEIDERMAN:    I think

                 that what we've got here is further

                 legislation attempting to do something which

                 it's very difficult to do by legislation,



                                                        3896



                 which is to get the Executive branch to comply

                 with existing law.

                            There is nothing that we're adding

                 here that -- really, that the Executive branch

                 couldn't have done last year.  Last year we

                 attempted to do what we had to do.  We failed

                 to push them to collect the large amounts of

                 money that every year the Governor is letting

                 escape from us in a period of fiscal crisis

                 when we're facing major problems about how to

                 finance our school system, our health care

                 system and other critical programs.  The

                 Governor simply refuses to collect this tax.

                            I assure you they're collecting the

                 tax, sometimes at the distributor level, in

                 other parts of the state.  And the small

                 businesses that are paying the tax are tired

                 of this sort of discrimination.

                            So I would urge that we take the

                 kid gloves off.  There's no reason that the

                 State Department of Taxation and Finance

                 couldn't have collected these taxes before.

                 There's no reason that the Governor should be

                 refusing to enforce the law.  They could have

                 collected the taxes at the distributor level



                                                        3897



                 before.  This is simply a governor refusing to

                 secure an extraordinarily important source of

                 revenue during a period of fiscal crisis for

                 reasons that to many of us are

                 incomprehensible.

                            And whether this has to do with

                 other negotiations over casinos and the

                 Governor's deeply felt commitment to the

                 primacy of gambling as the method of financing

                 things in the State of New York, I don't know.

                            But this legislation, which I will

                 support, I don't think is going to force the

                 Governor, who really just doesn't want to

                 collect these taxes, to do so.  And I think

                 it's a disgrace, and I think it's something

                 that we should be addressing in a more

                 aggressive way in the Legislature.

                            And if they don't start collecting

                 the tax, I hope that we will see hearings and

                 some other more aggressive form of action on

                 our part to try and fill this revenue gap.

                 We're talking about $33 for every carton

                 purchased on the Internet rather than from a

                 taxed retailer.  That's a lot of money.

                 That's a lot of money.



                                                        3898



                            We're talking about hundreds of

                 millions of dollars that we should have that

                 should go to our schools and not be sitting

                 there because the Governor refuses to abide by

                 the law.

                            I will support this legislation,

                 Mr. President.  I just don't think it's going

                 to do enough to get the job done.

                            Thank you.

                            ACTING PRESIDENT MORAHAN:    Thank

                 you, Senator Schneiderman.

                            Read the last section.

                            THE SECRETARY:    Section 7.  This

                 act shall take effect January 1.

                            ACTING PRESIDENT MORAHAN:

                 Senator Hoffmann, to explain her vote.

                            SENATOR HOFFMANN:    No, on the

                 bill, Mr. President.

                            ACTING PRESIDENT MORAHAN:

                 Senator Hoffmann, on the bill.

                            SENATOR HOFFMANN:    Thank you, Mr.

                 President.

                            As a sponsor of 6822B, I'd like to

                 compliment several of my colleagues,

                 particularly Senator Spano, on taking



                                                        3899



                 leadership in this area.

                            Collecting sales tax on those

                 tobacco products and gasoline products that

                 are sold at sovereign Indian locations to

                 non-Indians has been a source of great concern

                 to my constituents in Madison County and in

                 Oneida County, New York, for a long time.

                 Indeed, the residents of those counties have a

                 long history of requests of this Legislature

                 and of the Governor to take this type of

                 action.

                            And I too hope that the Governor

                 heeds the earnestness of this piece of

                 legislation and the desire of the people in

                 Madison and Oneida County, in particular, to

                 be treated fairly where this is concerned.

                 There are too many examples of double

                 standards when it comes to New York State's

                 relationship with sovereign Indian nations,

                 whether it be with land-claim issues, with

                 casinos and compacts, or, in the case of tax

                 collection, my constituents feel like they are

                 getting the shaft.  And this particular piece

                 of legislation is critical to addressing that

                 problem.



                                                        3900



                            While we in the Legislature acted

                 in good faith last year and put collection of

                 sales tax for gasoline and tobacco products in

                 the budget, it was inexcusable that the

                 Executive branch decided to ignore that and

                 simply not make the collections.  So now we

                 have created a new statute, which hopefully

                 will become law shortly, with the support of

                 the other house, ably sponsored by Assemblyman

                 Magee, and I think then the message will be

                 even more clear.

                            In Madison County last year, the

                 local tax collection was also affected, and it

                 was in Oneida County.  When we do not see the

                 state collecting its portion, the localities

                 are also denied their portion.  So the loss is

                 compounded for the people in Madison County in

                 several ways.  Madison County lost

                 $3.2 million, and Oneida County lost $4.5

                 million.  Now, that's the local portion of

                 sales tax that would have been collected had

                 these charges been in effect at the

                 distributor level.

                            In addition, in Madison County, the

                 loss of revenue-producing property has caused



                                                        3901



                 an erosion of more than a million dollars in

                 the tax base.  Land that has been purchased by

                 the Oneida Nation is now used for sovereign

                 Oneida Nation activities.  Businesses that

                 were once non-Indian generating taxes for the

                 community are no longer generating taxes for

                 the community, they're generating taxes for a

                 multibillion-dollar corporation known as the

                 Oneida Indian Nation.

                            Now, I am frustrated in the extreme

                 because we have had this debate so many times.

                 And I truly hope that as we leave here --

                 without a budget, without a solution on the

                 Campaign for Fiscal Equity lawsuit -- I hope

                 that at least in Central New York some of the

                 frustration can be addressed and this state

                 can do the right thing and collect the sales

                 tax on gasoline and tobacco products at the

                 distributor level, remitting the fair portion

                 to the state budget and allowing the counties

                 to collect their fair portion, as they have

                 asked us to do in home-rule messages over and

                 over and over again.

                            Thank you, my colleagues, once

                 again, for understanding how very important



                                                        3902



                 this issue is and symbolically how much it

                 means to the people in Madison and Oneida

                 Counties to have been mistreated, to not have

                 had their concerns addressed all these years.

                 Let's set the record straight, and let's start

                 collecting the sales tax the way it should be

                 collected.

                            Thank you, Mr. President.

                            ACTING PRESIDENT MORAHAN:    Thank

                 you, Senator Hoffmann.

                            Senator Padavan.

                            SENATOR PADAVAN:    Will the

                 sponsor yield to a question?

                            ACTING PRESIDENT MORAHAN:

                 Senator Spano, will you yield for a question

                 from Senator Padavan?

                            SENATOR SPANO:    Yes.

                            ACTING PRESIDENT MORAHAN:    He

                 yields, Senator.

                            SENATOR PADAVAN:    Senator, what

                 is your estimate or the State Department of

                 Taxation's estimate on the total amount of

                 revenue lost to the state and its localities,

                 presumably, by failure to collect these taxes?

                            SENATOR SPANO:    It's quickly



                                                        3903



                 approaching a billion dollars.

                            There was an economic study that

                 was done in 2001 by a company named Ridgewood

                 Economic Associates that estimated between

                 $520 million to $600 million was lost in 2001.

                 The estimates show that we're up to

                 $895 million in 2002, and we'll certainly be

                 over a billion this year as well.

                            ACTING PRESIDENT MORAHAN:    Thank

                 you, Senator Spano.

                            SENATOR PADAVAN:    On the bill.

                            ACTING PRESIDENT MORAHAN:

                 Senator Padavan, on the bill.

                            SENATOR PADAVAN:    Very briefly,

                 Mr. President.  Not only are we losing this

                 huge sum of money -- now, just think for a

                 moment if we had that sum at our disposal how

                 many of the problems we're dealing with with

                 this budget would be resolved.  But we don't.

                            But along with that loss of money,

                 consider those small businesses, particularly

                 those in the periphery of the reservations,

                 who are not viable, they're not collecting

                 sales taxes, and they're not making any money

                 at an adequate level to pay a reasonable



                                                        3904



                 amount of corporate taxes, property taxes,

                 hiring individuals who pay income taxes.  So

                 the loss locally, in addition to this

                 significant sum, is also considerable.

                            I met a year ago with the mayor of

                 Oneida.  He also wrote us all a letter, if you

                 may recall getting it, in which he stated

                 quite emphatically how this situation was

                 impacting in a significant way on his ability

                 to deliver services and maintain the viability

                 of his town.

                            And I might say, parenthetically,

                 the social costs associated with the casino on

                 that reservation.  But that's a separate

                 issue.

                            However, he pointed out in great

                 detail how the impact of the sales tax issue

                 was adversely affecting the viability of his

                 town and the surrounding area.

                            So when we talk about this issue

                 and think about it, I think we have to keep

                 those facts in mind as well.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 7.  This



                                                        3905



                 act shall take effect January 1.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.

                            THE SECRETARY:    Ayes, 55.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            The Secretary will read.

                            THE SECRETARY:    Calendar Number

                 1468, by Senator Volker, Senate Print 5099, an

                 act to amend the Criminal Procedure Law and

                 others, in relation to DNA testing.

                            SENATOR SCHNEIDERMAN:

                 Explanation.

                            SENATOR VOLKER:    Mr. President,

                 this is a bill that is a City of New York bill

                 that I have sponsored which provides for -- is

                 an updated bill on the issue of DNA and sample

                 collecting for DNA.

                            Initially, I believe the city had

                 sent us a bill that said that we would have

                 fingerprinting for all people arrested.  What

                 this bill does is to provide for DNA sample



                                                        3906



                 collection the same as we have now for

                 fingerprinting.

                            In other words, if the offense is

                 one that is serious enough to have

                 fingerprinting, then the person would give a

                 DNA sample.  If the case is dismissed or, in

                 the normal run of things, the case is dropped

                 or whatever, the DNA sample would be expunged

                 and returned either to the person or whatever,

                 just as it is now with fingerprints.

                            So what this bill would do is

                 expand the DNA profiles of individuals who are

                 arrested for fingerprintable offenses and who

                 are obviously convicted.  Because if they're

                 not convicted or if for some reason the

                 charges are dropped or whatever, the records

                 would be expunged.

                            There's a couple of things about

                 this that I might point out.  As opposed to

                 previous bills, this would only apply to

                 people who were arrested and arraigned or

                 convicted after the affected date.  Persons

                 arrested or arraigned before this date would

                 not -- it would not apply, and there would be

                 no necessity for them to provide a DNA sample.



                                                        3907



                            So what this would do is parallel

                 the fingerprint offenses for people that are

                 arrested and arraigned on or after the passage

                 of -- the date of this bill.

                            ACTING PRESIDENT MORAHAN:

                 Senator Schneiderman.

                            SENATOR SCHNEIDERMAN:    Thank you,

                 Mr. President.

                            If the sponsor would yield for a

                 question.

                            ACTING PRESIDENT MORAHAN:

                 Senator Volker, will you yield?

                            SENATOR VOLKER:    Yes, I will.

                            ACTING PRESIDENT MORAHAN:    The

                 Senator yields.

                            SENATOR SCHNEIDERMAN:    Thank you.

                            One of the issues that has been

                 debated as we've seen this bill in past years

                 is the question of what known offenses are in

                 fact fingerprintable offenses.  Because we

                 really have nonintersecting lines of argument

                 on this critical issue.

                            This is a bill, as I understand it,

                 that simply would say any fingerprintable

                 offense becomes an offense where DNA samples



                                                        3908



                 would be collected.  Is that correct?

                            SENATOR VOLKER:    That's right,

                 yes.

                            SENATOR SCHNEIDERMAN:    And there

                 have been discussions by people with

                 experience in the criminal justice system --

                 Senator Sampson, Senator Montgomery raised

                 them last year -- that a lot of times people

                 are arrested for very low-level offenses and

                 they're automatically fingerprinted.  And the

                 sponsor has asserted that in fact many of

                 those low-level offenses are not offenses as

                 to which people will be fingerprinted after

                 arrest.

                            I'd like to ask the sponsor if --

                 I'm reading now from Section 160.10 of the

                 Criminal Procedure Law -- if we could somehow

                 incorporate those provisions into this

                 legislation.  Because Section 160.10 states:

                 "Following an arrest or following the

                 arraignment upon a local criminal court

                 accusatory instrument of a defendant whose

                 court attendance has been secured by a summons

                 or an appearance ticket, under circumstances

                 described in Sections 130.60 and 150.70, the



                                                        3909



                 arresting or other appropriate police officer

                 or agency must take or cause to be taken

                 fingerprints of the arrested person or

                 defendant if an offense which is the subject

                 of the arrest or which is charged in the

                 accusatory instrument is a felony, a

                 misdemeanor defined in the Penal Law or a

                 misdemeanor defined outside the Penal Law."

                            It goes on to state explicitly you

                 have to be fingerprinted for loitering or for

                 loitering as defined in Subsection 3 of

                 Section 240 or loitering for the purpose of

                 engaging in a prostitution offense.

                            So I would request from the sponsor

                 clarification of our prior years' discussions.

                 It appears to me, from reading the Criminal

                 Procedure Law, that in fact loitering and

                 other misdemeanors are offenses as to which

                 the police are required to take fingerprints.

                            Does that change the sponsor's view

                 of the scope of the DNA samples that would be

                 taken under this legislation?

                            SENATOR VOLKER:    Let me just say

                 that the reason -- I think you know the reason

                 why those offenses were listed specifically



                                                        3910



                 for fingerprinting offenses, and that was

                 because of the difficulty in dealing with

                 these people and identifying them.  Because

                 many of those people have been arrested so

                 many times, and keeping track of them was

                 extremely difficult to do.  And that's why

                 they were included, even though they're not

                 misdemeanors or felonies.

                            And in fact, I think I remember

                 when that occurred.  I think Senator Goodman

                 may have been the one that did that, if I

                 recollect, and it had to do with downtown

                 New York City, I think, and the problem with

                 prostitution in the commercial areas and so

                 forth.

                            But you make a good point.  And I

                 think we did discuss last year that -- what's

                 interesting is I wasn't even aware that

                 apparently in New York City they do have --

                 they do fingerprint people that I don't

                 believe we fingerprint anyplace else.

                            I mean, I don't ever remember

                 fingerprinting anybody except for a felony or

                 a traffic misdemeanor or something of that

                 nature, because you were trying to identify



                                                        3911



                 them, quite obviously, which under the law you

                 can do.

                            Senator, in all honesty, it is

                 something that I think is an issue, and I'm

                 not going to deny it.  And I've talked to the

                 city in the past, and we've talked to the

                 Assembly.  We are looking at DNA issues now.

                            And it is something that I will

                 admit to you that if we get to the point, I

                 think, where we get the Assembly to deal with

                 some of these issues, it is a provision that I

                 think should be in there, because I don't

                 think -- keep in mind, of course, the argument

                 against that is, well, they're going to be

                 tossed away anyways, like fingerprints, if the

                 person is dismissed or whatever.  Even having

                 said that, we know that that's a fine

                 argument.  But in the long haul, there is a

                 line that we probably should draw.

                            So even though I realize it's

                 probably arguing against my own bill, I think

                 it is something that, when we actually get to

                 do this as a law, we should put in this

                 legislation.

                            SENATOR SCHNEIDERMAN:    Thank you.



                                                        3912



                            Mr. President, on the bill.

                            ACTING PRESIDENT MORAHAN:

                 Senator Schneiderman, on the bill.

                            SENATOR SCHNEIDERMAN:    I

                 appreciate the sponsor's candor.

                            And I have to say that I am

                 generally a very strong supporter of expanding

                 the DNA database.  I've said before I think

                 all of our DNA should be in the database,

                 because what DNA evidence does is help convict

                 guilty people.  And, just as significantly,

                 there have been many, many cases in which

                 people who have wrongfully been convicted have

                 now been freed based on DNA evidence.

                            And it is in our criminal justice

                 system where we are opposed to bend over

                 backwards to see that innocent people do not

                 go to prison.  Really, the lowest point in the

                 criminal justice system is when there's

                 someone convicted and imprisoned for a crime

                 that they did not commit.  Certainly it's a

                 strong argument against the death penalty,

                 because that's something that you can never,

                 never, never undo.

                            The difficulty with the DNA system



                                                        3913



                 as it exists now is that we've got this

                 incredible technology but we don't have the

                 resources devoted to it to make it functional.

                 What we have here is a system in which the DNA

                 database is underfunded, the resources for

                 analysis are not there.  And we are dealing

                 with an extremely precious product.

                            There's been some publicity in

                 recent weeks about difficulties encountered by

                 someone who was accused of terrorism because

                 of a mistaken fingerprint.  Well, this is a

                 much more serious problem with regard to DNA,

                 because it requires the right analysis, the

                 right storage, the right resources.

                            And it is something that if we're

                 going to be dealing with this in all of the

                 police departments all across the state, we're

                 talking about a tremendous investment -- and I

                 think it's a valuable investment -- in

                 technology that can assure that people

                 convicted of crimes in this state are in fact

                 guilty.

                            But until we provide those

                 resources, until we ensure that this is

                 handled properly, I'm very, very reluctant to



                                                        3914



                 expand the reach of the DNA database in the

                 way that's done in this piece of legislation.

                            I think that, as indicated by our

                 conversation, whatever comes out of

                 negotiations with the Governor and the

                 Assembly is likely to be different, is likely

                 to be more limited.  It is absolutely the

                 case -- and again, I appreciate the sponsor's

                 candor -- that there are parts of the state

                 where people are fingerprinted for crimes that

                 they aren't fingerprinted for in other parts

                 of the state.

                            Let's deal with this in a

                 comprehensive basis.  Let's put up the

                 resources and handle this with the respect

                 that this quality of evidence deserves.  This

                 is extremely important evidence.  Let's expand

                 the database in a realistic way.

                            I look forward to the day when, you

                 know, DNA databases are available freely to

                 all defense attorneys, including the

                 court-appointed attorneys, and that there's no

                 expense involved and they're able to get

                 access to this information and see that

                 innocent people are not wrongfully convicted.



                                                        3915



                 We're not at that point in this state.

                            And so I'm going to vote against

                 this.  I think that this has got

                 administrative problems.  And I think that

                 until we address these issues of the types of

                 crimes for which people are fingerprinted,

                 we're not really enacting a piece of

                 legislation that treats all people fairly,

                 that treats like crimes alike.

                            So I will be voting no, in the

                 hopes that we will have some sort of

                 legislation that I will be able to vote yes

                 for expanding the database as we move forward.

                            Thank you, Mr. President.

                            ACTING PRESIDENT MORAHAN:    Thank

                 you, Senator Schneiderman.

                            Senator Volker.

                            SENATOR VOLKER:    Mr. President,

                 very quickly.

                            One of the things that really irks

                 me on the floor of this house is when you're

                 debating an issue and the person you're

                 debating is right.  That really bugs me.

                 Because -- you know, I mean not entirely

                 right, but partially right.



                                                        3916



                            In all candor, I agree with Senator

                 Schneiderman.  I think we need desperately to

                 develop a comprehensive DNA process.

                            I sat with the Governor years ago,

                 by the way, when we first did the DNA

                 laboratory stuff, and I said to the Governor:

                 "There's something I have to tell you here;

                 the cost of this is going to be enormous."

                 And I said, "I really don't want to ask

                 Senator Bruno to do that."

                            He said, "No, it's something we

                 should do."  And one of his people looked at

                 me and said, "Maybe $10 million."  I said,

                 "How about 20?"  And the Governor gulped.  And

                 I said, "We're going to have to expand the

                 lab."

                            But the point, I think, here is --

                 and although I think we could do this bill

                 without causing enormous problems, if we are

                 serious, and I think we are getting serious on

                 this issue, we should get together, make a

                 decision on expanding the lab even more --

                 because right now it wouldn't be, I don't

                 think, big enough to handle all this.

                            At the same time, I think we should



                                                        3917



                 limit the fingerprintable offenses if we're

                 going to use DNA in the same category as

                 fingerprints.

                            So on that side, I agree with Eric

                 that I think what we need to do -- and we need

                 to do this soon, because I think we have to

                 get into this.  It's too valuable a tool, both

                 on the prosecution and the defense side, not

                 to use it on a more frequent basis.  And we're

                 pushing this bill forward just to do that, to

                 tell you the truth.

                            ACTING PRESIDENT MORAHAN:    Thank

                 you, Senator Volker.

                            Read the last section.

                            THE SECRETARY:    Section 11.  This

                 act shall take effect on the 60th day.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.

                             Senator Schneiderman, to explain

                 his vote.

                            SENATOR SCHNEIDERMAN:    Yes, thank

                 you, Mr. President.



                                                        3918



                            I just want to acknowledge the

                 gracious words of the sponsor.

                            I am voting against this bill, but

                 I think one of the things that has the Capitol

                 in the state it's in today is the inability of

                 too many people in the Legislature to refuse

                 to acknowledge when they realize that they may

                 be mistaken in some respect.

                            And that I hope that Senator Volker

                 sets an example for all who are involved in

                 the negotiations as we near the session's end.

                 It's only when we're willing to look at our

                 positions honestly that we're ever going to

                 resolve these problems.

                            I am voting no, but I think that

                 the debate is emblematic of the kind of

                 discussions that don't go on nearly enough

                 here.

                            Thank you.

                            ACTING PRESIDENT MORAHAN:    Thank

                 you, Senator Schneiderman.  You will be

                 recorded in the negative.

                            Announce the results.

                            THE SECRETARY:    Those recorded in

                 the negative on Calendar Number 1468 are



                                                        3919



                 Senators Andrews, Dilan, Duane, L. Krueger,

                 Montgomery, Parker, Paterson, Sabini,

                 Schneiderman, and Stavisky.  Ayes, 45.  Nays,

                 10.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            Senator Stavisky.

                            SENATOR STAVISKY:    Thank you, Mr.

                 President.

                            On Calendar Number 1112, Senate

                 1108, I wish to be recorded in the negative.

                            ACTING PRESIDENT MORAHAN:

                 Senator Stavisky will be recorded in the

                 negative on Calendar 1108.

                            Senator Wright.

                            SENATOR WRIGHT:    Thank you, Mr.

                 President.

                            I request unanimous consent to be

                 recorded in the negative on Calendar Number

                 964, Senate 2685.

                            ACTING PRESIDENT MORAHAN:

                 Senator Wright will, without objection, be

                 recorded in the negative on Calendar 964.

                            Senator Duane.

                            SENATOR DUANE:    Batting cleanup.



                                                        3920



                 Thank you, Mr. President.

                            I'd like to be recorded in the

                 negative on Calendar Number 1230.

                            ACTING PRESIDENT MORAHAN:

                 Senator Duane will be recorded in the negative

                 on 1230, without objection.

                            Senator Marcellino.

                            SENATOR MARCELLINO:    Thank you,

                 Mr. President.

                            Can we now return to reports of

                 standing committees.

                            I believe you have a report of

                 Rules Committee at the desk.  Can it be read.

                            ACTING PRESIDENT MORAHAN:    The

                 Secretary will read.

                            THE SECRETARY:    Senator Bruno,

                 from the Committee on Rules, reports the

                 following bills:

                            Senate Print 242, by Senator

                 Volker, an act to amend the Penal Law;

                            595A, by Senator Hannon, an act to

                 amend the Lien Law;

                            845, by Senator Padavan, an act to

                 amend the Criminal Procedure Law;

                            1155A, by Senator DeFrancisco, an



                                                        3921



                 act to amend the Tax Law;

                            1268, by Senator Meier, an act to

                 amend the Executive Law;

                            1271, by Senator Meier, an act to

                 amend the Tax Law;

                            1519A, by Senator Sampson, an act

                 to amend the Executive Law;

                            2221A, by Senator Maltese, an act

                 to amend the Administrative Code of the City

                 of New York;

                            2952, by Senator McGee, an act to

                 amend Chapter 540 of the Laws of 1992;

                            3065, by Senator Robach, an act to

                 repeal paragraph (e) of subdivision 4;

                            3277, by Senator Robach, an act to

                 amend the Retirement and Social Security Law;

                            3887, by Senator Robach, an act to

                 amend the Executive Law;

                            4085, by Senator Meier, an act to

                 amend the Labor Law;

                            4371A, by Senator DeFrancisco, an

                 act to amend the Real Property Law;

                            4422A, by Senator Johnson, an act

                 to amend the Vehicle and Traffic Law;

                            4772A, by Senator Flanagan, an act



                                                        3922



                 to amend the Education Law;

                            5058A, by Senator Libous, an act to

                 amend the Tax Law;

                            5464, by Senator Robach, an act to

                 amend the Correction Law;

                            5971A, by Senator Meier, an act to

                 amend the Education Law;

                            6259, by Senator Volker, an act to

                 amend the Civil Practice Law and Rules;

                            6549, by Senator Robach, an act to

                 amend the Retirement and Social Security Law;

                            6786, by Senator Robach, an act to

                 amend the Executive Law;

                            6787, by Senator Robach, an act to

                 amend the Retirement and Social Security Law;

                            6809, by Senator Bonacic, an act to

                 amend the New York State Urban Development

                 Corporation Act;

                            6946A, by Senator Maziarz, an act

                 to create a temporary New York State French

                 and Indian War 250th anniversary

                 commemoration;

                            6994A, by Senator Johnson, an act

                 to authorize;

                            7195C, by Senator Skelos, an act to



                                                        3923



                 amend the Penal Law;

                            7271, by Senator Mendez, an act to

                 amend the Labor Law;

                            7361, by Senator Padavan, an act to

                 amend the Private Housing Finance Law;

                            7381, by Senator Mendez, an act to

                 amend the Private Housing Finance Law;

                            7424, by the Senate Committee on

                 Rules, an act to amend the Tax Law;

                            7430, by Senator Fuschillo, an act

                 to authorize;

                            7443, by Senator Volker, an act to

                 amend the Penal Law;

                            7446, by Senator DeFrancisco, an

                 act to amend the Penal Law;

                            7449, by Senator Morahan, an act in

                 relation to persons;

                            7454, by Senator Volker, an act to

                 amend the General Obligations Law;

                            7458, by Senator Skelos, an act to

                 amend the Criminal Procedure Law;

                            7459, by Senator Maltese, an act to

                 amend Chapter 535 of the Laws of 1945;

                            7462, by Senator Libous, an act to

                 amend Chapter 723 of the Laws of 1989;



                                                        3924



                            7468, by the Senate Committee on

                 Rules, an act to amend Chapter 266 of the Laws

                 of 1986;

                            7482, by Senator Wright, an act in

                 relation to making certain findings;

                            And Senate Print 7488, by Senator

                 Morahan, an act to amend the Penal Law.

                            All bills ordered direct to third

                 reading.

                            ACTING PRESIDENT MORAHAN:

                 Senator Marcellino.

                            SENATOR MARCELLINO:    Move to

                 accept the report of Rules Committee.

                            ACTING PRESIDENT MORAHAN:    All in

                 favor of accepting the Rules Committee report

                 say aye.

                            (Response of "Aye.")

                            ACTING PRESIDENT MORAHAN:

                 Opposed, nay.

                            (No response.)

                            ACTING PRESIDENT MORAHAN:    The

                 Rules report is accepted.

                            Senator Marcellino.

                            SENATOR MARCELLINO:    Would you

                 recognize Senator Saland, please.



                                                        3925



                            ACTING PRESIDENT MORAHAN:

                 Senator Saland.

                            SENATOR SALAND:    Thank you, Mr.

                 President.

                            I request unanimous consent to be

                 recorded in the negative on Calendar Number

                 964, Senate 2685.

                            ACTING PRESIDENT MORAHAN:

                 Senator Saland will be recorded, without

                 objection, in the negative on Calendar 964.

                            Senator Little.

                            SENATOR LITTLE:    Thank you, Mr.

                 President.

                            I wish to ask for unanimous consent

                 to be recorded in the negative on Calendar

                 Number 964.

                            ACTING PRESIDENT MORAHAN:

                 Senator Little will be recorded in the

                 negative, without objection, on 964.

                            Senator Sabini.

                            SENATOR SABINI:    Mr. President, I

                 ask unanimous consent to be recorded in the

                 negative on Calendar Number 1548, Senate Print

                 6297A.

                            ACTING PRESIDENT MORAHAN:



                                                        3926



                 Without objection, Senator Sabini will be

                 recorded in the negative on Calendar 1548.

                            Senator Stavisky.

                            SENATOR STAVISKY:    Mr. President,

                 I request unanimous consent to be recorded in

                 the negative on Calendar Number 1548, Senate

                 Print 6297A.

                            ACTING PRESIDENT MORAHAN:

                 Senator Stavisky will be recorded, without

                 objection, in the negative on 1548.

                            Senator Oppenheimer.

                            SENATOR OPPENHEIMER:    Thank you.

                 Similarly, I'd like to be recorded in the

                 negative on 1548.

                            ACTING PRESIDENT MORAHAN:

                 Without objection, Senator Oppenheimer will be

                 recorded in the negative on Calendar 1548.

                            Senator Rath.

                            SENATOR RATH:    Mr. Chairman, I'd

                 like to be recorded in the negative on

                 Calendar 964.  Thank you.

                            ACTING PRESIDENT MORAHAN:

                 Senator Rath will be recorded in the negative,

                 without objection, on 964.

                            Senator A. Smith.



                                                        3927



                            SENATOR ADA SMITH:    Thank you,

                 Mr. President.

                            I request unanimous consent to be

                 recorded in the negative on Calendar Number

                 1548, Bill Number S6297A.

                            ACTING PRESIDENT MORAHAN:

                 Senator Ada Smith will be recorded in the

                 negative on 1548, without objection.

                            Senator Fuschillo.

                            SENATOR FUSCHILLO:    Mr.

                 President, on motions.

                            ACTING PRESIDENT MORAHAN:

                 Motions and resolutions.

                            SENATOR FUSCHILLO:    On behalf of

                 Senator Little, I wish to call up Senate Print

                 Number 6066, recalled from the Assembly, which

                 is now at the desk.

                            ACTING PRESIDENT MORAHAN:

                 Senator Bruno.

                            SENATOR BRUNO:    Mr. President,

                 can we at this time call up Calendar Number

                 1568.

                            ACTING PRESIDENT MORAHAN:    The

                 Secretary will read.

                            THE SECRETARY:    Calendar Number



                                                        3928



                 1568, by Senator Bruno, Senate Print 7471, an

                 act to amend the Tax Law, in relation to

                 reducing.

                            SENATOR SCHNEIDERMAN:

                 Explanation.

                            ACTING PRESIDENT MORAHAN:

                 Senator Bruno, an explanation has been

                 requested.

                            SENATOR BRUNO:    Thank you,

                 Senator.  Thank you, Mr. President.

                            This is a -- what I would call an

                 investment in the future of economic

                 development and job growth here in New York

                 State.

                            It is a tax-cut package that, first

                 year, on passage, saves the people that it

                 would affect $56 million.  It grows to

                 1 billion 65 million when fully implemented --

                 over a billion dollars that stays with

                 families who are providing home care for part

                 of their family that need it, in tax credits.

                 It applies to farm credits, to help one of the

                 largest industries here in New York State.  It

                 applies very specifically to about twenty-plus

                 different categories where we need to help the



                                                        3929



                 competitiveness of the industry or the people.

                            For instance, there is a

                 kero-jet-fuel piece in here where jets are

                 almost forced to fuel up in other states

                 because New York State taxes their jet fuel

                 higher than any other state in the United

                 States.  Now, that is crazy.  It is not

                 productive.

                            Airplane repairs, for instance, for

                 the privates, we have a tax.  If they get it

                 repaired in Connecticut, New Hampshire,

                 New Jersey, they don't.

                            A lot of things like that that

                 we're addressing.  The biggest piece, one of

                 the biggest pieces really has to do with what

                 we're calling the Excell program.

                            Senator Skelos -- and hopefully

                 you're going to hear from him -- on behalf of

                 the Senate, did hearings all over the state on

                 what does it take to stimulate small

                 businesses to encourage job growth here in

                 this state.  And all of us know that the

                 greatest growth in jobs comes from small

                 businesses, startups that get encouraged and

                 expand.



                                                        3930



                            So about $80 million of this goes

                 into helping young companies, new companies,

                 especially in the nanotechnologies, the life

                 sciences, the biotechnologies, which would be

                 the next step to the almost billion dollars

                 that we here in this chamber, with the

                 Assembly, with the Governor, invested in what

                 we called our Ge*NY*sis plan, generating jobs

                 through science and technology.  And that has

                 been working and creating stimulation.

                            This is the next step, Excell, as

                 an outgrowth, because it helps not just fund

                 but helps direct with venture capital, helps

                 give direction to some of these young, high

                 tech, life science, capability of growth

                 companies.  And that is a big part of all of

                 this.

                            The whole package, as I mentioned,

                 keeps about a billion-plus dollars in the

                 economy as an investment in jobs.  We've been

                 talking about education, Campaign for Fiscal

                 Equity.  Courts have mandated that we must

                 provide a sound, basic education for every

                 student here in this state.  And we're going

                 to meet that obligation.



                                                        3931



                            When the young people are educated,

                 when they go through school and they go

                 through college over the years, where have

                 they gone?  They've gone to California,

                 they've gone to Texas, they've gone to the

                 Carolinas, they've gone following the jobs,

                 and most of them high-tech jobs.

                            So this plan is intended that while

                 we invest billions in education, we keep our

                 people here, our young people, our children,

                 our grandchildren, we keep them here in

                 New York State by offering them opportunities

                 for not just employment, but for growth.  And

                 that benefits everybody.

                            So some people will say:  You're

                 spending $56 million growing to a billion.  We

                 are not spending anything.  We are advocating

                 that we invest in the present and the future

                 job growth here in New York State, which

                 drives revenue.

                            As companies expand, as people get

                 employed, they pay taxes.  When companies are

                 profitable, they pay taxes.  Those taxes pay

                 for education, for health care, for the

                 infrastructure, for mental health, for



                                                        3932



                 everything having to do with governing here in

                 New York State and keeping the Empire State

                 with the quality of life that all of the

                 constituents deserve.

                            Thank you, Mr. President.

                            ACTING PRESIDENT MORAHAN:    Thank

                 you, Senator Bruno.

                            Senator Onorato.

                            SENATOR ONORATO:    Mr. President,

                 will the Senator yield for a question.

                            ACTING PRESIDENT MORAHAN:

                 Senator Bruno, will you yield for a question

                 from Senator Onorato?

                            SENATOR BRUNO:    I'm sorry, Mr.

                 President, the leader was sharing a thought, a

                 very positive thought.

                            So, Senator, yours is probably a

                 very positive question.

                            SENATOR ONORATO:    I'm concerned

                 about the tax credit for the film industry.

                 As you know, I represent Kaufman and the

                 Silvercup Studios, and I notice in here

                 there's a nice incentive for the film

                 industry.  And I want to make sure that it

                 applies equally across the board to all of the



                                                        3933



                 film industry, not just one specific --

                            SENATOR BRUNO:    Thank you,

                 Senator.  And you highlight a great point.

                            The answer is yes.  It applies to

                 Kaufman Astoria, it applies to film producers

                 across the state.  And it provides a tax

                 credit.

                            Louisiana increased and put a tax

                 credit in for filmmakers to come to Louisiana

                 and make film.  They ended up doing

                 $100 million worth of business, up from about

                 $25 million, as a result of their tax credit.

                            This tax credit that will, with all

                 aspects of it, it's 10 percent, it could be

                 20 percent when you put all the aspects in, is

                 throughout the whole state -- covers Kaufman,

                 that great studio in your district.  And we

                 believe, in talking to these people, that they

                 will produce film in New York City, which is

                 unique in the world.  Because some of them are

                 going to Canada, they're in California.  In

                 California, filmmaking is a $35 billion

                 industry.

                            So that's part of it.  There's two

                 pages' worth of specifics.  So, Senator, thank



                                                        3934



                 you for calling that to our attention.  And

                 the answer is yes, it covers them.

                            ACTING PRESIDENT MORAHAN:    Thank

                 you, Senator Bruno.

                            Senator Schneiderman.

                            SENATOR SCHNEIDERMAN:    Mr.

                 President, I believe there's an amendment at

                 the desk.  I request that the reading be

                 waived and that I be heard on the amendment.

                            ACTING PRESIDENT MORAHAN:    The

                 reading is waived, and Senator Schneiderman

                 will speak on the amendment.

                            SENATOR SCHNEIDERMAN:    The

                 amendment that we're seeking to add to this

                 bill, which I think is a very positive

                 contribution to this piece of legislation, is

                 called the Small Business Protection Act.  And

                 who, after all, speaks more about the need to

                 protect small business than senators in the

                 state of New York.

                            However, we believe -- and Senator

                 Paterson advanced everything that's included

                 in this amendment when he presented his tax

                 proposals on March 31st in a budget plan that

                 we commend to you still, as we seek to resolve



                                                        3935



                 the budget issues facing this state, is full

                 of all sorts of ideas about finding revenue

                 and closing the budget gap and funding CFE.

                            But included in Senator Paterson's

                 budget plan were some modifications of the Tax

                 Law that we think are tremendously important

                 and that would generate a lot of revenue.  And

                 we understand the pressure everyone is under

                 from various sources, friends and family, to

                 close all of the budget gaps in all areas.

                            And Senator Paterson's proposal

                 would do the following.  It would require

                 corporations to pay taxes which currently they

                 should be paying -- we're not raising tax

                 rates, but that they are not paying because of

                 loopholes.  Sound tax policy involves having

                 as low a rate as you can and as few loopholes

                 as possible so you don't end up taxing some

                 businesses a lot because other businesses are

                 exempt.

                            This amendment would eliminate

                 what's been known as the "Toys 'R Us problem,"

                 where subsidiaries -- and Toys 'R Us has been

                 used as the example for this -- subsidiaries

                 of Toys 'R Us in Delaware are listing all of



                                                        3936



                 the revenue from the use of their licenses as

                 Delaware income.  There's nothing in the

                 New York State law to require them to pay

                 here.  New York State Toys 'R Us stores are

                 not paying taxes because it's being attributed

                 as income in Delaware.

                            Many states have eliminated this.

                 We can decouple the requirement that

                 businesses invest in machinery, equipment and

                 capital if they're going to get tax credits to

                 create employment.  Now, that is critical for

                 small businesses.  Small businesses, service

                 businesses don't tend to invest in equipment

                 and machinery and capital.  But under the

                 current law in New York, they're not eligible

                 for tax credits for increasing employment if

                 they don't do that.  Again, a discrimination

                 against small businesses.

                            Finally, finally, there are

                 corporate loopholes that have been closed in

                 the State of New Jersey that have generated a

                 billion dollars, a billion dollars in a state

                 half the size of ours that we strongly urge be

                 closed in New York State that will go a long

                 way towards solving our current budget crises.



                                                        3937



                            First of all, combined reporting,

                 which has been repeatedly upheld by the United

                 States Supreme Court, eliminates the corporate

                 tax loopholes that plague our corporate tax

                 system.  We don't require companies to combine

                 all of their reporting so that they pay taxes

                 as one unified whole and are prevented from

                 hiding income in other subsidiaries.

                            And, second of all, half the states

                 now have adopted a federal definition of

                 business income.  New York has held on to our

                 own, much narrower definition of business

                 income, and this lets businesses claim

                 tax-free income in New York that other states

                 tax.

                            Again, the goal of our amendment is

                 to say let's follow basic tax principles.

                 Let's have as low a rate as possible and as

                 few exemptions as possible.  Let's not

                 penalize companies that don't transfer their

                 income to out-of-state subsidiaries.  Let's

                 not penalize companies that create jobs but,

                 because they don't invest in machinery,

                 equipment and capital, they don't get tax

                 credits.



                                                        3938



                            The Small Business Protection Act,

                 we urge you, is something that should be

                 included in this year's budget.  We're

                 offering it, and it's an amendment now, in the

                 hope that it will get the consideration it

                 deserves.

                            Once again, it was presented by

                 Senator Paterson on March 31st, but as now we

                 enter another phase of budget negotiations, we

                 are very hopeful that these issues will be on

                 the table.

                            I urge everyone to vote for this

                 amendment, Mr. President.  And I think that

                 all of the materials which we presented here,

                 we have presented to the Finance staff, we

                 think are valuable contributions to our effort

                 to close the existing budget gap.

                            Thank you.

                            ACTING PRESIDENT MORAHAN:    Thank

                 you, Senator Schneiderman.

                            These Senators in agreement with

                 the amendment please signify by raising your

                 hand.

                            THE SECRETARY:    Those recorded in

                 agreement are Senators Andrews, Breslin,



                                                        3939



                 Brown, Diaz, Dilan, Duane, Gonzalez, L.

                 Krueger, Montgomery, Onorato, Oppenheimer,

                 Parker, Paterson, Sabini, Schneiderman, A.

                 Smith, Stachowski, and Stavisky.

                            ACTING PRESIDENT MORAHAN:    The

                 amendment is lost.

                            Read the last section.

                            THE SECRETARY:    Section 3 --

                            ACTING PRESIDENT MORAHAN:

                 Senator Schneiderman.

                            SENATOR SCHNEIDERMAN:    Thank you,

                 Mr. President.  On the bill.

                            In the absence of the Small

                 Business Protection Act being included in this

                 bill, I am going to be voting against it.  And

                 the reason I'm going to be voting against it

                 is because I believe this legislation reflects

                 both bad tax policy and bad politics.

                            The reason it is bad tax policy is,

                 again, that it violates the fundamental

                 principle that good tax policy has broad-based

                 taxes with few exemptions, treats similar

                 transactions similarly, applies to everyone

                 who's involved in the same nature of business.

                            This bill furthers the problem we



                                                        3940



                 have in New York State where we have very high

                 marginal tax rates that generate relatively

                 little income because our tax system is so

                 riddled with exemptions, loopholes, and

                 special privileges, sometimes for particular

                 companies, sometimes for particular

                 industries, sometimes for particular parts of

                 the state.  This bill contains all of those

                 flaws.

                            If we pass this bill, we will be

                 enacting five new sales tax exemptions, eight

                 new business tax exemptions, three income tax

                 exemptions.  We're not making tax policy here,

                 Mr. President, we're making Swiss cheese.

                            This is not the way to reform the

                 tax system in the State of New York.  It

                 creates discrimination at the most basic

                 level.  We have this initiative that Senator

                 Bruno spoke about relating to high-tech

                 businesses, but it's only available in certain

                 areas of the state.  So if you're in one part

                 of the state, you will be taxed differently

                 than the same business in another part of the

                 state.

                            It would treat filling up your



                                                        3941



                 corporate jet differently than filling up your

                 car or filling up your yacht.  I mean, why

                 discriminate against millionaires who use

                 yachts instead of use corporate jets?  This is

                 a bill that reflects the worst aspects of

                 New York's preexisting tax policy.

                            And I understand the reason for

                 proposing a bill like this.  The reason is

                 that when you identify very specific areas

                 where we say we're willing to cut your taxes,

                 you can go to those constituencies and say:

                 We tried.  We were doing something for you.

                            Because people don't respond when

                 you say, If we get rid of these exemptions, we

                 can lower everyone's tax rate a small amount.

                 People respond when they think they're going

                 to get a tax break just for their own

                 particular need.

                            That's bad politics.  And the

                 reason it's bad politics is because we keep

                 creating these exemptions, we keep making

                 Swiss cheese instead of good tax laws.  And

                 the effect is that we're not cutting taxes.

                            So let's be honest for this

                 afternoon at least.  The state budget in



                                                        3942



                 1995-96 was $63 billion.  The state budget now

                 over $100 billion.  Every county during this

                 period, which was picked randomly -- it

                 happens to coincidence with the Governor's

                 tenure, but it was picked randomly -- every

                 county has raised its sales tax.  Not one

                 county has done any permanent tax rate cuts.

                            This session, this session we've

                 continued this process of expanding

                 government, refusing to raise the broad-based

                 taxes, creating more exemptions so we generate

                 less revenue and passing on to the local

                 governments the need to fill in the gaps and

                 passing on to future generations the debt with

                 which we fill our gaps.

                            This year we're saying we want to

                 cut taxes.  Well, what are the bills we've

                 been passing?  Why don't we see about the

                 phone surcharge taxes we've authorized for

                 Columbia County, Franklin County, Onondaga

                 County, Otsego County, Madison County, Orange

                 County, Warren County, mortgage recording tax

                 we've authorized for Delaware County,

                 hotel-motel tax we've authorized here in this

                 Senate for Dutchess County?  What about the



                                                        3943



                 sales tax increases we've authorized for

                 Lewis, Clinton, Orange, Madison, Schoharie,

                 Erie, Oswego, Jefferson and Essex counties?

                            We did not authorize them because

                 we just woke up one morning and said, oh, we

                 think we should raise sales taxes there.  We

                 did it because the local governments are

                 dying, and they're dying because we're not

                 giving them the money to fund the programs we

                 mandate.  And we're not bringing in the

                 revenue because we've got a tax code that is

                 so riddled with loopholes they're more like

                 loop canyons.

                            The bill proposed today would

                 create more loopholes.  It would further the

                 bad tax policy that animates the state.  And

                 let's be honest.  We've got a budget gap.  We

                 don't have a budget surplus.  We're not going

                 to cut taxes this year.  We're not going to

                 cut taxes this year.  In fact, what we're

                 doing is raising taxes for local governments

                 all over the state.

                            And I respectfully submit that this

                 is not the way to make tax policy, and this is

                 not the right way to do politics.  So I'm



                                                        3944



                 going to be voting no on this bill.  If we

                 want to do tax cuts that are, as Senator Bruno

                 correctly identified the right way to do this

                 is to view them as investment for growth,

                 there are other ways to do them.  They were in

                 the amendment that was just rejected.  They

                 were in other proposals advanced by Senator

                 Paterson in his March 31st budget proposal.

                            But the bill before us today does

                 none of those things.  And I would urge my

                 colleagues that the most important investment

                 for growth that would be threatened further if

                 we pass this battery of tax cuts, the most

                 important investment for growth is the

                 investment in our children.  And that requires

                 us to fund the school system whatever we have

                 to do.  There's no greater threat to the

                 long-term economic health of the State of

                 New York than our ongoing refusal to provide

                 excellent education for every child in this

                 state.

                            So this is not a matter of charity,

                 this is a matter of sound economic policy.  I

                 urge everyone to vote no on this bill, and

                 then let's get back to the table, stop



                                                        3945



                 pretending we're going to cut taxes, and fund

                 the CFE mandate.

                            Thank you, Mr. President.

                            ACTING PRESIDENT MORAHAN:    Thank

                 you, Senator Schneiderman.

                            Senator Sabini.

                            SENATOR SABINI:    Thank you, Mr.

                 President.  On the bill.

                            ACTING PRESIDENT MORAHAN:

                 Senator Sabini, on the bill.

                            SENATOR SABINI:    There's an old

                 saying, if you can't say something nice, don't

                 say anything at all.  I will say a couple of

                 nice things about this bill.

                            I think that making New York's film

                 industry competitive is an important thing.

                 Our film production is moving, in many cases,

                 to Canada quicker than the "Fast Ferry."  And

                 that's particularly hurting Queens County.

                            I think the tax credit for historic

                 homes is long overdue.  It's something I

                 fought to get a home rule for when I was on

                 the New York City Council, because of the cost

                 of those homeowners maintaining those

                 properties is in many cases much more onerous.



                                                        3946



                            Those are the good things.  You

                 know, we had an April 1st budget deadline, and

                 this bill is essentially part of the budget

                 because it affects the revenue we raise.  And

                 while it's still April here in the Capitol

                 because we haven't passed a budget, it's also

                 Christmas.  And we have a tree with lots of

                 ornaments on it.  There are ornaments all over

                 this thing for people.  But it's piecemeal

                 budget-making.

                            Last year this body and the

                 Majority in this body joined with the Minority

                 to have the courage to protect localities from

                 onerous expenses and school taxes, property

                 taxes.  But this year, I guess since it's an

                 election year, we're much more interested in

                 awarding Christmas ornaments to all the

                 branches on the tree.

                            And while I was aware of the fact

                 that to cut costs businesses are fueling their

                 jets elsewhere, I wasn't aware that it was

                 such a burning problem for us that we would

                 want to rush to correct that.

                            I wasn't aware that the bill

                 ignored some of the progressive changes made



                                                        3947



                 in the state of New Jersey in the last few

                 years.  And the New Jersey Legislature is

                 considering, as we speak right now, some more

                 changes to ensure that corporate loopholes are

                 closed so that taxpayers, both at the local

                 level and when they pay their property taxes

                 to cover the programs we mandate and the

                 taxpayers who pay the state income tax, are a

                 little more protected.

                            So on the whole, I am disappointed

                 in seeing this bill at this time.  I think

                 it's piecemeal budget-making, which is a bad

                 way to conduct business.  I think there are

                 things in here we can live with.  But in its

                 totality, I will be voting in the negative.

                            Thank you, Mr. President.

                            ACTING PRESIDENT MORAHAN:

                 Senator Parker.

                            SENATOR PARKER:    Mr. President,

                 on the bill.

                            ACTING PRESIDENT MORAHAN:    On the

                 bill, Senator Parker.

                            SENATOR PARKER:    I guess I rise

                 out of disappointment, out of disappointment

                 that here we are, over 2 months beyond when a



                                                        3948



                 budget should be passed -- we all know that

                 the budget should be passed on April 1st, and

                 here we are 2 months out beyond that.

                            And instead of getting a budget

                 package that in fact considers and deals with

                 directly CFE, that deals with the health care

                 issues, the issues of housing, the issues of

                 transportation in this state, we get a bill

                 that is -- you know, I can't describe as

                 anything else other than corporate welfare, a

                 tax bill that not only deals with things in a

                 piecemeal way but does not deal with any of

                 the real issues that this state is facing.

                            And this is not a new thing.  We go

                 through this every year -- I mean, I've been,

                 you know, going through this for only two

                 years -- but, I mean, for over twenty years.

                 You know, in a generation we haven't had an

                 on-time budget.  And it's a shame that not

                 only have we not had an on-time budget, but we

                 continue to get bills that are not helpful to

                 the budget process.

                            If we're going to, in fact, you

                 know, pass tax bills, let's create tax bills

                 that in fact add to the revenue of the state,



                                                        3949



                 that in fact help lift the burden off of the

                 real taxpayers, not folks with private jets.

                            Instead of closing corporate

                 loopholes, as some of my colleagues have

                 indicated, this bill creates more corporate

                 loopholes.  And it doesn't -- and it

                 doesn't -- I mean, it's a disingenuous attempt

                 to deal with the issues that the state has.

                            The problems that the people in my

                 constituency have, we don't have a lot of

                 private planes in Flatbush and East Flatbush

                 and Borough Park.  So, you know -- and we're

                 not making a lot of movies.  The people in my

                 district need housing.  We have a lot of

                 public schools, and they need money for the

                 public schools.  You know, we have

                 transportation issues, we have people who have

                 health concerns, we have seniors who are

                 looking for new senior centers and for better

                 meals and for more services to folks entering

                 their golden ages.  That's what we ought to be

                 paying attention to.  Those are the groups of

                 people that we ought to be able to create some

                 relief for in this chamber.

                            And so again, I'm disappointed.



                                                        3950



                 I'm further disappointed by the fact that

                 there's no serious consideration of the

                 proposal put forth by the Democratic

                 conference of the State Senate in which,

                 before April 1st, we submitted a plan that

                 would, on time, not spend more money than the

                 Governor had proposed, that in fact dealt with

                 the issue of CFE, that put money into all of

                 the vital services that we needed, and in fact

                 balanced the budget.

                            And, you know, if we can't have an

                 honest and sincere discussion about those kind

                 of issues at this late date, then I'm not sure

                 what we're all doing here.

                            A billion dollars spent without

                 solving the problems of the people of the

                 State of New York is unacceptable.  I'm voting

                 no, and I'm urging all of my colleagues in

                 this chamber of good conscience to vote no

                 with me.

                            Thank you.

                            ACTING PRESIDENT MORAHAN:

                 Senator DeFrancisco.

                            SENATOR DeFRANCISCO:    Thank you,

                 Mr. President.



                                                        3951



                            You know, we're talking about a tax

                 cut bill here, and the discussion is -- a lot

                 of the discussion is centered around CFE,

                 money to education, late budgets and

                 everything else.  And, you know, as a

                 practical matter, there's no benevolent

                 dictator in the State of New York that can

                 impose a budget on anybody who's not going to

                 want to go along with that individual's

                 opinion.

                            And there's a process that's

                 obviously dysfunctional, but, on the other

                 hand, for a tax cut bill to come up here and

                 we start complaining about the late budget --

                 as if the Senate is the only reason that this

                 budget is not in place -- is, I think, a

                 little bit unfair.  I'll leave it at that.

                            Secondly, if every issue is going

                 to revolve around school aid and the need for

                 greater and greater school aid, the fact of

                 the matter is the only way that you can get

                 more money for school aid is either to tax

                 people more or to provide a better economy

                 where more people are paying taxes.  And

                 that's, I think, the intent of this tax cut



                                                        3952



                 bill and the intent of many, many other tax

                 cut bills that we've proposed.

                            I don't agree with every aspect of

                 this bill.  But the fact of the matter is it

                 will drive more revenues.  And it does remind

                 me of when we talked about the STAR program

                 where we were giving senior citizens and

                 others tax breaks on property taxes and so

                 forth:  "How can we afford this?"  You know,

                 or giving other tax breaks, income tax cuts

                 when Pataki first came into office:  "How can

                 we do that?  We won't be able to afford it.

                 We're going to hurt everybody because we won't

                 have the revenues."

                            In fact, those tax cuts are what

                 drive the economy.  And obviously our economy

                 needs to be driven further.  And once we have

                 more revenues by a greater tax base, we can

                 provide more for education, we can provide

                 more for -- and hopefully some more tax relief

                 for property owners.

                            So, you know, I guess my point

                 basically is this.  Although I may not agree

                 with every aspect of this tax cut bill, it

                 drives the economy.  I hope it will help drive



                                                        3953



                 the economy.

                            Secondly, to blame everything --

                 every time there's a bill, to get back to the

                 late budget, which is not the sole

                 responsibility of one house, or to claim that

                 we should be providing more for education --

                 you know, those are givens.  The question is,

                 where do we get the money and how do we get

                 reasonable negotiations in both houses to come

                 to a final conclusion?

                            And hopefully everyone can see

                 these are separate issues that hopefully will

                 be resolved favorably.

                            Thank you.

                            ACTING PRESIDENT MORAHAN:    Thank

                 you.

                            Senator Skelos.

                            SENATOR SKELOS:    Thank you, Mr.

                 President.  If Senator Parker would just yield

                 for one short question.

                            ACTING PRESIDENT MORAHAN:

                 Senator Parker, will you yield for a question?

                            SENATOR PARKER:    I will.

                            SENATOR SKELOS:    The proposal

                 that you were talking about that was put out



                                                        3954



                 by the Democrat Minority March 31st, has that

                 been put into bill form?

                            SENATOR PARKER:    It has not been

                 introduced yet.

                            SENATOR SKELOS:    So it has not

                 been put into bill form, it has not been

                 introduced yet, even though you're talking

                 about a proposal from March 31st.

                            SENATOR PARKER:    Correct.

                            But we do, in fact, have a proposal

                 that we were hoping that, you know, you would

                 pick up and go forward.  We were providing the

                 proposal and the framework, hoping, you

                 know -- we didn't want the credit, we just

                 wanted to make sure that the proper policy was

                 in fact implemented.

                            SENATOR SKELOS:    No, I understand

                 what you're saying.  But my question really

                 is, is it in bill form?

                            ACTING PRESIDENT MORAHAN:

                 Senator Skelos, are you asking the Senator to

                 continue to yield?

                            SENATOR SKELOS:    No, that's fine.

                 I received my answer.

                            Mr. President, if I could just



                                                        3955



                 comment on the bill.  A couple of comments.

                            Number one, so often when I hear

                 about closing tax loopholes, and perhaps what

                 Governor McGreevey has done in New Jersey,

                 that generally means raising taxes.  And I

                 encourage New Jersey and other states around

                 us to raise their taxes so all these

                 businesses will come to New York State and

                 create jobs right here in New York State.

                            I think what's very important --

                 and Senator DeFrancisco was really touching

                 upon it.  What I believe has happened in the

                 last several months, and one of the reasons

                 why the budget is delayed, is the Senate,

                 through negotiations, the leadership of

                 Senator Bruno and our membership, the Senate

                 Majority has changed the dialogue on the issue

                 of CFE from a decision that has narrowed down

                 just to New York City -- and that was the only

                 concern of so many on the other side of the

                 aisle, and in the Assembly Majority -- to an

                 issue of how do we take care of CFE, how do we

                 take care of the high-needs districts that

                 exist upstate and on Long Island.  And I can

                 speak for Long Island, like Roosevelt,



                                                        3956



                 Uniondale, Freeport, and Hempstead.  That

                 dialogue has been changed.

                            And the dialogue also been changed

                 as to how do we also protect many of the

                 school districts, upstate and on the island,

                 where the taxpayers over the years have

                 invested, through the real estate taxes, to

                 make sure that we have a sound system, and

                 despite the fact that they have not received

                 the level of aid that New York City has.  And

                 we do not want to tear that down either.

                            So I think the dialogue has been

                 changed very positively.  And I think that

                 that is one of the reasons right now -- this

                 is my opinion -- that the budget is delayed.

                            And if we have managed to change

                 that dialogue, and it comes out that

                 high-needs districts -- whether New York City,

                 Long Island, or upstate -- are satisfied, plus

                 other school districts are protected, I think,

                 in my opinion, it was worth the delay.

                            And in terms of Medicaid reform,

                 you know, so many throughout the state are

                 saying the state should just take it over, the

                 state should just cap it.  But we've had,



                                                        3957



                 through a Medicaid Reform Task Force --

                 Senator Meier, Senator Hannon, they're looking

                 at real reforms, on how to reform the system

                 to maintain quality of care and to make it

                 more affordable here in New York State for our

                 localities and also for our state.

                            And I think it's also been pointed

                 out by a resolution that passed unanimously,

                 unanimously right here in the Senate, that the

                 problem also exists on the reimbursement rate

                 that we receive from the federal government.

                 All right?

                            We're shorted by the federal

                 government in New York State.  We have high

                 needs.  But because of the wealth factors --

                 and I know that Senator Meier or Senator

                 Hannon can speak a lot better than I can on

                 that -- we do not receive our fair share

                 despite our high needs.

                            But we're focusing now on where so

                 many of the problems lie and how we can best

                 move forward with the state.  Whether it's

                 Medicaid reform, protecting our counties, tax

                 cuts to encourage job development, and the

                 so-called CFE, which is really a total



                                                        3958



                 education package, I think we've changed the

                 dialogue in a very positive way.  And when we

                 do have a budget and we do resolve the CFE

                 problem, that it's going to be good for all

                 the kids of New York State.

                            Thank you, Mr. President.

                            ACTING PRESIDENT MORAHAN:    Thank

                 you, Senator Skelos.

                            Senator Larkin.

                            SENATOR LARKIN:    Thank you, Mr.

                 President.

                            Senator DeFrancisco and Senator

                 Skelos stole the thunder.  But what we're

                 really saying here this afternoon is this tax

                 package is for the benefit of New Yorkers.

                            Let me just cite one example in

                 here.  When we talk about eliminating the

                 taxes on noncommercial aircraft, a commercial

                 aircraft comes into New York and it needs

                 repairs, it just has exceeded the time of

                 miles that it has.  It can get its parts, it

                 can bring them, it's repaired, and there is no

                 tax.

                            We have, in the State of New York,

                 probably 2,500 people that work at small



                                                        3959



                 airports -- Long Island, the Hudson Valley and

                 over -- employing close to 3,000 employees.

                 There are seven states that surround New York

                 that do not have a tax on these repairs.

                            So in my case, there's 157

                 employees at Stewart that can just -- Cessna

                 can say, We're going to Connecticut, it's a

                 37-mile flight over to Connecticut.  They can

                 go to Connecticut, get their aircraft

                 repaired, and we lose 157 jobs.

                            You look at Long Island,

                 Rochester's got a problem.  I talked to

                 Senator Brown from Buffalo, he's got the same

                 problem.  So do they have it up in Niagara.

                            So here you are given an

                 opportunity to continue growth, to continue

                 employment, and to make people want to come to

                 New York.  I have people now at Cessna tell me

                 that they would rather go to Florida than come

                 to New York and pay the tax.  And what do we

                 do with the 157?  Long Island Airport, Dean

                 told me last night that they told him that

                 they could work seven days a week, 14 hours a

                 day, instead of five days, seven, if they

                 didn't have the tax because people would come



                                                        3960



                 here and employ.

                            And we're sitting around talking.

                 We're talking about school aid.  We're talking

                 about this aid.  And then, as Senator

                 Schneiderman said, they had a package here for

                 us in March.  You know what?  I can't read up

                 in the sky.  I can only read it when you

                 reduce it to a bill.  It's not there.  It's

                 pie in the sky.

                            We talk about CFE.  We talk about

                 the budget.  We talk about it.  You know, the

                 average person on the street are saying,

                 What's the difference?  You can't come

                 together.

                            We are together in this house, on

                 this side of the aisle, because we've come up

                 with sound procedures.  Just one I'm citing

                 for you.  Think about it.  Do you want jobs to

                 go to Connecticut and Massachusetts, New

                 Hampshire, Florida, Maryland, or do you want

                 to keep them right here in New York?  That's

                 your decision.

                            Thank you, Mr. President.

                            ACTING PRESIDENT MORAHAN:    Thank

                 you, Senator Larkin.



                                                        3961



                            Senator Stavisky.

                            SENATOR STAVISKY:    Mr. President,

                 I want to keep the jobs in New York City and

                 in New York State.

                            There's a section of this tax

                 proposal, Part O, which runs from page 40

                 until page 48.  And it seems to me it's such

                 an important part that it ought to be a

                 stand-alone piece of legislation.  It provides

                 for a tax credit for our motion picture and

                 television industry.

                            Kaufman Studios and Silvercup are

                 two very, very important studios doing filming

                 in New York City.  And they spend,

                 incidentally, approximately $5 billion, with a

                 B, $5 billion a year on film production.  This

                 is a very, very significant industry.

                            I live in an apartment house, and

                 they filmed a segment of "Law and Order" where

                 I live.  I haven't seen the program yet.  But

                 they had their film crews out, the City of

                 New York blocked off the street for them, the

                 co-op, my co-op received a payment, the people

                 whose apartment they took received a payment,

                 and they made a very significant contribution



                                                        3962



                 to the economy of the city by filming.

                            And if you replicate this in other

                 parts of the city and in other parts of the

                 state the tax benefits that will inure to the

                 people and to the state are tremendous.

                            This is a very significant industry

                 where I understand, in the last three or four

                 years, something like 8,000 jobs have been

                 lost.  They've been lost to places like

                 Toronto, where a lot of the filming is done.

                            So I would urge, since my

                 colleagues on the other side of the aisle are

                 putting forth a tax reduction, that this is

                 such an important issue that it be a

                 stand-alone proposal which would certainly

                 merit our support.

                            Unfortunately, it is like a

                 Christmas tree.  There are, however, some

                 weeds in the Christmas tree that have to be

                 pruned.  This is not one of them.  And on

                 balance, I'm afraid I'm going to have to vote

                 against this bill.

                            But I do recognize the importance

                 of the film industry.  And I would urge that

                 before we go home that we have a major tax



                                                        3963



                 benefit proposal to help the filming industry

                 and the television industry.

                            Thank you.

                            ACTING PRESIDENT MORAHAN:    Thank

                 you, Senator Stavisky.

                            Senator Krueger.

                            SENATOR LIZ KRUEGER:    Thank you,

                 Mr. President.  On the bill.

                            ACTING PRESIDENT MORAHAN:

                 Senator Krueger, on the bill.

                            SENATOR LIZ KRUEGER:    Thank you.

                 So much to say.

                            Senator Schneiderman started out by

                 saying that this was not tax policy, we'd be

                 creating Swiss cheese.  I will clarify, we

                 have Swiss cheese already in New York State in

                 our tax policies.  This would just increase

                 the number of holes in our cheese.

                            And I heard Senator DeFrancisco's

                 objection to tying everything to the budget

                 and to CFE.  And I'll even agree with him

                 there.  This would be an outrageous bill if it

                 had no correlation to our budget, to education

                 funding, to our current fiscal situation in

                 New York State.  It's the opposite of what we



                                                        3964



                 ought to be doing.

                            To start, we have already in

                 New York State a tax expenditure budget -- tax

                 credits, tax expenditures, tax exemptions that

                 total $26 billion a year.  So we argue about

                 whether we can afford more money for our

                 schools, to the tune of a couple of billion

                 dollars -- and I'm not underestimating the

                 dollar value of a couple of billion dollars --

                 and we argue about what year we're going to

                 cut in health care for the elderly and the

                 disabled and the poor through our Medicaid

                 program, and we argue about whether or not

                 we're going to have equitable distribution of

                 transportation funding in our budget.

                            But we never look at our tax

                 expenditure budget.  We never even bother to

                 review tax laws and policies, not unlike

                 these, that were passed ten years ago, twenty

                 years ago, thirty years ago, and question

                 whether they are in the best interests of the

                 State of New York or the best interests of the

                 people of New York.

                            But if we looked at the existing

                 tax expenditure budget as we ought to each and



                                                        3965



                 every year as part of the budget process, and

                 as we look at these individual proposals made

                 in Senator Bruno's bill before us today, we

                 see very consistent patterns.

                            One, these are tax benefits that

                 make our tax system more regressive.  We are

                 reducing taxes for multinational corporations,

                 for multistate corporations, for wealthier New

                 Yorkers, and we are translating those costs to

                 the backs of working New Yorkers,

                 middle-income New Yorkers and low-income

                 New Yorkers.

                            We talk about having dropped the

                 state tax level a few years ago and how great

                 that was for our economy.  Well, in fact, all

                 we know we did was transfer that tax cost from

                 the states to the localities.  Every one of my

                 colleagues, Republican and Democrat, has stood

                 up on the floor at some point in the last year

                 or two complaining about the increased costs

                 at the local level of having to raise local

                 taxes.

                            Why do you think you're paying

                 local taxes at a higher level?  Because we

                 keep reducing the state tax revenue and the



                                                        3966



                 federal tax revenue, placing the burden at the

                 local level.  We're part of the problem.  And

                 this bill would go much further in creating a

                 greater problem.

                            I heard discussion.  I heard

                 Senator Bruno very eloquently talk about the

                 need to do these kinds of tax exceptions, tax

                 cuts and tax credits to bring businesses into

                 New York.  Senator Larkin just spoke on it

                 also.

                            The devil is in the details.  Just

                 because you cut a tax doesn't mean you create

                 new job opportunities.  There is often

                 absolutely no correlation between a specific

                 tax policy and what happens in the economy at

                 the local or state level.  You can't simply

                 make that statement.

                            And in fact, one can make the

                 opposite argument, that on a number of these

                 proposals we will do harm, not good, to

                 existing businesses and to existing taxpayers

                 and not bring in any new jobs.

                            In fact, this group of proposals --

                 although I agree with several colleagues some

                 of them are very good and should be evaluated



                                                        3967



                 in their own right individually, in the

                 context of an overall tax policy analysis in

                 relationship to reviewing our entire structure

                 of tax expenditures.

                            But to make the argument that it is

                 more important to give a tax cut for aviation

                 fuel or for private aircraft repair, versus

                 not recognizing that right now people leave

                 New York State to go to New Jersey and other

                 states to buy their clothing because they

                 don't have a sales tax on clothing in other

                 states and we do here -- but we're planning on

                 keeping that tax, despite our commitment to

                 the taxpayers that we would do away with that.

                 But instead, we want to reduce taxes for the

                 petroleum business, for aviation fuel and for

                 aircraft repair services -- is a disingenuous

                 argument about the number of jobs we're

                 interested in trying to hold onto or create in

                 New York.

                            Because of course we all know that

                 tax policies that provide assistance to small

                 businesses have a much greater win in our

                 economy for job creation than tax policies

                 that benefit large corporations and



                                                        3968



                 multinationals.

                            And the disproportionate impact of

                 this bill today, when you total up all of the

                 proposals, is the advantage of large

                 corporations and multinationals, not the

                 advantage of small businesses who are the

                 job-creation generators for our state.  And of

                 course the price is picked up through other

                 tax increases on the people of New York State

                 when we give big business even greater tax

                 cuts.

                            But to go through a few more, the

                 concept that we're prepared to give a tax cut

                 through -- a tax credit, excuse me, to

                 businesses who provide health insurance now if

                 they actually reduce the package of health

                 benefits that they're providing, to the tune

                 of potentially $665 million in tax credits for

                 health insurance?

                            So often on this floor we discuss

                 the need to expand people's eligibility for

                 health insurance, to make sure more

                 New Yorkers are covered by health insurance,

                 and yet we don't get there.  And now, in this

                 bill, we're going to give tax credits to



                                                        3969



                 businesses who already provide health

                 insurance, but the win for them is only if

                 they reduce the package of health care that

                 they're providing.

                            Under the Senate Republicans'

                 proposal, businesses that currently provide

                 health insurance coverage for their employees

                 would not qualify for this credit unless they

                 were to eliminate their current health

                 benefits for one year, do away with health

                 insurance coverage, then create an incentive

                 for them to bring back health insurance

                 coverage at a lower level for their employees.

                            In fact, it would be an insurance

                 coverage package that was far less superior

                 than the kinds of programs we are offering and

                 trying to expand offering through Family

                 Health Plus and Child Health Plus and Healthy

                 New York.

                            Why would we want to encourage

                 businesses to do away with their health

                 insurance and then come back with a worse

                 package?  That is completely contrary to

                 public health policy in the State of New York

                 and what I thought we were all interested in.



                                                        3970



                            The concept of giving a

                 dollar-for-dollar tax credit for companies who

                 would be "angel investors" in the Excelsior

                 angel investor program, primarily insurance

                 companies, where they would get a $1 tax

                 credit for every $1 they invested?  It's a

                 free ride for, frankly, venture capital.

                            What are we doing offering free

                 rides to large corporations rather than

                 investing in education?  Yes, I will say the

                 word, although I said this bill is bad

                 regardless of the budget or CFE.

                            We all know, the research shows,

                 you invest in good education, you invest in

                 good infrastructure, you invest in good health

                 care, and you bring jobs and you hold jobs.

                 Instead, we're going into venture capital

                 models that are tax-free for corporations.

                            We're offering to give a tax credit

                 back to companies who provide life insurance

                 because we taxed them a little bit three years

                 ago.  So now that we had increased their tax

                 rate to just above 1 percent, we're concerned

                 about having to cut their taxes again.  A

                 1 percent tax rate.  Talk to the people in



                                                        3971



                 your district about their tax rate; see if

                 they're crying over a specific category of

                 corporations having a 1.05 percent franchise

                 tax and wanting to bring it down below a

                 1.01 percent tax.

                            This is a ridiculous use of our

                 money.  This bill is an outrage if you are

                 evaluating the question of tax policy,

                 progressive versus regressive, trying to think

                 through what the best interests of the people

                 of New York State are and the small businesses

                 of New York State.

                            New York State has reduced its

                 business tax percentage from 10.5 percent to

                 6.6 percent.  Some argue that that has

                 increased business opportunities in the state

                 of New York.  I argue we'd better do some

                 research and prove it corporation by

                 corporation, industry by industry.

                            Because in fact, when you do do

                 some homework, you find that some of the

                 largest corporations in the state of New York

                 who get some of the highest rates of tax

                 exemptions and tax credits in this state --

                 companies like Eastman Kodak, General



                                                        3972



                 Electric, IBM, Toys 'R Us, UPS, Wal-Mart,

                 Wegman's, and Xerox -- are actually figuring

                 how to avoid paying state taxes, in some cases

                 completely.  Toys 'R Us, Eastman Kodak and

                 Xerox actually have negative state income tax

                 liabilities, despite having substantial net

                 taxable income.

                            We have some of the largest

                 corporations in the state not paying a dime in

                 taxes to the State of New York, and we are

                 letting them do it legally by exactly these

                 types of loopholes and tax credits that are

                 being proposed today.

                            We are doing damage to the future

                 of our state and to the economy of our state.

                 We are treating our citizens, our localities,

                 and our small businesses unfairly.  This bill

                 continues to send New York in completely the

                 wrong direction when it comes to tax policy,

                 equity, the philosophy of a progressive tax

                 system, and a fairness factor that must be

                 built into our tax policies which are not

                 there today.

                            The Senate Democrats proposed some

                 corporate loophole closing.  One colleague



                                                        3973



                 here today argued that's raising a tax.  Just

                 to clarify, a corporate loophole is exactly

                 that.  It's a special exemption, a special

                 treatment of some entity.  Closing a loophole

                 addresses an equity issue for an unfair tax

                 structure.  It is not raising taxes.  It is

                 assuring the State of New York increased

                 revenue to pay for fundamental public

                 services.

                            We have been going in the wrong

                 direction on tax policy for at least the last

                 two decades in New York State.  We have

                 refused to evaluate our tax expenditure budget

                 that has grown exponentially, again to the

                 tune now of $26 billion a year that we're not

                 collecting.  And I would guess no one in this

                 room knows where that money is going, because

                 we never take a look at it.

                            This bill goes -- continues down

                 the wrong path in the absolute wrong

                 direction.  I urge everyone to vote against

                 this bill.

                            Thank you, Mr. President.

                            ACTING PRESIDENT MARCELLINO:

                 Senator Little, please.



                                                        3974



                            SENATOR LITTLE:    Thank you, Mr.

                 President.  If I may, on the bill.

                            I commend Senator Bruno, Senator

                 Skelos and all of those who have put together

                 this bill with these many tax cuts.  It was

                 put together in order to increase business in

                 New York State, and it was put together based

                 upon some of the things that need to be done

                 to increase business in New York State.

                            In one particular area I'd just

                 like to speak of, although there are many

                 parts of this bill that I think are going to

                 have tremendous impact on the business climate

                 in New York State -- and when you ask for

                 results, I think one of the things you need to

                 look at is that Sight magazine, which lists

                 the states and the areas where a business

                 would be best to look at in order to begin a

                 new business, now has New York State near the

                 top of its list, whereas it wasn't even on the

                 list several years ago.

                            The film industry, we need to

                 really and truly look at doing something for

                 the film industry.  And I don't know how

                 anyone from New York City wouldn't be in favor



                                                        3975



                 of this bill.  New York City has more film

                 companies than any other part of the state.

                 It certainly has one of the finest

                 universities for the study of film in New York

                 University.  And I would daresay it has more

                 celebrities from the film industry living in

                 New York City.

                            My own son is not a celebrity in

                 the film industry, but he is a producer for TV

                 commercials.  And many commercials are still

                 done in New York City.  That is thought to be

                 the one film business that is still okay in

                 the city.  However, the movie film industry is

                 pretty much gone from New York City.  They may

                 be doing commercials and TV shows, but not

                 movies.

                            For one thing, in entire New York

                 State, "Miracle on Ice" is a movie about the

                 win in Lake Placid of the 1980 Olympics hockey

                 game, which was so exciting.  And yet -- it

                 features Lake Placid, yet the film was filmed

                 in Canada.  And I could name numerous films

                 that have been filmed elsewhere, and yet their

                 real base is a story about something that took

                 place in New York State.



                                                        3976



                            We have beautiful areas,

                 particularly in my area, in which we have lots

                 of vacant land and mountains and lakes and

                 scenery.  We need to be attracting this

                 business.  And this tax credit to the film

                 production business is critical for New York

                 State.  And on that basis alone, we should all

                 be voting for this bill.

                            Thank you.

                            ACTING PRESIDENT MARCELLINO:

                 Senator LaValle, please.

                            Senators, we have a list that we're

                 going down.

                            SENATOR LaVALLE:    Thank you, Mr.

                 President.

                            I just want to reinforce some

                 points that Senator Bruno has made.  And

                 yesterday at the press conference, he was just

                 absolutely terrific and on point.  And he

                 talked about this tax package really being an

                 investment, and that with investments we yield

                 additional revenue.

                            And he talked about people -- let's

                 take -- we've heard so much about the movie

                 industry.  The movie industry has made movies



                                                        3977



                 in the eastern end of Long Island, in the

                 city, all over the state.  And it's something

                 we need to nurture.  But as we bring people

                 in, they go to our restaurants, they spend

                 money, they buy clothes, et cetera, et cetera,

                 et cetera.

                            And that investment -- that, by the

                 way, would be $56 million -- is within the

                 growth in our revenue stream of some

                 $250 million.  So what we're doing is really

                 taking $56 million of that $250 million and

                 making an investment in our state.

                            And it is true that if we are not

                 doing the kinds of things that other states

                 are doing -- Senator Bruno talked about

                 Louisiana and how the growth -- I think he

                 talked about a $25 million expenditure before

                 Louisiana made some tax credit investments.

                 That grew to $100 million.  And so we would

                 like to do the same kinds of thing.

                            Motor fuel oil, we passed a bill of

                 mine last week that -- right now our fishing

                 fleet will fuel up in other neighboring

                 states, in Rhode Island and so forth.  Because

                 our state says to the fishing fleet:  You



                                                        3978



                 spend the money, then put in a slip and then

                 you'll get the tax money that you spend back

                 later on.  Well, these are small business

                 operations, boat owners.  And so they would

                 rather do that in other states, whether it be

                 Connecticut or Rhode Island or Massachusetts.

                            So we are making investments

                 through this tax package.

                            One of the things that our Majority

                 Leader has the viewpoint is he can see the

                 mosaic.  And some of the Senators have spoken

                 about other issues here, other than what is in

                 this tax package.  Senator Bruno sees the

                 whole mosaic.  I believe our conference sees

                 the whole mosaic.

                            We understand that as part of the

                 budget we must make investments in education,

                 in elementary and secondary education, as well

                 as higher education.  And we will do that.

                 And we will do it to a point where members --

                 most of the members, I'm sure, will at one

                 point or another rise and be very proud of

                 what we are doing.

                            We will have a bill before us that

                 will deal with school district real property



                                                        3979



                 taxes.  That's part of the mosaic.  We will

                 deal with Medicaid reform.  That will be part

                 of the mosaic.  Doesn't have to be done today.

                 It can be done and will be done tomorrow and

                 on Monday and Tuesday and thereafter.  And I

                 think most of the members know that we will be

                 addressing these issues.

                            And sometimes I listen to members

                 on the floor and I know that they're trying to

                 make a point, and they're very passionate

                 about it.  But the fact of the matter is that

                 there is a mosaic that will be filled and

                 completed by this legislative session.

                            And once again, and I said this a

                 week or so ago, we together, members of both

                 political parties, are involved in the

                 legislative process in dealing with these

                 issues, whether it be CFE, Medicaid reform,

                 tax relief at all levels, and other kinds of

                 things that we will be proud of because we as

                 a Legislature will be making an investment in

                 New Yorkers that will go forward and do good

                 things in all of our respective communities.

                            So this is but one snapshot.  And

                 the Majority Leader yesterday -- and I wasn't



                                                        3980



                 here earlier when he was speaking, but I'm

                 sure talked about the investment that we are

                 making, a $56 million investment that will

                 yield to our economy tenfold what we are going

                 about.

                            And each piece that is in this tax

                 bill, Senator Skelos -- you know, we talk

                 about so often members get up and they say,

                 Well, you know, we haven't done enough

                 research, we haven't had enough hearings.

                 Senator Skelos and a number of us held

                 hearings around the state on the high-tech

                 piece.  And this is but one small portion of

                 what we got back throughout those hearings

                 that needed to be addressed.

                            So this package was put together in

                 a thoughtful way, in a way that used the

                 legislative process, in a way that has used

                 our intellectual capabilities here in this

                 chamber.  And I hope that the members, before

                 casting a negative vote, will at least be

                 supportive of this snapshot, because it talks

                 about the investment that we're making in

                 New Yorkers and in New York State.

                            Thank you, Mr. President.



                                                        3981



                            ACTING PRESIDENT MORAHAN:    Thank

                 you, Senator LaValle.

                            Senator Marcellino.

                            SENATOR MARCELLINO:    Thank you,

                 Mr. President.

                            Senator LaValle has eloquently

                 stated a number of the points that I was going

                 to bring up, and that is the fact that this is

                 an investment package, and we should never

                 forget that.  This is an investment in the

                 future of the economy of this country and of

                 this state.  And that's the most important

                 aspect of it.

                            When you hold a business, when you

                 keep a business in your area, it spreads.

                 Because the people who come in and support

                 that particular industry also go, as Senator

                 LaValle correctly said, and Senator Bruno and

                 Senator Skelos before, they go to other areas,

                 they buy clothes, they buy food, they use

                 cabs, they use the infrastructure, they

                 benefit the local areas in which these

                 businesses are located.

                            You know, it's nice to say, Oh,

                 it's a fairness issue, we want to close



                                                        3982



                 loopholes.  It's like saying we want to cut

                 out waste, it's going to solve the tax

                 problems in the system.  I'm still waiting for

                 that to happen.  I'm still waiting for all

                 these loopholes -- you want to close

                 loopholes, you are increasing taxes, there's

                 no doubt about that.  You are going to

                 increase taxes on those businesses.

                            And that means they're going to cut

                 jobs or they're going to not stay in this

                 state.  And that means all of our residents

                 suffer.  Those areas with high unemployment in

                 this state will suffer unless we bring

                 businesses into those areas.

                            That's what this is designed to do.

                 It's designed to hold and designed to attract.

                 That's important.  We must compete with what's

                 going on around us.  If New York State sits

                 still and raises taxes and raises fees and

                 that's all we do and that's all we stand for,

                 then we will lose in the competitiveness on

                 the states around us.

                            New Jersey, Connecticut,

                 New Hampshire, Vermont are all cutting.  And

                 we compete with them, like it or not.



                                                        3983



                 Florida, Texas, California, all of them,

                 they're cutting their taxes, they're cutting

                 to attract businesses.  From where?  From

                 New York.  They want those businesses.

                            If you don't want them in your

                 neighborhood, I want them in mine.  I want

                 them in my constituency.  I want them in the

                 5th Senate District.  If you don't want them

                 in Manhattan, Senator, send them out to us.

                 We'll take them.  We need those businesses.

                 And we need the tax base that is supported by

                 those businesses.

                            JFK cut taxes.  John F. Kennedy cut

                 taxes, and the business economy of this

                 country grew and everybody benefited.  Jimmy

                 Carter raised taxes, and the economy went down

                 the tubes.  Ronald Reagan cut taxes, and he

                 was criticized, oh, the world was going to

                 come to an end.  Yet the economy grew.  Bill

                 Clinton, in his first term, raised taxes and

                 it went down.  And when the Republicans took

                 over the Congress at the federal level, taxes

                 were cut, budget was balanced and the economy

                 grew.  George Bush cut taxes.  The economy is

                 growing as a result.



                                                        3984



                            This is what you need to do to stay

                 competitive in a global economy and in a state

                 economy.  We must support our local

                 businesspeople.  They support the jobs.  They

                 create the jobs for our people.  Our people

                 then can use that revenue and that money and

                 go out and buy the wherewithal to maintain

                 this economy.

                            This is important.  This is

                 important.  Let's not ever lose sight of that.

                 Because then you'll generate the revenue to

                 pay for those schools that we all want, to pay

                 for health care costs, to pay for all those

                 other things that we need in this state and

                 that we want for our constituents and they

                 want us to help provide for.

                            But you've got to generate revenue

                 for that.  And the worst way, the most

                 regressive way, is to cause them to lose their

                 jobs and to raise taxes on top of it.  That's

                 regressive.  We must cut taxes, stimulate the

                 economy by growing jobs and growing businesses

                 in this state, keeping businesses in this

                 state, and then the economy keeps on moving in

                 a robust way and then we can afford to pay for



                                                        3985



                 important programs.

                            Ladies and gentlemen, this is an

                 important bill.  I congratulate Senator Bruno

                 for stimulating it and getting it going.  He's

                 a leader in this area, and this conference has

                 been a leader.  We must support this, pass

                 this, and move this state forward.

                            I'm going to vote yes, and I urge

                 everyone to vote yes on this very, very

                 important bill.

                            ACTING PRESIDENT MORAHAN:    Thank

                 you, Senator Marcellino.

                            Senator Montgomery.

                            SENATOR MONTGOMERY:    Yes, Mr.

                 President, thank you.

                            My recollection or my perception or

                 understanding of the way that the tax cuts

                 work is a little different from Senator

                 Marcellino's.  But I do stand to be corrected,

                 Senator.

                            But I do have a serious problem and

                 question, an issue with the process or the

                 policy or the philosophy that if we cut our

                 revenues, if we cut ourselves on one side of

                 the balance sheet, somehow the other side,



                                                        3986



                 where we have the needs, will be taken care

                 of.  It seems to me to be an oxymoron, if

                 that's a word.  I'm not sure about it.

                            We reduce revenue at the highest

                 levels in this legislation.  And at the same

                 time, we have such important needs -- i.e.,

                 the need to fulfill our CFE responsibility,

                 along with so many other needs that the

                 citizens of our state have.  And this is not

                 targeted tax cuts to areas where we know we

                 are going to have some results.

                            I.e., if we spend money, if we do

                 targeted expenditures or investments in the

                 arts, for instance, or in tourism, both of

                 which are extremely important to the economy

                 in our state, we know that it would result in

                 jobs in communities across the state of

                 New York.

                            Why do I see more advertising from

                 the state of Louisiana than I do from upstate

                 New York, which is a beautiful state?  It is a

                 minefield of opportunities for tourism, and I

                 don't see us mining it.

                            We could create jobs, I believe, in

                 a very hospitable, in a wholesome and welcome



                                                        3987



                 manner by the people in upstate as well as in

                 New York City.  We know that when we invest in

                 housing, automatically we're going to have

                 jobs in construction, we're going to have new

                 housing, we're going to have families who can

                 move into neighborhoods, new neighborhoods,

                 stabilize those neighborhoods, families who

                 now can work and give back to the economy and

                 also pay real estate taxes.

                            We know that when we invest in

                 public transportation, there is going to be an

                 outcome associated with it.  When we invest in

                 higher education, there is an economic

                 opportunity, there is an economic outcome from

                 our investment in higher education.  It's

                 almost immediate.  When we invest in the

                 community colleges around our state, it is an

                 immediate, tangible outcome for business,

                 economy, community, local government and so

                 forth and so on.

                            So -- but what do we do?  We cut in

                 all of those areas.  We cut.  And moreover, we

                 cut taxes, which makes it impossible for us to

                 make the necessary investments.  It just makes

                 no sense to me.



                                                        3988



                            Now, I'm just looking at this

                 package of tax cuts, this wonderful

                 legislation that everybody is crowing about.

                 I would like to ask what have we -- what have

                 we, to date, to show for the hundreds of

                 millions of dollars that we have invested in

                 the Empire State authority, development

                 authority?  Where are we?  Do we have any

                 evaluation of what those dollars have bought

                 us?  What have we gained from our investment

                 for the Port Authority?  What have they done?

                 We created this Port Authority for New York

                 and New Jersey.  What did we get, what have we

                 gotten from it in the years and the decades

                 that it's been in existence?  Was the job

                 development authority worth anything?

                 Apparently not, because it's out of existence.

                 What do we get from our Jobs Now program?

                 Where are we?  What have we gotten from our

                 CATs program, which is the technology

                 investment that we've made over the years to

                 universities across the state for the

                 so-called Centers for Advanced Technology.

                 What have they produced for us?  If we don't

                 have an analysis, what does that Empire Zone



                                                        3989



                 program do for the State of New York?

                            If we don't have an analysis of the

                 direct impact of these investments in these

                 major authorities and programs that we've

                 created over the years for so-called economic

                 development, I don't know why we would go and

                 do the same thing all over again, on a bigger

                 scale, just to say that we have a program

                 that's going to do something.  And we have no

                 indication of what we have gotten based on the

                 investments that we've already made in these

                 huge economic development organs in the State

                 of New York.

                            So I would say, Mr. President, in

                 the least, we should, first of all, be

                 extremely targeted with our tax cuts.  I'm for

                 tax cuts.  But I think the citizens of this

                 state are asking us to be more logical and to

                 make sure that our policies and our programs

                 fit an outcome.  It's when we are so

                 dysfunctional and when we keep pouring money,

                 good money after bad money, continuing to

                 invest in programs that don't produce jobs,

                 that don't revitalize communities, that don't

                 help upstate neighborhoods in the long run,



                                                        3990



                 that's when people become very disillusioned

                 with us.

                            And I think, moreover, when we do a

                 tax cut and say to people we've done you a

                 favor, and they look around and they have a

                 10 percent tax increase to pay for their local

                 schools and an increase in property taxes and

                 an increase in local sales taxes -- our

                 citizens are not stupid.  They can read.  They

                 can count.  They see that money is going into

                 one hand and out of the other hand.

                            So I think that we need to be much

                 more careful, much more targeted.  We need to

                 make sure that any tax cuts are targeted to

                 businesses that will in fact create jobs and

                 be a stimulant for economic recovery and

                 economic development and not just be an

                 opportunity to say to people, oh, we're giving

                 you a tax cut.  That is not fair, it's not

                 right, and the citizens of this state are

                 correct in having lost all respect for what we

                 talk about, because what we do here is so

                 often contradictory to what they think they

                 need for their communities.

                            So Mr. President, I'm very unhappy



                                                        3991



                 with this process.  There are some wonderful

                 opportunities in this legislation.  But

                 overall, overall, I think that it will drain

                 the revenue from the state, especially on a

                 long-term basis, leaving us little opportunity

                 to do the targeted tax cuts that I mentioned

                 before which we know definitely, definitively,

                 would make a huge difference in the economy of

                 our neighborhoods throughout the state.

                            Thank you.

                            ACTING PRESIDENT MORAHAN:    Thank

                 you, Senator.

                            Senator Parker.

                            SENATOR PARKER:    On the bill, Mr.

                 President.

                            ACTING PRESIDENT MORAHAN:    On the

                 bill, Senator Parker.

                            SENATOR PARKER:    Thank you very

                 much.

                            I wanted to give some clarification

                 to some of the discussion that we're having

                 here, and first, specifically, to some

                 comments that Senator Skelos and Senator

                 Larkin made about, you know, the proposals

                 that came out of the Democratic conference and



                                                        3992



                 about them being in bill form.

                            Everybody in this chamber just had

                 an opportunity to vote on an amendment that

                 was presented that deals with this issue, that

                 in fact would have given us an opportunity to

                 put in place the proposal that David Paterson

                 and the members of the Democratic conference

                 put forth as a way to in fact deal with the

                 budget, balance it, deal with CFE, and add

                 money for all the programs that are important

                 to all of the people around this state.  And

                 we said no to it.

                            In addition, we talked about

                 Medicaid -- Medicare, sorry.  And on the issue

                 of Medicare, I have not seen a proposal,

                 despite a very vigorous task force meetings

                 and a number of people went around the state

                 and talked about the issue and there were

                 reports issued.  I have not seen legislation

                 come to this body on the issue of Medicare.

                            We do all the time, it is the order

                 of the day in Albany to do policy by press

                 release.  That is unacceptable.  It is not the

                 way we should go.  And if you bring a bill

                 here that in fact deals with the issues of



                                                        3993



                 Medicare, I'd be more than happy to consider

                 it and vote for it if it's appropriate for the

                 people of the State of New York and the people

                 of my district.

                            But it's interesting to me that,

                 you know, I have my colleagues on the other

                 side of the aisle who share the same

                 frustrations I do, so I'd like to work with

                 you on this issue.  On the issue of Medicare,

                 we understand that part of it is a federal

                 mandate.

                            And so, to me, we should be looking

                 at the impetus of the governor and a

                 Republican mayor who have not been able to get

                 the Republican president to give money to the

                 State of New York to deal with the indigent

                 populations that we have here on the issue of

                 health care.  So if people want to talk about

                 that, if people want to take a delegation down

                 to D.C. to see the president, I will take time

                 off, even in a reelection year, to make sure

                 that we're able to deal with this issue.

                            Regarding the issue of CFE, it is

                 not only germane to this bill, it is relevant

                 to every single thing that we do going



                                                        3994



                 forward.  Because technically we should not be

                 doing anything in this house or in this

                 Legislature until we deal with the budget.

                 The budget is over 2 months late, and, you

                 know, everybody is walking around like it's

                 okay.

                            You know, you talk about, you know,

                 helping businesses.  How do school districts

                 survive when they don't know what they're

                 going to do going forward?  I have nonprofit

                 organizations who are still waiting for money

                 from last year from agencies and can't get

                 that resolved.  How many thousands of

                 people -- not hundreds, thousands of people

                 work in nonprofit organizations around this

                 state, in each one of our districts, who now

                 cannot get proper dispensation of contracts

                 they have with the state because we haven't

                 passed the budget?  And no one seems to be

                 concerned about that.

                            The issue of CFE and a $100 billion

                 budget.  We have the third largest budget in

                 the entire country.  The federal government's

                 budget, the State of California, and then the

                 State of New York.  And in a $100 billion



                                                        3995



                 budget, the question is not where you get the

                 money, the question is simply about

                 priorities.

                            And my thing is if we in fact say

                 that children are our future and they are our

                 priority, then we put the money there.  Years

                 ago, we tricked the people of the State of

                 New York and said, okay, we're going to create

                 this Lotto and then we're going to take the

                 money from Lotto and put it into education.

                 Where's the Lotto money?

                            There is money out there.  Don't

                 tell me in a $100 billion budget we can't find

                 a billion dollars, a billion dollars to put

                 into education, something that we say is

                 important.

                            And I actually resent the

                 implication that the people in the Democratic

                 conference have no concerns about people

                 around the state.  We in fact argued from the

                 very beginning that the fact that we need to

                 deal with this before the special master comes

                 in is exactly because if a special master

                 comes in, the likelihood that they will in

                 fact deal with anything other than New York



                                                        3996



                 City -- it will be the major problem.

                            And we have an opportunity to here

                 to do a great deal of good for needy school

                 districts around the state, not just in New

                 York, but from Brooklyn to Buffalo to

                 Binghamton.  And we'd like to see that get

                 done.

                            And so, you know, if we -- and I'll

                 do what it takes.  I mean, you know, let's not

                 go home this weekend.  Let's not stop on the

                 22nd.  Let's continue to be here and let's

                 debate the issues and talk about how we can in

                 fact get a resolution, an agreement so we can

                 pass a budget so we deal with the CFE before

                 the deadline reaches us and we're forced into

                 a situation where our hands are tied.

                            One last thing.  I really just want

                 to thank all of my colleagues across the aisle

                 for their benevolence and their wanting to

                 help New York City.  I'm hearing over and over

                 again that New York City residents ought to

                 want this bill because it helps us in economic

                 development.

                            People are so interested in helping

                 New York City, then let's pass the budget.



                                                        3997



                 The biggest thing that will help to pass the

                 budget is not this one-house tax-relief bill,

                 but a bill that would put a budget with real

                 substance, that deals with the issues of

                 education, of health care, of housing and of

                 transportation.

                            And we should also just be clear

                 that, you know, my opposition to this bill is

                 really because there is no real evidence that

                 there are substantial relationships between

                 tax cuts, or what I would call corporate

                 welfare, and job creation.  That in fact

                 sometimes it stimulates spending, sometimes it

                 creates it in some very specific

                 circumstances.  But generally, just cutting

                 taxes does not necessarily bring people to

                 your state.

                            If you look at the things that --

                 and you can check with the Harvard Business

                 School or Wharton or whoever you want to check

                 with.  And when you look at the things that in

                 fact bring businesses to your state, it is in

                 fact having a trained and educated workforce.

                 It is having decent housing conditions.  It

                 being able to provide for the kind of health



                                                        3998



                 care that people need to have in their state

                 for their workers.  And we ought to be

                 concentrating on those things.

                            And so let's do -- you know, people

                 should -- we should pay attention to that,

                 particularly as we do revisionist history

                 about Republican Congresses improving the

                 economy in this country.

                            If we want to in fact do something

                 that's going to in fact add to pumping up the

                 economy, bring the minimum wage increase bill

                 to the floor.  Let's pass a minimum wage

                 increase for the people of the state of

                 New York.  That way we'll put more money in

                 the people in the hands of the people who

                 spend the most money.

                            The folks on the bottom who receive

                 a minimum wage spend more out of every dollar

                 in terms of retail purchases than any other

                 class of people.  Corporations and rich folks

                 who own or who fly in private jets, you know,

                 they're not putting most of their money back

                 into the economy.  It's in fact minimum-wage

                 workers.

                            So in fact if we want to do a



                                                        3999



                 single thing that will boost up the economy

                 and make people spend more money on the retail

                 level, let's in fact pass a minimum wage, put

                 money in the hands of working-class people,

                 and let's watch the economy rise.

                            ACTING PRESIDENT MORAHAN:    Thank

                 you, Senator.

                            Senator Krueger.

                            SENATOR LIZ KRUEGER:    Thank you.

                            On the bill, Mr. President.  I will

                 make this second set of presentations much

                 briefer than my first.

                            But I have to respond to statements

                 that were made implying that my position was

                 perhaps based on my concern for Manhattan over

                 other parts of the state.  Or that if I didn't

                 want the job in Manhattan, send them somewhere

                 else.

                            So for the record, this bill is

                 much worse for the people in upstate New York

                 and rural New York and even Long Island, Carl

                 Marcellino's district, than it is for my

                 district.  I would actually argue that the

                 majority of the significant tax credits and

                 exemptions in this bill will go to people who



                                                        4000



                 live in my district.

                            Where do the owners of major

                 corporations live?  My district.  Where do the

                 people who have private planes live, or their

                 businesses have private planes?  My district.

                 Where are the life insurance executives

                 living, and the companies who will take

                 advantage of the business health insurance

                 credit, which doesn't really go to small

                 businesses, but in fact goes to the health

                 insurance companies?  My district.

                            The people who will have the

                 windfall from these proposals are probably

                 disproportionately my constituents.  And they

                 might stand up and argue and even vote against

                 me, saying, Well, we love this stuff, we want

                 our taxes to be cut, we're multinational

                 corporations, we're large national

                 corporations, we're hedge fund investors, we

                 don't want to have to pay taxes to New York

                 State.

                            But I will tell you, as I told them

                 last year when I supported the tax increase on

                 the wealthiest New Yorkers, knowing that the

                 disproportionate share of those new taxes



                                                        4001



                 would also fall on the people of my district,

                 that the question is what's in the best

                 interests of the State of New York and what is

                 fair and equitable tax policy.

                            So I do not criticize this bill

                 because I somehow believe that doing so is in

                 the best interests of my district or Manhattan

                 over the interests of the people of New York.

                 I would argue that this bill to some degree is

                 written for the large corporations and the

                 heads of large corporations and special

                 interests who do live in my district, and that

                 the price that will be paid will be paid by

                 the constituents in districts like Senator Ray

                 Meier's district and Carl Marcellino's

                 district and upstate districts and Senator

                 Volker's district.

                            And that this is a question of good

                 public policy for the State of New York, not

                 what the win or loss is for any individual

                 subgroup.  Because if I made those arguments,

                 I would stand up and say this bill is fabulous

                 because most of the win will end up applying

                 to my constituents.  But it's wrong, and I

                 don't accept that.



                                                        4002



                            Thank you, Mr. President.

                            ACTING PRESIDENT MORAHAN:    Thank

                 you, Senator.

                            Read the last section.

                            Senator Meier.

                            SENATOR MEIER:    Thank you.

                            I thought we disposed of the idea

                 with Ed Koch that people in upstate New York

                 spend their time driving around in pickup

                 trucks and looking forward to the square dance

                 on Saturday night.

                            I have, within my Senate district,

                 a fairly large aircraft maintenance company.

                 I have, within my Senate district, some fairly

                 important software manufacturers.  I have,

                 within my Senate district, the beginnings of a

                 biotechnology business.  We have insurance

                 companies and banks headquartered in my Senate

                 district located in upstate New York, and this

                 bill helps them grow jobs.

                            And this business about tax cuts

                 controlling and cutting back on spending in

                 this state?  When I got here in 1997, the

                 budget was $64 billion.  It's over

                 $100 billion today.  And you're telling me



                                                        4003



                 that we're cutting spending because we cut

                 taxes?  Thanks for the levity.  I mean, it's

                 been a break in an otherwise boring day.

                            This is a good bill.  It helps

                 create private-sector jobs.  Private-sector

                 jobs create the wealth that permit us to make

                 public investment.  Period, end of story.  I'm

                 going to vote yes.

                            Thanks for your indulgence, Mr.

                 President.

                            ACTING PRESIDENT MORAHAN:    Thank

                 you, Senator.

                            Read the last section.

                            THE SECRETARY:    Section 3.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Senator Stavisky, to explain her vote.

                            SENATOR STAVISKY:    To explain my

                 vote.

                            I have been impressed with the

                 debate that I've hear here today.  And

                 listening to what everybody has had to say,



                                                        4004



                 I'm going to vote for this bill because the

                 entertainment industry in Queens County is

                 such an essential part of the economy that I

                 just think we have to do all we can to

                 encourage it.

                            ACTING PRESIDENT MORAHAN:    Thank

                 you, Senator.  You will be recorded in the

                 affirmative.

                            Announce the results.

                            THE SECRETARY:    Those recorded in

                 the negative on Calendar Number 1568 are

                 Senators Andrews, Dilan, L. Krueger,

                 Montgomery, Parker, Paterson, and Sabini.

                 Ayes, 50.  Nays, 7.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            Senator Schneiderman.

                            SENATOR SCHNEIDERMAN:    Yes, Mr.

                 President.  I would request unanimous consent

                 for myself and Senator Paterson to be recorded

                 in the negative on Calendar 1548.

                            ACTING PRESIDENT MORAHAN:    Thank

                 you.  Without objection, 1548, Senator

                 Schneiderman and Senator Paterson will be

                 recorded in the negative.



                                                        4005



                            Senator Fuschillo.

                            SENATOR FUSCHILLO:    Will you

                 recognize Senator LaValle, please.

                            ACTING PRESIDENT MORAHAN:

                 Senator LaValle.

                            SENATOR LaVALLE:    May I have

                 unanimous consent to be recorded in the

                 negative on Calendar Number 1548.

                            ACTING PRESIDENT MORAHAN:

                 Without objection, Senator LaValle will be

                 recorded in the negative on Calendar 1548.

                            Senator Fuschillo.

                            SENATOR FUSCHILLO:    Mr.

                 President, I too would like unanimous consent

                 to be recorded in the negative on that bill.

                            ACTING PRESIDENT MORAHAN:    1548?

                            SENATOR FUSCHILLO:    1548.

                            ACTING PRESIDENT MORAHAN:

                 Senator Fuschillo, without objection, will be

                 recorded in the negative on Calendar 1548.

                            SENATOR FUSCHILLO:    Mr.

                 President, will you please recognize my

                 colleague to the left, Senator Schneiderman.

                            ACTING PRESIDENT MORAHAN:

                 Senator Schneiderman.



                                                        4006



                            SENATOR SCHNEIDERMAN:    Thank you,

                 Mr. President.

                            SENATOR FUSCHILLO:    To the far

                 left.

                            SENATOR SCHNEIDERMAN:    Barry

                 Goldwater is to my colleague's left.

                            I would request unanimous consent

                 to be recorded in the negative on Calendar

                 Number 1568, please.

                            And I would thank my colleague to

                 the right for his courtesy in getting me

                 recognized.

                            ACTING PRESIDENT MORAHAN:

                 Without objection, Senator Schneiderman will

                 be recorded in the negative on 1568.

                            Senator Marcellino.

                            SENATOR MARCELLINO:    Yes, Mr.

                 President.  I'd like unanimous consent to be

                 recorded in the negative on Calendar Number

                 1548.

                            ACTING PRESIDENT MORAHAN:

                 Without objection, Senator Marcellino will be

                 recorded in the negative on Calendar Number

                 1548.

                            Senator Montgomery.



                                                        4007



                            SENATOR MONTGOMERY:    Yes, Mr.

                 President.  I would like unanimous consent to

                 be recorded in the negative on Calendar 1548.

                            ACTING PRESIDENT MORAHAN:

                 Without objection, Senator Montgomery will be

                 recorded in the negative on 1548.

                            SENATOR MONTGOMERY:    Thank you.

                            ACTING PRESIDENT MORAHAN:

                 Senator Fuschillo.

                            SENATOR FUSCHILLO:    Mr.

                 President, can we have the noncontroversial

                 reading of the supplemental calendar.

                            ACTING PRESIDENT MORAHAN:    Well,

                 I was just going to announce we've finished

                 the controversial reading of the other

                 calendar.  Now we're going to have the new

                 calendar.

                            The Secretary will read.

                            SENATOR FUSCHILLO:    Mr.

                 President.

                            ACTING PRESIDENT MORAHAN:

                 Senator Fuschillo.

                            SENATOR FUSCHILLO:    Can we please

                 return to motions and resolutions.

                            I believe there's some housekeeping



                                                        4008



                 at the desk.

                            ACTING PRESIDENT MORAHAN:    Return

                 to motions and resolutions.

                            Senator Fuschillo.

                            SENATOR FUSCHILLO:    Thank you,

                 Mr. President.

                            On behalf of Senator Little, I wish

                 to call up Senate Print Number 6066, recalled

                 from the Assembly, which is now at the desk.

                            ACTING PRESIDENT MORAHAN:    The

                 Secretary will read.

                            THE SECRETARY:    Calendar Number

                 401, by Senator Little, Senate Print 6066, an

                 act to authorize and direct.

                            SENATOR FUSCHILLO:    Mr.

                 President, I now move to reconsider the vote

                 by which the bill was passed.

                            ACTING PRESIDENT MORAHAN:    The

                 Secretary will call the roll on

                 reconsideration.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 57.

                            SENATOR FUSCHILLO:    I now offer

                 the following amendments.

                            ACTING PRESIDENT MORAHAN:    The



                                                        4009



                 amendments are received.

                            SENATOR FUSCHILLO:    Mr.

                 President, on behalf of Senator Golden, I wish

                 to call up Senate Print Number 5816, recalled

                 from the Assembly, which is now at the desk.

                            ACTING PRESIDENT MORAHAN:    The

                 Secretary will read.

                            THE SECRETARY:    Calendar Number

                 545, by Senator Golden, Senate Print 5816, an

                 act to amend the Administrative Code of the

                 City of New York.

                            SENATOR FUSCHILLO:    I now move to

                 reconsider the vote by which the bill was

                 passed.

                            ACTING PRESIDENT MORAHAN:    The

                 Secretary will call the roll on

                 reconsideration.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 57.

                            ACTING PRESIDENT MORAHAN:

                 Senator McGee.

                            SENATOR McGEE:    Mr. President, on

                 behalf of Senator LaValle, on page number 54,

                 I offer the following amendments to Calendar

                 Number 1384, Senate Print Number 1879B, and



                                                        4010



                 ask that said bill retain its place on Third

                 Reading Calendar.

                            ACTING PRESIDENT MORAHAN:    The

                 amendments are received, and the said bill

                 shall retain its place on the Third Reading

                 Calendar.

                            SENATOR McGEE:    Mr. President, on

                 behalf of Senator Wright, on page number 54, I

                 offer the following amendments to Calendar

                 Number 1375, Senate Print Number 6746A, and

                 ask that said bill retain its place on Third

                 Reading Calendar.

                            ACTING PRESIDENT MORAHAN:    The

                 amendments are received, and the bill will

                 retain its place on the Third Reading

                 Calendar.

                            SENATOR McGEE:    Mr. President, on

                 behalf of Senator Libous, on page number 47, I

                 offer the following amendments to Calendar

                 Number 1257, Senate Print Number 6827, and ask

                 that said bill retain its place on Third

                 Reading Calendar.

                            ACTING PRESIDENT MORAHAN:    The

                 amendments are received, and the bill will

                 retain its place on the Third Reading



                                                        4011



                 Calendar.

                            SENATOR McGEE:    Mr. President, on

                 behalf of Senator Nozzolio, on page number 21,

                 I offer the following amendments to Calendar

                 Number 687, Senate Print Number 1930A, and ask

                 that said bill retain its place on Third

                 Reading Calendar.

                            ACTING PRESIDENT MORAHAN:    The

                 amendments are received, and the bill will

                 retain its position on the Third Reading

                 Calendar.

                            SENATOR McGEE:    Thank you, Mr.

                 President.

                            ACTING PRESIDENT MORAHAN:    You're

                 welcome, Senator McGee.

                            The Secretary will read the

                 substitution.

                            THE SECRETARY:    On page 10,

                 Senator Spano moves to discharge, from the

                 Committee on Rules, Assembly Bill Number 5468A

                 and substitute it for the identical Senate

                 Bill Number 5803, Third Reading Calendar 320.

                            ACTING PRESIDENT MORAHAN:

                 Substitution ordered.

                            Senator Fuschillo.



                                                        4012



                            SENATOR FUSCHILLO:    Mr.

                 President, will you please recognize Senator

                 Hoffmann.

                            ACTING PRESIDENT MORAHAN:

                 Senator Hoffmann.

                            SENATOR HOFFMANN:    Thank you, Mr.

                 President.  I'd request unanimous consent to

                 be recorded in the negative on Calendar 1548.

                            ACTING PRESIDENT MORAHAN:

                 Senator Hoffmann, without objection, will be

                 recorded in the negative on Calendar 1548.

                            SENATOR HOFFMANN:    Thank you.

                            ACTING PRESIDENT MORAHAN:

                 Senator Brown.

                            SENATOR BROWN:    Mr. President,

                 thank you.  I also request unanimous consent

                 to be recorded in the negative on

                 Calendar 1548.

                            ACTING PRESIDENT MORAHAN:

                 Senator Brown, without objection, you will be

                 recorded in the negative on 1548.

                            Senator Rath.

                            SENATOR RATH:    Mr. President, I

                 request unanimous consent to be recorded in

                 the negative on 1548.  Thank you.



                                                        4013



                            ACTING PRESIDENT MORAHAN:

                 Without objection, Senator Rath will be

                 recorded in the negative on 1548.

                            The Secretary will read the

                 noncontroversial calendar.

                            THE SECRETARY:    Calendar Number

                 1569, by Senator Volker, Senate Print 242, an

                 act to amend the Penal Law, in relation to

                 consecutive terms.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect on the first of

                 November.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.

                            THE SECRETARY:    Ayes, 57.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 1571, by Senator Padavan, Senate Print --

                            SENATOR SCHNEIDERMAN:    Lay it



                                                        4014



                 aside.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is laid aside.

                            SENATOR PADAVAN:    Lay it aside

                 for the day, Mr. President.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is laid aside for the day.

                            THE SECRETARY:    Calendar Number

                 1572, by Senator DeFrancisco, Senate Print

                 1155A, an act to amend the Tax Law, in

                 relation to providing.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 7.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.

                            THE SECRETARY:    Ayes, 57.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 1573, by Senator Meier, Senate Print 1268, an



                                                        4015



                 act to amend the Executive Law and the Social

                 Services Law, in relation to making reports.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 5.  This

                 act shall take effect on the first of January.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.

                            THE SECRETARY:    Ayes, 57.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 1574, by Senator Meier, Senate Print 1271, an

                 act to amend the Tax Law, in relation to

                 exempting.

                            ACTING PRESIDENT MORAHAN:    There

                 is a local fiscal impact note at the desk.

                            Read the last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect on the first day of a

                 sales tax quarterly period.

                            ACTING PRESIDENT MORAHAN:    Call



                                                        4016



                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.

                            THE SECRETARY:    Ayes, 57.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    In relation to

                 Calendar Number 1575, Senator Sampson moves to

                 discharge, from the Committee on Finance,

                 Assembly Bill Number 3098A and substitute it

                 for the identical Senate Bill Number 1519A,

                 Third Reading Calendar 1575.

                            ACTING PRESIDENT MORAHAN:

                 Substitution ordered.

                            The Secretary will read.

                            THE SECRETARY:    Calendar Number

                 1575, by Member of the Assembly Towns,

                 Assembly Print Number 3098A, an act to amend

                 the Executive Law.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect on the 90th day.

                            ACTING PRESIDENT MORAHAN:    Call



                                                        4017



                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.

                            THE SECRETARY:    Ayes, 57.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 1576, by Senator Maltese, Senate Print 2221A,

                 an act to amend the Administrative Code of the

                 City of New York, in relation to crediting.

                            ACTING PRESIDENT MORAHAN:    There

                 is a home-rule message at the desk.

                            Read the last section.

                            THE SECRETARY:    Section 3.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.

                            THE SECRETARY:    Ayes, 57.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number



                                                        4018



                 1577, by Senator McGee, Senate Print 2952, an

                 act to amend Chapter 540 of the Laws of 1992.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.

                            THE SECRETARY:    Ayes, 57.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 1578, by Senator Robach, Senate Print 3065, an

                 act to repeal paragraph (e) of subdivision 4.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:



                                                        4019



                 Announce the results.

                            THE SECRETARY:    Ayes, 57.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 1579, by Senator Robach, Senate Print 3277, an

                 act to amend the Retirement and Social

                 Security Law, in relation to enhanced pension

                 benefits.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.

                            THE SECRETARY:    Ayes, 57.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    In relation to

                 Calendar Number 1580, Senator Robach moves to

                 discharge, from the Committee on Finance,

                 Assembly Bill Number 4357 and substitute it



                                                        4020



                 for the identical Senate Bill Number 3887,

                 Third Reading Calendar 1580.

                            ACTING PRESIDENT MORAHAN:

                 Substitution ordered.

                            The Secretary will read.

                            THE SECRETARY:    Calendar Number

                 1580, by Member of the Assembly Abbate,

                 Assembly Print Number 4357, an act to amend

                 the Executive Law.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.

                            THE SECRETARY:    Ayes, 57.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 1581, by Senator Meier, Senate Print 4085, an

                 act to amend the Labor Law, in relation to

                 security plans.



                                                        4021



                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect on the 90th day.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.

                            THE SECRETARY:    Ayes, 57.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 1582, by Senator DeFrancisco, Senate Print

                 4371A, an act to amend the Real Property Law,

                 in relation to real estate brokers.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 5.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.



                                                        4022



                            THE SECRETARY:    Ayes, 57.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 1584, by Senator Flanagan, Senate Print 4772A,

                 an act to amend the Education Law, in relation

                 to pupil transportation.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 5.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.

                            THE SECRETARY:    Ayes, 57.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 1585, by Senator Libous, Senate Print 5058A,

                 an act to amend the Tax Law, in relation to

                 the Workers with Disabilities Employment Tax

                 Credit Program.

                            ACTING PRESIDENT MORAHAN:    Read



                                                        4023



                 the last section.

                            THE SECRETARY:    Section 6.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.

                            THE SECRETARY:    Ayes, 57.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 1586, by Senator Robach, Senate Print 5464, an

                 act to amend the Correction Law, in relation

                 to uniformed personnel uniforms.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.

                            THE SECRETARY:    Ayes, 57.



                                                        4024



                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    In relation to

                 Calendar Number 1587, Senator Meier moves to

                 discharge, from the Committee on Rules,

                 Assembly Bill Number 8558A and substitute it

                 for the identical Senate Bill Number 5971A,

                 Third Reading Calendar 1587.

                            ACTING PRESIDENT MORAHAN:

                 Substitution ordered.

                            The Secretary will read.

                            THE SECRETARY:    Calendar Number

                 1587, by the Assembly Committee on Rules,

                 Assembly Print Number 8558A, an act to amend

                 the Education Law.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 3.  This

                 act shall take effect on the first of January.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.

                            THE SECRETARY:    Ayes, 56.  Nays,



                                                        4025



                 1.  Senator Duane recorded in the negative.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    In relation to

                 Calendar Number 1588, Senator Volker moves to

                 discharge, from the Committee on Codes,

                 Assembly Bill Number 10403 and substitute it

                 for the identical Senate Bill Number 6259,

                 Third Reading Calendar 1588.

                            ACTING PRESIDENT MORAHAN:

                 Substitution ordered.

                            The Secretary will read.

                            THE SECRETARY:    Calendar Number

                 1588, by Member of the Assembly A. Cohen,

                 Assembly Print Number 10403, an act to amend

                 the Civil Practice Law and Rules.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 5.  This

                 act shall take effect on the first of January.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.



                                                        4026



                            THE SECRETARY:    Ayes, 57.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 1590, by Senator Robach, Senate Print 6549, an

                 act to amend the Retirement and Social

                 Security Law, in relation to a deferred

                 retirement option.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 3.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 57.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 1591, by Senator Robach, Senate Print 6786, an

                 act to amend the Executive Law, in relation to

                 members.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 2.  This



                                                        4027



                 act shall take effect immediately.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 57.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 1592, by Senator Robach, Senate Print 6787, an

                 act to amend the Retirement and Social

                 Security Law, in relation to the

                 establishment.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.

                            THE SECRETARY:    Ayes, 57.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number



                                                        4028



                 1593, by Senator Bonacic, Senate Print 6809,

                 an act to amend the New York State Urban

                 Development Corporation Act, in relation to

                 no-interest loans.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 3.  This

                 act shall take effect on the 120th day.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.

                            THE SECRETARY:    Ayes, 57.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 1594, by Senator Maziarz, Senate Print 6946A,

                 an act to create a temporary New York State

                 French and Indian War 250th anniversary

                 commemoration commission.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 8.  This

                 act shall take effect immediately.



                                                        4029



                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.

                            THE SECRETARY:    Ayes, 57.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    In relation to

                 Calendar Number 1595, Senator Johnson moves to

                 discharge, from the Committee on Rules,

                 Assembly Bill Number 11028 and substitute it

                 for the identical Senate Bill Number 6994A,

                 Third Reading Calendar 1595.

                            ACTING PRESIDENT MORAHAN:

                 Substitution ordered.

                            The Secretary will read.

                            THE SECRETARY:    Calendar Number

                 1595, by the Assembly Committee on Rules,

                 Assembly Print Number 11028, an act to

                 authorize the Amityville Post 1015 American

                 Legion.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 2.  This



                                                        4030



                 act shall take effect immediately.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.

                            THE SECRETARY:    Ayes, 57.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Excuse me.  In

                 relation to Calendar Number 1595, ayes, 56.

                 Nays, 1.  Senator Bonacic recorded in the

                 negative.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 1597, by Senator Mendez, Senate Print 7271, an

                 act to amend the Labor Law and the State

                 Finance Law, in relation to the special

                 September 11th bidder registry.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 4.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MORAHAN:    Call



                                                        4031



                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.

                            THE SECRETARY:    Ayes, 57.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 1598, by Senator Padavan, Senate Print 7361,

                 an act to amend the Private Housing Finance

                 Law, in relation to increasing.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.

                            THE SECRETARY:    Ayes, 57.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    In relation to

                 Calendar Number 1599, Senator Mendez moves to



                                                        4032



                 discharge, from the Committee on Rules,

                 Assembly Bill Number 11250 and substitute it

                 for the identical Senate Bill Number 7381,

                 Third Reading Calendar 1599.

                            ACTING PRESIDENT MORAHAN:

                 Substitution ordered.

                            The Secretary will read.

                            THE SECRETARY:    Calendar Number

                 1599, by the Assembly Committee on Rules,

                 Assembly Print Number 11250, an act to amend

                 the Private Housing Finance Law.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.

                            THE SECRETARY:    Ayes, 57.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 1600, by the Senate Committee on Rules, Senate



                                                        4033



                 Print Number 7424, an act to amend the Tax

                 Law, in relation to authorizing.

                            ACTING PRESIDENT MORAHAN:    There

                 is a local fiscal impact note at the desk.

                            Read the last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.

                            THE SECRETARY:    Ayes, 57.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    In relation to

                 Calendar Number 1601, Senator Fuschillo moves

                 to discharge, from the Committee on Rules,

                 Assembly Bill Number 11099A and substitute it

                 for the identical Senate Bill Number 7430,

                 Third Reading Calendar 1601.

                            ACTING PRESIDENT MORAHAN:

                 Substitution ordered.

                            The Secretary will read.

                            THE SECRETARY:    Calendar Number



                                                        4034



                 1601, by the Assembly Committee on Rules,

                 Assembly Print Number 11099A, an act to

                 authorize the Mt. Clear Baptist Church.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.

                            THE SECRETARY:    Ayes, 56.  Nays,

                 1.  Senator Bonacic recorded in the negative.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 1603, by Senator DeFrancisco --

                            SENATOR SCHNEIDERMAN:    Lay it

                 aside.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is laid aside.

                            THE SECRETARY:    In relation to

                 Calendar Number 1608, Senator Libous moves to

                 discharge, from the Committee on Rules,



                                                        4035



                 Assembly Bill Number 11097A and substitute it

                 for the identical Senate Bill Number 7462,

                 Third Reading Calendar 1608.

                            ACTING PRESIDENT MORAHAN:

                 Substitution ordered.

                            The Secretary will read.

                            THE SECRETARY:    Calendar Number

                 1608, by the Assembly Committee on Rules,

                 Assembly Print Number 11097A, an act to amend

                 Chapter 723 of the Laws of 1989.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.

                            THE SECRETARY:    Ayes, 57.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            THE SECRETARY:    Calendar Number

                 1609, by the Senate Committee on Rules, Senate

                 Print Number 7468, an act to amend Chapter 266



                                                        4036



                 of the Laws of 1986.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 7.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.

                            THE SECRETARY:    Ayes, 57.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            Senator Fuschillo, that completes

                 the noncontroversial reading of the calendar.

                            SENATOR FUSCHILLO:    Mr.

                 President, will you please take up the

                 controversial reading of the calendar.

                            ACTING PRESIDENT MORAHAN:    The

                 Secretary will read.

                            THE SECRETARY:    Calendar Number

                 1603, by Senator DeFrancisco, Senate Print

                 7446, an act to amend the Penal Law, in

                 relation to allowing.

                            SENATOR SCHNEIDERMAN:



                                                        4037



                 Explanation.

                            ACTING PRESIDENT MORAHAN:

                 Senator DeFrancisco, an explanation has been

                 requested by Senator Schneiderman.

                            SENATOR DeFRANCISCO:    This bill

                 has been prepared in response to a very tragic

                 incident that occurred in Syracuse, New York,

                 where an individual by the name of Jill Cahill

                 was beaten to near death by her husband and

                 was in the hospital on respirators, lifesaving

                 equipment and the like, and her husband, while

                 on parole, went into the hospital and killed

                 her.

                            The case went up to the highest

                 court of the state, the Court of Appeals.  And

                 the Court of Appeals indicated that the death

                 penalty was not applicable because the section

                 that the prosecutor was relying on -- namely,

                 a murder happening in the course of commission

                 of another felony -- really didn't apply here

                 because the other felony was the same felony;

                 namely, the murder.  And as a result, they

                 reversed the death penalty in this case.

                            There were many dissenting judges

                 who were bewildered by this logic.  And, quite



                                                        4038



                 frankly, so am I.  If there was ever more a

                 heinous crime than killing a person who you

                 tried to kill once before, while on life

                 support equipment, I'm not quite -- I don't

                 know what that more heinous crime is that

                 would deserve the death penalty.

                            Whether you agree with the death

                 penalty or not, the fact of the matter is that

                 interpretation is hard to justify and hard to

                 in any way explain.

                            The purpose of the bill is

                 basically to make it clear that for the

                 purposes of this statute, the death penalty

                 statute, the crimes of burglary in the first

                 degree or second degree -- namely, the other

                 crime that's being committed -- may be based

                 upon the intention to commit murder as well as

                 any other type felony.

                            Probably, and hopefully, this bill

                 will never, ever be needed in the future

                 because of this type of situation.  But in

                 case it is, we wanted to make certain that the

                 intent of the Legislature, which I thought was

                 clear in this section before that death

                 penalty decision, is very, very clear so



                                                        4039



                 there's no judicial legislating again in this

                 type of case.

                            And that's the purpose of the bill,

                 and that's the purpose of the legislation that

                 I'm proposing today.

                            ACTING PRESIDENT MORAHAN:    Thank

                 you, Senator DeFrancisco.

                            Senator Schneiderman.

                            SENATOR SCHNEIDERMAN:    Thank you,

                 Mr. President.  On the bill.

                            ACTING PRESIDENT MORAHAN:

                 Senator Schneiderman, on the bill.

                            SENATOR SCHNEIDERMAN:    The

                 difficulty I have with this piece of

                 legislation is that the statute that the

                 sponsor is seeking to amend is a statute that

                 provides for the death penalty under

                 circumstances in which the defendant was in

                 the course of committing or attempting to

                 commit a series of crimes.  They're enumerated

                 crimes.  Not every crime is a predicate

                 offense for the application of the death

                 penalty statute.

                            What this bill would do,

                 essentially, is to say for the purposes of



                                                        4040



                 this subparagraph, the crime of burglary in

                 the first or second degree is being redefined

                 to omit all of the requirements under Section

                 140.25 and 140.30 of the Penal Law for

                 burglary in the first and second degree.

                            What this, I believe, is attempting

                 to do is to say we're eliminating the

                 requirement that you have to be in the process

                 of committing or attempting to commit another

                 crime when you commit a homicide in order to

                 apply the death penalty.  Every time someone

                 goes into a place, you know, trespasses with

                 the intent to commit murder, that's

                 intentional murder.  But that's not murder in

                 the course of committing a separate crime.

                            So I think what the sponsor is

                 trying to do is really turn a horse into a

                 cow.  If we have a statute, whatever our views

                 of the death penalty are, that says we only

                 apply the death penalty when the homicide is

                 committed while the defendant was attempting

                 to commit or committing a particular type of

                 crime, this removes that requirement

                 completely.

                            Anytime someone enters a building



                                                        4041



                 to commit murder, it's just intentional

                 murder, intentional homicide.  It's not a

                 homicide committed in the course of a separate

                 crime.

                            It sounds as though, under the

                 facts of this case, someone committed

                 trespass, which is not a crime as a predicate

                 for applying the death penalty.  If you walk

                 into a hospital with the intent to kill

                 someone, you're committing intentional

                 homicide.  But you're not committing homicide

                 in the course of a separate and independent

                 crime.

                            So I'm going to vote no on this

                 bill, and I think that it's -- if the

                 sponsor's purpose is to say anytime someone

                 commits trespass, goes into a building with

                 the intent to commit homicide, that should be

                 subject to the death penalty, then let's say

                 it that way.  And we can have a debate on

                 that.

                            That's really what this statute

                 would do.  It's just done in a very bizarre

                 way by attempting to redefine, for the

                 purposes of this subparagraph, burglary in the



                                                        4042



                 first or second degree.

                            I oppose expansion on the death

                 penalty.  I think that we should have, in

                 fact, a moratorium on the death penalty in

                 this state while we address issues that are

                 being raised in other states around the

                 country.

                            But I certainly don't support an

                 effort to slip in through the back door an

                 exception to the rule of this existing statute

                 that says the death penalty shall only be

                 applied when it's to a homicide committed in

                 the course of the commission of another crime.

                            This would completely eviscerate

                 that requirement, and I therefore oppose the

                 statute and would urge that if the sponsor's

                 intention is to address situations such as

                 that raised by People v. Cahill, a different

                 form of drafting would be required.

                            Thank you, Mr. President.

                            ACTING PRESIDENT MORAHAN:    Thank

                 you, Senator Schneiderman.

                            Senator Volker, to explain your

                 vote?

                            SENATOR VOLKER:    Yeah, I can do



                                                        4043



                 that if you'd prefer.  Yeah, all right, I'll

                 do that.  I'll explain my vote.  Go ahead,

                 call up the roll.

                            ACTING PRESIDENT MORAHAN:    Read

                 the last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT MORAHAN:

                 Senator Volker, to explain his vote.

                            SENATOR VOLKER:    Mr. President, I

                 would agree with Senator Schneiderman except

                 for one thing.

                            The Court of Appeals obliterated,

                 in a sense, our statute and made an

                 interesting decision.  The reason this bill is

                 necessary is only because our Court of Appeals

                 decided they don't like juries and they looked

                 into the mind of the jury and said:  You made

                 a decision here on the issue of crimes, but

                 we're telling you that's not what happened

                 here.

                            The problem with this -- I'm not in



                                                        4044



                 favor of expanding the death penalty right now

                 either, Eric.  I just want you to know that.

                            This doesn't expand the death

                 penalty.  This says to some judges who said we

                 are more capable of judging a person's

                 intention and of looking into the issue of how

                 a crime is determined than jurors are -- it is

                 an outrageous case, by the way, that has been

                 looked at by a lot of people who are

                 anti-death penalty as an attack on our jury

                 system.

                            But it is not an attack on our jury

                 system.  What it is, very honestly, is a Court

                 of Appeals that to a certain extent has lost

                 its way.  And I don't like saying this, but I

                 have to tell you, if I had my ability to pull

                 back my vote on the chief judge of the Court

                 of Appeals based on what's happened in the

                 last two years, I would do it.  And I was

                 there.  Because I think that the Court of

                 Appeals to a certain extent has lost its way.

                            Okay, they don't like the death

                 penalty; rule on the law.  The same thing is

                 drew with CFE, which they had absolutely no

                 authority to do.  They have no authority to



                                                        4045



                 tell us to spend money in any way they please.

                 It's outrageous.  And I think it's time that I

                 said it.  I know that it's not popular with

                 the press, but so what?

                            But Senator DeFrancisco has this

                 bill only because our Court of Appeals is

                 playing a game with the law, and that's wrong.

                            ACTING PRESIDENT MORAHAN:    Thank

                 you, Senator Volker.

                            Senator DeFrancisco.

                            SENATOR DeFRANCISCO:    Just to

                 explain my vote.

                            It's hornbook law, I think, still

                 that a burglary is defined as breaking and

                 entering with intent to commit a crime

                 therein.  And what this statute said

                 originally was that if you commit a burglary

                 and in the course of committing that crime you

                 commit a murder, it's a death penalty case.

                            What the court determined was

                 breaking and entering and trespassing in a

                 hospital disguised where he was trying to get

                 into the location where his wife was, was not

                 a crime.

                            Well, I believe it was a crime.



                                                        4046



                 And so that the law is clear, we made it very

                 clear that that is a crime that you're

                 committing, and therefore a burglary, and it

                 fits in the felony burglary rule.

                            If this -- if it was meant -- it's

                 so almost ludicrous that if he broke into the

                 hospital and broke into a vending machine and

                 took some candy before he went up and

                 bludgeoned her to death while she's on a

                 respirator, that would have fit the

                 death-penalty statute, according to the

                 court's interpretation.  That's absurd.

                            And that's all this bill is meant,

                 not to expand anything, but to say when we

                 have a bill, it should be read and interpreted

                 in the common ordinary sense of the word.  And

                 this is exactly what -- words in the bill.

                 And that's exactly what the dissent said in

                 the Cahill case.

                            ACTING PRESIDENT MORAHAN:

                 Announce the results.

                            THE SECRETARY:    Those recorded in

                 the negative on Calendar Number 1603 are

                 Senators Andrews, Connor, Duane, L. Krueger,

                 Oppenheimer, Parker, Paterson, Schneiderman,



                                                        4047



                 A. Smith, and Stavisky.  Ayes, 47.  Nays, 10.

                            ACTING PRESIDENT MORAHAN:    The

                 bill is passed.

                            Senator Fuschillo.

                            SENATOR FUSCHILLO:    Mr.

                 President, is there any housekeeping at the

                 desk?

                            ACTING PRESIDENT MORAHAN:    Yes,

                 there is.

                            SENATOR FUSCHILLO:    Mr.

                 President, before we go to housekeeping, will

                 you please recognize Senator Montgomery.

                            ACTING PRESIDENT MORAHAN:

                 Senator Montgomery.

                            SENATOR MONTGOMERY:    Yes, I would

                 like unanimous consent to be recorded in the

                 negative on Calendar 1603.

                            ACTING PRESIDENT MORAHAN:

                 Without objection, Senator Montgomery will be

                 recorded in the negative on Calendar 1603.

                            Senator McGee.

                            SENATOR McGEE:    Mr. President, I

                 wish to call up my bill, Print Number 2776C,

                 recalled from the Assembly, which is now at

                 the desk.



                                                        4048



                            ACTING PRESIDENT MORAHAN:    The

                 Secretary will read.

                            THE SECRETARY:    Calendar Number

                 471, by Senator McGee, Senate Print 2776C, an

                 act to amend the Vehicle and Traffic Law.

                            SENATOR McGEE:    Mr. President, I

                 now move to reconsider the vote by which this

                 bill was passed.

                            ACTING PRESIDENT MORAHAN:    Call

                 the roll on reconsideration.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 57.

                            SENATOR McGEE:    Mr. President, I

                 now offer the following amendments.

                            ACTING PRESIDENT MORAHAN:    The

                 amendments are received.

                            SENATOR McGEE:    Mr. President, on

                 behalf of Senator Marcellino, on page

                 number 50 I offer the following amendments to

                 Calendar Number 1313, Senate Print Number

                 905B, and ask that said bill retain its place

                 on Third Reading Calendar.

                            ACTING PRESIDENT MORAHAN:    The

                 amendments are received, and the bill will

                 retain its position on the Third Reading



                                                        4049



                 Calendar.

                            SENATOR McGEE:    Thank you, Mr.

                 President.

                            ACTING PRESIDENT MORAHAN:    You're

                 welcome, Senator McGee.

                            Senator Fuschillo, that's the end

                 of the housekeeping.

                            SENATOR FUSCHILLO:    Mr.

                 President, there being no further business, I

                 move we adjourn until Thursday, June 17th, at

                 11:00 a.m.

                            ACTING PRESIDENT MORAHAN:    On

                 motion, the Senate stands adjourned until

                 Thursday, June 17th, at 11:00 a.m.

                            (Whereupon, at 3:34 p.m., the

                 Senate adjourned.)