Regular Session - August 11, 2004

    

 
                                                        5715



                           NEW YORK STATE SENATE





                          THE STENOGRAPHIC RECORD









                             ALBANY, NEW YORK

                              August 11, 2004

                                 2:19 p.m.





                              REGULAR SESSION







            SENATOR PATRICIA K. McGEE, Acting President

            STEVEN M. BOGGESS, Secretary















                                                        5716



                           P R O C E E D I N G S

                            ACTING PRESIDENT McGEE:    The

                 Senate will come to order.

                            I ask everyone present to please

                 rise and repeat with me the Pledge of

                 Allegiance.

                            (Whereupon, the assemblage recited

                 the Pledge of Allegiance to the Flag.)

                            ACTING PRESIDENT McGEE:    In the

                 absence of clergy, may we bow our heads for a

                 moment of silence.

                            (Whereupon, the assemblage

                 respected a moment of silence.)

                            ACTING PRESIDENT McGEE:    Reading

                 of the Journal.

                            THE SECRETARY:    In Senate,

                 Tuesday, August 10, the Senate met pursuant to

                 adjournment.  The Journal of Monday, August 9,

                 was read and approved.  On motion, Senate

                 adjourned.

                            ACTING PRESIDENT McGEE:    Without

                 objection, the Journal stands approved as

                 read.

                            Presentation of petitions.

                            Messages from the Assembly.



                                                        5717



                            Messages from the Governor.

                            Reports of standing committees.

                            Reports of select committees.

                            Communications and reports from

                 state officers.

                            Motions and resolutions.

                            Senator Nozzolio.

                            SENATOR NOZZOLIO:    Thank you,

                 Madam President.

                            On behalf of Senator Farley, I wish

                 to call up Print Number 7710, recalled from

                 the Assembly, which is now at the desk.

                            ACTING PRESIDENT McGEE:    The

                 Secretary will read.

                            THE SECRETARY:    Calendar Number

                 1910, by Senator Farley, Senate Print 7710, an

                 act to amend the Banking Law.

                            ACTING PRESIDENT McGEE:    Senator

                 Nozzolio.

                            SENATOR NOZZOLIO:    Madam

                 President, I now move to reconsider the vote

                 by which this bill was passed.

                            ACTING PRESIDENT McGEE:    Call the

                 roll on reconsideration.

                            (The Secretary called the roll.)



                                                        5718



                            THE SECRETARY:    Ayes, 43.

                            ACTING PRESIDENT McGEE:    Senator

                 Nozzolio.

                            SENATOR NOZZOLIO:    Madam

                 President, on behalf of Senator Farley, I

                 offer the following amendments.

                            ACTING PRESIDENT McGEE:

                 Amendments received.

                            SENATOR NOZZOLIO:    Senator, my

                 pleasure.

                            ACTING PRESIDENT McGEE:    Senator

                 Skelos.

                            SENATOR SKELOS:    Madam President,

                 there will be an immediate meeting of the

                 Finance Committee in the Majority Conference

                 Room.

                            ACTING PRESIDENT McGEE:

                 Immediate meeting of the Finance Committee in

                 the Majority Conference Room.

                            Senator Skelos.

                            SENATOR SKELOS:    Madam President,

                 if we could stand at ease.

                            ACTING PRESIDENT McGEE:    The

                 Senate will stand at ease.

                            (Whereupon, the Senate stood at



                                                        5719



                 ease at 2:22 p.m.)

                            (Whereupon, the Senate reconvened

                 at 2:37 p.m.)

                            ACTING PRESIDENT McGEE:    Senator

                 Skelos.

                            SENATOR SKELOS:    Madam President,

                 if we could return to report of standing

                 committees, I believe there's a report of the

                 Finance Committee at the desk.  I ask that it

                 be read at this time.

                            ACTING PRESIDENT McGEE:    The

                 Secretary will read.

                            THE SECRETARY:    Senator Johnson,

                 from the Committee on Finance, reports the

                 following bills:

                            Senate Print 6050B, Senate Budget

                 Bill, an act making appropriations for the

                 support of government;

                            6056B, Senate Budget Bill, an act

                 to amend the Insurance Law and others;

                            And Senate Print 7712, by the

                 Senate Committee on Rules, an act in relation

                 to implementing certain provisions.

                            All bills ordered direct to third

                 reading.



                                                        5720



                            ACTING PRESIDENT McGEE:    Without

                 objection, all bills are ordered directly to

                 third reading.

                            Senator Skelos.

                            SENATOR SKELOS:    Madam President,

                 if we could just stand at ease for about two

                 moments.

                            ACTING PRESIDENT McGEE:    The

                 Senate will stand at ease for a moment.

                            (Whereupon, the Senate stood at

                 ease at 2:38 p.m.)

                            (Whereupon, the Senate reconvened

                 at 2:42 p.m.)

                            ACTING PRESIDENT McGEE:    Senator

                 Skelos.

                            SENATOR SKELOS:    Thank you, Madam

                 President.  Would you please call up Calendar

                 Number 1918.

                            ACTING PRESIDENT McGEE:    The

                 Secretary will read.

                            THE SECRETARY:    Calendar Number

                 1918, Senate Budget Bill, Senate Print 6050B,

                 an act making appropriations for the support

                 of government:  Public Protection and General

                 Government Budget.



                                                        5721



                            SENATOR SCHNEIDERMAN:

                 Explanation.

                            ACTING PRESIDENT McGEE:    Senator

                 Volker, an explanation has been requested.

                            SENATOR VOLKER:    Madam President,

                 this is the public protection and general

                 government bill which has been agreed to

                 between the Senate and Assembly.  And it

                 provides, among other things, around

                 $400 million in homeland security funding and

                 for terrorism funding.

                            It's broken down in a number of

                 areas.  It also provides money for indigent

                 parolees, it provides money for district

                 attorneys and considerable money in the

                 criminal justice area, diversion money and so

                 forth.

                            It also provides money for a number

                 of the state offices, such as the Office of

                 Lieutenant Governor, Division of Military and

                 Naval Affairs.  And it also provides for

                 various spin-ups for cities in upstate

                 New York, for the cities of Buffalo,

                 Rochester, Syracuse, and Auburn, Corning, and

                 so forth.



                                                        5722



                            So it is an extensive bill which

                 really mirrors public protection and general

                 government bills which have passed in the last

                 few years.

                            In fact, one of the things I

                 pointed out is that some of the money in this

                 budget, as relating to specific areas of

                 training and so forth, actually mirrors the

                 money that we did in the last conference

                 committee that we did here a few years ago.

                 And I just wanted to point that out, since I

                 was one of the people that ran the conference

                 committee.

                            ACTING PRESIDENT McGEE:    Senator

                 Hassell-Thompson.

                            SENATOR HASSELL-THOMPSON:    Yes,

                 thank you, Madam President.

                            Madam President, I believe there's

                 an amendment at the desk.  And I ask that the

                 reading of the amendment be waived, and I also

                 ask to be heard on the amendment.

                            ACTING PRESIDENT McGEE:    The

                 reading is waived, and you may be heard on the

                 amendment.

                            SENATOR HASSELL-THOMPSON:    Thank



                                                        5723



                 you.

                            The first-responders hostile

                 amendment is given in view of just raising

                 some very serious and some very interesting

                 aspects.

                            If we were to add $20 million more

                 for state and local first-responders, this

                 would make a significant difference to the

                 State of New York.  New York remains at the

                 top of Al Qaeda's list of potential targets.

                 And as a state where the orange alert has

                 become the norm for the state and its

                 institutions, local law enforcement agencies

                 are being asked to take on more and more

                 responsibility to protect our communities

                 across this state.

                            Following the attacks of

                 September 11th, police and fire departments

                 have had to shuffle job assignments, mandatory

                 overtime, and increasing the numbers of

                 recruiting efforts.  Many police chiefs have

                 been forced to pay overtime, borrow officers

                 from other agencies, and put more volunteers

                 on the streets.  Some police departments are

                 now recruiting retired police officers to fill



                                                        5724



                 the gap.

                            Police precincts in New York City

                 have reduced their forces by more than 3,000

                 officers since the year 2001.  And although no

                 layoffs have occurred, through attrition, we

                 have not brought in new -- we have not filled

                 these unfilled positions.

                            Due to the budget cuts and our

                 shortfalls, a significant reduction in federal

                 support, many of our localities are cutting

                 their police forces and they're closing

                 innovative law enforcement units that helped

                 to reduce crime in the 1990s.

                            From 1995 to 2000, officers hired

                 in Albany with COPS funds prevented 141

                 violent crimes and 561 property crimes.

                 Officers hired in Schenectady with COPS

                 funding prevented 77 violent crimes and 318

                 property crimes, while officers hired in

                 Troy -- and the numbers go on and on and on as

                 we go from city to city.

                            Between 1994 and 2002, New York has

                 reduced crime by 49 percent.  And that's not

                 by accident, but rather that is by the valiant

                 efforts of our men and women who are police



                                                        5725



                 officers across this state.  However, they

                 need more resources to continue to fight crime

                 effectively.

                            Firefighters too have suffered

                 sharp reductions in funding.  In 2003, six

                 fire stations were closed due to budget cuts,

                 endangering firefighters, victims and entire

                 neighborhoods whenever a fire may break out.

                 Many fire departments still lack adequate

                 communications systems and other basic

                 equipment, like breathing apparatus.

                            Federal funding for grants to local

                 police, fire, and emergency medical agencies

                 are being cut from $4.2 billion in fiscal year

                 2004 to $3.5 billion in fiscal year 2005, more

                 than a 15 percent decrease.

                            While these may sound like numbers

                 to you, it speaks to the fact that violent

                 crime is now again on the increase and more

                 funding is needed to maintain the successes

                 that were achieved in making New York safer in

                 the 1990s.

                            Please add $20 million more for our

                 state and first-responders.  They are our

                 first responders.



                                                        5726



                            Thank you, Madam President.

                            ACTING PRESIDENT McGEE:    Senator

                 Lachman.

                            SENATOR LACHMAN:    Yes, I rise to

                 speak in favor of the hostile amendment

                 introduced by Senator Hassell-Thompson.

                            I think it's an excellent

                 amendment, and I will support it.  And I will

                 support it for the reason of greater police

                 security, which does not exist, unfortunately,

                 in many working-class, lower-income areas.

                 The bill would enhance police protection and

                 fire protection in low-income and

                 moderate-income areas such as my district,

                 which includes Staten Island.

                            I would even go further.  We all

                 suffered during 9/11, but percentage-wise, the

                 Borough of Staten Island lost more

                 firefighters, more police officers than any

                 other borough in the City of New York.  And

                 these are working-class people.

                            What we need now is greater

                 strength and security to enable us to hire

                 more police officers and more firefighters in

                 Staten Island, in the five boroughs, and in



                                                        5727



                 the entire State of New York.

                            Thank you.

                            ACTING PRESIDENT McGEE:    Senator

                 Brown.

                            SENATOR BROWN:    Thank you, Madam

                 President.

                            Let me also rise briefly to support

                 the amendment that calls for an additional

                 $20 million for state and local

                 first-responders.

                            I think Senator Hassell-Thompson

                 laid it out well when she highlighted the fact

                 that Al Qaeda seems to still be very focused

                 on New York State.  And this is not just the

                 City of New York, this is the entire State of

                 New York.

                            I think when you look at our

                 population centers outside New York City --

                 Albany, Syracuse, Rochester, Buffalo, where I

                 come from -- there's a real need to give

                 first-responders the financial tools that they

                 require to be able to keep police departments

                 and fire departments strong and well-staffed

                 with the appropriate number of personnel.

                            I know that in Western New York,



                                                        5728



                 when we look at Buffalo and we look at Niagara

                 Falls, we're on the Canadian border.  And when

                 Secretary Ridge just a few days ago talked

                 about some of the areas of focus for Al Qaeda,

                 the border between the United States and

                 Canada was looked at as a -- was mentioned as

                 a secondary target.

                            So I think for those reasons we

                 certainly have to look at this amendment and

                 we have to look at the need for this funding

                 in New York State.

                            You know, let me also suggest --

                 and I think it was also pointed out by Senator

                 Lachman and Senator Hassell-Thompson -- that

                 the federal commitment, unfortunately, to

                 important programs that put more police on our

                 streets and kept fire departments fully

                 staffed seems to be reduced significantly.

                            I know that in the City of Buffalo,

                 through attrition, we too have lost a lot of

                 police officers.  And with the loss of police

                 officers this year we have seen an

                 uncomfortable, an unpleasant spike in violent

                 crime, where our homicide rate has jumped by

                 astronomical numbers.  And I can only tie that



                                                        5729



                 back to the fact that we do have less police

                 officers on our streets.

                            I think that this additional

                 $20 million that the amendment calls for

                 merits support, and I'm calling on all my

                 colleagues in the chamber to support this

                 amendment.

                            Thank you, Madam President.

                            ACTING PRESIDENT McGEE:    Senator

                 Stavisky.

                            SENATOR STAVISKY:    Madam

                 President, on the amendment.

                            We currently have put an extra

                 strain, a burden on the New York City Police

                 Department, the NYPD.  I represent a district

                 in Queens County, and there's a special burden

                 being placed on the NYPD precincts in Queens

                 County because we have to respond to any

                 incidents that occur on Roosevelt Island.  And

                 Roosevelt Island, as you know, is attached to

                 Manhattan.  It is part, I believe, of the

                 Manhattan community planning districts, the

                 school districts and so on.

                            And yet, because of the uniqueness

                 of Roosevelt Island, the precincts in Queens



                                                        5730



                 are the first responders.  It is -- the only

                 way, aside from the tram, that you can get to

                 Roosevelt Island is by automobile through

                 Queens County.  And therefore, my precincts

                 are being overburdened, they are losing time

                 in their responses because we have to service

                 the people on Roosevelt Island.

                            And I think this amendment

                 introduced by Senator Hassell-Thompson is a

                 very, very constructive step toward

                 alleviating this municipal overburden, if you

                 will, on the New York City and the Queens

                 County police department.

                            ACTING PRESIDENT McGEE:    Those

                 Senators in agreement with the amendment

                 please signify by raising your hands.

                            THE SECRETARY:    Those recorded in

                 agreement are Senators Brown, Diaz, Dilan,

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

                 C. Kruger, Lachman, Montgomery, Onorato,

                 Parker, Paterson, Sabini, Sampson,

                 Schneiderman, A. Smith, Stachowski, and

                 Stavisky.

                            ACTING PRESIDENT McGEE:    The

                 amendment is lost.



                                                        5731



                            Senator Montgomery.

                            SENATOR MONTGOMERY:    Yes, Madam

                 President, I believe there's an amendment at

                 the desk.  I ask that the reading of the

                 amendment be waived, and I would like to be

                 heard on the amendment.

                            ACTING PRESIDENT McGEE:    The

                 reading is waived, and you may be heard on the

                 amendment.

                            SENATOR MONTGOMERY:    Thank you.

                            Madam President, I think that

                 Senator Hassell-Thompson acknowledged, as I

                 do, that I'm very pleased with the

                 restorations that have been made by the

                 Legislature.  And certainly I don't intend to

                 represent that I do not agree with the passing

                 of this part of our budget.

                            However, there is an extremely

                 important aspect that is missing.  And as I

                 raised yesterday the issue of the funding for

                 youth employment, today I raise the issue of

                 funding for alternatives to incarceration.

                 And I see those as being related.

                            I have, in my district, a community

                 court, and the success of that court depends



                                                        5732



                 on the fact that the judge in that court has

                 access to 14 different agencies, a number of

                 them offering alternatives to incarceration

                 where he can assign people to one or the other

                 or several of those agencies and programs, to

                 keep us from spending, in the case of a young

                 person, $90,000 a year or, in the case where

                 if he were in a regular court and they were

                 remanded to prison, we would be spending

                 $40,000 to $50,000.

                            So these are programs that save

                 money, offer alternatives for the judges, for

                 courts, for the district attorneys, and are an

                 extremely important aspect of reducing

                 recidivism as well as helping communities to

                 be able to accommodate people without sending

                 them to long-term incarceration.

                            And so I ask that my colleagues on

                 the other side join me in restoring this

                 funding.  Certainly at least over 150 programs

                 across the state would benefit tremendously.

                 This is really money that would be going to

                 communities.  And it would be helping to

                 strengthen the capacity of communities to

                 accommodate people in their own communities.



                                                        5733



                            This I recognize, Madam President,

                 comes from the donkey side of the house, but I

                 invite the elephants to join the donkeys.  Let

                 us vote together, today in our animal house --

                            (Laughter.)

                            SENATOR MONTGOMERY:    -- yes on

                 this amendment.

                            Thank you, Madam President.

                            ACTING PRESIDENT McGEE:    Thank

                 you, Senator Montgomery.

                            Senator Diaz, you wish to speak on

                 the amendment?

                            SENATOR DIAZ:    Yes.

                            ACTING PRESIDENT McGEE:    Senator

                 Diaz, on the amendment.

                            SENATOR DIAZ:    Yes, Madam

                 President, on the amendment.

                            Again, I represent the 32nd

                 Senatorial District in the Bronx.  And one

                 more time we're hearing Senator Montgomery

                 presenting an amendment to restore money for

                 our communities.  Every time -- this is my

                 second year in this animal house, as she

                 called it.  And every amendment that has been

                 presented to restore money for poor



                                                        5734



                 communities has been presented by this side of

                 the aisle, by us Democrats.

                            And it is sad to see that every

                 time that we Democrats present an amendment to

                 restore money to help our communities, they're

                 always rejected by our colleagues on the

                 Republican side.  I don't mean to say that our

                 colleagues on the other side don't care about

                 our communities.  I'm just saying that for

                 whatever reason, we are the ones presenting

                 always amendments to restore money.

                            Yesterday we presented an amendment

                 to restore $10 million for youth and summer

                 programs for our youth, and it was declined,

                 denied, rejected, with the vote of the

                 Republicans, and only us Democrats voted for

                 it.

                            We presented an amendment to

                 restore money for children and families and

                 health, and again, that amendment to restore

                 money for children and families was rejected

                 by the other side, and only us Democrats voted

                 in favor of the amendment.

                            We presented an amendment to

                 restore $20 million for the first responders,



                                                        5735



                 meaning firemen and firehouses.  One more time

                 we have seen that amendment going down the

                 drain with the vote of the other side of the

                 house and only us Democrats voting for it.

                            Now there is another amendment here

                 presented by Senator Montgomery.  When, when

                 is it that the other house -- the other side,

                 the elephant side -- will join us, the

                 Democrats, in restoring money to help our poor

                 communities, our communities in need in our

                 cities?  It is a shame to see this amendment

                 now again going down the drain, like many

                 other amendments that would benefit our

                 communities.

                            So I'm calling on the other side to

                 join us now, and let's approve this amendment

                 once and for all.  And let's show the whole

                 state that we are together here and that we

                 care about our communities.

                            Thank you.

                            ACTING PRESIDENT McGEE:    Those

                 Senators in agreement with the amendment

                 please signify by raising your hands.

                            THE SECRETARY:    Those recorded in

                 agreement are Senators Breslin, Brown, Diaz,



                                                        5736



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

                 Krueger, Lachman, Montgomery, Onorato,

                 Oppenheimer, Parker, Paterson, Sabini,

                 Schneiderman, A. Smith, Stachowski, and

                 Stavisky.

                            ACTING PRESIDENT McGEE:    The

                 amendment is not agreed to.

                            The Secretary will read.

                            THE SECRETARY:    In relation to

                 Calendar Number 1918, Senator Johnson moves to

                 discharge, from the Committee on Finance,

                 Assembly Bill Number 9550B and substitute it

                 for the identical Senate Bill Number 6050B,

                 Third Reading Calendar 1918.

                            ACTING PRESIDENT McGEE:

                 Substitution ordered.

                            The Secretary will read.

                            THE SECRETARY:    Calendar Number

                 1918, Assembly Budget Bill, Assembly Print

                 Number 9550B, an act making appropriations for

                 the support of government.

                            ACTING PRESIDENT McGEE:    Read the

                 last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.



                                                        5737



                            ACTING PRESIDENT McGEE:    Call the

                 roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT McGEE:    Senator

                 Krueger, to explain your vote.

                            SENATOR LIZ KRUEGER:    To explain

                 my vote.

                            Thank you, Madam President.  On the

                 bill.

                            I do think that we made some

                 improvements in this bill over the Governor's

                 proposed bill.  But as I said yesterday on the

                 budget bill and will stand by today, we should

                 not be doing expenditure bills before we do

                 revenue bills for the State of New York.  We

                 don't know what our budget availability is,

                 and yet we're spending the money.

                            So I will vote no on this bill.

                            Thank you, Madam President.

                            ACTING PRESIDENT McGEE:    Senator

                 Krueger, are you recorded in the affirmative?

                            SENATOR LIZ KRUEGER:    In the

                 negative.

                            ACTING PRESIDENT McGEE:    Senator

                 Krueger will be recorded in the negative.



                                                        5738



                            THE SECRETARY:    Those recorded in

                 the negative on Calendar Number 1918 are

                 Senators Duane, Hassell-Thompson, and L.

                 Krueger.  Ayes, 51.  Nays, 3.

                            ACTING PRESIDENT McGEE:    The bill

                 is passed.

                            Senator Skelos.

                            SENATOR SKELOS:    Madam President,

                 would you please call up Calendar Number 1919.

                            ACTING PRESIDENT McGEE:    The

                 Secretary will read.

                            THE SECRETARY:    In relation to

                 Calendar Number 1919, Senator Johnson moves to

                 discharge, from the Committee on Finance,

                 Assembly Bill Number 9556B and substitute it

                 for the identical Senate Bill Number 6056B,

                 Third Reading Calendar 1919.

                            ACTING PRESIDENT McGEE:

                 Substitution ordered.

                            The Secretary will read.

                            THE SECRETARY:    Calendar Number

                 1919, Assembly Budget Bill, Assembly Print

                 Number 9556B, an act to amend the Insurance

                 Law and the State Finance Law.

                            ACTING PRESIDENT McGEE:    Read the



                                                        5739



                 last section.

                            THE SECRETARY:    Section 2 --

                            ACTING PRESIDENT McGEE:    Senator

                 Schneiderman.

                            SENATOR SCHNEIDERMAN:    Madam

                 President, very briefly on the bill.

                            This is the language bill

                 accompanying the appropriation bill we just

                 voted on.  I also will vote in support of this

                 legislation.  And this bill in particular has

                 the language in it restoring some of the most

                 critical cuts that we are -- shortsighted cuts

                 that the Executive made that we are fixing

                 with this legislation.  In particular, I am

                 pleased at keeping some of the facilities

                 open -- the Fulton work-release prison in the

                 Bronx and others.

                            And so I will be voting for this

                 bill, as I did for the bill that we just voted

                 on.  And I'd like to thank the sponsor for an

                 excellent explanation.

                            ACTING PRESIDENT McGEE:    Read the

                 last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.



                                                        5740



                            ACTING PRESIDENT McGEE:    Call the

                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 52.  Nays,

                 2.  Senators Duane and L. Krueger recorded in

                 the negative.

                            ACTING PRESIDENT McGEE:    The bill

                 is passed.

                            Senator Skelos.

                            SENATOR SKELOS:    Madam President,

                 please call up Calendar Number 1920.

                            ACTING PRESIDENT McGEE:    The

                 Secretary will read.

                            THE SECRETARY:    In relation to

                 Calendar Number 1920, Senator Johnson moves to

                 discharge, from the Committee on Finance,

                 Assembly Bill Number 11795 and substitute it

                 for the identical Senate Bill Number 7712,

                 Third Reading Calendar 920.

                            ACTING PRESIDENT McGEE:

                 Substitution ordered.

                            The Secretary will read.

                            THE SECRETARY:    Calendar Number

                 1920, Assembly Budget Bill, Assembly Print

                 Number 11795, an act in relation to



                                                        5741



                 implementing certain provisions.

                            ACTING PRESIDENT McGEE:    Read the

                 last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT McGEE:    Call the

                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 53.  Nays,

                 1.  Senator Duane recorded in the negative.

                            ACTING PRESIDENT McGEE:    The bill

                 is passed.

                            Senator Hassell-Thompson.

                            SENATOR HASSELL-THOMPSON:    Thank

                 you.  Thank you, Madam President.

                            I rise to request unanimous consent

                 to be recorded in the positive on Calendar

                 Number S6050B.

                            ACTING PRESIDENT McGEE:    Without

                 objection.

                            SENATOR HASSELL-THOMPSON:    Thank

                 you.

                            ACTING PRESIDENT McGEE:    Senator

                 Skelos.

                            SENATOR SKELOS:    Madam President,



                                                        5742



                 there will be a Rules Committee meeting at

                 3:15.

                            And if the Senate would stand at

                 ease now, pending the return of the Rules

                 report.

                            ACTING PRESIDENT McGEE:    A Rules

                 Committee meeting at 3:15 in the Majority

                 Conference Room.

                            The Senate will stand at ease

                 pending the report of the Rules Committee.

                            (Whereupon, the Senate stood at

                 ease at 3:09 p.m.)

                            (Whereupon, the Senate reconvened

                 at 3:37 p.m.)

                            ACTING PRESIDENT McGEE:    Senator

                 Rath.

                            SENATOR RATH:    Madam President,

                 may we return to reports of standing

                 committees for the reading of the Rules

                 report, please.

                            ACTING PRESIDENT McGEE:    The

                 Secretary will read.

                            THE SECRETARY:    Senator Bruno,

                 from the Committee on Rules, reports the

                 following bills:



                                                        5743



                            Senate Print 973A, by Senator

                 Farley, an act in relation to affecting the

                 health insurance benefits;

                            1803, by Senator Stavisky, an act

                 to amend the Education Law;

                            6656C, by Senator Hannon, an act to

                 amend the Public Health Law;

                            7720, by Senator Volker, an act to

                 amend the Criminal Procedure Law;

                            7733, by Senator Hannon, an act to

                 amend the Public Health Law;

                            6473B, by Senator Kuhl, an act

                 authorizing the City of Corning;

                            7054B, by Senator Hannon, an act to

                 amend the Insurance Law;

                            7633B, by Senator Skelos, an act to

                 amend the Correction Law;

                            7658, by Senator Balboni, an act to

                 amend the Education Law;

                            7694A, by the Senate Committee on

                 Rules, an act to authorize the City of Elmira;

                            7704, by Senator Skelos, an act to

                 amend the Arts and Cultural Affairs Law;

                            7709, by Senator Golden, an act to

                 amend the Real Property Tax Law;



                                                        5744



                            7713A, by Senator Flanagan, an act

                 to amend the Executive Law and the Criminal

                 Procedure Law;

                            7715, by Senator Meier, an act to

                 amend the Social Services Law and a chapter of

                 the Laws of 2004;

                            7717, by Senator Balboni, an act to

                 amend a chapter of the Laws of 2004;

                            7718, by Senator Robach, an act to

                 amend the Corrections Law;

                            7721, by Senator Maziarz, an act to

                 amend the Vehicle and Traffic Law;

                            7726, by Senator Marcellino, an act

                 to amend the Environmental Conservation Law;

                            And Senate Print 7729, by Senator

                 Robach, an act to amend the General

                 Obligations Law.

                            All bills ordered direct to third

                 reading.

                            ACTING PRESIDENT McGEE:    Senator

                 Rath.

                            SENATOR RATH:    Move to accept the

                 reports of the Rules Committee.

                            ACTING PRESIDENT McGEE:    All in

                 favor of accepting the report of the Rules



                                                        5745



                 Committee will signify by saying aye.

                            (Response of "Aye.")

                            ACTING PRESIDENT McGEE:    Opposed,

                 nay.

                            (No response.)

                            ACTING PRESIDENT McGEE:    The

                 report is accepted.

                            Senator Rath.

                            SENATOR RATH:    May we please take

                 up the noncontroversial reading of the

                 calendar.

                            ACTING PRESIDENT McGEE:    The

                 Secretary will read.

                            THE SECRETARY:    In relation to

                 Calendar Number 1197, Senator Hannon moves to

                 discharge, from the Committee on Rules,

                 Assembly Bill Number 10834B and substitute it

                 for the identical Senate Bill Number 6656C,

                 Third Reading Calendar 1197.

                            ACTING PRESIDENT McGEE:

                 Substitution ordered.

                            The Secretary will read.

                            THE SECRETARY:    Calendar Number

                 1197, by the Assembly Committee on Rules,

                 Assembly Print Number 10834B, an act to amend



                                                        5746



                 the Public Health Law.

                            ACTING PRESIDENT McGEE:    Read the

                 last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect January 1, 2005.

                            ACTING PRESIDENT McGEE:    Call the

                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 56.

                            ACTING PRESIDENT McGEE:    The bill

                 is passed.

                            THE SECRETARY:    Calendar Number

                 1921, by Senator Hannon, Senate Print 7054B,

                 an act to amend the Insurance Law and the

                 Public Health Law.

                            ACTING PRESIDENT McGEE:    Read the

                 last section.

                            THE SECRETARY:    Section 4.  This

                 act shall take effect on the 60th day.

                            ACTING PRESIDENT McGEE:    Call the

                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 56.

                            ACTING PRESIDENT McGEE:    The bill

                 is passed.



                                                        5747



                            THE SECRETARY:    Calendar Number

                 1922, by Senator Skelos, Senate Print 7633B,

                 an act to amend the Correction Law, in

                 relation to proceedings.

                            ACTING PRESIDENT McGEE:    Read the

                 last section.

                            THE SECRETARY:    Section 7.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT McGEE:    Call the

                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 55.  Nays,

                 1.  Senator Duane recorded in the negative.

                            ACTING PRESIDENT McGEE:    The bill

                 is passed.

                            THE SECRETARY:    In relation to

                 Calendar Number 1923, Senator Balboni moves to

                 discharge, from the Committee on Rules,

                 Assembly Bill Number 11649 and substitute it

                 for the identical Senate Bill Number 7658,

                 Third Reading Calendar 1923.

                            ACTING PRESIDENT McGEE:

                 Substitution ordered.

                            The Secretary will read.

                            THE SECRETARY:    Calendar Number



                                                        5748



                 1923, by the Assembly Committee on Rules,

                 Assembly Print Number 11649, an act to amend

                 the Education Law.

                            ACTING PRESIDENT McGEE:    Read the

                 last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect on the same date and in

                 the same manner as a chapter of the Laws of

                 2004.

                            ACTING PRESIDENT McGEE:    Call the

                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 56.

                            ACTING PRESIDENT McGEE:    The bill

                 is passed.

                            THE SECRETARY:    Calendar Number

                 1924, by the Senate Committee on Rules, Senate

                 Print Number 7694A, an act to authorize the

                 City of Elmira.

                            ACTING PRESIDENT McGEE:    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 McGEE:    Call the



                                                        5749



                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 56.

                            ACTING PRESIDENT McGEE:    The bill

                 is passed.

                            THE SECRETARY:    Calendar Number

                 1925, by Senator Skelos, Senate Print 7704, an

                 act to amend the Arts and Cultural Affairs

                 Law, in relation to exempting.

                            ACTING PRESIDENT McGEE:    Read the

                 last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect on the same date and in

                 the same manner as a chapter of the Laws of

                 2004.

                            ACTING PRESIDENT McGEE:    Call the

                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 56.

                            ACTING PRESIDENT McGEE:    The bill

                 is passed.

                            THE SECRETARY:    Calendar Number

                 1928, by Senator Meier, Senate Print 7715, an

                 act to amend the Social Services Law and a

                 chapter of the Laws of 2004.



                                                        5750



                            ACTING PRESIDENT McGEE:    Read the

                 last section.

                            THE SECRETARY:    Section 3.  This

                 act shall take effect on the same date and in

                 the same manner as a chapter of the Laws of

                 2004.

                            ACTING PRESIDENT McGEE:    Call the

                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 56.

                            ACTING PRESIDENT McGEE:    The bill

                 is passed.

                            THE SECRETARY:    Calendar Number

                 1931, by Senator Maziarz, Senate Print 7721,

                 an act to amend the Vehicle and Traffic Law

                 and the State Finance Law.

                            SENATOR RATH:    Madam President,

                 is there a message at the desk?

                            ACTING PRESIDENT McGEE:    There is

                 a message of necessity at the desk.

                            SENATOR RATH:    Move to accept.

                            ACTING PRESIDENT McGEE:    All

                 those in favor of accepting the message of

                 necessity will signify by saying aye.

                            (Response of "Aye.")



                                                        5751



                            ACTING PRESIDENT McGEE:    Opposed,

                 nay.

                            (No response.)

                            ACTING PRESIDENT McGEE:    The

                 message is accepted.

                            The Secretary will read the last

                 section.

                            THE SECRETARY:    Section 3.  This

                 act shall take effect on the same date and in

                 the same manner as a chapter of the Laws of

                 2004.

                            ACTING PRESIDENT McGEE:    Call the

                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 56.

                            ACTING PRESIDENT McGEE:    The bill

                 is passed.

                            THE SECRETARY:    In relation to

                 Calendar Number 1934, Senator Farley moves to

                 discharge, from the Committee on Civil Service

                 and Pensions, Assembly Bill Number 4962A and

                 substitute it for the identical Senate Bill

                 Number 973A, Third Reading Calendar 1934.

                            ACTING PRESIDENT McGEE:

                 Substitution ordered.



                                                        5752



                            The Secretary will read.

                            THE SECRETARY:    Calendar Number

                 1934, by Member of the Assembly Abbate,

                 Assembly Print Number 4962A, an act in

                 relation to affecting the health insurance

                 benefits.

                            ACTING PRESIDENT McGEE:    Read the

                 last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT McGEE:    Call the

                 roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT McGEE:    Senator

                 Farley.

                            SENATOR FARLEY:    Pass the bill

                 now.  I just want to explain my vote.

                            ACTING PRESIDENT McGEE:    Senator

                 Farley, to explain his vote.

                            SENATOR FARLEY:    This is a very

                 significant piece of legislation, one that has

                 been a long time in coming this year.  It

                 passed the Assembly in February.

                            In essence, what it does is protect

                 every retired employee in the State of



                                                        5753



                 New York with their health insurance, that

                 they cannot change the health insurance for

                 the retired senior unless they change it for

                 everybody.  They can't diminish it.  And it's

                 supported by almost everybody that you can

                 think of.

                            The teachers already have that, the

                 teachers -- retired education people have

                 this.  But this covers every other retired

                 public employee.  It's terribly important,

                 terribly significant.

                            I noticed that AARP was here a

                 moment ago in the gallery.  I just wish they

                 could have been here to see this bill passed,

                 because it's a very significant piece of

                 legislation and one that has been a long time

                 in coming.  I urge everybody to support it.

                            Thank you.

                            ACTING PRESIDENT McGEE:    Announce

                 the results.

                            THE SECRETARY:    Ayes, 56.

                            ACTING PRESIDENT McGEE:    The bill

                 is passed.

                            THE SECRETARY:    Calendar Number

                 1935, by Senator Stavisky, Senate Print 1803,



                                                        5754



                 an act to amend the Education Law, in relation

                 to providing a program fee option.

                            ACTING PRESIDENT McGEE:    Read the

                 last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT McGEE:    Call the

                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 56.

                            ACTING PRESIDENT McGEE:    The bill

                 is passed.

                            Senator Morahan.

                            SENATOR MORAHAN:    Madam

                 President, I understand there's several bills

                 here in front of us that were not on the

                 calendar.  Can I please have the numbers of

                 the one that came out of Rules that are not on

                 the calendar so I can understand what it is

                 we're doing?

                            ACTING PRESIDENT McGEE:    1197 was

                 substituted and passed.  1934 was passed.

                 1935 was passed.  And that's the last one you

                 had that had a question to it; it was Senator

                 Stavisky's bill.



                                                        5755



                            SENATOR MORAHAN:    Take away the

                 "lay it aside."

                            ACTING PRESIDENT McGEE:    Thank

                 you very much.

                            The Secretary will read.

                            THE SECRETARY:    Calendar Number

                 1936, by Senator Volker, Senate Print 7720, an

                 act to amend the Criminal Procedure Law, in

                 relation to capital punishment.

                            ACTING PRESIDENT McGEE:    Senator

                 Rath.

                            SENATOR RATH:    Is there a message

                 of necessity at the desk?

                            ACTING PRESIDENT McGEE:    There is

                 a message of necessity at the desk.

                            SENATOR RATH:    Move to accept.

                            ACTING PRESIDENT McGEE:    All in

                 favor of accepting the message of necessity

                 will signify by saying aye.

                            (Response of "Aye.")

                            ACTING PRESIDENT McGEE:    Opposed,

                 nay.

                            (Response of "Nay.")

                            ACTING PRESIDENT McGEE:    The

                 message of necessity is accepted.



                                                        5756



                            The Secretary will read the last

                 section.

                            THE SECRETARY:    Section 5.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT McGEE:    Call the

                 roll.

                            SENATOR PATERSON:    Explanation.

                            ACTING PRESIDENT McGEE:    Senator

                 Volker.

                            Senator Volker, an explanation has

                 been requested by Senator Paterson, I believe.

                            SENATOR VOLKER:    Sure.

                            This is a bill that the Governor

                 sent us the other day relating to the issue of

                 the deadlock provision of the death penalty.

                 There's been a lot of discussion on this.  And

                 of course if you're pro-death penalty, I guess

                 you have an entirely different perspective on

                 it than if you're anti.

                            I do have some problems with the

                 defense attorney, by the way, who are claiming

                 that this has an ex post facto problem.  I

                 think they probably didn't read the bill.

                 Because ex post facto provisions really relate

                 not to sentencing but to convictions.  And



                                                        5757



                 what this bill does, by the way, in a

                 different way -- and I guess the best way to

                 explain, first of all, what the provision is.

                            The bill says that the jury, after

                 a conviction for a capital offense, or a

                 potential capital offense, then commences a

                 proceeding which makes a determination as to

                 what the sentence or the punishment is.

                            Now, when we did the bill in 1995,

                 there was considerable discussion over how to

                 do it.  Very honestly, my recollection is that

                 what the Governor does here is what I really

                 wanted in 1995.  Because what it does is it

                 gives the jury the maximum ability to make a

                 decision -- death penalty, life without

                 parole, or life sentence.  You give the jury,

                 which is traditional American justice, by the

                 way, the ability to make a decision.

                            And then if they can't make a

                 decision, if they're deadlocked -- and there

                 are provisions in there as to how the judge

                 does it -- then the sentence would be life

                 without parole.

                            Now, under the bill that we passed

                 in '95, and I was the sponsor, and there was



                                                        5758



                 considerable debate on the issue of the

                 deadlock provision.  And in fact, the Court of

                 Appeals rather, I think, cleverly used some of

                 that debate.  And Dick -- or Richard -- oh, my

                 gosh, I'll lose his name.  But -- Dollinger,

                 Dick Dollinger and I, who were debating a lot

                 in those years, talked about that provision.

                 And he questioned the deadlock provision.

                            And what I said was, if I remember

                 right, personally I thought that the old

                 deadlock provision, which said that you had

                 the possibility of death penalty or life

                 without parole and the alternative in a

                 deadlock was that you went to the judge, who

                 could sentence to a life term.  Which was 25

                 years, essentially, to life.

                            You know, the Court of Appeals, in

                 what I consider an extremely odd decision, I

                 always felt that that alternative was much

                 more favorable to the defendant.  And that's

                 really the reason, if my recollection is

                 correct, that we decided on that.  I didn't

                 think that there was any constitutional

                 problem with it.  I felt that it was more

                 favorable to the defendant.  And that's why I



                                                        5759



                 have some suspicion as to what the Court of

                 Appeals did.

                            But now we're going to go back to

                 the traditional-type sentencing.  And that is,

                 you give the jury the maximum decision and

                 then you revert to life without parole.  And

                 that's what the Governor has sent us.

                            The Assembly actually pretty well

                 gave us this language in part of the debate.

                 And the reason they did, by the way, was that

                 we had a stronger provision in here relating

                 to remand.  And by that I mean the cases that

                 have already been decided -- and there's only

                 a couple -- where people have been convicted

                 and then the death penalty was potentially

                 authorized and the Court of Appeals has

                 remanded.

                            And the LaValle case, as I

                 understand it, has already been pled out, so I

                 don't think it will have any -- this will not

                 have any impact.

                            And the language that was in one of

                 the original bills that the DAs wanted is out.

                 But if you read Section 5, it says:  "This act

                 shall take effect immediately and shall apply



                                                        5760



                 to crimes committed prior to, on or after the

                 effective date of this act."  That refers

                 really to -- obviously to sentencing, because

                 you can't go backward and give a sentence that

                 wasn't there.

                            The district attorneys will

                 probably argue:  Well, you're giving an

                 additional sentence.  Well, the additional

                 sentence is a weaker one than was in -- the

                 jury had in the first place.  So it seems to

                 me that that ex post facto argument is not

                 valid at all.

                            Now, if you don't like the death

                 penalty, if you're opposed to the death

                 penalty, I'm sure you're probably going to say

                 this is probably not correct and so forth.  If

                 you're in favor of the death penalty, if you

                 look at the numbers, if you look at what's

                 happened since we restored the death penalty,

                 it seems to me you're going to be in favor of

                 this.

                            The next question you're going to

                 ask me is has the Assembly agreed to this,

                 even though they gave the language, and the

                 answer is no.  Not so far.  My good friend Joe



                                                        5761



                 Messina here tells me it's not even introduced

                 in the Assembly.  However, personally I think

                 ultimately we will come to an agreement on

                 this.

                            But as of right now, this is the

                 bill that the Governor has sent to us.  This

                 is the bill that the Senate is adopting.  But

                 the Assembly is, at this time, at least, not

                 agreeing to any death penalty provision that

                 supposedly corrects the supposed mistake that

                 we made back in 1995.

                            ACTING PRESIDENT McGEE:    Senator

                 Paterson.

                            SENATOR PATERSON:    Madam

                 President, would Senator Volker yield for the

                 questions that he --

                            ACTING PRESIDENT McGEE:    Senator

                 Volker, will you yield?

                            The Senator yields.

                            SENATOR PATERSON:    He answered

                 some of my questions.  He has that quality and

                 that ability to at times anticipate with great

                 accuracy.  So I was wondering if Senator

                 Volker would yield for --

                            SENATOR VOLKER:    Certainly.



                                                        5762



                            SENATOR PATERSON:    Senator, how

                 does the bill regard any crimes that would

                 have been committed between June 24th, which

                 is the date of the court decision -- actually,

                 June 23rd, and today, being August 11th -- in

                 other words, that period of time?  How does

                 the bill regard any offenses that would be

                 committed in that period of time?

                            SENATOR VOLKER:    It will treat it

                 the same.  The provision that I read to you

                 reads that it shall take effect immediately

                 and will apply retroactively.

                            Now, I don't believe there have

                 been any cases -- since the LaValle case,

                 there's been no cases that have been decided.

                 That is, no juries have received any cases.

                 So there are no new sentencing cases since

                 then.  This, as I said, only applies to

                 sentencing.

                            Because the key provision or point

                 here is we have a two-tiered system which

                 is -- that most of the country now has, you

                 first decide guilt or innocence and then you

                 decide the sentence with a second jury.

                            SENATOR PATERSON:    Madam



                                                        5763



                 President, if the Senator would continue to

                 yield.

                            SENATOR VOLKER:    Why, certainly.

                            ACTING PRESIDENT McGEE:    The

                 Senator continues to yield.

                            SENATOR PATERSON:    So, Senator,

                 your interpretation is that the sentencing

                 part of the legislation can be disconnected,

                 for purposes of legislative review, from the

                 original bill, but that there is a message or

                 there certainly is public policy that New York

                 State has the death penalty should there have

                 been or should there be a crime committed in

                 this particular time?  Since, as you said, the

                 Assembly is not going to address this issue

                 today.

                            SENATOR VOLKER:    Well, I guess

                 the answer is if a crime -- a murder would

                 have been committed -- and I don't believe

                 there were any that were committed that I'm

                 aware of between June -- that are subject to

                 the death penalty.  I know there were no

                 trials.  But I don't believe -- there could

                 have been, but I don't really know of any that

                 were.



                                                        5764



                            But you are right, if there were --

                 what I think what Senator Paterson is

                 referring to is let's say that there was a

                 murder that the DA's looking at after June

                 whatever it was, the date of the decision.

                 Then that case could be -- this statute would

                 be applicable, the sentencing part of it --

                 because the only change is in sentencing --

                 would be applicable to that case.

                            And you are right.

                            SENATOR PATERSON:    Thank you,

                 Senator.

                            If the Senator will continue to

                 yield.

                            ACTING PRESIDENT McGEE:    Senator

                 Volker, will you continue to yield?

                            SENATOR VOLKER:    Yes.

                            ACTING PRESIDENT McGEE:    The

                 Senator yields.

                            SENATOR PATERSON:    And on issues

                 such as the one in the LaValle case, would

                 this reflect your feeling on this matter that

                 here, if there was an error -- because there

                 are many who feel there really wasn't, since

                 there was a different jury charge in this case



                                                        5765



                 than the one that the law probably would have

                 called for -- that in that type of situation,

                 that, since the defendant is already

                 convicted -- that has already been

                 established, society has already ruled on the

                 guilt or innocence -- now the question is what

                 were the parameters of the sentencing decision

                 so that there couldn't be any opportunity for

                 a retrial that would -- might just be another

                 opportunity to examine the sentencing phase?

                 Is that correct?

                            SENATOR VOLKER:    That's correct.

                            And we've done some research on

                 this whole issue.  And because all the

                 sentencing options were already available --

                 in fact, what's fascinating about this is that

                 we're actually giving another sentencing

                 option.  I mean, not only were the options

                 available to a jury, but now actually we're

                 giving an additional option.

                            One could argue that this case is

                 more favorable to a defendant than the

                 previous provision because the jury has the

                 right to look at simply life without parole --

                 I'm sorry, life sentence, which is 25 to life,



                                                        5766



                 as you know.

                            One of the things, by the way, I

                 just want to mention about that a lot of

                 district attorneys are not aware of, very few

                 people who are sentenced to 25 years to life

                 get out after 25 years.  Very, very few.  In

                 fact, there's a whole number -- I checked,

                 because I'd been asked to try to help some

                 people who have been in for like 35 or 40

                 years, and parole boards are very reluctant to

                 let convicted murderers out who have been

                 sentenced to 25 years to life.  And there was

                 a lot of them years ago, because -- well,

                 because they're murderers and they are

                 reluctant to let them out.  I just want to

                 point that out.

                            SENATOR PATERSON:    Madam

                 President.

                            ACTING PRESIDENT McGEE:    Senator

                 Paterson.

                            SENATOR PATERSON:    On the bill.

                            ACTING PRESIDENT McGEE:    Senator

                 Paterson, on the bill.

                            SENATOR PATERSON:    I want to

                 thank Senator Volker for his answers.  I



                                                        5767



                 remember the discussion that Senator Volker

                 and Senator Dollinger, who was here at the

                 time, and I had on the record on this issue in

                 the beginning of the session in 1995 when the

                 death penalty was first passed.  The two of us

                 opposed it rather virulently.  I don't think

                 that our point of view has changed

                 particularly much since then.

                            But in the institutional sense, I

                 think that I respect our system and recognize

                 that there can be technicalities to pieces of

                 legislation which might extinguish it for the

                 moment, but that the spirit of the feelings of

                 the people in the State of New York, as much

                 as they are different from my personal

                 feelings, that we can see why there's an

                 attempt to bring this bill before us this

                 afternoon.

                            But the idea that this bill was

                 coming really has been very short-lived.

                 There haven't been any public hearings on this

                 legislation.  There hasn't been any real

                 further perusal to see what it is that we're

                 doing now and to make sure that it's within

                 the boundaries of constitutionality, where the



                                                        5768



                 ruling has been that in 1995 our action was

                 not.

                            As Senator Volker honestly pointed

                 out, the Assembly is not taking this bill up

                 right now.  And I don't see what the rush is.

                 And to be perfectly candid, I think even when

                 we're not in a rush, I'll probably vote

                 against the bill.

                            But just in terms of the

                 collaborative effort that we as a legislature

                 are making, I think we probably could do a

                 little bit better job where our constituents

                 and the citizens of the State of New York are

                 concerned.

                            I don't urge a no vote on this

                 particular legislation.  I'm not really sure

                 if the post hoc, ergo propter hoc element of

                 the bill, where there is some sort of ruling

                 after the fact, even when the Court of Appeals

                 has struck down the bill, would not apply

                 here.

                            Certainly I understand that where a

                 defendant is already convicted, there would be

                 really no way that I could see that there

                 would be a retrial.  But for a gap where there



                                                        5769



                 is no legislation covering a particular

                 entity, I think there was a Florida case some

                 years ago that showed that you really couldn't

                 invoke the death penalty where there isn't one

                 in statute at the time of the actual crime.

                            And those are some of the issues

                 that I think just need to be resolved and

                 negotiated with the Assembly before a proper

                 bill comes to this house.  And at that time,

                 I'll vote against it, but at least I'll feel

                 that we have gone through all the steps that

                 probably would be apparent to designate such a

                 piece of legislation to be within the

                 framework of our state constitution.

                            So the only other thing is this is

                 an issue that Senator Volker has worked on for

                 a long period of time, probably a discussion

                 that he and I have had since I got here 19

                 years ago.  And in spite of the fact that we

                 disagree, his persuasive powers and his

                 ability to in many ways enlighten the feelings

                 of those who have lost relatives to the

                 heinous crimes for which the perpetrators

                 become eligible for the death penalty is quite

                 laudatory.  He is very outstanding and has



                                                        5770



                 represented these points of view very well and

                 has at times shaken what I thought were

                 unalterable positions that I've had on the

                 legislation.  And it's good to know that even

                 in disagreement that you have a colleague who

                 accords themself with such dignity and

                 expresses his point of view with such

                 accuracy.

                            ACTING PRESIDENT McGEE:    Senator

                 Lachman.

                            SENATOR LACHMAN:    On the bill,

                 Madam Chair.

                            ACTING PRESIDENT McGEE:    Senator

                 Lachman, on the bill.

                            SENATOR LACHMAN:    I'd like to

                 preface my remarks by stating that I am not in

                 principle opposed to the death penalty.  The

                 death penalty bill was passed a few months

                 before I entered this chamber.  In fact, if I

                 had been there, I probably would have voted

                 for the bill.

                            But I have serious concerns about

                 the bill in front of us today which I don't

                 look upon as a litmus test of whether one is

                 in favor or opposed to the death penalty.



                                                        5771



                            The question is, why are we

                 rushing?  There have been no public hearings.

                 There has been inadequate public review.  The

                 district attorneys of New York have not been

                 involved.  The major religious organizations

                 of the state are opposed to this, and yet we

                 haven't brought them into the process.  I

                 didn't even see the bill before today.

                            Ladies and gentlemen, I would like

                 to posit the premise that this can be called

                 Exhibit A for a dysfunctional state

                 legislature.  Over the last ten years, New

                 York has spent $170 million on the death

                 penalty.  No one has received the death

                 sentence.

                            Three years ago, His Holiness Pope

                 John Paul II arrived in America and went to

                 Illinois, specifically to meet with Governor

                 George Ryan.  Governor Ryan was strongly in

                 favor of the death penalty bill that was being

                 debated by the Illinois state legislature.

                 His Holiness spent three hours pleading with

                 the governor, saying:  I don't want you to

                 give up on your principles in favor of the

                 death penalty.  All I want you to do is



                                                        5772



                 convince a majority of the Republicans in the

                 state legislature to ask for a moratorium to

                 review this, to give it more time, to bring

                 more people into the process before a decision

                 was made.  Especially in light of the new

                 evidence that DNA has brought to our

                 attention, and especially, in fact, as well

                 some innocent people having received the death

                 penalty.

                            Governor Ryan had a totally

                 different point of view before the meeting

                 with His Holiness the Pope than he had

                 afterwards.  He asked his colleagues in his

                 party not to be in favor or opposed to the

                 death penalty but to create a moratorium for

                 further study, for greater involvement of

                 agencies and organizations that have not been

                 involved.

                            And that is all I seek.  For

                 someone who is not in principle opposed to the

                 death penalty, I want a moratorium.  I want

                 more information.  I want more hearings.  I

                 want greater review.  I want individuals and

                 organizations that have not heretofore been

                 involved to be involved in the process.



                                                        5773



                            Therefore, I will be voting against

                 this bill.

                            ACTING PRESIDENT McGEE:    Senator

                 Hassell-Thompson.

                            SENATOR HASSELL-THOMPSON:    Thank

                 you, Madam President.

                            For all intents and purposes, my

                 understanding is right now the State of

                 New York does not have, does not have a death

                 penalty bill.  The Court of Appeals, in their

                 June 24th decision ruling that the death

                 penalty is unconstitutional, put a moratorium

                 in place, and it gives us a perfect

                 opportunity to abolish the death penalty

                 permanently.  Life without parole is a fair

                 and viable option that this house should be

                 open to, and we should not be doing anything

                 to fix the death penalty.

                            This is not a technical fix.  It is

                 asking us to reinstate a death penalty while

                 one does not legally exist in New York State.

                 Under the Court of Appeals decision, life

                 imprisonment without parole is the only

                 available sanction for first-degree murder if

                 we do nothing legislatively.



                                                        5774



                            More importantly, 66 percent of

                 those Democrats who have been polled around

                 New York prefer a sentence of life without

                 parole for people who have committed murder,

                 while only 25 percent preferred the death

                 penalty.

                            The statistics go on, but that's

                 not the issue.  What is at issue is that there

                 are 270 organizations across this state that

                 have called for a moratorium on the death

                 penalty.  The New York City, Buffalo, Albany,

                 Mount Vernon, and Rochester City Councils, the

                 Syracuse Common Council, and other

                 municipalities have also called for and sent

                 resolutions calling for such a moratorium.

                            This call in a sense has been

                 answered by the Court of Appeals.  We should

                 leave the death penalty alone.  It would be

                 foolhardy to fix it.  All the reasons to

                 oppose the death penalty in 1995 continue and

                 have grown more significant.  Since 1973, at

                 least 114 innocent people have been sentenced

                 to death in the United States.  New York

                 taxpayers have spent at least $170 million on

                 the death penalty, although no executions have



                                                        5775



                 taken place.  Think how much good this money

                 would do if it were reallocated to communities

                 such as those that I represent.

                            We must speak with one voice in

                 this effort, and that voice must say we should

                 let the death penalty die.

                            ACTING PRESIDENT McGEE:    Senator

                 Liz Krueger.

                            SENATOR LIZ KRUEGER:    Thank you,

                 Madam President.  On the bill.

                            ACTING PRESIDENT McGEE:    Senator

                 Krueger, on the bill.

                            SENATOR LIZ KRUEGER:    I share my

                 colleagues' concern on the issues that they

                 have raised, particularly Senator Lachman and

                 Senator Ruth Hassell-Thompson's points about

                 why we shouldn't go forward today,

                 particularly since this is such a critical

                 issue for the public, for the morality of this

                 state, and for our role as legislators.

                            And why would we do this bill

                 before it's even aged three days, before we've

                 had public hearings, before we've reviewed the

                 evidence of the times.

                            And Senator Paterson and Senator



                                                        5776



                 Volker had a discussion revisiting the debates

                 of 1995.  And I wasn't in the Legislature in

                 1995; I like to believe I would have voted

                 against the death penalty bill then.  But even

                 if I had been here and hadn't, we have nine

                 more years of data since then.  And that data

                 shows that we should not move forward with

                 this bill today.

                            One, as was said earlier, we now

                 have life in prison without parole.  We did

                 not have that as an option in New York State

                 in '95 when the death penalty was passed.

                            Two, in the last nine years we've

                 seen radical changes in the ability to uncover

                 new evidence through DNA technology, evidence

                 that is not actually always available to

                 individuals convicted of murder in our state.

                            Three, we have data from our own

                 nine years of the death penalty in this state

                 documenting that it's not working, even before

                 the court overturned, on constitutional

                 grounds, our law.

                            As Senator Hassell-Thompson said,

                 we spent $170 million on the death penalty,

                 dramatically more than the cost of life in



                                                        5777



                 prison for every person who has been on death

                 row in New York State.

                            We have documentation that although

                 upstate New York counties account for only

                 20 percent of all homicides in the state of

                 New York, they account for 65 percent of all

                 capital prosecutions.  We know that in six of

                 62 counties in New York, 65 percent of all

                 death-noticed cases have gone to court, and

                 yet since 1995 there were seven death

                 sentences issued.  Three of the seven in

                 Suffolk County, a misdistribution of the use

                 of this law.

                            The death penalty does not act as a

                 deterrent.  That has been documented

                 throughout this country.

                            Those who murder whites are more

                 than twice as likely to face the death penalty

                 as those who murder blacks, raising serious

                 questions about the racial discrimination

                 questions in death-penalty law.

                            Of the 459 defendants indicted for

                 first-degree murder in the state of New York

                 since 1995, 59 percent were black, 19 percent

                 were white, and 20 percent were Hispanic.  Of



                                                        5778



                 the fifty defendants where a death notice was

                 filed, 48 percent were black, 40 percent were

                 white, and 10 percent were Hispanic.

                            That's New York State.  But we have

                 much more data from the country as a whole

                 where the death penalty been implemented for a

                 longer period of time, with people put to

                 death.  And in fact, the data from around the

                 country is truly frightening.  The definitive

                 report on the analysis of death penalty cases

                 and error in capital cases that was put out

                 through Columbia University, "A Broken

                 System," a two-part report, highlights that.

                            Sixty-eight percent of all death

                 verdicts imposed and fully reviewed in this

                 country during the period 1973 to 1995 were

                 reversed by courts due to serious errors --

                 68 percent of the cases throughout the

                 country.

                            And an analysis presented that

                 76 percent of the reversals at the two appeals

                 stages where data are available for study were

                 because defense lawyers had been egregiously

                 incompetent, police and prosecutors had

                 suppressed exculpatory evidence or committed



                                                        5779



                 other professional misconduct, jurors had been

                 misinformed about the law, or judges and

                 jurors had been biased.

                            Eighty-two percent of the cases

                 sent back for retrial at the second appeal

                 phase ended in sentences less than death,

                 including 9 percent that ended in not guilty

                 verdicts.

                            The data from throughout the

                 country for the period '73 to '95 is showing

                 us why we should not move forward to

                 reestablish a death penalty in New York State.

                            The data shows that indiscriminate

                 use of the death penalty is creating a high

                 risk of mistakes to occur.  It is showing, the

                 data is showing that race and politics and a

                 poorly performing law enforcement system leads

                 to errors.  And in fact, having a death

                 penalty increases the likelihood of errors in

                 the already overburdened and underfunded state

                 court systems, even for non-death penalty

                 cases.

                            The findings of the reports are

                 startling.  The higher the rate at which a

                 state or county imposes death verdicts, the



                                                        5780



                 greater the possibility that each death

                 verdict will be reversed because of serious

                 error.  The more states impose death penalty

                 sentences in cases that are not highly

                 aggravated, the higher risk of serious error.

                            Comparisons of particular counties

                 and states throughout the country, their

                 capital sentencing and their capital error

                 rates, illustrate a strong relationship

                 between frequent death sentencing and error,

                 meaning the more you use the death sentence,

                 the more likely you are to have a higher and

                 higher rate of error in your decisions.

                            There are many pressures out there

                 associated with the overuse of the death

                 penalty.  I would argue that those pressures

                 are why we are dealing with a bill without it

                 having even aged three days and no discussion

                 with the public and no hearings, and no

                 opportunity for the public to send a message

                 to us about how they feel about the death

                 penalty based on all of the data that is out

                 there.

                            The states that have used the death

                 penalty have found that it increased their



                                                        5781



                 costs and kept their system from doing their

                 job.  States have found that the poor quality

                 of trial proceedings has increased the risk of

                 serious and reversible error.  Chronic capital

                 error rates have persisted over time.  We're

                 not getting better at it, as many states have

                 had a death penalty in place now for nearly 20

                 years.  And state and federal appeals judges

                 cannot be relied upon to catch all the serious

                 trial errors in capital cases.

                            I urge this Legislature not to rush

                 forward.  As was said, the decision by the

                 courts has basically null and voided the death

                 penalty in New York State.  That is a better

                 position for us to be in, given the evidence

                 that is out there and growing throughout the

                 country.

                            We made a mistake in '95.  Perhaps

                 we didn't have all the evidence then.  I

                 believe that we do now, and we owe it to the

                 public to give them the opportunity to

                 participate in hearings with experts about

                 where New York State should move forward from,

                 here and now in 2004.

                            I urge my colleagues to vote



                                                        5782



                 against this bill.

                            Thank you, Mr. President.

                            ACTING PRESIDENT MEIER:    Senator

                 Connor.

                            SENATOR CONNOR:    Thank you, Mr.

                 President.

                            I voted against this bill once, or

                 the predecessor of this bill.  And I voted

                 against Senator Volker's first death penalty

                 bill from 1978 until 1994, virtually every

                 year.  In the early years, it didn't pass by

                 so much, nor was it overridden here.  In the

                 early years, in fact -- you know, from '78 to

                 '82, there were more than a handful of

                 Republican Senators who were against it.  And

                 virtually everyone on this side of the

                 aisle -- not everyone -- was against it.

                            Attitudes change.  Political

                 attitudes change.  But certain realities don't

                 change.  In 1995, when we voted on the death

                 penalty last, I was privileged to still have

                 living then my grandfather, who was born in

                 1890 and died in 1995.  He was an

                 Irish-American, born about a year after his

                 parents emigrated.  He was a working man.



                                                        5783



                 Never made more than 90 bucks a week in his

                 life.  That's what he was making when he

                 retired in 1955.

                            He grew up poor.  He was a

                 semiprofessional athlete on the weekends.  He

                 was a very religious and pious person.  He

                 loved to hunt.  As I've said before, he taught

                 me how to shoot and hunt and so on.  He wasn't

                 what you'd call a shrinking liberal, although

                 as a young man he was involved in organizing

                 attempts at places he worked.  He was in the

                 rubber workers' strike of 1912.

                            And I remember as a young boy you'd

                 hear about the death penalty, you'd hear

                 somebody's going to the chair.  And I said to

                 him:  "Gee, what about that?"  And he said,

                 "That's a very bad thing."  And we said, "Oh,

                 are you against that?"  And he said yeah.

                 Because in his experience -- see, today we

                 focus on black and brown and white and who's

                 most likely to get the death penalty.

                            And I'm not suggesting that a

                 hundred and some years ago black folks in

                 America did not have this penalty inflicted

                 upon them disproportionately, because I'm sure



                                                        5784



                 they did.  But so did everybody else who was

                 on the back.

                            My grandfather pointed out to me --

                 and you have to know your history, but if you

                 know what went on in the '20s and the '30s,

                 Loeb and Leopold lived; Sacco and Vanzetti

                 were executed.  Sacco and Vanzetti were poor.

                 Loeb and Leopold's families hired the great

                 Clarence Darrow, at an astronomical fee.

                 There are various discussions -- some

                 people -- Darrow tried to let on he got

                 50,000.  There are those who say he got

                 $250,000 to defend them.

                            As we know, he pled them guilty and

                 then spent two or three days pleading for

                 their life, to the point where he got the

                 judge crying and they got life in prison.  But

                 they were rich.  As John Marchi once said in a

                 debate on this, show me the millionaire who

                 went to the chair.  It's a rare, rare event.

                            The fact of the matter is, it's

                 never been applied fairly on a socioeconomic

                 basis.  There was a column about 25 or 30

                 years ago in one of the newspapers where the

                 columnist actually went to the death house, I



                                                        5785



                 don't know if it was Green Haven or Ossining,

                 in the late 19th and early 20th century.  They

                 had logbooks, they had a logbook of those who

                 were executed.  And the interesting thing is

                 it's like a social history of New York State.

                            You look in the 1880s and the

                 1890s, early 1900s, and you see names like Bat

                 Shea.  I think that means something to someone

                 who wrote a book about it, our

                 parliamentarian.  But you see a preponderance

                 of Irish-American names.  And shortly

                 thereafterwards, you see yes, there were

                 Jewish gangsters.  You see Jewish names.  And

                 we all heard of Lepke Buchalter and others who

                 were executed.  And there were

                 Italian-American names.  And then, as you got

                 into the '40s and '50s, there are names that

                 sound like they're African-American.  And

                 then, yes, the Latinos as we got into the '50s

                 start predominating in that logbook, that

                 running list of death of those killed by the

                 state.

                            Murderers?  Yes, many or most were

                 murderers.  They certainly were all convicted

                 of murder.  But why the clumping that way?



                                                        5786



                 They weren't the only murderers.  Those ethnic

                 groups weren't producing the only murderers,

                 they just happened to be the folks on the

                 bottom, the folks who didn't have a million

                 bucks for their defense.  And they got the

                 chair.

                            Any penalty that so discriminates

                 that way can't be fair, can't be a real

                 deterrent to all who would wantonly murder.

                 Because if you're rich, first of all, forget

                 whether you get the chair.  Your likelihood of

                 being convicted if you're rich is less because

                 of the kind of defense you can mount.  And

                 then if you are convicted, your likelihood of

                 being executed goes down.

                            Secondly, Madam President, we've

                 learned so much since 1995.  You know, in all

                 those debates that I participated in from 1978

                 to 1994, people would say on the floor,

                 opponents would say:  It's a final,

                 irrevocable penalty.  And when we make a

                 mistake, and you know it's bound to happen,

                 we're going to execute an innocent person, you

                 can't give them their life back.  Someone

                 who's getting life in prison, if later proven



                                                        5787



                 to be innocent, can be released.

                            And we would be assured by the

                 sponsor -- and the sponsor I have the utmost

                 respect for -- that, oh, those instances where

                 people are wrongly convicted are minuscule.

                 And frankly, I believed that then.  We all

                 believed that then.  While we all acknowledge

                 that our criminal justice system, which we

                 think is probably the best, certainly better

                 than anything else that's been created to give

                 decisions of guilt, innocence and so on -- it

                 is the best, but we all acknowledge it's a

                 human system and it's fallible and it can make

                 mistakes.  But we all believed, those who were

                 against the death penalty and its supporters,

                 of, oh, the possibility of a wrongful

                 conviction was so slight.  Yes, it happens,

                 but it's a rare instance; certainly a risk

                 worth taking to protect the public at large.

                            But what have we learned since

                 then?  Ah, DNA.  I won't say there wasn't DNA

                 then.  Hell, there was DNA from back to the

                 apes and before.  But DNA was a term in our

                 biology textbooks.  Nobody had been able to

                 measure it, use -- computers to compare



                                                        5788



                 strands of DNA hadn't been built.

                            What happened once that was

                 accomplished?  In those cases where there was

                 physical evidence -- and not just murder

                 cases, but other sorts of cases -- we have

                 found a shockingly high number of instances of

                 the criminal justice system convicting

                 innocent persons.  And thankfully, in those

                 cases that weren't capital cases, we had the

                 ability to release the person.  And indeed,

                 I'm sure the states involved compensated those

                 persons too for their wrongful conviction.

                            You know, why is it, why is it

                 there's such fallibility in our system?  Well,

                 I did make this argument years ago.  Under our

                 system of criminal justice, we've all heard

                 the term circumstantial evidence:  Oh, there's

                 circumstantial evidence.  It's only a

                 circumstantial case.  And, yes, you can be

                 convicted on circumstantial evidence.  But our

                 criminal justice system has always said direct

                 evidence is the best evidence.

                            What is direct evidence?

                 Invariably, direct evidence are eyewitnesses.

                 Yet -- and it's there in the literature.  And



                                                        5789



                 I wish we could have hearings and explore this

                 with those who have conducted the surveys and

                 studies.  But it's in the literature.

                            Fifty people in a small auditorium

                 with a stage, told:  "In one minute, you're

                 going to witness a crime.  Then you will be

                 asked questions about it.  Please pay

                 attention."  They all focus on the stage.

                 Someone comes out on the stage.  Someone else

                 comes out, whacks them over the head,

                 whatever.  They pretend to fall.  The person

                 runs.

                            They then quiz the 50 people:

                 Identify the person.  Eighty percent of them

                 will pick the wrong person out of a lineup.

                 They just saw it five minutes before.  They

                 were told watch, pay attention.  Yet they

                 couldn't do it accurately.

                            Yet we convict people on the

                 eyewitness testimony of persons to a real

                 crime where they weren't prepared for it to

                 happen, it sprang, as it were, out of nowhere,

                 they had all of 30 seconds or 60 seconds to

                 observe.  Unlike the people in that audience,

                 they were actually in fear, very often,



                                                        5790



                 themselves of the person waving the gun or the

                 knife, or the armed robber or whatever.

                            So they're surprised, it takes 30

                 to 60 seconds, they're in fear themselves.

                 And a month later or two weeks later or two

                 days later in a lineup, they pick a person out

                 and say:  That's the person.  And we in our

                 criminal justice system allow that that is the

                 strongest, most reliable evidence of guilt.

                            Read the appellate decisions.

                 They'll find procedural flaws but say:

                 Listen, they couldn't have affected the

                 outcome, there were two eyewitnesses who said

                 whatever-whatever, who picked this person out.

                            That's why, Madam President and my

                 colleagues, that's why we have such a high

                 rate of wrongful convictions.  But we could

                 only prove it once there was this scientific

                 test of DNA that could show, frankly, how

                 shockingly high the rate of wrongful

                 conviction is where you're able to use that

                 kind of evidence.

                            Now we have the ultimate penalty.

                 We know it's been used against the poorest in

                 our society; historically, always been true.



                                                        5791



                 We know those who are wealthy enough for the

                 best defenses can almost always avoid it even

                 when they qualify for it.  And we now know

                 from scientific evidence that our criminal

                 justice system convicts people wrongfully in a

                 much higher rate or percentage than we ever

                 believed was possible.  I think we know why,

                 too.

                            So what do we do?  Do we -- are we

                 presented with a death penalty bill?  You see,

                 what we're being presented with was this

                 solution that the sponsor offered to us nearly

                 three decades ago for the problem of three

                 decades ago.  This was a hot topic in the late

                 '70s and the '80s.

                            But we're in a new century now,

                 with new problems, new concerns, and, yes, new

                 ability.  The very sponsor of this bill has

                 sponsored the use of DNA to capture the

                 guilty, to identify the guilty in other

                 legislation we've done.  So are we presented

                 with a bill -- and I'd be against it because

                 of my inherent moral aversion to the death

                 penalty.

                            But, and I don't want to help the



                                                        5792



                 sponsors, but I don't see a bill here that

                 says, okay, we're only going to use the death

                 penalty where there's indisputable scientific

                 DNA evidence that the person is guilty.  We

                 have that ability to be sure.  And if someone

                 feels so morally and practically committed to

                 death penalty as just and right, why not at

                 least limit it to those cases where there can

                 be virtually no doubt that the person is the

                 perpetrator of the murder?

                            Madam President, this bill leaves

                 us back where we were three decades ago, with

                 a system that will convict the innocent over

                 and over and put the burden on the condemned

                 to then surmount all the procedural barriers

                 to get a hearing, new trial, whatever and be

                 exonerated.

                            I say no to this.  I don't

                 understand why we didn't take this opportunity

                 to do what was done 30 or 40 years ago, what

                 was done 40-some years ago before they

                 repealed the death penalty.  And that is hold

                 hearings, hear from the experts, yes, hear

                 from victims, hear from psychologists on both

                 sides.  I'm sure there is evidence about why



                                                        5793



                 the final penalty, the death penalty, may, for

                 victims or their families, be of consolation.

                 There may be some evidence it's a deterrent.

                 I seriously doubt it.  But let's hear all the

                 evidence is.  And let's hear about what we can

                 do to ensure, particularly when the penalty is

                 a final, irrevocable penalty, that we got the

                 guilty people.

                            Illinois, look at the experience

                 there.  It was shocking.  It wasn't shocking

                 that the governor commuted the sentences; it

                 was shocking that in the cases that were

                 looked at there was such a high rate of

                 wrongfully convicted people sitting on death

                 row.

                            But a process -- it's time.  It's

                 decades since we've had hearings on this.  And

                 frankly, it's nearly a decade since we had a

                 death penalty on the bill.  No one was ever

                 executed under that death penalty.  It's very,

                 very hard for anybody to convince me or anyone

                 else that look, see, crime is down because we

                 adopted the death penalty.

                            Crime is down because we have

                 better policing.  Crime is down because we



                                                        5794



                 have longer sentencing for certain crimes that

                 keep people in who otherwise would be

                 recidivists.  And crime is down because if you

                 look at your population trends, we hit a

                 decade where the number of males in the

                 population between the ages of 15 and 25 took

                 a big dip.  And if you look at your

                 statistics, that's who commits most of the

                 violent crime, that demographic group, young

                 males.  Not older males, not women in any age

                 demographic.  It's young males, unfortunately,

                 who are committing the crime.

                            We've, in our state's population,

                 had a big dip in the number of people who fit

                 into that category.  That's why crime is down.

                 Better policing.  Certainly I do believe that

                 eight years of a great economy helped keep

                 crime down from 1992 through 2000.  And the

                 other factors certainly being the population

                 dip and the policing.

                            So let's hear the evidence.  I'd

                 like to know what the evidence about

                 conditions today is, not three decades ago.  I

                 want to address the problems of today and

                 tomorrow, not three decades ago.  This bill



                                                        5795



                 patches up a supposed solution to problems of

                 two and three decades ago.

                            I'm against it.  I'm voting no.  I

                 urge my colleagues to vote no.

                            ACTING PRESIDENT McGEE:    Any

                 other member wishing to speak on the bill?

                            Read the last section.

                            THE SECRETARY:    Section 5.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT McGEE:    Senator

                 Smith, to explain your vote.

                            SENATOR ADA SMITH:    In the past,

                 I have voted against the death penalty, and I

                 will continue to do so.  And in all of the

                 literature that we have received, is one quote

                 that is very poignant, and that is made by

                 David Kaczynski, the executive director of

                 New Yorkers Against the Death Penalty, when he

                 states that at least 114 innocent people have

                 been sentenced to death in the United States:

                 "New York's law is full of disparities and is

                 inequitable in its application."

                            I nor my colleagues will want to be

                 responsible for any one person being put to

                 death that was innocent.  Therefore, I vote



                                                        5796



                 no.

                            ACTING PRESIDENT McGEE:    Call the

                 roll.

                            SENATOR VOLKER:    To explain my

                 vote.

                            ACTING PRESIDENT McGEE:    Senator

                 Volker, to explain his vote, I'm sorry.

                            SENATOR VOLKER:    You know, I --

                 since this is not the final chapter of this

                 bill, I will not respond.

                            But I just have to quickly say to

                 you, Marty, please.  I mean, this business of

                 114 innocent people and all those people in

                 Illinois.  As a good friend of mine who's a DA

                 said, there's a hell of a lot of murderers

                 walking around the streets of Illinois.

                            You know, of the 11 people that

                 were -- it's what, 11 people who were

                 supposedly exonerated because of DNA, there

                 was a lot of other evidence.  You know about

                 double killers?  You know about two people and

                 they use DNA, they use evidence on one, it

                 turns out to be with the other one?  There's

                 an awful lot of strange things going on in

                 Illinois.



                                                        5797



                            And I can tell you, there's going

                 to be a study someday -- because nobody does

                 studies of pro-death penalty, they only do

                 them on anti.  But let me tell you, in

                 New York there is not one case in the history

                 of this state -- and I challenge professors

                 who went out and you should have seen the

                 cases they found that shows that an innocent

                 person was executed.  And I've heard all these

                 stories and all that -- no, we're explaining

                 our votes.  I know about the book you're going

                 to tell me about.  Yeah, I know.  But it was

                 baloney.  And there's a reason for it, and I

                 understand it.  Not his, by the way; there's

                 another guy.

                            But my point is this.  The murder

                 rate in this state is down again, just as it

                 was after -- when we restored the death

                 penalty years ago, it went down.  Then we got

                 rid of it, and the murder rate shot up,

                 particularly in New York City.  Now it has

                 gone down.  Somebody said we spent

                 $170 million.  A lot of that money was spent

                 defending people.  We have the best defense

                 counsels in the country here in New York.



                                                        5798



                 Nobody spends as much money as we do, because

                 I want to make sure nobody gets executed

                 improperly either.

                            And we have people, more people

                 that have pled guilty to life without parole

                 and 80 years to life -- why did they do that?

                 Because they were petrified of the death

                 penalty.  We have saved hundreds of millions

                 of dollars in trials because of the fact that

                 we had a death penalty out there that made

                 people plead to life without parole and huge

                 sentences.

                            I vote aye.

                            ACTING PRESIDENT McGEE:    Senator

                 Duane, to explain his vote.

                            SENATOR DUANE:    Some would like

                 to believe that we are a civilized society.

                 We are not.  The death penalty is morally

                 wrong.  I vote no.

                            ACTING PRESIDENT McGEE:    Senator

                 Schneiderman.

                            SENATOR SCHNEIDERMAN:    Thank you,

                 Madam President.

                            To explain my vote.

                            ACTING PRESIDENT McGEE:    Senator



                                                        5799



                 Schneiderman, to explain his vote.

                            SENATOR SCHNEIDERMAN:    I know

                 feelings are strong about this issue and

                 tempers run high.  But I think that the

                 evidence presented is consistent and really

                 unrebutted in one critical respect.  And I

                 would urge that, as we continue this debate --

                 because this debate will continue -- the

                 respected sponsor to view the evidence

                 objectively.

                            There is no correlation from state

                 to state or from country to country between

                 the death penalty and a reduction in crime.

                 It's never been demonstrated.  I realize that,

                 you know, we can say it, but it doesn't make

                 it true.

                            And I think those of us who

                 actually have spent time working in prisons

                 and spent time with prisoners know, frankly,

                 the notion that the most violent criminals

                 that we're most afraid of are deterred by the

                 death penalty is absurd.  It's just absurd.

                 You know.

                            And if you spent time with the

                 people that you purport to be most concerned



                                                        5800



                 about -- you know, if you wanted to make an

                 argument that you could eliminate securities

                 fraud if you had the death penalty for

                 securities fraud, that's an argument.  I would

                 be opposed to it, but at least that's a group

                 of people you could deter.  We'll have the

                 cleanest markets in the world.  But the people

                 you're concerned about for violent crime are

                 not deterred.

                            And, finally, I don't think it's an

                 argument for the death penalty that people are

                 so petrified of it that they give up their

                 right to go to trial because they're afraid

                 that if they lose they may be executed.  There

                 may be some innocent people who are giving up

                 their right to trial because they're afraid of

                 that.

                            So I'm going to vote no.  I'd urge

                 everyone to vote no.  And as we continue this

                 debate, let's try and stay objective about it.

                 I think the facts are on the side of those who

                 favor a moratorium.

                            Thank you, Madam President.

                            ACTING PRESIDENT McGEE:    Call the

                 roll.



                                                        5801



                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 36.  Nays,

                 22.

                            ACTING PRESIDENT McGEE:    The bill

                 is passed.

                            SENATOR MONTGOMERY:    Point of

                 order.  Madam President.

                            ACTING PRESIDENT McGEE:    Senator

                 Schneiderman.

                            SENATOR SCHNEIDERMAN:    Point

                 of --

                            SENATOR MONTGOMERY:    I didn't

                 hear him say who voted no.

                            SENATOR SCHNEIDERMAN:    Point of

                 order.  Please announce the no votes.

                            SENATOR MONTGOMERY:    Announce the

                 no votes, please.

                            ACTING PRESIDENT McGEE:    The

                 Secretary will announce the no votes.

                            THE SECRETARY:    Those recorded in

                 the negative on Calendar Number 1936 are

                 Senators Andrews, Breslin, Brown, Connor,

                 Diaz, Dilan, Duane, Gonzalez,

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

                 Montgomery, Oppenheimer, Parker, Paterson,



                                                        5802



                 Sabini, Sampson, Schneiderman, A. Smith,

                 M. Smith, and Stavisky.

                            ACTING PRESIDENT McGEE:    The bill

                 is passed.

                            Senator Hannon.

                            SENATOR HANNON:    Madam President,

                 could we call up Calendar Number 1929.

                            ACTING PRESIDENT McGEE:    The

                 Secretary will read.

                            THE SECRETARY:    In relation to

                 Calendar Number 1929, Senator Balboni moves to

                 discharge, from the Committee on Rules,

                 Assembly Bill Number 11787 and substitute it

                 for the identical Senate Bill Number 7717,

                 Third Reading Calendar 1929.

                            ACTING PRESIDENT McGEE:    Senator

                 Hannon.

                            SENATOR HANNON:    Move the

                 substitution.

                            ACTING PRESIDENT McGEE:

                 Substitution ordered.

                            The Secretary will read.

                            THE SECRETARY:    Calendar Number

                 1929, by the Assembly Committee on Rules,

                 Assembly Print Number 11787, an act to amend a



                                                        5803



                 chapter of the Laws of 2004 relating to

                 creating the New York State Veterans' Cemetery

                 Siting Committee.

                            ACTING PRESIDENT McGEE:    Read the

                 last section.

                            THE SECRETARY:    Section 3.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT McGEE:    Call the

                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 58.

                            ACTING PRESIDENT McGEE:    The bill

                 is passed.

                            Senator Hannon.

                            SENATOR HANNON:    Could we now

                 take up Calendar Number 1926.

                            ACTING PRESIDENT McGEE:    The

                 Secretary will read.

                            THE SECRETARY:    In relation to

                 Calendar Number 1926, Senator Golden moves to

                 discharge, from the Committee on Rules,

                 Assembly Bill Number 11788 and substitute it

                 for the identical Senate Bill Number 7709,

                 Third Reading Calendar 1926.

                            ACTING PRESIDENT McGEE:



                                                        5804



                 Substitution ordered.

                            The Secretary will read.

                            THE SECRETARY:    Calendar Number

                 1926, by the Assembly Committee on Rules,

                 Assembly Print Number 11788, an act to amend

                 the Real Property Tax Law.

                            ACTING PRESIDENT McGEE:    Read the

                 last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect on the same date and in

                 the same manner as a chapter of the Laws of

                 2004.

                            ACTING PRESIDENT McGEE:    Call the

                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 58.

                            ACTING PRESIDENT McGEE:    The bill

                 is passed.

                            Senator Hannon.

                            SENATOR HANNON:    Madam President,

                 could we call up Calendar Number 1927.

                            ACTING PRESIDENT McGEE:    The

                 Secretary will read.

                            THE SECRETARY:    Calendar Number

                 1927, by Senator Flanagan, Senate Print 7713A,



                                                        5805



                 an act to amend the Executive Law and the

                 Criminal Procedure Law.

                            ACTING PRESIDENT McGEE:    Senator

                 Hannon.

                            SENATOR HANNON:    Madam President,

                 is there a message at the desk?

                            ACTING PRESIDENT McGEE:    There is

                 a message at the desk.

                            SENATOR HANNON:    Move to accept

                 the message, please.

                            ACTING PRESIDENT McGEE:    All in

                 favor of accepting the message of necessity

                 will signify by saying aye.

                            (Response of "Aye.")

                            ACTING PRESIDENT McGEE:    Opposed,

                 nay.

                            (Response of "Nay.")

                            ACTING PRESIDENT McGEE:    The

                 message is accepted.

                            Read the last section.

                            SENATOR SCHNEIDERMAN:    Lay it

                 aside.

                            ACTING PRESIDENT McGEE:    The bill

                 is laid aside.

                            SENATOR HANNON:    Madam President,



                                                        5806



                 would we be able to take up Calendar Number

                 1933.

                            ACTING PRESIDENT McGEE:    The

                 Secretary will read.

                            THE SECRETARY:    Calendar Number

                 1933, by Senator Robach, Senate Print 7729, an

                 act to amend the General Obligations Law.

                            ACTING PRESIDENT McGEE:    Senator

                 Hannon.

                            SENATOR HANNON:    Is there a

                 message on that bill, Madam President?

                            ACTING PRESIDENT McGEE:    There is

                 a message of necessity at the desk.

                            SENATOR HANNON:    Move to accept

                 the message.

                            ACTING PRESIDENT McGEE:    All in

                 favor of accepting the message of necessity

                 will signify by saying aye.

                            (Response of "Aye.")

                            ACTING PRESIDENT McGEE:    Opposed,

                 nay.

                            (Response of "Nay.")

                            ACTING PRESIDENT McGEE:    The

                 message is accepted.

                            The Secretary will read the last



                                                        5807



                 section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect on the same date as a

                 chapter of the laws of 2004.

                            ACTING PRESIDENT McGEE:    Call the

                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 58.

                            ACTING PRESIDENT McGEE:    The bill

                 is passed.

                            Senator Hannon.

                            SENATOR HANNON:    Madam President,

                 could we now return to the order of motions

                 and resolutions.

                            ACTING PRESIDENT McGEE:    Motions

                 and resolutions.

                            SENATOR HANNON:    I'd like to call

                 up Senate Print 7704.

                            ACTING PRESIDENT McGEE:    The

                 Secretary will read.

                            THE SECRETARY:    Calendar Number

                 1925, by Senator Skelos, Senate Print 7704, an

                 act to amend the Arts and Cultural Affairs

                 Law.

                            SENATOR HANNON:    Madam President,



                                                        5808



                 I move to reconsider the vote by which this

                 bill was passed and ask that the bill be

                 restored to third reading.

                            ACTING PRESIDENT McGEE:    Call the

                 roll on reconsideration.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 58.

                            SENATOR HANNON:    Madam President,

                 I now move to discharge, from the Committee on

                 Rules, Assembly Print Number 11784A and

                 substitute it for the identical bill.

                            ACTING PRESIDENT McGEE:

                 Substitution ordered.

                            Senator Hannon.

                            SENATOR HANNON:    Can we now read

                 that bill.

                            ACTING PRESIDENT McGEE:    The

                 Secretary will read.

                            THE SECRETARY:    Calendar Number

                 1925, by the Assembly Committee on Rules,

                 Assembly Print Number 11784A, an act to amend

                 the Arts and Cultural Affairs Law.

                            ACTING PRESIDENT McGEE:    Read the

                 last section.

                            THE SECRETARY:    Section 2.  This



                                                        5809



                 act shall take effect on the same date and in

                 the same manner as a chapter of the Laws of

                 2004.

                            ACTING PRESIDENT McGEE:    Call the

                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 58.

                            ACTING PRESIDENT McGEE:    The bill

                 is passed.

                            Senator Hannon.

                            SENATOR HANNON:    Could we now

                 call up Senate Bill 7694A, recalled from the

                 Assembly.

                            ACTING PRESIDENT McGEE:    The

                 Secretary will read.

                            THE SECRETARY:    Calendar Number

                 1924, by the Senate Committee on Rules, Senate

                 Print Number 7694A, an act to authorize the

                 City of Elmira.

                            ACTING PRESIDENT McGEE:    Senator

                 Hannon.

                            SENATOR HANNON:    Move to

                 reconsider the vote by which this bill was

                 passed and ask that the bill be restored to

                 third reading.



                                                        5810



                            ACTING PRESIDENT McGEE:    Call the

                 roll on reconsideration.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 58.

                            ACTING PRESIDENT McGEE:    Senator

                 Hannon.

                            SENATOR HANNON:    I would now move

                 to discharge, from the Committee on Rules,

                 Assembly Print Number 11781A and substitute it

                 for the identical bill.

                            ACTING PRESIDENT McGEE:

                 Substitution ordered.

                            The Secretary will read.

                            THE SECRETARY:    Calendar Number

                 1924, by the Assembly Committee on Rules,

                 Assembly Print Number 11781A, an act to

                 authorize the City of Elmira.

                            ACTING PRESIDENT McGEE:    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 McGEE:    Call the

                 roll.

                            (The Secretary called the roll.)



                                                        5811



                            THE SECRETARY:    Ayes, 58.

                            ACTING PRESIDENT McGEE:    The bill

                 is passed.

                            Senator Hannon.

                            SENATOR HANNON:    Madam President,

                 may we stand at ease for the moment.

                            ACTING PRESIDENT McGEE:    The

                 Senate will stand at ease.

                            (Whereupon, the Senate stood at

                 ease at 4:52 p.m.)

                            (Whereupon, the Senate reconvened

                 at 5:04 p.m.)

                            ACTING PRESIDENT McGEE:    Senator

                 Hannon.

                            SENATOR HANNON:    Madam President,

                 would you be able to call up Calendar Number

                 1927.

                            ACTING PRESIDENT McGEE:    The

                 Secretary will read.

                            THE SECRETARY:    Calendar Number

                 1927, by Senator Flanagan, Senate Print 7713A,

                 an act to amend the Executive Law and the

                 Criminal Procedure Law.

                            SENATOR SCHNEIDERMAN:

                 Explanation.



                                                        5812



                            ACTING PRESIDENT McGEE:    Senator

                 Flanagan, an explanation has been requested by

                 Senator Eric Schneiderman.

                            SENATOR FLANAGAN:    Thank you,

                 Madam President.

                            This bill basically started last

                 year with Assemblyman Morelle, through the

                 efforts of the Association of Counties.  We

                 tried to do some work with the probation

                 people with our colleagues in the Assembly.

                 We were unable to reach an agreement last

                 year.  This has been part of the budget

                 process but in some respects has been pulled

                 out now to what in many respects was the

                 original bill that we had discussed.

                            I would respectfully suggest a

                 couple of different things that this bill

                 does.  It expands opportunities for our

                 localities, in particular our counties, to

                 impose certain fees for drug testing,

                 electronic monitoring, and for administrative

                 fees.  There are caps on those fees.  There

                 are hardship provisions in case of a person's

                 inability to pay.

                            This has been done in consultation



                                                        5813



                 with probation personnel.  This is supported

                 by the counties.  This would provide some form

                 of tax relief to our counties for the cost of

                 administering these programs.

                            And I would also add that this

                 really started as a result of one of the

                 counties in the State of New York going to the

                 Attorney General inquiring as to whether or

                 not these programs were legal, because there

                 were a number of counties who were actually

                 doing them.  The Attorney General came back

                 and said:  No, you don't have the authority to

                 do this.  I believe you should have the

                 authority to do this.  The Legislature should

                 move to correct it.

                            So this would codify the actions of

                 some of our municipalities throughout the

                 state.  The Attorney General's office has

                 offered an opinion on that subject, believes

                 that this should be done.  And again, it's

                 supported by the Association of Counties.

                            ACTING PRESIDENT McGEE:    Senator

                 Montgomery.

                            SENATOR MONTGOMERY:    Yes, Madam

                 President, as I wipe the tears from my eyes.



                                                        5814



                 I would like to ask if Senator Flanagan,

                 through you, would yield for a question.

                            ACTING PRESIDENT McGEE:    Senator

                 Flanagan, will you yield?

                            SENATOR FLANAGAN:    Sure.

                            ACTING PRESIDENT McGEE:    The

                 Senator yields.

                            SENATOR MONTGOMERY:    Yes.

                 Senator Flanagan, I see that your bill would

                 allow the localities to charge up to $30 per

                 month per probationer for the cost of their

                 drug test, not to exceed $600 per year.  Is

                 that correct?

                            SENATOR FLANAGAN:    No, that is

                 incorrect.

                            SENATOR MONTGOMERY:    Which part

                 did I get wrong?

                            SENATOR FLANAGAN:    The part that

                 you reference in relation to drug testing is

                 not to up to $30 a month, it's up to $8 per

                 test.  The $30 per month is related to the

                 administrative fee that may be charged for

                 probation in general.

                            I would offer to Senator Montgomery

                 too that these types of provisions exist right



                                                        5815



                 now in relation to DWI cases, for an

                 administrative fee to be imposed.  This is an

                 extension beyond that.

                            SENATOR MONTGOMERY:    Okay.  Thank

                 you.

                            Madam President, if Senator

                 Flanagan would continue to yield.

                            ACTING PRESIDENT McGEE:    Senator

                 Flanagan, will you continue to yield?

                            SENATOR FLANAGAN:    Yes.

                            ACTING PRESIDENT McGEE:    The

                 Senator continues to yield.

                            SENATOR MONTGOMERY:    Okay.  Thank

                 you, Senator.

                            So the correction that I should

                 note is that it's $30 for administrative

                 fees -- an administrative fee, and

                 additionally $8 per test.  And the fees for

                 the drug testing is not to exceed $600?

                            SENATOR FLANAGAN:    Correct.

                            SENATOR MONTGOMERY:    And the

                 administrative fee of $30 per month is $360,

                 is that correct, per year?

                            SENATOR FLANAGAN:    Yes.

                            Senator Duane is obviously coming



                                                        5816



                 to your aid here to help wipe away the tears.

                            SENATOR MONTGOMERY:    Because I'm

                 just about to cry.

                            All right.  So in addition to that,

                 am I correct in reading that it also imposes a

                 fee of $8 per day for electronic monitoring,

                 not to exceed $900 per probationer per year?

                 Is that correct?

                            SENATOR FLANAGAN:    Yes.

                            Well, let me make one

                 clarification.  This is at local option.  So

                 it does not mandate that this be done; it

                 provides our counties with the option of doing

                 so if they choose.

                            SENATOR MONTGOMERY:    All right.

                 If Senator Flanagan would continue to yield,

                 Madam President.

                            ACTING PRESIDENT McGEE:    The

                 Senator continues to yield.

                            SENATOR MONTGOMERY:    Yes, thank

                 you.

                            Senator Flanagan, is there anything

                 in your bill -- or should I ask, what is the

                 penalty for people who are unable to meet the

                 requirements of $30 per month and/or $8 per



                                                        5817



                 test and $8 per day for their electronic

                 monitoring?

                            SENATOR FLANAGAN:    Well,

                 anyone -- the probationer has an opportunity

                 to petition.  First of all, they have to be

                 properly notified.  They have to be told what

                 the fee is, they have to be given it in

                 writing, and they do have to be given the

                 opportunity to come in and suggest that that

                 would create an undue hardship based on their

                 ability to pay.  So they certainly can make an

                 attempt to have any of these fees waived.

                            I would suggest, although I can't

                 say with a hundred percent clarity, that if

                 one were to violate any of these fees, the

                 person would be subject to the same penalties

                 or issues that they would face under existing

                 law.  A violation of probation I'm sure at

                 some point could end you back up in court

                 before a judge.

                            SENATOR MONTGOMERY:    Madam

                 President, through you, would Senator Flanagan

                 continue to yield.

                            SENATOR FLANAGAN:    Yes.

                            ACTING PRESIDENT McGEE:    The



                                                        5818



                 Senator continues to yield.

                            SENATOR MONTGOMERY:    So, Senator

                 Flanagan, is it possible that depending on the

                 provisions of your probation, you could

                 theoretically -- if you're unable to pay, that

                 becomes a problem and the locality decides

                 that you have violated your probation, you

                 then go back to court to be remanded once

                 again based on violation of your probation?

                 Is that the case?  Is that a possibility?

                            SENATOR FLANAGAN:    I would

                 suggest that you're taking a leap of faith.

                 It may not necessarily be the case.  Simply

                 because somebody goes back to court doesn't

                 necessarily mean that they're going to be

                 remanded.

                            SENATOR MONTGOMERY:    But if you

                 violate probation, it's very possible that you

                 can be.

                            Madam President, if Senator

                 Flanagan would continue to yield.

                            ACTING PRESIDENT McGEE:    I'm sure

                 the Senator would continue to yield.

                            SENATOR FLANAGAN:    Yes.

                            SENATOR MONTGOMERY:    Thank you.



                                                        5819



                            One last question, Senator

                 Flanagan.  In the event that a person is

                 unable to pay because they are on some sort of

                 public assistance -- maybe Social Security, I

                 don't know -- does this money come directly

                 out of their Social Security check or whatever

                 their assistance might be?  Is that your

                 intent?

                            How will it -- if -- assuming that

                 maybe they're working, maybe they don't earn

                 enough, is there any limit in terms of an

                 income that is required in order for you to

                 get this money from them?  Or it doesn't

                 matter how little they make, they still pay?

                 Is there any graduating fee?

                            How do you determine what percent

                 of this gets paid over what a person's income

                 is?  Is there any income standard attached to

                 this fee?

                            SENATOR FLANAGAN:    I believe it's

                 a sliding scale based on federal poverty

                 guidelines.  It's certainly not -- it wouldn't

                 be my intent -- I'm not going to tell you that

                 I know exactly with 100 percent clarity what

                 existing law is.  It's certainly, I don't



                                                        5820



                 think, our intention to suggest if you can't

                 pay this fee, they're going to take away your

                 food money.  And I don't think people on

                 probation are looking to do that.

                            I mean, there's a specific

                 provision that allows somebody to come in and

                 say, here's my situation.  And I would like to

                 believe -- and I can certainly check.  I don't

                 want to just say yes to you and be wrong.  I

                 will check.

                            SENATOR MONTGOMERY:    All right.

                 Thank you.  Thank you, Senator Flanagan.

                            Madam President, on the bill

                 briefly.

                            ACTING PRESIDENT McGEE:    Senator

                 Montgomery, on the bill.

                            SENATOR MONTGOMERY:    Yes.  Madam

                 President, this obviously is a bill that

                 Senator Flanagan says he intends for it to be

                 revenue enhancement for the localities, a tax,

                 if you will, that will be paid specifically by

                 those people who are on probation.

                            Now, my assumption is if the rest

                 of the state is anything like where I

                 represent, a large number of those



                                                        5821



                 probationers are also young people.  So this

                 is essentially going to be a tax that falls

                 very heavily on young people.

                            And we just -- I did an amendment

                 yesterday to -- just to raise $10 million to

                 provide for employment, summer youth

                 employment.  And then, of course, that was

                 voted down.  And while we don't want to

                 support youth employment in our state, we do

                 want to institute a program which really will

                 heavily tax young people over and above what

                 they already -- the burden that they already

                 have to bear in terms of not having access to

                 employment, not having other opportunities and

                 so on and so forth.

                            This really is, I think, a bill

                 that does not have a lot of thought.

                 Certainly it doesn't reflect any compassion.

                 It doesn't reflect an interest in

                 supporting -- moving people away from

                 probation, supporting the fact that we don't

                 want them to go further into the criminal

                 justice system so we would like to give more

                 incentive, as opposed to punishing people and

                 essentially creating a form of entrapment so



                                                        5822



                 that they will permanently remain

                 poverty-stricken and more inclined not to

                 break the cycle of crime in society.

                            So I think this is a very bad bill.

                 And in fact, I'm not sure, I can't figure how

                 much revenue is going to be raised based on

                 this bill.  Because if we're talking about

                 poor people, I can't imagine a lot of these

                 people have a lot of money.  I can't imagine

                 that you're in fact going to collect anywhere

                 near twelve, fifteen, $2,000 a year from this

                 group of people.  So what is it going to

                 merit?

                            And by the time we spend the

                 additional money bringing them back to court,

                 perhaps further incarcerating them and so

                 forth and so on, we will lose any sense of

                 what the bill is purported to do, and that's

                 to raise revenue.

                            So I'm going to vote no, and I hope

                 that my colleagues will join me in rejecting

                 this idea because it's very bad for our

                 communities, it doesn't help us in any way.  I

                 don't believe it's going to be

                 revenue-producing.  And in fact, it goes



                                                        5823



                 against whatever we've tried to do in terms of

                 reforming the criminal justice system.  This

                 is the exact opposite.

                            So I vote no.

                            ACTING PRESIDENT McGEE:    Any

                 other Senator wishing to speak on the bill?

                            Read the last section.

                            THE SECRETARY:    Section 3.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT McGEE:    Call the

                 roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT McGEE:    Senator

                 Flanagan, to explain his vote.

                            SENATOR FLANAGAN:    Thank you.

                            Senator Montgomery, now the tears

                 are in my own eyes.  You cut me to the quick

                 suggesting that this bill has not undergone a

                 lot of thought.

                            I wanted to clarify two things.  On

                 page 3 of the bill, Section 7, lines 32

                 through 45, they speak to 200 percent of the

                 federal poverty level.  It speaks to

                 regulations being created that would look for

                 indicia of one's ability to pay.  I don't



                                                        5824



                 believe that there's any goal here to simply

                 go after someone who doesn't have a lot of

                 money.  Quite the contrary.

                            And I would also just add that this

                 bill has been negotiated with the Assembly,

                 with Assemblyman Morelle.  Some concerns that

                 I know Assemblyman Aubry in particular had

                 last year in relation to this issue I hope and

                 I do believe have been addressed.  And I'm

                 comfortable that a great deal of thought went

                 into this bill and that it is the right thing

                 to do.

                            Thank you.

                            ACTING PRESIDENT McGEE:    Announce

                 the results.

                            THE SECRETARY:    Those recorded in

                 the negative on Calendar Number 1927 are

                 Senators Breslin, Connor, Duane, Gonzalez,

                 Hassell-Thompson, L. Krueger, Onorato, Parker,

                 Paterson, Schneiderman, A. Smith and M. Smith.

                 Also Senator Stavisky.  Also Senator Sabini.

                 Also Senator Montgomery.  Ayes, 44.  Nays, 15.

                            ACTING PRESIDENT McGEE:    The bill

                 is passed.

                            Senator Hannon.



                                                        5825



                            SENATOR HANNON:    Madam President,

                 there will be an immediate meeting of the

                 Finance Committee in the Majority Conference

                 Room.

                            We'll stand at ease awaiting the

                 report of the Finance Committee.

                            ACTING PRESIDENT McGEE:

                 Immediate meeting of the Finance Committee in

                 the Majority Conference Room.

                            The Senate will stand at ease

                 awaiting the report of the Finance Committee.

                            (Whereupon, the Senate stood at

                 ease at 5:20 p.m.)

                            (Whereupon, the Senate reconvened

                 at 5:32 p.m.)

                            ACTING PRESIDENT McGEE:    Senator

                 Balboni.

                            SENATOR BALBONI:    Madam

                 President, can we please call up Senate

                 Calendar 1344.

                            ACTING PRESIDENT McGEE:    The

                 Secretary will read.

                            THE SECRETARY:    Calendar Number

                 1344, by Senator Kuhl, Senate Print 6473B, an

                 act authorizing the City of Corning.



                                                        5826



                            ACTING PRESIDENT McGEE:    Senator

                 Balboni.

                            SENATOR BALBONI:    Is there a

                 message of necessity at the desk?

                            ACTING PRESIDENT McGEE:    There is

                 a message of necessity at the desk.

                            SENATOR BALBONI:    I move that we

                 accept the message.

                            ACTING PRESIDENT McGEE:    All

                 those in favor of accepting the message of

                 necessity will signify by saying aye.

                            (Response of "Aye.")

                            ACTING PRESIDENT McGEE:    Opposed,

                 nay.

                            (No response.)

                            ACTING PRESIDENT McGEE:    The

                 message is accepted.

                            There is a home-rule message at the

                 desk.

                            The Secretary will read the last

                 section.

                            THE SECRETARY:    Section 7.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT McGEE:    Call the

                 roll.



                                                        5827



                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 59.

                            ACTING PRESIDENT McGEE:    The bill

                 is passed.

                            Senator Balboni.

                            SENATOR BALBONI:    Yes, Madam

                 President.  Could we please take up Calendar

                 Number 1937.

                            ACTING PRESIDENT McGEE:    The

                 Secretary will read.

                            THE SECRETARY:    Calendar Number

                 1937, by Senator Hannon, Senate Print 7733, an

                 act to amend the Public Health Law, in

                 relation to the fee-for-service continuing

                 care retirement communities.

                            ACTING PRESIDENT McGEE:    Senator

                 Balboni.

                            SENATOR BALBONI:    Is there a

                 message of necessity at the desk?

                            ACTING PRESIDENT McGEE:    There is

                 a message of necessity at the desk.

                            SENATOR BALBONI:    I would move to

                 accept the message.

                            ACTING PRESIDENT McGEE:    The

                 motion is to accept the message of necessity.



                                                        5828



                 All those in favor will signify by saying aye.

                            (Response of "Aye.")

                            ACTING PRESIDENT McGEE:    Opposed,

                 nay.

                            (No response.)

                            ACTING PRESIDENT McGEE:    The

                 message is accepted.

                            Read the last section.

                            THE SECRETARY:    Section 13.  This

                 act shall take effect on the same date and in

                 the same manner as a chapter of the Laws of

                 2004.

                            ACTING PRESIDENT McGEE:    Call the

                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 59.

                            ACTING PRESIDENT McGEE:    The bill

                 is passed.

                            Senator Balboni.

                            SENATOR BALBONI:    Yes, Madam

                 President.  If we could return to the reports

                 of standing committees, I believe there's a

                 report of the Finance Committee at the desk.

                 I ask that it be read.

                            ACTING PRESIDENT McGEE:    The



                                                        5829



                 Secretary will read.

                            THE SECRETARY:    Senator Johnson,

                 from the Committee on Finance, reports the

                 following bills:

                            Senate Print 6051A, Senate Budget

                 Bill, an act making appropriations for the

                 support of government:  Legislature and

                 Judiciary Budget;

                            6054B, Budget Bill, an act making

                 appropriations for the support of government:

                 Health and Mental Hygiene Budget;

                            6055B, Budget Bill, an act making

                 appropriations for the support of government;

                            6058B, Budget Bill, an act to amend

                 the State Finance Law;

                            6059B, Budget Bill, an act to

                 authorize the Dormitory Authority;

                            And Senate Print 6060B, Budget

                 Bill, an act to amend Chapter 101 of the Laws

                 of 2004.

                            ACTING PRESIDENT McGEE:    All

                 bills ordered direct to third reading.

                            Senator Balboni.

                            SENATOR BALBONI:    Madam

                 President, at this time I'd like to announce



                                                        5830



                 an immediate Majority conference in the

                 Majority Conference Room, with the expectation

                 that we will return sometime approximately

                 6:30 p.m.

                            ACTING PRESIDENT McGEE:    Without

                 objection, all bills are ordered directly to

                 third reading.

                            There is presently a call for the

                 Senate Majority Conference in the Senate

                 Majority Conference Room.

                            The Senate will return at 6:30 p.m.

                            SENATOR BALBONI:    Please

                 recognize Senator Gonzalez.

                            ACTING PRESIDENT McGEE:    Senator

                 Gonzalez.

                            SENATOR GONZALEZ:    Yes, Madam

                 President.  There will be an immediate meeting

                 of the Minority Conference in Room 314.

                            ACTING PRESIDENT McGEE:    There

                 will be an immediate meeting of the Minority

                 Conference in Room 314.

                            The Senate stands at ease.

                            (Whereupon, the Senate stood at

                 ease at 5:35 p.m.)

                            (Whereupon, the Senate reconvened



                                                        5831



                 at 6:52 p.m.)

                            ACTING PRESIDENT McGEE:    Senator

                 Skelos.

                            SENATOR SKELOS:    Madam President,

                 I believe the calendar is being distributed

                 right now.  And if we could take up

                 Supplemental Calendar Number 64A.

                            ACTING PRESIDENT McGEE:    Senator

                 Skelos.

                            SENATOR SKELOS:    Would you please

                 call up Calendar Number 1940.

                            ACTING PRESIDENT McGEE:    The

                 Secretary will read.

                            THE SECRETARY:    Calendar Number

                 1940, Senate Budget Bill, Senate Print 6055B,

                 an act making appropriations for the support

                 of government:  Transportation, Economic

                 Development and Environmental Conservation

                 Budget.

                            ACTING PRESIDENT McGEE:    Senator

                 Skelos.

                            SENATOR SKELOS:    Is there a

                 message of necessity at the desk?

                            ACTING PRESIDENT McGEE:    Yes,

                 there is a message of necessity at the desk.



                                                        5832



                            SENATOR SKELOS:    Move to accept.

                            ACTING PRESIDENT McGEE:    The

                 motion is made to accept the message of

                 necessity at the desk.  All in favor will

                 signify by saying aye.

                            (Response of "Aye.")

                            ACTING PRESIDENT McGEE:    Opposed,

                 nay.

                            (Response of "Nay.")

                            ACTING PRESIDENT McGEE:    The

                 message is accepted.

                            Read the last section.

                            SENATOR SCHNEIDERMAN:

                 Explanation.

                            ACTING PRESIDENT McGEE:    Senator

                 Skelos, an explanation has been requested.

                            Senator Volker, an explanation has

                 been requested.

                            SENATOR VOLKER:    Madam President,

                 this is a bill that has been negotiated with

                 the Assembly that relates to a series of areas

                 including the Agriculture Department, the

                 Adirondack Park Agency, Department of Housing,

                 Division of Lottery, Motor Vehicles, Public

                 Service Commission, and provides various



                                                        5833



                 funding for the agencies and for affiliated

                 programs that are connected with the agencies.

                            As was said, this bill has been

                 agreed with the Assembly, and we expect that

                 the Assembly will pass this bill either later

                 on tonight or tomorrow.

                            Questions?

                            ACTING PRESIDENT McGEE:    Senator

                 Liz Krueger.

                            SENATOR LIZ KRUEGER:    Thank you,

                 Madam President.  Briefly on the bill.

                            ACTING PRESIDENT McGEE:    Senator

                 Krueger, on the bill.

                            Senator, would you -- just one

                 moment.

                            SENATOR LIZ KRUEGER:    Certainly.

                            ACTING PRESIDENT McGEE:    You may

                 proceed.

                            SENATOR LIZ KRUEGER:    Thank you,

                 Madam President.

                            Well, again, we are now dealing

                 with a new group of budget bills for tonight.

                 Or I assume we are, starting with this one.  I

                 just, for the record, want to point out that

                 this is a bill that we've received a message



                                                        5834



                 of necessity on from the Governor, it is not a

                 bill that has aged for three days.

                            And in fact, I carry a bill that

                 says that we should allow budget bills to age

                 for ten days, given how complicated they are

                 and how much they impact the State of

                 New York.

                            And I suppose we could argue that

                 nothing impacts from a broad base the State of

                 New York more widely than decisions about

                 transportation, economic development -- which,

                 as we know, is an enormous portion of the

                 state budget -- and environmental

                 conservation.

                            So I object to the fact that this

                 is a bill that has not aged for three days.

                 There's been no public discussion, there's

                 been no opportunity for anyone to really

                 evaluate what is or is not in this bill.

                            Having said that, and while I will

                 be voting against it on those grounds and the

                 fact that there's so many other questions to

                 be asked, I will say that I am very pleased to

                 see that there is $57 million of new money for

                 housing capital spending in this budget.  It's



                                                        5835



                 the first time we've seen any new money in the

                 state budget to expand affordable housing

                 through capital funds for an extended period

                 of time.  And that certainly, I believe, is

                 something very important to the State of

                 New York.

                            However, we still don't address so

                 many of the issues, particularly when it

                 involves the MTA and the absence of money for

                 the MTA and the absence of funds that are

                 desperately needed for mass transit and public

                 transit in the State of New York.

                            It raises more questions than it

                 answers about how we spend economic

                 development money, both on budget and through

                 off-budget authorities and through the Urban

                 Development Corporation.

                            I would hope that my colleagues

                 would agree with me that one should have more

                 time to evaluate such a complex set of

                 proposals, the pluses and minuses of such, and

                 what's not there.  And I will be voting

                 against the bill.

                            Thank you, Madam President.

                            ACTING PRESIDENT McGEE:    Thank



                                                        5836



                 you.

                            Senator Malcolm Smith.

                            SENATOR MALCOLM SMITH:    Yes,

                 Madam President, I believe there's an

                 amendment at the desk.  I ask that the reading

                 of the amendment be waived, and I ask to be

                 heard on the amendment.

                            ACTING PRESIDENT McGEE:    The

                 reading is waived, and you may speak on the

                 amendment.

                            SENATOR MALCOLM SMITH:    Thank

                 you, Madam President.

                            This amendment is asking for

                 $10 million to be added for an Indian Point

                 decommission feasibility study, for a study by

                 the Public Service Commission to establish a

                 safe and environmentally viable alternative

                 energy source to enable the orderly

                 decommission of the Indian Point nuclear power

                 plant.

                            The amendment further requires that

                 the Public Service Commission, in cooperation

                 with the Department of Labor, is further

                 directed to develop a program to fund

                 appropriate job-retaining programs to ensure



                                                        5837



                 stability and continuity among the local

                 workforce.

                            And I urge a yes vote on this

                 amendment from all my colleagues, specifically

                 my good friend over here, Senator Marcellino

                 his handsome self.

                            SENATOR MARCELLINO:    Thank you,

                 Senator.

                            ACTING PRESIDENT McGEE:    All

                 those in agreement with the amendment please

                 signify by raising your hand.

                            THE SECRETARY:    Those recorded in

                 agreement are Senators Breslin, Brown, Duane,

                 Gonzalez, Hassell-Thompson, L. Krueger,

                 Montgomery, Onorato, Paterson, Sabini,

                 Sampson, Schneiderman, A. Smith, M. Smith, and

                 Stavisky.

                            ACTING PRESIDENT McGEE:    The

                 amendment is not agreed to.

                            Read the last section.

                            Senator Schneiderman.

                            SENATOR SCHNEIDERMAN:    Thank you,

                 Madam President.  Just very briefly.

                            Senator Krueger referred to several

                 problems with this proposed bill that's



                                                        5838



                 supposed to address issues of transportation.

                 I would urge all of my colleagues that with

                 this bill we're digging ourselves deeper into

                 a hole that is going to be very hard to get

                 out of.  This bill provides not one dollar of

                 capital support for the MTA.

                            We have gone through a period in

                 the 1970s where the greatest transit system in

                 the world was in decline.  Through a

                 bipartisan commitment to capital, through the

                 work of many talented administrators through

                 several administrations in City Hall and in

                 the Capitol, we've rebuilt the MTA into a

                 great system again.  Over the last ten years,

                 we have moved in the opposite direction.

                            We have to deal with this.  We're

                 now raising fares, we're facing cutbacks, the

                 agency is in debt.  We should not be passing a

                 budget that neglects our primary

                 responsibility to the businesses of New York,

                 much less the people, put aside the personal

                 costs.  This is the most antibusiness move you

                 can make as a legislature to defund the

                 transit system on which all of our downstate

                 businesses rely in the city and suburbs.



                                                        5839



                            I will be voting no for that reason

                 alone, among the others that have been

                 referred to.

                            Thank you, Madam President.

                            ACTING PRESIDENT McGEE:    Read the

                 last section.

                            THE SECRETARY:    Section 5.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT McGEE:    Call the

                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Those recorded in

                 the negative on Calendar Number 1940 are

                 Senators Duane, L. Krueger, Sabini,

                 Schneiderman, and A. Smith.  Also Senator

                 Diaz.  Ayes, 53.  Nays, 6.

                            ACTING PRESIDENT McGEE:    The bill

                 is passed.

                            Senator Marcellino.

                            SENATOR MARCELLINO:    Madam

                 President, there will be an immediate meeting

                 of the Judiciary Committee in the Majority

                 Conference Room.

                            ACTING PRESIDENT McGEE:

                 Immediate meeting of the Judiciary Committee



                                                        5840



                 in the Majority Conference Room.

                            Senator Marcellino.

                            SENATOR MARCELLINO:    Madam

                 President, at this time can we take up

                 Calendar Number 1942.

                            ACTING PRESIDENT McGEE:    The

                 Secretary will read.

                            THE SECRETARY:    Calendar Number

                 1942, Senate Budget Bill, Senate Print 6059B,

                 an act to authorize the Dormitory Authority.

                            ACTING PRESIDENT McGEE:    Senator

                 Marcellino.

                            SENATOR MARCELLINO:    Is there a

                 message of necessity at the desk, Madam

                 President?

                            ACTING PRESIDENT McGEE:    There is

                 a message of necessity at the desk.

                            SENATOR MARCELLINO:    Move that we

                 adopt the message.

                            ACTING PRESIDENT McGEE:    The

                 motion is to accept the message of necessity.

                 All those in favor will signify by saying aye.

                            (Response of "Aye.")

                            ACTING PRESIDENT McGEE:    Those

                 opposed will say nay.



                                                        5841



                            (Response of "Nay.")

                            ACTING PRESIDENT McGEE:    The

                 message of necessity is accepted.

                            Read the last section.

                            SENATOR SCHNEIDERMAN:

                 Explanation.

                            ACTING PRESIDENT McGEE:    Senator

                 Marcellino, an explanation has been requested.

                            SENATOR MARCELLINO:    Madam

                 President, I would defer to the esteemed

                 legislator Senator Volker for an explanation.

                            ACTING PRESIDENT McGEE:    Senator

                 Volker, an explanation has been requested.

                            SENATOR VOLKER:    Madam President,

                 this is the language bill on transportation,

                 economic development and environmental

                 conservation.

                            As I pointed out yesterday, since

                 we were -- the constitution was changed by the

                 courts some years ago, we now have to pass two

                 bills for one.  And this bill follows up on

                 the previous bill, which dealt with the actual

                 funding.  And this is the language that goes

                 along with the funding in the Article VII

                 bills.



                                                        5842



                            ACTING PRESIDENT McGEE:    Senator

                 Liz Krueger.

                            SENATOR LIZ KRUEGER:    Thank you,

                 Madam President.  I have an amendment at the

                 desk.  I'd like to waive reading and ask to be

                 heard on the amendment.

                            ACTING PRESIDENT McGEE:    The

                 reading is waived, and you may be heard on the

                 amendment.

                            SENATOR LIZ KRUEGER:    Thank you,

                 Madam President.

                            So as I mentioned in my earlier

                 statement, I was very pleased to see that we

                 put $57 million in for capital in the previous

                 bill for capital for new affordable housing.

                 But if we don't move forward to do something

                 about the loss of Mitchell-Lama housing

                 throughout the State of New York, anything

                 that that $57 million in new money would buy

                 us would pale in comparison to the loss of

                 housing we are anticipating because we have

                 still not passed this Mitchell-Lama buyout

                 prevention bill that has been asked for by the

                 City of New York and by the Mayor.

                            SENATOR MARCELLINO:    Madam



                                                        5843



                 President, if the Senator would indulge me.

                            SENATOR LIZ KRUEGER:    Certainly.

                            SENATOR MARCELLINO:    There was

                 previously a call for members of the Judiciary

                 Committee to report to the Majority Conference

                 Room.  If they would do so, that committee can

                 meet as quickly as possible and do their

                 business.

                            So again, would the members of the

                 Judiciary Committee please report to the

                 Majority Conference Room so that a meeting can

                 be held.  And we'd appreciate that.

                            ACTING PRESIDENT McGEE:    Will all

                 members of the Judiciary Committee report to

                 the Majority Conference Room immediately.

                            Senator Krueger.

                            SENATOR LIZ KRUEGER:    Certainly,

                 Senator Marcellino.

                            Thank you, Madam President.  Our

                 amendment would amend the Private Housing

                 Finance Law by authorizing municipally aided

                 Mitchell-Lama rental developments in New York

                 City to pay dividends or interest in excess of

                 6 percent with the approval of the city's

                 Department of Housing Preservation and



                                                        5844



                 Development.  Such developments would then

                 remain in the Mitchell-Lama program, and their

                 rents would be subject to annual increase by

                 the -- established by the New York City Rent

                 Guidelines Board.

                            This bill would also provide rent

                 stabilization protection for tenants and real

                 property tax relief for owners of

                 Mitchell-Lamas where post-1974 Mitchell-Lama

                 rental developments voluntarily dissolve on or

                 after the effective date.  Under the Private

                 Housing Finance Law, Section 35, Mitchell-Lama

                 housing companies may voluntarily dissolve or

                 buy out after 20 years.  Many housing

                 companies are opting to buy out in order to

                 increase their return on their investment

                 because we have not passed this law.

                            This proposed language is designed

                 to encourage housing companies to remain in

                 the Mitchell-Lama program by authorizing

                 returns in excess of the current statutory

                 limit.

                            To highlight how important this is,

                 let me just reference that there are 66,997

                 Mitchell-Lama cooperative and 57,994



                                                        5845



                 Mitchell-Lama rental units in limited dividend

                 housing remaining in New York City.  There are

                 35,995 units of Mitchell-Lama limited dividend

                 rental housing that will be able to charge

                 market rents upon leaving their respective

                 programs if we don't pass this bill and give

                 ourselves some alternatives.

                            Since the inception of the program,

                 more than 24,000 units of housing are no

                 longer regulated under the Mitchell-Lama

                 programs.  We've already lost those units

                 because of the failure of the Legislature to

                 move.  It is anticipated that by the year

                 2015, a minimum of 59 additional Mitchell-Lama

                 developments, representing more than 40,000

                 units of affordable housing, are scheduled to

                 retire from their subsidized mortgages,

                 removing a last significant hurdle to their

                 leaving the Mitchell-Lama program.

                            We are so many years too late in

                 not passing protections for Mitchell-Lama

                 tenants to assure the continuation of

                 affordable housing in the City of New York.  I

                 urge us not to allow another year to go by

                 without passing legislation such as this, the



                                                        5846



                 Mitchell-Lama buyout prevention bill.  It is

                 at the request of the City of New York.  It is

                 urged that we pass this by the Mayor.  It

                 would have its impact on the City of New York.

                 I hope that my colleagues will join me in

                 supporting this amendment.

                            Thank you, Madam President.

                            ACTING PRESIDENT McGEE:    Senator

                 Hassell-Thompson, on the amendment.

                            SENATOR HASSELL-THOMPSON:    Thank

                 you.  Very briefly.

                            This house, as well as the

                 Assembly, has just passed a bill that would

                 allow major repairs and redevelopment of the

                 Co-op City Mitchell-Lama, which is in my

                 district, which represents 15,000 units of

                 affordable housing.

                            I cannot tell you the struggle that

                 we had for several months prior to this bill

                 with attempts to privatize.  And even now,

                 there are rumors that even after this money is

                 being made available that there will continue

                 to be attempts to privatize these units.

                            This language is very critical.

                 And it was very interesting that this language



                                                        5847



                 became available, because just two days ago

                 Senator Liz Krueger and I were having a

                 discussion from the Housing Committee on the

                 necessity for us to monitor so carefully how

                 this money is spent and to ensure that the

                 state gets the appropriate investment but,

                 more than that, the constituents who need

                 affordable units, they will always be made

                 available to them.

                            I support this amendment, having

                 gone through the last 2 years of a serious

                 struggle with the largest single Mitchell-Lama

                 in the country.  And still those attempts are

                 being made to privatize.

                            ACTING PRESIDENT McGEE:    Senator

                 Schneiderman.

                            SENATOR SCHNEIDERMAN:    Thank you,

                 Madam President.  I also rise to speak in

                 support of the amendment.

                            I think that we have to be very,

                 very careful in this house about continuing

                 the policy that has been in effect for the

                 last ten years or so of reducing our

                 investments in critical needs for the working

                 men and women who make our state run.



                                                        5848



                            I spoke earlier about the fact that

                 we have systematically defunded the greatest

                 transit system in the world.  But it's also

                 important for us to recognize that we do not

                 have an effective, affordable housing program

                 in this state.

                            And when you look back at a program

                 like the Mitchell-Lama program, it really

                 reminds us of the great things that used to be

                 done in this state for working men and women.

                 It reminds us that New York State led the

                 country in the development of labor laws to

                 protect working men and women, healthcare

                 programs, of building housing.  Our public

                 housing system was an absolute gem.  The

                 Mitchell-Lama program, a great way to leverage

                 government resources, working with the private

                 sector to provide affordable housing.

                            Somewhere over the course of the

                 last twenty years we've gotten off track.  And

                 our state now is lagging the nation we used to

                 lead in passing laws to make ordinary working

                 men and women's lives better.

                            It's time for us to renew that

                 commitment, which was, again, a bipartisan



                                                        5849



                 effort, on behalf of governors from Al Smith

                 on, to really make this state the best state

                 to live in and work in.  People wanted to move

                 here, people wanted to live here, people

                 wanted to raise their children here.  And the

                 Mitchell-Lama program is the last major

                 affordable housing program that we passed in

                 this state.  And how many years ago was that?

                            We are not living up to our

                 responsibilities.  We are not living up to our

                 responsibilities to house our citizens, to

                 make sure they can afford to live here, to

                 provide them with decent schools -- and we've

                 discussed that at great length -- to provide

                 an affordable mass transit system so they can

                 get to and from work.

                            And that has got to stop.  Because

                 if you don't invest in your human

                 infrastructure, you cannot have a successful

                 economy, you cannot have a successful state.

                            So I would urge all of you that as

                 with schools, as with transit, this is not a

                 matter of charity, this is a matter of

                 essential investment for the long-term

                 economic health of our state as well as a part



                                                        5850



                 of our moral responsibility to our citizens.

                            I would urge everyone to vote in

                 favor of the amendment.  Thank you.

                            ACTING PRESIDENT McGEE:    Those

                 Senators in agreement with the amendment

                 please signify by raising your hand.

                            THE SECRETARY:    Those recorded in

                 agreement are Senators Andrews, Breslin,

                 Connor, Diaz, Duane, Gonzalez,

                 Hassell-Thompson, L. Krueger, C. Kruger,

                 Lachman, Montgomery, Onorato, Parker,

                 Paterson, Sabini, Schneiderman, A. Smith,

                 M. Smith, Stachowski, and Stavisky.  Also

                 Senator Brown.

                            ACTING PRESIDENT McGEE:    The

                 amendment is not agreed to.

                            Read the last section.

                            THE SECRETARY:    Section 3.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT McGEE:    Call the

                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Those recorded in

                 the negative on Calendar Number 1942 are

                 Senators Duane, L. Krueger, Parker, Sabini,



                                                        5851



                 Schneiderman, and A. Smith.  Ayes, 53.  Nays,

                 6.

                            ACTING PRESIDENT McGEE:    The bill

                 is passed.

                            Senator Marcellino.

                            SENATOR MARCELLINO:    Madam

                 President, can you recognize Senator Diaz,

                 please.

                            ACTING PRESIDENT McGEE:    Senator

                 Diaz.

                            SENATOR DIAZ:    Yes, thank you,

                 Madam President.  I request unanimous consent

                 to be recorded with a yes vote on Calendar

                 1940.

                            ACTING PRESIDENT McGEE:    You wish

                 to be recorded in the negative?

                            SENATOR DIAZ:    In the positive.

                            ACTING PRESIDENT McGEE:    In the

                 positive.

                            SENATOR DIAZ:    1940.

                            ACTING PRESIDENT McGEE:    Without

                 objection.

                            SENATOR DIAZ:    Thank you.

                            ACTING PRESIDENT McGEE:    Senator

                 Marcellino.



                                                        5852



                            SENATOR MARCELLINO:    Madam

                 President, can we now call up Calendar Number

                 1939.

                            ACTING PRESIDENT McGEE:    The

                 Secretary will read.

                            THE SECRETARY:    Calendar Number

                 1939, Senate Budget Bill, Senate Print 6054B,

                 an act making appropriations for the support

                 of government:  Health and Mental Hygiene

                 Budget.

                            ACTING PRESIDENT McGEE:    Senator

                 Marcellino.

                            SENATOR MARCELLINO:    Is there a

                 message of necessity at the desk?

                            ACTING PRESIDENT McGEE:    There is

                 a message of necessity at the desk.

                            SENATOR MARCELLINO:    Move to

                 accept the message of necessity.

                            ACTING PRESIDENT McGEE:    All

                 those in favor of accepting the message of

                 necessity will signify by saying aye.

                            (Response of "Aye.")

                            ACTING PRESIDENT McGEE:    Opposed,

                 nay.

                            (Response of "Nay.")



                                                        5853



                            ACTING PRESIDENT McGEE:    The

                 message is accepted.

                            Read the last section.

                            SENATOR SCHNEIDERMAN:

                 Explanation.

                            ACTING PRESIDENT McGEE:    Senator

                 Volker, an explanation has -- I'm sorry,

                 Senator Hannon, an explanation has been

                 requested.

                            SENATOR VOLKER:    Madam President,

                 could I defer to Senator Hannon to explain the

                 bill.

                            ACTING PRESIDENT McGEE:    Senator

                 Hannon, an explanation has been requested.

                            SENATOR HANNON:    This bill deals

                 with public health, Medicaid, HCRA, in regard

                 to the health budget for the State of

                 New York.

                            The highlights of this, because of

                 the vastness of the appropriations in regard

                 to ensuring that we have good health for our

                 citizens, I'll just address some of the

                 specific highlights that the Legislature has

                 focused on.

                            I think primary among them all is



                                                        5854



                 the state takeover of the Family Health Plus

                 system in order to provide local relief for

                 our localities.  And the initial cost of this

                 for the fiscal year will be $25 million, and

                 thereafter rising sharply.

                            This was one of the two main goals

                 in regard to our Medicaid Task Force, the

                 other being to make the rest of the Medicaid

                 system more rational and more efficient, for a

                 better delivery of health to our citizens.

                            Along with that, what we have

                 provided for is an enhancement of the tax

                 credit for long-term-care insurance so that we

                 will focus the purchase of that insurance by

                 those who need it, less reliance on the

                 Medicaid system, and have the baby boomer

                 generation be able to support its own aging

                 process.

                            Along with that, we have focused

                 the instance of Senator Rath and Senator

                 Golden on the point of access, the promotion

                 of information about long-term-care insurance,

                 working through the Office of Aging throughout

                 the state, as well as the Health Department.

                            Some other significant aspects of



                                                        5855



                 this bill have been to reject the "sick tax,"

                 the proposal by the Executive in regard to

                 monies that would be imposed upon hospitals

                 and nursing homes throughout the state.

                            Is that sufficient, Madam

                 President?

                            ACTING PRESIDENT McGEE:    Any

                 other Senator wishing to speak on the bill?

                            Senator Meier.

                            SENATOR MEIER:    Thank you, Madam

                 President.  Just very briefly on the bill.

                            The Medicaid portions of this bill

                 are really the beginning of a process.  This

                 is by no means the end of the process.  There

                 are some important measures in here.  This is

                 the first attempt at significant fiscal relief

                 for local governments.  That effort started in

                 this house when the Majority Leader appointed

                 the Medicaid Reform Task Force.  And that was

                 a bipartisan effort where people reached

                 across this aisle and worked together on that

                 effort.

                            As Senator Hannon explained, there

                 are some other measures in here.  One of the

                 things that we're going to have to revisit



                                                        5856



                 next year, and perhaps the year after and the

                 year after, is this entire issue of cost

                 containment.  There is no more daunting

                 challenge fiscally to this state or to the

                 municipalities that compose the rest of this

                 state than this Medicaid program.  And there

                 should be no mistake about this debate, that

                 the other house wasn't interested in engaging

                 us on cost containment.

                            And some of this is pretty shocking

                 and pretty disappointing, including, in my

                 view, the preposterous and slanderous notion

                 that there's something racist about a

                 preferred drug list when the whole rest of the

                 insured private-sector world operates under

                 that kind of a system, including the

                 preposterous notion that there is somehow

                 something wrong with taking a look at a menu

                 of benefits to see if we can't bring it into

                 line into something that is reasonable and

                 humane but tracks other insurance, that it's

                 available in the private sector.

                            We need to come back and to take a

                 look as we lay the groundwork to help people

                 find alternatives to disposing of all their



                                                        5857



                 assets -- through access to private capital,

                 through access to insurance -- to provide in

                 part, at least, for their own long-term care.

                 So that when the baby boom generation, my

                 generation, starts hitting this long-term-care

                 system, that we don't collapse both Medicaid

                 and the long-term-care system itself.

                            We are going to revisit Medicaid

                 cost-containment in this Legislature in coming

                 years for one of two reasons.  We will revisit

                 Medicaid cost-containment and do more on it

                 because we have come to the conclusion that we

                 must do it, that it's the right thing to do,

                 that there are ways of containing costs and at

                 the very same time to more intelligently and

                 humanely program the way we provide health

                 care in this state and at the same time give a

                 break to taxpayers and give more quality

                 health care to those who rely upon this

                 Medicaid system.

                            Or we will do it when this state

                 stares over the edge of the cliff into a very

                 black fiscal abyss and do it because we will

                 have no alternative.

                            And what I would suggest is it



                                                        5858



                 would be far better if we can, when we revisit

                 this, do it before we get to the point of that

                 cliff.  Because decisions that we make at the

                 point of crisis tend not to be as well thought

                 out or as well organized, and they tend to be

                 decisions many times that wind up hurting

                 people who are the most vulnerable and the

                 most in need of help.

                            This is an excellent start.  It's

                 an excellent start because the Majority Leader

                 appointed a task force.  It's an excellent

                 start because members on both sides of the

                 this aisle worked very cooperatively and voted

                 for a bill that we passed in this house very

                 much earlier in the year.

                            We need to do more.  We have at

                 least started.  And I'm going to vote for this

                 bill very gladly.

                            Thank you, Madam President.

                            ACTING PRESIDENT McGEE:    Thank

                 you.

                            Senator Schneiderman.

                            SENATOR SCHNEIDERMAN:    Thank you,

                 Madam President.  If the explainer would yield

                 for one question.



                                                        5859



                            ACTING PRESIDENT McGEE:    I think

                 the explainer is Senator Hannon.

                            Senator Hannon, will you yield?

                            SENATOR HANNON:    Yes, Madam

                 President.

                            ACTING PRESIDENT McGEE:    The

                 Senator yields.

                            SENATOR SCHNEIDERMAN:    Through

                 you, Madam President, just to clarify things

                 in light of Senator Meier's remarks, there is

                 no preferred drug list in this bill or the

                 next bill, is there?

                            SENATOR HANNON:    No.  There is --

                 regretfully, in my view.  But there is none.

                 Factually, there is no preferred drug list in

                 this bill.

                            SENATOR SCHNEIDERMAN:    Thank you,

                 Madam President.

                            ACTING PRESIDENT McGEE:    Thank

                 you.

                            Any other Senator wish to speak on

                 this bill?

                            Read the last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.



                                                        5860



                            ACTING PRESIDENT McGEE:    Call the

                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Those recorded in

                 the negative on Calendar Number 1939 are

                 Senators Duane, L. Krueger, and A. Smith.

                 Also Senator Stavisky.  Also Senator Andrews.

                 Also Senator Schneiderman.

                            Those recorded in the negative on

                 Calendar Number 1939 are Senators Andrews,

                 Duane, L. Krueger, Sabini, Schneiderman, A.

                 Smith, and Stavisky.  Ayes, 52.  Nays, 7.

                            ACTING PRESIDENT McGEE:    The bill

                 is passed.

                            Senator Marcellino.

                            SENATOR MARCELLINO:    Madam

                 President, can we call up Calendar 1941.

                            ACTING PRESIDENT McGEE:    The

                 Secretary will read.

                            THE SECRETARY:    Calendar Number

                 1941, Senate Budget Bill, Senate Print 6058B,

                 an act to amend the State Finance Law.

                            ACTING PRESIDENT McGEE:    Senator

                 Marcellino.

                            SENATOR MARCELLINO:    Is there a



                                                        5861



                 message of necessity at the desk, please?

                            ACTING PRESIDENT McGEE:    There is

                 a message of necessity at the desk.

                            SENATOR MARCELLINO:    Move to

                 accept the message of necessity.

                            ACTING PRESIDENT McGEE:    The

                 motion is to accept the message of necessity.

                 All those in favor of accepting the message

                 will signify by saying aye.

                            (Response of "Aye.")

                            ACTING PRESIDENT McGEE:    Opposed,

                 nay.

                            (Response of "Nay.")

                            ACTING PRESIDENT McGEE:    The

                 message is accepted.

                            SENATOR SCHNEIDERMAN:

                 Explanation.

                            ACTING PRESIDENT McGEE:    Senator

                 Marcellino, an explanation has been requested.

                            SENATOR MARCELLINO:    I will defer

                 to my esteemed colleague from Long Island,

                 Senator Hannon.

                            ACTING PRESIDENT McGEE:    Senator

                 Hannon, an explanation has been requested.

                            SENATOR HANNON:    Madam President,



                                                        5862



                 this is the Article VII language bill

                 accompanying the appropriation bill that we

                 just passed.  It implements, where there is

                 needed, statutory changes to go along with the

                 policy changes we've already appropriated

                 money for.

                            ACTING PRESIDENT McGEE:    Thank

                 you, Senator Hannon.

                            Senator Breslin.

                            SENATOR BRESLIN:    Madam

                 President, I believe there's an amendment at

                 the desk.  I ask that the amendment reading be

                 waived and I be allowed to speak on the

                 amendment.

                            ACTING PRESIDENT McGEE:    The

                 reading is waived, and you may be heard on the

                 amendment.

                            SENATOR BRESLIN:    Thank you,

                 Madam President.

                            The amendment is an amendment which

                 would cap all Medicaid expenses at the 2003

                 level.  I in fact have a bill that I

                 introduced a couple of years ago that would

                 cap it at the 2001 level.

                            We have to, as a legislative body,



                                                        5863



                 stop passing down to localities.  I applaud

                 Senator Meier and Senator Hannon for their

                 work on the task force, but we also have to

                 collectively get together to make sure we

                 protect the localities.

                            If you took every state in the

                 union, every state in the union and added up

                 the local costs for Medicaid, the entire local

                 cost for Medicaid, New York State pays

                 84 percent of all local costs nationally.

                            Over the last four years, Medicaid

                 costs to the localities have increased by

                 57 percent.  In my own county, the entire

                 property tax, the entire property tax leaves

                 Medicaid $14 million short.  This is at the

                 same time when we have 3 million uninsured in

                 New York State.

                            The health care system is broken.

                 And we have to bring it together to make sure

                 that we allow the localities to reduce its

                 Medicaid cost, have it absorbed by the states,

                 so those localities can go on and create

                 business and do what they're supposed to do

                 and not be so concerned and overburdened with

                 Medicaid.



                                                        5864



                            Therefore, I would request all of

                 my brethren to support this amendment.

                            Thank you.

                            ACTING PRESIDENT McGEE:    Those

                 Senators in agreement with the amendment --

                            SENATOR BRESLIN:    My sisters and

                 brothers.

                            ACTING PRESIDENT McGEE:    Those

                 Senators in agreement with the amendment

                 please signify by raising your hand.

                            THE SECRETARY:    Those recorded in

                 agreement are Senators Breslin, Brown, Diaz,

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

                 Lachman, Montgomery, Onorato, Parker,

                 Paterson, Sabini, Sampson, Schneiderman,

                 A. Smith, M. Smith, Stachowski, and Stavisky.

                 Also Senator Connor.

                            ACTING PRESIDENT McGEE:    The

                 amendment is not agreed to.

                            Read the last section.

                            THE SECRETARY:    Section 4.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT McGEE:    Call the

                 roll.

                            (The Secretary called the roll.)



                                                        5865



                            ACTING PRESIDENT McGEE:    Senator

                 DeFrancisco.

                            SENATOR DeFRANCISCO:    To explain

                 my vote.

                            ACTING PRESIDENT McGEE:    Senator

                 DeFrancisco, to explain his vote.

                            SENATOR DeFRANCISCO:    I think if

                 each of the Senators' districts are like my

                 district, this is probably one of the biggest

                 issues that the localities are concerned

                 about; namely, the cost of Medicaid.

                            I too want to also say that our

                 bill has been a first step to make it better

                 for the localities.  I don't believe just by

                 the state picking up the whole cost of

                 Medicaid or capping the level of the local

                 shares is going to solve the problem.  The

                 problem is the runaway cost of the system.

                            And I would hope that as we

                 continue this discussion, more of the

                 recommendations by the Senate task force be

                 adopted by both houses so we can control the

                 expense not only for the localities but also

                 for the State of New York, because it is

                 running out of control at this point in time.



                                                        5866



                            So I support this first step and

                 hope that we can get more and much more

                 substantial reforms in the days to come.

                            ACTING PRESIDENT McGEE:    Announce

                 the results.

                            Senator Hannon, I'm sorry.

                            SENATOR HANNON:    To explain my

                 vote, Madam President.

                            ACTING PRESIDENT McGEE:    Senator

                 Hannon, to explain his vote.

                            SENATOR HANNON:    One of the most

                 significant things we did through this is the

                 takeover of Family Health Plus.

                            And when there were a number of

                 proposals suggested to the task force as to

                 what could be done -- whether the state could

                 take over Medicaid entirely, take over the

                 increase in Medicaid, take over the

                 long-term-care system -- we had a question of

                 how quickly could we get relief to the

                 counties, how quickly could we afford that

                 relief, and how could we make sure that we

                 could be as fair in shifting the burden.

                            And we made the choice, in

                 consultation with the Association of Counties,



                                                        5867



                 that we would come up with the takeover of

                 Family Health Plus, because we felt that met

                 all the tests.  And that's what is implemented

                 in this legislation today.

                            Thank you.

                            ACTING PRESIDENT McGEE:    Senator

                 Brown.

                            SENATOR BROWN:    Yes, to explain

                 my vote.

                            I too think that this is a good

                 first step, and I commend the members of the

                 Senate that have served on the task force.

                            I'm disappointed that the amendment

                 to cap Medicaid expenses didn't pass, though,

                 because I think that this first step doesn't

                 go far enough.  We've heard members talk about

                 the Medicaid expense and how it is choking

                 local governments all across this state, while

                 in Western New York I know that Erie County

                 and Niagara County governments are really

                 suffering under the weight of the Medicaid

                 burden.

                            And when you look at the fact that

                 the City of Buffalo is under the authority of

                 a control board and Erie County's fastest



                                                        5868



                 growing expense is Medicaid, I think something

                 has to be done sooner than later.  And I wish

                 we had taken the opportunity, I wish we had

                 seized the opportunity to cap Medicaid

                 expenses at the 2003 level.

                            Thank you.

                            ACTING PRESIDENT McGEE:    Senator

                 Brown, how do you vote?

                            SENATOR BROWN:    I vote yes.

                            ACTING PRESIDENT McGEE:    Senator

                 Meier.

                            SENATOR MEIER:    Madam President,

                 briefly to explain my vote.

                            I'm disappointed that we weren't

                 able to cap the counties' expenses also.  And

                 I'm really terribly disappointed that the

                 Assembly would not seriously engage in the

                 cost-containment that's necessary to take that

                 over.

                            We cannot sustain, within this

                 budget, with the requirements facing us in

                 terms of education and anything else, anything

                 more than we have done today.  And that's one

                 of the reasons why I say we need to come back

                 again next year to get some responsible



                                                        5869



                 cost-containment that gets this program under

                 control, makes it more efficient, gives the

                 people the assistance that they need.

                            And if the Assembly would like to

                 engage in some serious cost-containment, we'll

                 be back here next year giving the counties

                 more relief.  But we have to be responsible.

                 We have to have a balanced budget as well.

                 And I say that as a former county executive.

                 And the counties in this state I think do

                 understand that.  We can send more help.  The

                 Assembly needs to engage on cost-containment.

                            I vote aye.

                            ACTING PRESIDENT McGEE:    Senator

                 Meier will be recorded in the affirmative.

                            Announce the results.

                            THE SECRETARY:    Those recorded in

                 the negative on Calendar Number 1941 are

                 Senators Duane, L. Krueger, Sabini,

                 Schneiderman, and A. Smith.  Ayes, 54.  Nays,

                 5.

                            ACTING PRESIDENT McGEE:    The bill

                 is passed.

                            Senator Stavisky.

                            SENATOR STAVISKY:    Madam



                                                        5870



                 President, if I may have unanimous consent to

                 be recorded in the affirmative on Calendar

                 1939, Senate Bill 6054B.

                            ACTING PRESIDENT McGEE:    Without

                 objection.

                            SENATOR STAVISKY:    Thank you.

                            ACTING PRESIDENT McGEE:    Senator

                 Marcellino.

                            SENATOR MARCELLINO:    Madam

                 President, can we call up Calendar Number

                 1943.

                            ACTING PRESIDENT McGEE:    The

                 Secretary will read.

                            THE SECRETARY:    Calendar Number

                 1943, Senate Budget Bill, Senate Print 6060B,

                 an act to amend Chapter 101 of the Laws of

                 2004.

                            ACTING PRESIDENT McGEE:    Senator

                 Marcellino.

                            SENATOR MARCELLINO:    Is there a

                 message of necessity at the desk, Madam

                 President?

                            ACTING PRESIDENT McGEE:    Yes,

                 there is a message of necessity at the desk.

                            SENATOR MARCELLINO:    Move to



                                                        5871



                 accept the message.

                            ACTING PRESIDENT McGEE:    The

                 motion is to accept the message of necessity.

                 All those in favor will signify by saying aye.

                            (Response of "Aye.")

                            ACTING PRESIDENT McGEE:    Those

                 opposed will say nay.

                            (Response of "Nay.")

                            ACTING PRESIDENT McGEE:    The

                 message of necessity is accepted.

                            Read the last section.

                            SENATOR SCHNEIDERMAN:

                 Explanation.

                            ACTING PRESIDENT McGEE:    Senator

                 Volker, an explanation has been requested.

                            SENATOR VOLKER:    Madam President,

                 this is what we used to call -- now it's not

                 the "Big Ugly," it's the "Big Handsome."

                            And it's a revenue bill that

                 provides extenders.  My colleague to my right

                 is really upset because the extenders of

                 certain things are in this bill, on Quick

                 Draw.

                            I believe the rebates for New York

                 City are in this bill.  And a whole series of



                                                        5872



                 areas including the tax-free week, film tax

                 credit, and a series of other benefits to the

                 taxpayers of this state.  The extender, I

                 think, of the Empire Zones is in this bill

                 too, for one year.

                            ACTING PRESIDENT McGEE:    Senator

                 Onorato.

                            SENATOR ONORATO:    Will the

                 sponsor yield to a question, please?  Senator

                 Volker.

                            SENATOR VOLKER:    Yes, I will,

                 sir.

                            SENATOR ONORATO:    Senator, I'm

                 concerned with the part of the Empire --

                            ACTING PRESIDENT McGEE:    Just --

                 Senator Onorato.

                            Thank you.

                            SENATOR ONORATO:    Thank you,

                 Madam President.

                            I'm concerned about the Empire

                 State film production credit.  According to

                 that, there's going to be a 10 percent credit

                 for production costs for new films and

                 television series that are produced in

                 New York State.  Does this apply to the



                                                        5873



                 existing firms or only to new firms coming

                 online?

                            SENATOR VOLKER:    The answer is

                 yes, it does apply to existing firms as well

                 as to new firms.

                            SENATOR ONORATO:    Thank you.

                            SENATOR VOLKER:    You're welcome.

                            ACTING PRESIDENT McGEE:    Senator

                 Liz Krueger.

                            SENATOR LIZ KRUEGER:    Thank you,

                 Madam President.  If the sponsor would please

                 yield to a question.

                            ACTING PRESIDENT McGEE:    Senator

                 Volker, will you yield?

                            SENATOR VOLKER:    Yes.

                            ACTING PRESIDENT McGEE:    The

                 Senator yields.

                            SENATOR LIZ KRUEGER:    Thank you,

                 Madam President.  Thank you.

                            So this is the revenue bill for the

                 State of New York.  How much revenue is in it?

                            SENATOR VOLKER:    Good lord.

                            SENATOR PADAVAN:    A lot.  A lot.

                            (Laughter.)

                            SENATOR LIZ KRUEGER:    I don't



                                                        5874



                 know if Senator Volker wants to defer to

                 Senator Padavan on this one.

                            SENATOR VOLKER:    The net amount

                 in it -- and the reason is that in the bill

                 actually there are some -- because this is a

                 language, Article VII bill, some of the

                 numbers that were in there originally are

                 removed.  I think the net is about

                 $670 million.

                            SENATOR LIZ KRUEGER:    Madam

                 President, if, through you, the sponsor would

                 continue to yield.

                            ACTING PRESIDENT McGEE:    Senator

                 Volker, will you continue to yield?

                            SENATOR VOLKER:    Why, certainly.

                            ACTING PRESIDENT McGEE:    The

                 Senator continues to yield.

                            SENATOR LIZ KRUEGER:    Thank you.

                            So this entire bill adds up to

                 670 million new dollars?

                            SENATOR VOLKER:    I believe it is

                 new dollars, yes.  Monies requested by the

                 Governor -- now, the Governor had more than

                 that, and we have included in this bill

                 $670 million -- that's why I said net.  It's



                                                        5875



                 additional.  But we rejected some of the

                 Governor's requests and added some of our own.

                            SENATOR LIZ KRUEGER:    Madam

                 President, if, through you, the sponsor would

                 continue to yield.

                            SENATOR VOLKER:    Sure.

                            ACTING PRESIDENT McGEE:    Senator

                 Volker, will you continue to yield?

                            SENATOR VOLKER:    Sure.

                            ACTING PRESIDENT McGEE:    The

                 Senator yields.

                            SENATOR LIZ KRUEGER:    Thank you.

                            So today we did a series of other

                 expenditure bills.  How much new money do they

                 add up to?

                            SENATOR VOLKER:    I believe it is

                 between a billion-two and a billion-three,

                 depending on how you count.  But let's say it

                 was about a billion-two.

                            SENATOR LIZ KRUEGER:    About a

                 billion-two.

                            Madam President, if you would ask

                 the sponsor if he'd continue to yield, please.

                            SENATOR VOLKER:    Sure.

                            ACTING PRESIDENT McGEE:    The



                                                        5876



                 Senator yields.

                            SENATOR LIZ KRUEGER:    Thank you.

                            So as I understand it, Senator,

                 this revenue bill you say has about

                 670 million in new revenue, but we've passed

                 bills throughout the day that have actually

                 added between $1.2 and $1.3 billion.

                            So technically, if I understand

                 this correctly, what we are passing today in

                 expenses versus what we are being asked to

                 pass today in revenue don't balance out?  It's

                 not a balanced revenue/expenditure budget?

                            SENATOR VOLKER:    It is the

                 opinion of the Senate and Assembly fiscal

                 people that it does balance out, because there

                 is growth in revenue, estimated growth and so

                 forth.

                            One of the things about a budget,

                 and I do know a little about a budget, even

                 though I'm not the real chairman of Finance.

                 But when you submit a budget, you submit

                 estimates of what the revenue is going to be

                 and you submit estimates of what the

                 expenditures are going to be.

                            You know, I -- I give a



                                                        5877



                 for-instance.  I know for a fact that there

                 was additional money in the capital gains tax

                 at the end of last year, which we didn't

                 really anticipate because there were bonuses

                 paid on Wall Street, unexpected bonuses at the

                 end of the year.  It's been told to me that

                 there may be some additional revenue because

                 we haven't hired hardly anybody in this state

                 in the last year.

                            So the truth is that the estimates

                 relate to guess -- guesstimates.  Remember,

                 this is a $101 billion budget.  So it's pretty

                 hard to say this is exactly what it is.  In

                 fact, not only is it pretty hard, it's

                 impossible.  Because we're guessing what

                 revenue is going to come in versus what's

                 going to go out.

                            And remember, we are in a late

                 budget.  And interesting about late budgets is

                 we don't spend near as much money because

                 we've been spending at a lower level until

                 now.  There are some people that allege that

                 we save a lot of money when budgets are late,

                 because the investments and so forth and -- we

                 won't get into that, because the budget people



                                                        5878



                 tell me we don't talk about that.

                            Sales tax revenues are coming in

                 very strong, it was just told to me.  I happen

                 to know that in Western New York sales tax

                 revenues are at a very high rate.  And the

                 other thing I happen to know is that the

                 Comptroller just informed me personally that

                 the numbers on Medicaid are finally beginning

                 to go down for the first time since 9/11.

                            SENATOR LIZ KRUEGER:    Madam

                 President, if the sponsor would yield to an

                 additional question.

                            SENATOR VOLKER:    Sure.

                            ACTING PRESIDENT McGEE:    Senator

                 Volker yields.

                            SENATOR LIZ KRUEGER:    So as I

                 understand it, Senator, we're guesstimating

                 what the revenue will be and, I suppose, the

                 expenditures will be.

                            I believe you have a revenue table

                 that at least breaks down some of the analysis

                 in the revenue bill of what you project that

                 $670 million is coming from.  Could we have --

                 can we make that available to the members?

                            SENATOR VOLKER:    Yeah, we can



                                                        5879



                 make it available.

                            But, Senator, every time we do a

                 budget, we are doing, in a sense, a

                 guesstimate.  The media sometimes thinks that

                 this is an exact science.  What they don't

                 realize is that it can't be an exact science.

                 Because there's no way we can say exactly for

                 sure.  We know the economy is getting better,

                 we know the numbers are getting better, we

                 know expenditures are down in some places

                 because we haven't spent as much money.  So we

                 do have a book that shows the numbers, but we

                 believe that -- well, the Senate I think

                 believes that the numbers are actually -- our

                 expenditure numbers are actually down from

                 what we projected and that our revenues are

                 up.

                            SENATOR LIZ KRUEGER:    Madam

                 President, on the bill.

                            ACTING PRESIDENT McGEE:    Senator

                 Krueger, on the bill.

                            SENATOR LIZ KRUEGER:    I

                 appreciate Senator Volker's candor with me in

                 answering my questions.  This is a bill that

                 we got tonight with a message of necessity



                                                        5880



                 from the Governor.  It's the revenue bill.

                 It's the bill I have argued all week we should

                 have started with, rather than starting with

                 expenditure bills.

                            Having said that, now that we have

                 it -- although we still haven't seen any of

                 the details, just some language -- we're being

                 told that New York State guesses what our

                 budget will be.  We guess about our revenue,

                 we guess about expenditures.  And he's right,

                 there's no hard, perfect science.  Budgets are

                 fiscal plans.  They are projections for the

                 year.  I suppose an irony, and the Senator

                 pointed out, is we are starting this so late

                 in the year.

                            But I would argue this is exactly

                 why New York State ought to be following GAAP

                 procedures, Generally Accepted Accounting

                 Procedures, for government.  I think it should

                 be disturbing to the people of New York, as it

                 is disturbing to me, that we don't have any

                 rules for our budget.  We clearly don't have a

                 rule about when we pass the budget.  And we

                 also don't have any rules about what goes into

                 the budget.



                                                        5881



                            We're guessing.  We're guessing

                 even the night we pass the budget.  We're

                 guessing what the revenue might be without any

                 numbers in front of us, just a language bill

                 we've just received.  We're guessing, or I

                 suppose we're hoping that the expenditures and

                 the revenue somehow match somehow, almost

                 perhaps by magic, rather than by accounting

                 procedures.

                            But we do know what we have failed

                 to do.  One, we have failed to be able to show

                 and say to the people of New York that we have

                 a balanced budget or that we've got a balanced

                 set of revenue and expenditure documents in

                 front of us that we're passing today, because

                 we admit we're just guessing on where

                 everything might be.

                            Senator Volker referenced sales tax

                 is stronger than projected.  Well, perhaps one

                 of the reasons sales tax is stronger than

                 projected in Western New York or anywhere else

                 is originally we had promised the people of

                 New York that we would end the sales tax on

                 clothing and footwear priced below $110, and

                 yet we failed to meet that promise.



                                                        5882



                            So I'm not surprised sales tax

                 revenue is higher than projected, because we

                 never followed through on our commitment to

                 the people of New York from last year's budget

                 that if we put back the sales tax of $110 and

                 below for clothing and footwear, we would

                 sunset it.  We are not sunsetting it.  We have

                 not done it up until today, and we do not do

                 it in this budget.

                            However, we did decide to follow

                 through on our commitment to wealthier

                 New Yorkers when we had scheduled a personal

                 income tax rate reduction for people earning

                 $150,000 to $500,000 a year, and that we did

                 make good on.  So we gave wealthy New Yorkers

                 the tax cut we told them we would do from last

                 year's budget, and we have not given

                 lower-income and working New Yorkers the sales

                 tax cut that we promised them.

                            It's a regressive tax, the sales

                 tax.  It hits poor New Yorkers and working

                 New Yorkers much, much harder than well-to-do

                 New Yorkers.  So one of the reasons we have

                 some flexibility in our revenue is because

                 we're not following through on the commitments



                                                        5883



                 we made to the majority of New Yorkers.

                            We also are not following through

                 on the commitment we made to New York City in

                 last year's budget to provide them the

                 $170 million per year to help them resolve

                 their MAC debt problem.  We so failed to do it

                 this year that they had to spend another

                 $500 million, unanticipated in the city

                 budget, because we didn't pass a budget in

                 time to give them the $170 million of added

                 Local Government Assistance Corporation money

                 that we promised in last year's budget.  And

                 we don't fix it in this budget, because while

                 we move forward with 170 million for the

                 coming year, we don't give them the

                 170 million we owe them from the year that has

                 now come and gone.

                            We do give New York City some of

                 the things they asked for, although in

                 comparison to the monies that they need from

                 the state and failed to get in education

                 funding and failed to get through any of the

                 budget bills that are moving through this

                 house tonight or this afternoon, we have

                 certainly failed the City of New York.  And



                                                        5884



                 we've gone over those issues extensively over

                 the last several months.

                            We also are deciding to give

                 additional tax cuts in this bill when we're

                 not sure what the revenue and expenditures

                 are.  Again, as I raised earlier in the year

                 when this came up as part of a separate

                 tax-cut bill, we've not moved forward on our

                 commitments for education funding, we've not

                 moved forward on any number of commitments to

                 the people of the State of New York in every

                 county.  We've certainly been shortchanging

                 New York City in any number of ways, and

                 working-poor and poor people in the State of

                 New York.

                            But we decided in this bill to do a

                 sales tax exemption on private jet fuel, a

                 sales tax exemption on aircraft-parts service

                 and storage.

                            We are not doing our job.  A

                 revenue bill not only should have numbers

                 attached, it seems relatively obvious, not

                 only should be passed before you start to

                 spend the money in expenditure bills, a

                 revenue bill should also ask the question not



                                                        5885



                 only where are we getting our tax revenue and

                 where are we choosing to cut taxes, but what

                 have we been doing with our tax expenditures

                 up until now?  Over $20 billion a year is not

                 collected by the State of New York through tax

                 exemptions and credits and expenditures that

                 we have passed, in some cases decades ago, and

                 never reevaluated the impact of.

                            We have failed completely in our

                 assignment on revenue to the State of New York

                 and to the people of the State of New York

                 with this bill.  I don't believe any of us

                 could accept passage of this bill and believe

                 that we've gone home saying we have a balanced

                 budget for the people of New York State.

                            I will be voting against this bill.

                 I don't know how anyone can vote for it.

                            Thank you, Madam President.

                            ACTING PRESIDENT McGEE:    Senator

                 Sabini.

                            SENATOR SABINI:    Thank you, Madam

                 President.  If Senator Volker would yield for

                 a question.

                            ACTING PRESIDENT McGEE:    Senator

                 Volker, will you yield?



                                                        5886



                            SENATOR VOLKER:    Yes.

                            SENATOR SABINI:    Through you,

                 Madam President, I was just -- in this bill,

                 is there any expansion of video lottery

                 terminals in the language of this bill?

                            SENATOR VOLKER:    The answer is

                 no, there's no expansion of video lottery

                 terminals.

                            SENATOR SABINI:    Okay.

                            Madam President, if, through you, I

                 could ask Senator Volker another question.

                            SENATOR VOLKER:    Certainly.

                            ACTING PRESIDENT McGEE:    Senator

                 Volker yields.

                            SENATOR SABINI:    Does the revenue

                 bill anticipate revenue from locations at

                 Yonkers Raceway and Aqueduct Racetrack?

                            SENATOR VOLKER:    Not for this

                 year it doesn't, because they're not open.  We

                 do anticipate at some point, we hope, to get

                 some revenue, but there's no revenue actually

                 in here because they're not open yet.

                            ACTING PRESIDENT McGEE:    Will you

                 excuse the interruption for just one moment,

                 please.



                                                        5887



                            Senator Marcellino.

                            SENATOR MARCELLINO:    Yes, Madam

                 President.  There will be an immediate meeting

                 of the Rules Committee in the Majority

                 Conference Room, please.

                            ACTING PRESIDENT McGEE:

                 Immediate meeting of the Rules Committee in

                 the Majority Conference Room, please.

                            Thank you very much, gentlemen, for

                 the interruption.  Please continue, Senator

                 Sabini.

                            SENATOR SABINI:    That's quite all

                 right, Madam President.  I actually have to go

                 to the Rules Committee now, so it's part of

                 the interruption.

                            Thank you very much, Madam

                 President.

                            ACTING PRESIDENT McGEE:    Read the

                 last section.

                            THE SECRETARY:    Section 3.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT McGEE:    Call the

                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Those recorded in



                                                        5888



                 the negative on Calendar Number 1943 are

                 Senators Andrews, Duane, L. Krueger, Kuhl,

                 LaValle, Padavan, Sabini, Schneiderman, and

                 A. Smith.  Also Senator Parker.  Ayes, 49.

                 Nays, 10.

                            ACTING PRESIDENT McGEE:    The bill

                 is passed.

                            Senator Marcellino.

                            SENATOR MARCELLINO:    Thank you,

                 Madam President.  Can we now call up Calendar

                 Number 1938, please.

                            ACTING PRESIDENT McGEE:    The

                 Secretary will read.

                            THE SECRETARY:    Calendar Number

                 1938, Senate Budget Bill, Senate Print 6051A,

                 an act making appropriations for the support

                 of government:  Legislature and Judiciary

                 Budget.

                            ACTING PRESIDENT McGEE:    Senator

                 Marcellino.

                            SENATOR MARCELLINO:    Is there a

                 message of necessity at the desk, Madam

                 President?

                            ACTING PRESIDENT McGEE:    There is

                 a message.



                                                        5889



                            SENATOR MARCELLINO:    Move to

                 accept.

                            ACTING PRESIDENT McGEE:    The

                 motion is made to accept the message of

                 necessity.  All those in favor will signify by

                 saying aye.

                            (Response of "Aye.")

                            ACTING PRESIDENT McGEE:    Opposed,

                 nay.

                            (Response of "Nay.")

                            ACTING PRESIDENT McGEE:    The

                 motion is accepted.

                            Read the last section.

                            SENATOR SCHNEIDERMAN:

                 Explanation.

                            ACTING PRESIDENT McGEE:    Senator

                 Volker, an explanation has been requested.

                            SENATOR VOLKER:    This, I believe,

                 is the last of the major budget bills.  It is

                 the legislative and judiciary budget.  And it

                 includes the numbers that were sent to us by

                 the judiciary that -- with a small increase,

                 and includes our numbers, including something

                 we have not seen since April 1st, which is

                 pay.  And this is the bill.



                                                        5890



                            ACTING PRESIDENT McGEE:    Read the

                 last section.

                            THE SECRETARY:    Section 6.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT McGEE:    Call the

                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 59.

                            ACTING PRESIDENT McGEE:    The bill

                 is passed.

                            Senator Marcellino.

                            SENATOR MARCELLINO:    Madam

                 President, can we return to reports of

                 standing committees.

                            I believe you have a report of the

                 Judiciary Committee at the desk.  I ask that

                 it be read.

                            ACTING PRESIDENT McGEE:    The

                 Secretary will read.

                            THE SECRETARY:    Senator

                 DeFrancisco, from the Committee on Judiciary,

                 reports the following nomination.

                            As a justice of the Supreme Court

                 of the Fifth Judicial District, Donald A.

                 Greenwood, of Jamesville.



                                                        5891



                            ACTING PRESIDENT McGEE:    Senator

                 DeFrancisco.

                            SENATOR DeFRANCISCO:    Madam

                 President, I'm very proud to rise to move the

                 nomination of Donald A. Greenwood, of

                 Jamesville, for Supreme Court justice for the

                 Fifth Judicial District.

                            I've known soon-to-be Judge

                 Greenwood for many years.  And I mentioned in

                 the Judiciary Committee the breadth of

                 background that he has in the practice of law,

                 from prosecuting cases in the district

                 attorney's office, from handling county

                 attorneys' type work, by being a town attorney

                 for one of the largest towns in the state,

                 from civil actions that he dealt with, whether

                 it be a trial of a case or whether commercial

                 transactions -- just an incredible breadth of

                 experience in the practice of law.

                            Which is obviously needed for a

                 Supreme Court justice who presides over trials

                 over all of these types of cases, maybe even

                 as importantly as the judicial demeanor that I

                 know he is going to have, and the sense of

                 fairness that he has in dealing with the



                                                        5892



                 people and in dealing with the cases that he's

                 been involved with.

                            So I'm very pleased to move the

                 nomination of Donald Greenwood, and I praise

                 Senator -- excuse me, former Senator and now

                 Governor Pataki for this nomination.

                            And I should mention that with

                 Donald Greenwood is his wife, Paula, who's due

                 with her second child any minute now -- and

                 I'm glad the budget bills passed as quickly as

                 they did -- daughter, Teresa; mother, Mary;

                 and stepfather, Bill Glazier.

                            ACTING PRESIDENT McGEE:    All in

                 favor of the confirmation of Donald A.

                 Greenwood, of Jamesville, as a justice of the

                 Supreme Court of the Fifth Judicial District

                 will signify by saying aye.

                            (Response of "Aye.")

                            ACTING PRESIDENT McGEE:    Opposed,

                 nay.

                            (No response.)

                            ACTING PRESIDENT McGEE:    The

                 nominee is now confirmed.

                            We are joined this evening in the

                 gallery by Judge Greenwood.  And he is



                                                        5893



                 accompanied by his wife, Paula, his daughter,

                 Teresa, and his parents, Mary and Bill

                 Glazier.

                            On behalf of the New York State

                 Senate, may I say congratulations, Your Honor,

                 it's good to have you aboard.

                            (Applause.)

                            ACTING PRESIDENT McGEE:    Senator

                 Marcellino.

                            SENATOR MARCELLINO:    Madam

                 President, may we adopt the Resolution

                 Calendar at this time.

                            ACTING PRESIDENT McGEE:    All in

                 favor of adopting the Resolution Calendar will

                 signify by saying aye.

                            (Response of "Aye.")

                            ACTING PRESIDENT McGEE:    Opposed,

                 nay.

                            (No response.)

                            ACTING PRESIDENT McGEE:    The

                 Resolution Calendar is adopted.

                            Senator Marcellino.

                            SENATOR MARCELLINO:    Madam

                 President, can we take up Calendar 1932.

                            ACTING PRESIDENT McGEE:    The



                                                        5894



                 Secretary will read.

                            THE SECRETARY:    Calendar Number

                 1932, by Senator Marcellino, Senate Print

                 7726, an act to amend the Environmental

                 Conservation Law.

                            ACTING PRESIDENT McGEE:    Senator

                 Marcellino.

                            SENATOR MARCELLINO:    Is there a

                 message of necessity at the desk, Madam

                 President?

                            ACTING PRESIDENT McGEE:    There is

                 a message of necessity at the desk.

                            SENATOR MARCELLINO:    Move to

                 accept.

                            ACTING PRESIDENT McGEE:    The

                 motion is made to accept the message of

                 necessity.  Those in favor will signify by

                 saying aye.

                            (Response of "Aye.")

                            ACTING PRESIDENT McGEE:    Opposed,

                 nay.

                            (No response.)

                            ACTING PRESIDENT McGEE:    The

                 message is accepted.

                            The Secretary will read.



                                                        5895



                            THE SECRETARY:    Section 16.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT McGEE:    Call the

                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 59.

                            ACTING PRESIDENT McGEE:    The bill

                 is passed.

                            Senator Marcellino.

                            SENATOR MARCELLINO:    Madam

                 President, can we call up Calendar Number 1910

                 at this time.

                            ACTING PRESIDENT McGEE:    The

                 Secretary will read.

                            THE SECRETARY:    Calendar Number

                 1910, by Senator Farley, Senate Print 7710A,

                 an act to amend the Banking Law.

                            ACTING PRESIDENT McGEE:    Senator

                 Marcellino.

                            SENATOR MARCELLINO:    Is there a

                 message of necessity at the desk?

                            ACTING PRESIDENT McGEE:    There is

                 a message of necessity at the desk.

                            SENATOR MARCELLINO:    Move to

                 accept, please.



                                                        5896



                            ACTING PRESIDENT McGEE:    The

                 motion is made to accept the message of

                 necessity.  All in favor of accepting the

                 message will signify by saying aye.

                            (Response of "Aye.")

                            ACTING PRESIDENT McGEE:    Opposed,

                 nay.

                            (No response.)

                            ACTING PRESIDENT McGEE:    The

                 message is accepted.

                            Read the last section.

                            THE SECRETARY:    Section 7.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT McGEE:    Call the

                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 59.

                            ACTING PRESIDENT McGEE:    The bill

                 is passed.

                            Senator Marcellino.

                            SENATOR MARCELLINO:    Madam

                 President, at this time can we return to

                 reports of standing committees.

                            I understand you have a report of

                 the Rules Committee at the desk.  I ask that



                                                        5897



                 it be read now.

                            ACTING PRESIDENT McGEE:    The

                 Secretary will read.

                            THE SECRETARY:    Senator Bruno,

                 from the Committee on Rules, reports the

                 following bills:

                            Senate Print 5348B, by Senator

                 Duane, an act to amend Chapter 292 of the Laws

                 of 1904;

                            6100B, by Senator Volker, an act to

                 amend the Real Property Law;

                            7278, by Senator Saland, an act to

                 amend the Education Law;

                            7492A, by Senator Marcellino, an

                 act to amend the Education Law;

                            7691, by Senator Fuschillo, an act

                 to amend a chapter of the Laws of 2004;

                            7725, by Senator Marcellino, an act

                 to amend the Environmental Conservation Law;

                            And Senate Print 7736, by Senator

                 Padavan, an act to amend the Tax Law and the

                 Administrative Code of the City of New York.

                            All bills ordered direct to third

                 reading.

                            ACTING PRESIDENT McGEE:    Senator



                                                        5898



                 Marcellino.

                            SENATOR MARCELLINO:    Move to

                 accept the report of the Rules Committee.

                            ACTING PRESIDENT McGEE:    All in

                 favor of accepting the report of Rules

                 Committee will signify by saying aye.

                            (Response of "Aye.")

                            ACTING PRESIDENT McGEE:    Opposed,

                 nay.

                            (No response.)

                            ACTING PRESIDENT McGEE:    The

                 report is accepted.

                            Senator Marcellino.

                            SENATOR MARCELLINO:    Madam

                 President, can we stand at ease momentarily,

                 please.

                            ACTING PRESIDENT McGEE:    The

                 Senate will stand at ease momentarily.

                            (Whereupon, the Senate stood at

                 ease at 8:04 p.m.)

                            (Whereupon, the Senate reconvened

                 at 8:09 p.m.)

                            ACTING PRESIDENT McGEE:    Senator

                 Marcellino.

                            SENATOR MARCELLINO:    Would you



                                                        5899



                 recognize Senator Krueger, please.

                            ACTING PRESIDENT McGEE:    Senator

                 Liz Krueger.

                            SENATOR LIZ KRUEGER:    Thank you,

                 Madam President.  We did a vote when I was at

                 Rules.  I would like unanimous consent to be

                 voted in the negative on Calendar 1938, Budget

                 Bill 6051A.

                            ACTING PRESIDENT McGEE:    Without

                 objection.

                            Senator Duane.

                            SENATOR DUANE:    Thank you, Madam

                 President.  If I too could have unanimous

                 consent to be recorded in the negative on

                 Calendar Number 1938.

                            ACTING PRESIDENT McGEE:    Without

                 objection.

                            Senator Sabini.

                            SENATOR SABINI:    Madam President,

                 I too was in Rules, and I'd like unanimous

                 consent to vote in the negative on Calendar

                 Number 1938.

                            ACTING PRESIDENT McGEE:    Without

                 objection.

                            Senator Marcellino.



                                                        5900



                            SENATOR MARCELLINO:    If I could

                 have just one second, please.

                            ACTING PRESIDENT McGEE:    One

                 moment.

                            SENATOR MARCELLINO:    At this

                 time, Madam President, can we move Calendar

                 64B, noncontroversial reading.

                            ACTING PRESIDENT McGEE:    The

                 Secretary will read.

                            THE SECRETARY:    In relation to

                 Calendar Number 1944, Senator Duane moves to

                 discharge, from the Committee on Corporations,

                 Authorities and Commissions, Assembly Bill

                 Number 8697B and substitute it for the

                 identical Senate Bill Number 5348B, Third

                 Reading Calendar 1944.

                            ACTING PRESIDENT McGEE:

                 Substitution ordered.

                            The Secretary will read.

                            THE SECRETARY:    Calendar Number

                 1944, by the Assembly Committee on Rules,

                 Assembly Print Number 8697B, an act to amend

                 Chapter 292 of the Laws of 1904.

                            ACTING PRESIDENT McGEE:    Read the

                 last section.



                                                        5901



                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT McGEE:    Call the

                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 59.

                            ACTING PRESIDENT McGEE:    The bill

                 is passed.

                            THE SECRETARY:    In relation to

                 Calendar Number 1945, Senator Volker moves to

                 discharge, from the Committee on Judiciary,

                 Assembly Bill Number 76B and substitute it for

                 the identical Senate Bill Number 6100B, Third

                 Reading Calendar 1945.

                            ACTING PRESIDENT McGEE:

                 Substitution ordered.

                            The Secretary will read.

                            THE SECRETARY:    Calendar Number

                 1945, by Member of the Assembly John, Assembly

                 Print Number 76B, an act to amend the Real

                 Property Law, in relation to establishing.

                            ACTING PRESIDENT McGEE:    Read the

                 last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect on the 365th day.



                                                        5902



                            ACTING PRESIDENT McGEE:    Call the

                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 59.

                            ACTING PRESIDENT McGEE:    The bill

                 is passed.

                            THE SECRETARY:    In relation to

                 Calendar Number 1946, Senator Saland moves to

                 discharge, from the Committee on Finance,

                 Assembly Bill Number 11203 and substitute it

                 for the identical Senate Bill Number 7278,

                 Third Reading Calendar 1946.

                            ACTING PRESIDENT McGEE:

                 Substitution ordered.

                            The Secretary will read.

                            THE SECRETARY:    Calendar Number

                 1946, by the Assembly Committee on Rules,

                 Assembly Print Number 11203, an act to amend

                 the Education Law.

                            ACTING PRESIDENT McGEE:    Read the

                 last section.

                            THE SECRETARY:    Section 3.  This

                 act shall take effect on the first of June.

                            ACTING PRESIDENT McGEE:    Call the

                 roll.



                                                        5903



                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 59.

                            ACTING PRESIDENT McGEE:    The bill

                 is passed.

                            THE SECRETARY:    Calendar Number

                 1947, by Senator Marcellino, Senate Print

                 7492A, an act to amend the Education Law and

                 the Executive Law.

                            ACTING PRESIDENT McGEE:    Read the

                 last section.

                            THE SECRETARY:    Section 4.  This

                 act shall take effect on the 90th day.

                            ACTING PRESIDENT McGEE:    Call the

                 roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT McGEE:    Senator

                 Balboni, to explain his vote.

                            SENATOR BALBONI:    Madam

                 President, I rise to explain my vote on this

                 bill.

                            This is a bill that has been

                 introduced by Senator Marcellino in response

                 to the school scandals.  I represent Roslyn

                 School District, and this is of enormous

                 importance to the residents of my district and



                                                        5904



                 I believe for the residents of this state.

                            This approach is clever, this

                 approach is creative.  It provides a funding

                 stream that is provided by the school

                 districts themselves.

                            However, I'm sorry that we do not

                 have a two-house bill.  I'm sorry that we've

                 not been able to give the Comptroller a

                 transitional funding pot to be able to move

                 forward on the funding of the audits that are

                 out there right now.

                            However, as Senator Ken LaValle has

                 acknowledged, and Senator Marcellino, there's

                 going to be more work on this issue.  And I

                 hope that we will come back and do a more

                 comprehensive effort to try to reform how

                 audits are done and how school districts

                 perform in this state in the near future.

                            I'm going to vote in favor of the

                 measure.  Thank you.

                            ACTING PRESIDENT McGEE:    Senator

                 LaValle.

                            SENATOR LaVALLE:    Thank you,

                 Madam President.

                            This bill is a good beginning in



                                                        5905



                 dealing with a very, very complex problem, a

                 problem that many have read about, school

                 scandals on Long Island.  But they could be

                 anywhere in the state.

                            The problem is one that will

                 require focus on the part of the school

                 superintendents and the school boards to find

                 out statewide what kinds of changes need to be

                 done by their own initiative and new

                 procedures and controls within the school

                 district.

                            Strengthening whistle-blower laws.

                 Strengthening and additions to establishing

                 something like an audit committee whose sole

                 function will look at and oversee the local

                 audits, whether they be done by the district

                 or the Comptroller.  Involvement of the

                 district attorney's office, the Comptroller's

                 office, the Education Department.

                            And so I'm sure before this year is

                 over we will see other pieces of legislation

                 that will supplement the Marcellino

                 initiative.

                            I would say, on Long Island,

                 Senator Marcellino, Senator Balboni, myself



                                                        5906



                 and others, and also Assemblyman DiNapoli and

                 Assemblyman Sidikman, really sitting down,

                 meeting with school board members and

                 superintendents to come up with a

                 comprehensive approach that will give the

                 school districts the kinds of instruments they

                 need to prevent those who have a larcenous

                 mind and heart and to protect our taxpayer

                 dollars that should be going to our children's

                 education.

                            I vote in the affirmative.

                            ACTING PRESIDENT McGEE:    You will

                 be recorded in the affirmative, Senator

                 LaValle.

                            SENATOR MARCELLINO:    Madam

                 President.

                            ACTING PRESIDENT McGEE:    Senator

                 Marcellino.

                            SENATOR MARCELLINO:    To explain

                 my vote.

                            ACTING PRESIDENT McGEE:    Senator

                 Marcellino, to explain your vote.

                            SENATOR MARCELLINO:    Madam

                 President, I agree with my colleagues

                 wholeheartedly.  This is a first step.  It is



                                                        5907



                 not the end of the line.  More needs to be

                 done with respect to making sure that

                 taxpayers' dollars are protected and that the

                 young people who are going to school for an

                 education get the benefit of every dollar

                 that's been appropriated by the taxpayers for

                 their education.

                            So we look forward to the future on

                 this bill, and we look forward to working with

                 our colleagues and creating even more, so that

                 this can be done in an appropriate manner.

                 This bill is a good first step, and we're

                 pleased and we hope the other house would move

                 on this bill.

                            Thank you.  I vote aye.

                            ACTING PRESIDENT McGEE:    Announce

                 the results.

                            THE SECRETARY:    Ayes, 59.

                            ACTING PRESIDENT McGEE:    The bill

                 is passed.

                            THE SECRETARY:    In relation to

                 Calendar Number 1948, Senator Fuschillo moves

                 to discharge, from the Committee on Rules,

                 Assembly Bill Number 11765 and substitute it

                 for the identical Senate Bill Number 7691,



                                                        5908



                 Third Reading Calendar 1948.

                            ACTING PRESIDENT McGEE:

                 Substitution ordered.

                            The Secretary will read.

                            THE SECRETARY:    Calendar Number

                 1948, by the Assembly Committee on Rules,

                 Assembly Print Number 11765, an act to amend a

                 chapter of the Laws of 2004 amending the

                 General Business Law.

                            ACTING PRESIDENT McGEE:    Read the

                 last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect on the same date as a

                 chapter of the Laws of 2004.

                            ACTING PRESIDENT McGEE:    Call the

                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 59.

                            ACTING PRESIDENT McGEE:    The bill

                 is passed.

                            THE SECRETARY:    In relation to

                 Calendar Number 1949, Senator Marcellino moves

                 to discharge, from the Committee on Rules,

                 Assembly Bill Number 11753A, and substitute it

                 for the identical Senate Bill Number 7725,



                                                        5909



                 Third Reading Calendar 1949.

                            ACTING PRESIDENT McGEE:

                 Substitution ordered.

                            The Secretary will read.

                            THE SECRETARY:    Calendar Number

                 1949, by the Assembly Committee on Rules,

                 Assembly Print Number 11753A, an act to amend

                 the Environmental Conservation Law.

                            ACTING PRESIDENT McGEE:    Read the

                 last section.

                            THE SECRETARY:    Section 4.  This

                 act shall take effect on the same date and in

                 the same manner as a chapter of the Laws of

                 2004.

                            ACTING PRESIDENT McGEE:    Call the

                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 59.

                            ACTING PRESIDENT McGEE:    The bill

                 is passed.

                            Senator Skelos, that completes the

                 noncontroversial reading of Calendar 64B.

                            SENATOR SKELOS:    Madam President,

                 is there any housekeeping at the desk?

                            ACTING PRESIDENT McGEE:    There is



                                                        5910



                 no housekeeping at the desk.

                            SENATOR SKELOS:    On behalf of

                 Senator Bruno, I'd like to announce that there

                 will be a meeting of the Majority at

                 10:00 a.m. tomorrow morning, and that

                 session -- Senator Gonzalez.

                            SENATOR GONZALEZ:    Yes, Madam

                 President, there will be a meeting tomorrow

                 morning at 10:00 a.m., Minority conference.

                            ACTING PRESIDENT McGEE:    There

                 will be a meeting of the Majority in the

                 Majority Conference Room at 10:00 a.m.

                 tomorrow morning.

                            There will be a meeting of the

                 Minority in Room 314 at 10:00 a.m.

                            Senator Skelos.

                            SENATOR SKELOS:    Madam President,

                 would you recognize Senator Saland, please.

                            ACTING PRESIDENT McGEE:    Senator

                 Saland.

                            SENATOR SALAND:    Thank you, Madam

                 President.  I would like unanimous consent to

                 be recorded in the negative on Calendar 1945,

                 Senate Number 6100B.

                            ACTING PRESIDENT McGEE:    Without



                                                        5911



                 objection.

                            Senator Skelos.

                            SENATOR SKELOS:    Madam President,

                 I'd like to recommit to the Committee on Rules

                 the balance of the calendar.

                            ACTING PRESIDENT McGEE:    So

                 ordered.

                            SENATOR SKELOS:    And there being

                 no further business to come before the Senate,

                 I move we stand adjourned until Thursday,

                 August 12th, at 10:30 a.m.

                            ACTING PRESIDENT McGEE:    On

                 motion, the Senate stands adjourned until

                 Thursday, August 12th, at 10:30 a.m.

                            (Whereupon, at 8:20 p.m., the

                 Senate adjourned.)