Regular Session - January 31, 2006

                                                            389



         1                 NEW YORK STATE SENATE

         2

         3

         4                THE STENOGRAPHIC RECORD

         5

         6

         7

         8

         9                   ALBANY, NEW YORK

        10                   January 31, 2006

        11                      11:02 a.m.

        12

        13

        14                    REGULAR SESSION

        15

        16

        17

        18  LT. GOVERNOR MARY O. DONOHUE, President

        19  STEVEN M. BOGGESS, Secretary

        20

        21

        22

        23

        24

        25


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         1                 P R O C E E D I N G S

         2                  ACTING PRESIDENT LITTLE:    The

         3       Senate will come to order.

         4                  I ask everyone present to please

         5       rise and repeat with me the Pledge of

         6       Allegiance.

         7                  (Whereupon, the assemblage recited

         8       the Pledge of Allegiance to the Flag.)

         9                  ACTING PRESIDENT LITTLE:    The

        10       invocation today will be given by the Reverend

        11       Charles J. Roof, Jr., Pastor of Calvary

        12       Baptist Church in Albany.

        13                  Reverend Roof.

        14                  REVEREND ROOF:    Let us pray.

        15                  Holy God and Heavenly Father, we

        16       thank You for another day of grace.

        17                  We thank You for this beautiful

        18       place called New York State, and we thank You

        19       for the privilege of calling it home.

        20                  We thank You for these ladies and

        21       gentlemen that You've called to public service

        22       to minister to our needs.  We ask for Your

        23       help upon this session today.  We ask that

        24       You'll give each one here wisdom in

        25       decision-making.  And, Father, we pray for a


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         1       productive year in the New York State

         2       Legislature.

         3                  We do pray, Father, for the family

         4       members of Coretta Scott King today, and we

         5       ask that You would comfort them during this

         6       time of loss.

         7                  We pray for New York's sons and

         8       daughters today who are fighting the battles

         9       in Iraq and Afghanistan and serving overseas

        10       around the world.  We ask for success.  We ask

        11       for safety of each one.  We ask, Father, that

        12       You would comfort those families who've lost

        13       loved ones in this war against terror.

        14                  And we just ask, Father, that You

        15       would meet the needs of those around our

        16       state, other needs that are represented.  We

        17       pray for those who are sick and hurting today,

        18       that You'd minister to their needs.  We pray

        19       for those who are having a difficult year with

        20       finances, with increased utility costs.  And

        21       we just pray You'll continue to meet needs and

        22       guide and direct each one.

        23                  We thank You for the privilege of

        24       serving You today.  Be glorified in all that

        25       is done, we ask in Jesus' holy name.


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         1                  Amen.

         2                  ACTING PRESIDENT LITTLE:    Thank

         3       you.

         4                  Reading of the Journal.

         5                  THE SECRETARY:    In Senate,

         6       Monday, January 30, the Senate met pursuant to

         7       adjournment.  The Journal of Saturday,

         8       January 28, was read and approved.  On motion,

         9       Senate adjourned.

        10                  ACTING PRESIDENT LITTLE:    Without

        11       objection, the Journal stands approved as

        12       read.

        13                  Presentation of petitions.

        14                  Messages from the Assembly.

        15                  Messages from the Governor.

        16                  Reports of standing committees.

        17                  Reports of select committees.

        18                  Communications and reports from

        19       state officers.

        20                  Motions and resolutions.

        21                  Senator Bruno.

        22                  SENATOR BRUNO:    Madam President,

        23       myself, with Senator Breslin, have a

        24       privileged resolution at the desk.  I would

        25       ask that it be read in its entirety and move


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         1       for its immediate adoption.

         2                  ACTING PRESIDENT LITTLE:    The

         3       Secretary will read.

         4                  THE SECRETARY:    By Senators Bruno

         5       and Breslin, Legislative Resolution Number

         6       3373, celebrating the life and accomplishments

         7       of Morris "Marty" Silverman, noted

         8       philanthropist and distinguished citizen.

         9                  "WHEREAS, It is the custom of this

        10       Legislative Body to honor the life and

        11       accomplishments of citizens of the State of

        12       New York whose enduring gifts to the community

        13       and state will long be cherished; and

        14                  "WHEREAS, It is with deepest regret

        15       and sincerest sorrow that this Legislative

        16       Body records the passing of Morris 'Marty'

        17       Silverman, a noted philanthropist who donated

        18       millions of dollars to causes in the Albany

        19       area and beyond, and established the nation's

        20       richest prize for medical research; and

        21                  "WHEREAS, Morris Silverman,

        22       affectionately known as 'Marty,' died in

        23       Manhattan on Thursday, January 26, 2006, at

        24       the age of 93; and

        25                  "WHEREAS, Born in 1912 to Polish


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         1       immigrants, Morris Silverman grew up in Troy,

         2       New York, in a wood-frame house across the

         3       Hudson River from Albany, with his two

         4       sisters.  After graduating from Troy High in

         5       1930, he attended New York University and

         6       later Albany Law School, managing the Standard

         7       Oil gas station, located in South Troy, to

         8       help pay for tuition; and

         9                  "WHEREAS, After graduating from

        10       Albany Law School in 1936, Morris Silverman

        11       worked briefed with the Legal Aid Society in

        12       Albany, then moved to New York City with his

        13       wife, the late Dorothy, to become a

        14       businessman; and

        15                  "WHEREAS, Morris Silverman bravely

        16       served his country during World War II,

        17       retiring as a major.  He was decorated with

        18       two Purple Hearts, two Bronze Stars, a Silver

        19       Star, four Battle Stars, and a Combat Infantry

        20       Badge, and he served as a lawyer to assist in

        21       the prosecution of Nazi war criminals; and

        22                  "WHEREAS, Morris Silverman built

        23       his fortune after returning home after World

        24       War II, starting what would become the largest

        25       family-owned leasing company in the country.


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         1       He later founded National Equipment Rental,

         2       which he sold in 1984, using the proceeds to

         3       establish the Marty and Dorothy Silverman

         4       Foundation; and

         5                  "WHEREAS, Many institutions and

         6       agencies, locally and nationally, benefited

         7       from his philanthropy, including Albany Law

         8       School, Albany Medical Center, the Sage

         9       Colleges, the Jewish chapel at the United

        10       States Military Academy at West Point, the

        11       Holocaust Museum in Houston, and children's

        12       literacy programs.  Furthermore, the New York

        13       State Military Museum and Veterans Research

        14       Center in Saratoga Springs, New York, was

        15       established with his generous support; and

        16                  "WHEREAS, Morris Silverman's vision

        17       of Albany as an international center for law,

        18       medicine, and higher education led to the

        19       formation of University Heights Association, a

        20       unique consortium of four neighboring

        21       institutions -- Albany Law School, Albany

        22       College of Pharmacy, Albany Medical Center,

        23       and the Sage Colleges; and

        24                  "WHEREAS, Morris Silverman's vision

        25       and determination led to the purchase of the


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         1       New Scotland Avenue Armory, a key step in

         2       realizing the goal of University Heights; and

         3                  "WHEREAS, In 2000, Morris Silverman

         4       pledge $50 million to create the Albany

         5       Medical Center Prize in Medicine and

         6       Biomedical Research to be disbursed over the

         7       next century in annual awards worth $500,000.

         8       The largest medical research award in the

         9       United States, it is second in the world, only

        10       behind Sweden's $1.3 million Nobel Prize; and

        11                  "WHEREAS, Giving back and pulling

        12       oneself up were constant themes in Morris

        13       Silverman's life.  He and his wife wrote a

        14       note to their three children in 1980 extolling

        15       the virtues of both:  'Remember, if you ever

        16       need a helping hand, you'll find one at the

        17       end of your arm.  As you grow older you will

        18       discover that you have two hands, one for

        19       helping yourself, the other for helping

        20       others'; and

        21                  "WHEREAS, The sincere condolences

        22       of this Legislative Body are offered in great

        23       respect and honor to Morris Silverman's

        24       family.  He is survived by his son, Lorin; his

        25       daughter-in-law, Patty; two daughters, Carol


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         1       and Joan; nine grandchildren -- Marc, Ama,

         2       Fae, Garey, Jeremy, Marna, David, Allison, and

         3       Seth -- and one great-granddaughter, Abigail;

         4       and

         5                  "WHEREAS, Armed with a humanistic

         6       spirit, imbued with a sense of compassion, and

         7       comforted by a loving family, Morris Silverman

         8       leaves behind a legacy which will long endure

         9       the passage of time and will remain as a

        10       comforting memory to all he served and

        11       befriended; now, therefore, be it

        12                  "RESOLVED, That this Legislative

        13       Body pause in its deliberations in a moment of

        14       silent tribute to Morris Silverman, whose

        15       unselfish concern for the welfare of others

        16       enhanced the lives of so many; and be it

        17       further

        18                  "RESOLVED, That a copy of this

        19       resolution, suitably engrossed, be transmitted

        20       to the family of Morris Silverman."

        21                  THE PRESIDENT:    Senator Bruno.

        22                  SENATOR BRUNO:    Thank you, Madam

        23       President and colleagues.

        24                  I'm glad to see so many young

        25       people here in the chamber -- who are


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         1       themselves champions that will be recognized

         2       later -- because when we celebrate Marty

         3       Silverman's life, we celebrate an individual

         4       who spent 93 years here on this earth and now,

         5       this weekend, went to another place.  But

         6       Marty Silverman and the good things that he

         7       has left behind will go on affecting people's

         8       lives for generations.

         9                  Now, think about an individual who

        10       was born in Troy, New York -- born in Troy,

        11       New York, very humble beginnings, grew up

        12       unsatisfied with where he was in life, worked

        13       his way through college, through law school,

        14       and saw an opportunity.

        15                  Here's a poor kid struggling and

        16       working.  And he told me this story himself,

        17       that he saw an ad for a couple of used cars.

        18       You want to talk about opportunity?  And he

        19       bought those used cars, and he sold them

        20       within a week and I believe like doubled his

        21       money.  He thought:  Hey, this is the way to

        22       go, this is better than practicing law.  See

        23       how smart he was?

        24                  (Laughter.)

        25                  SENATOR BRUNO:    He went on to


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         1       build one of the largest leasing companies in

         2       the United States.  That's why he could give

         3       away $50 million, building through the

         4       Renaissance Corp. that John Egan, who was a

         5       close friend of Marty's -- and John is here,

         6       and John himself has dedicated much of his

         7       life to public service.  But he has

         8       implemented the University Heights program to

         9       improve the quality of life for people.

        10                  Marty always had a smile on his

        11       face.  He was around here last year at age 92.

        12       He had more energy than most people here put

        13       together.  And wherever Marty went, he handed

        14       out this, a real two-dollar bill.  He gave me

        15       a stack of them.  I wish he had given me a

        16       million of them, but he didn't.

        17                  But on the back of this two-dollar

        18       bill it says:  "If it is to be, it is up to

        19       me."  Just think about that as you go on to

        20       your life.  If it is to be, it is up to me.

        21                  So I want to thank Marty -- his

        22       children, grandchildren, great- grandchildren,

        23       John, for being such a supporter -- for the

        24       legacy that he leaves, for sharing his wealth,

        25       for caring enough about you and about me and


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         1       about everybody here in New York State and in

         2       the Northeast with all of the good works that

         3       he has left behind.

         4                  Thank you, Madam President.

         5                  THE PRESIDENT:    Thank you,

         6       Senator Bruno.

         7                  I also want to make remarks just

         8       briefly about my friend Morris Silverman.  One

         9       of Marty's greatest tributes I think is the

        10       selection of John Egan to head Renaissance

        11       Corp.  John, you really exemplify a lot of

        12       what we all loved and respected about Marty.

        13                  I have to say candidly, though,

        14       that his wit was tremendous, wisdom was

        15       excellent, his drive was unequaled.  But all

        16       of those stellar qualities were exceeded by

        17       the size of Marty's heart.  I never met anyone

        18       who had achieved so much and yet retained so

        19       much humility.

        20                  My hometown is Troy, New York, and

        21       his hometown will always remember Marty, first

        22       of all with affection, secondly with respect,

        23       and mostly with deep appreciation for all that

        24       he did for the Capital Region as well as our

        25       state.


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         1                  I'd like us to observe a moment of

         2       silence now, before we vote on this

         3       resolution, in memory of Marty.

         4                  (Whereupon, the assemblage

         5       respected a moment of silence.)

         6                  THE PRESIDENT:    All in favor of

         7       the resolution please signify by saying aye.

         8                  (Response of "Aye.")

         9                  THE PRESIDENT:    Opposed, nay.

        10                  (No response.)

        11                  THE PRESIDENT:    The resolution is

        12       adopted.

        13                  Senator Bruno.

        14                  SENATOR BRUNO:    Madam President,

        15       can we at this time adopt the Resolution

        16       Calendar, with the exception of Resolution

        17       3312.

        18                  THE PRESIDENT:    All in favor of

        19       so adopting the Resolution Calendar please

        20       signify by saying aye.

        21                  (Response of "Aye.")

        22                  THE PRESIDENT:    Opposed, nay.

        23                  (No response.)

        24                  THE PRESIDENT:    The Resolution

        25       Calendar is so adopted.


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         1                  Senator Bruno.

         2                  SENATOR BRUNO:    Madam President,

         3       can we at this time take up the privileged

         4       resolution by Senator Hugh Farley, 3312, have

         5       it read in its entirety, and move for its

         6       immediate adoption.

         7                  THE PRESIDENT:    The Secretary

         8       will read.

         9                  THE SECRETARY:    By Senator

        10       Farley, Legislative Resolution Number 3312,

        11       congratulating the Amsterdam High School

        12       Rugged Rams Football Team upon the occasion of

        13       winning the Class A New York State

        14       Championship.

        15                  "WHEREAS, The State of New York

        16       takes great pride in acknowledging the

        17       outstanding achievements of its high school

        18       athletic teams; and

        19                  "WHEREAS, The Amsterdam High School

        20       Rugged Rams Football Team won the Class A

        21       New York State Championship following a 35-14

        22       victory over Geneva at the Carrier Dome in

        23       Syracuse on November 26, 2005; and

        24                  "WHEREAS, The team, with a record

        25       of 11-2 for the season, was also victorious in


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         1       the Section II Super Bowl on November 4th,

         2       defeating Averill Park 42-14; and

         3                  "WHEREAS, They went on to defeat

         4       Indian River 33-8 for the Northern Regional

         5       Championship on November 11th and to defeat

         6       Harrison 20-10 for the Eastern Regional

         7       Championship on November 19th; and

         8                  "WHEREAS, Their impressive victory

         9       for the Class A State Championship is the

        10       school's first ever Class A title and the

        11       football team's first state title in ten

        12       years.  The last title won by the school's

        13       football team was the Class B title in 1995;

        14       and

        15                  "WHEREAS, Player T.J. Czeski was

        16       named Most Valuable Player.  He completed nine

        17       of 14 passes for 119 yards and two touchdowns,

        18       rushed for 78 yards, had five tackles, and

        19       intercepted a pass in the red zone; and

        20                  "WHEREAS, The team was honored with

        21       a parade through the city held on December 4,

        22       2005.  The streets were packed with adoring

        23       and proud fans despite the cold weather; and

        24                  "WHEREAS, The extraordinary

        25       52-member team was led by Head Coach Pat


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         1       Liverio and his assistants; and

         2                  "WHEREAS, Their tremendous success

         3       and outstanding sportsmanship and teamwork are

         4       a wonderful inspiration to teams across

         5       New York State; and

         6                  "WHEREAS, The State of New York is

         7       proud to congratulate this group of

         8       extraordinary young men; now, therefore, be it

         9                  "RESOLVED, That this Legislative

        10       Body pause in its deliberations to

        11       congratulate the Amsterdam High School Rugged

        12       Rams Football Team upon the occasion of

        13       winning the Class A New York State

        14       Championship; and be it further

        15                  "RESOLVED, That copies of this

        16       resolution, suitably engrossed, be transmitted

        17       to the Greater Amsterdam School District and

        18       to Head Coach Pat Liverio."

        19                  THE PRESIDENT:    Senator Farley.

        20                  SENATOR FARLEY:    Thank you, Madam

        21       President.

        22                  I rise to salute this magnificent

        23       team which is in our gallery here, the

        24       champions, Class A champions for the state of

        25       New York.


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         1                  Football in Amsterdam has been a

         2       tradition, from the Little Giants -- how many

         3       of you guys played for the Little Giants one

         4       time in your life?  Raise your hand.  They

         5       start -- they teethe on a football in

         6       Amsterdam.

         7                  These people are the state

         8       champions for New York State.  And it's the

         9       first time in their history, incidentally.

        10                  Unfortunately, in the Super Bowl in

        11       Region II, they defeated Averill Park, which

        12       Senator Bruno is still wincing over, and our

        13       Lieutenant Governor comes from there, and our

        14       distinguished counsel up there lives in

        15       Averill Park.  But those things happen in the

        16       line of football.

        17                  I'm also joined here on the floor

        18       with my colleague, who lives in Amsterdam and

        19       is a graduate of their school system,

        20       Assemblyman Paul Tonko, who's right over here.

        21       And we will be meeting with the team a little

        22       bit later.

        23                  But let me just say a couple words

        24       about this magnificent accomplishment.  Not

        25       only did they go to the Carrier Dome and go


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         1       through and win the state championship, they

         2       played a magnificent team from Geneva.

         3                  And my dear friend and colleague

         4       Senator Nozzolio, we had a friendly wager.

         5       And he supplied us with a bushel of apples.

         6       And I offered them up in my district office in

         7       Amsterdam, and I think everybody in Amsterdam

         8       came to get one of your apples.  I had to

         9       supplement that order a little bit because it

        10       was so popular.

        11                  But with that being said, I know

        12       that Senator Nozzolio is very, very proud of

        13       this team.  And let me just say a word before

        14       I yield to Senator Nozzolio.

        15                  T.J. Czeski, who was named the Most

        16       Valuable Player, a remarkable young man who is

        17       on a full scholarship to Wagner University --

        18       and that's in basketball, no less, so he's a

        19       dual threat in that area -- I know his family

        20       quite well.

        21                  And let me just say a word about

        22       their magnificent coach, Pat Liverio.  I'll

        23       tell you, he's being looked at nationally.  So

        24       we want to keep him in Amsterdam to go on and

        25       win more championships.


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         1                  We're very, very proud of this

         2       magnificent team and particularly their

         3       scholarship and so forth.  Incidentally,

         4       sitting with Assemblyman Tonko, we have the

         5       McDermotts, who have a son -- Mrs. McDermott

         6       has a son, and the grandfather is there.  So

         7       we're very, very honored to have you here in

         8       our gallery.

         9                  And with that, I'm going to yield

        10       to Senator Nozzolio, who represented Geneva.

        11                  THE PRESIDENT:    Senator Nozzolio.

        12                  SENATOR NOZZOLIO:    Thank you,

        13       Madam President.  And thank you, Senator

        14       Farley.  On the resolution.

        15                  I rise to support the resolution

        16       authored by my good friend and colleague

        17       Senator Farley recognizing the tremendous

        18       success of the Amsterdam Rugged Rams.

        19                  As Senator Farley indicated, I

        20       represent the community of Geneva.  And I am

        21       very proud to say that on the evening of

        22       Saturday, November 24th, I was seated in the

        23       Carrier Dome cheering on the Geneva Panthers.

        24                  That it was great to see, though,

        25       such a tremendous outpouring of support from


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         1       Amsterdam.  The entire community had to travel

         2       a long way on a cold night, but they certainly

         3       were warm and heated the Carrier Dome and

         4       supported their Amsterdam team.

         5                  And I want to congratulate the

         6       players, the coaching staff, the

         7       administration for such a wonderful display of

         8       athleticism.  You beat a very, very good team

         9       because you played very, very well.  An

        10       outstanding game.  An outstanding group of

        11       young men.

        12                  And I must also tell you that when

        13       I delivered that bushel of Red Jacket Orchard

        14       apples grown in Geneva to Senator Farley, I've

        15       never seen such pride on his face.  Because he

        16       cared very much for his community.  I know he

        17       took great interest in the development of this

        18       championship team.

        19                  Congratulations, State Champions.

        20       Congratulations, Senator Farley.  Couldn't

        21       lose to a better colleague.  And that I

        22       certainly want to congratulate you all for a

        23       job well done.

        24                  SENATOR FARLEY:    Thank you very

        25       much, Senator Nozzolio.


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         1                  And let me just say that this team,

         2       despite the snowstorm, despite everything that

         3       happened -- and it was snowing a lot harder

         4       than Amsterdam than it did here in Albany --

         5       made it in here.  And again, they are winners

         6       all the way.  Congratulations, and we're very,

         7       very proud and happy to have you here.

         8                  Madam President, if you would

         9       please welcome this Championship Class A team.

        10                  THE PRESIDENT:    I certainly will.

        11       But first I believe Senator Bruno would like

        12       to close.

        13                  SENATOR BRUNO:    I would like to

        14       add my congratulations to this Class A

        15       championship team; to Senator Farley, for

        16       having the wisdom to have you in his district;

        17       and to Senator Nozzolio, for being such a good

        18       sport.

        19                  You know, losing is no fun.  But

        20       somebody wins, somebody loses.  And when

        21       somebody loses, you got to be good-natured

        22       about it.  Like I don't resent the fact that

        23       you beat Averill Park.

        24                  (Laughter.)

        25                  SENATOR BRUNO:    You're welcome in


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         1       the chamber, and we are respecting and

         2       honoring you.

         3                  But in a sincere way, you look

         4       around at each other:  you are champions.  And

         5       you are champions because you support each

         6       other.  You're a team.

         7                  When you go on in life, you will

         8       fully appreciate what you have learned as a

         9       team where you support each other.  Because

        10       you don't do much alone in this life, you do

        11       it as a team -- with support, giving support,

        12       being friends, getting friends.  That's what

        13       life's all about.

        14                  So you are champions, and we

        15       congratulate you on what you have accomplished

        16       so far in your life and congratulate you on

        17       all the good things that you are going to do

        18       as you go on in your lives being champions.

        19       Congratulations.

        20                  And thank you, Madam President.

        21                  THE PRESIDENT:    All in favor of

        22       the resolution please signify by saying aye.

        23                  (Response of "Aye.")

        24                  THE PRESIDENT:    Opposed, nay.

        25                  (No response.)


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         1                  THE PRESIDENT:    The resolution is

         2       adopted.

         3                  And I have to say, I used to teach

         4       in Averill Park so I have some sentiments.

         5       But I have to defer to your excellence and to

         6       emphasize again that the qualities that made

         7       you successful in sports are definitely a sign

         8       of future success.  So I wish you the very

         9       best.

        10                  Let's give them a big round of

        11       applause and a warm welcome to the New York

        12       State Senate.

        13                  (Extended applause.)

        14                  SENATOR FARLEY:    Incidentally,

        15       this resolution, which Assemblyman Tonko has

        16       also sponsored in the Assembly, is open to

        17       everybody in this chamber.  So if anybody

        18       would not like to be on it, please notify the

        19       desk.

        20                  THE PRESIDENT:    Senator Bruno, do

        21       you have any objection to opening up the last

        22       resolution?

        23                  Senator Skelos, do you have any

        24       objection to opening up this resolution?

        25                  SENATOR SKELOS:    No objection.


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         1                  THE PRESIDENT:    Then any member

         2       who do not does not wish to cosponsor the last

         3       resolution please notify the desk.

         4                  Senator Skelos.

         5                  SENATOR SKELOS:    Madam President,

         6       Resolution 3369, by Senator Golden, he asks if

         7       we could open it up for sponsorship.  Anybody

         8       that wishes not to sponsor it, they should

         9       notify the desk.

        10                  THE PRESIDENT:    Any member who

        11       does not wish to cosponsor Senator Golden's

        12       resolution just referenced by Senator Skelos,

        13       please so notify the desk.

        14                  Senator Skelos.

        15                  SENATOR SKELOS:    Madam President,

        16       if we could go to the noncontroversial reading

        17       of the calendar.

        18                  THE PRESIDENT:    The Secretary

        19       will read.

        20                  THE SECRETARY:    Calendar Number

        21       45, by Senator Fuschillo, Senate Print 785A,

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

        23       establishing.

        24                  THE PRESIDENT:    Read the last

        25       section.


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         1                  THE SECRETARY:    Section 7.  This

         2       act shall take effect immediately.

         3                  THE PRESIDENT:    Call the roll.

         4                  (The Secretary called the roll.)

         5                  THE SECRETARY:    Ayes, 54.

         6                  THE PRESIDENT:    The bill is

         7       passed.

         8                  THE SECRETARY:    Calendar Number

         9       48, by Senator Golden, Senate Print 5984A, an

        10       act to amend the Tax Law, in relation to

        11       enabling.

        12                  THE PRESIDENT:    Read the last

        13       section.

        14                  THE SECRETARY:    Section 2.  This

        15       act shall take effect immediately.

        16                  THE PRESIDENT:    Call the roll.

        17                  (The Secretary called the roll.)

        18                  THE SECRETARY:    Ayes, 55.

        19                  THE PRESIDENT:    The bill is

        20       passed.

        21                  THE SECRETARY:    Calendar Number

        22       54, by Senator Flanagan, Senate Print 5966A,

        23       an act to amend the Real Property Tax Law, in

        24       relation to extending.

        25                  THE PRESIDENT:    Read the last


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         1       section.

         2                  THE SECRETARY:    Section 2.  This

         3       act shall take effect immediately.

         4                  THE PRESIDENT:    Call the roll.

         5                  (The Secretary called the roll.)

         6                  THE SECRETARY:    Ayes, 55.

         7                  THE PRESIDENT:    The bill is

         8       passed.

         9                  THE SECRETARY:    Calendar Number

        10       83, by Senator Marcellino, Senate Print 5763B,

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

        12       the alternative fuels credit.

        13                  THE PRESIDENT:    Read the last

        14       section.

        15                  THE SECRETARY:    Section 5.  This

        16       act shall take effect immediately.

        17                  THE PRESIDENT:    Call the roll.

        18                  (The Secretary called the roll.)

        19                  THE SECRETARY:    Ayes, 55.

        20                  THE PRESIDENT:    The bill is

        21       passed.

        22                  THE SECRETARY:    Calendar Number

        23       84, by Senator Wright, Senate Print 58 --

        24                  SENATOR SCHNEIDERMAN:    Lay it

        25       aside.


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         1                  THE PRESIDENT:    The bill is laid

         2       aside.

         3                  THE SECRETARY:    Calendar Number

         4       85, by Senator Spano, Senate Print --

         5                  SENATOR SCHNEIDERMAN:    Lay it

         6       aside.

         7                  THE PRESIDENT:    The bill is laid

         8       aside.

         9                  THE SECRETARY:    Calendar Number

        10       86, by Senator Robach, Senate Print --

        11                  SENATOR SCHNEIDERMAN:    Lay it

        12       aside.

        13                  THE PRESIDENT:    The bill is laid

        14       aside.

        15                  THE SECRETARY:    Calendar Number

        16       87, by Senator Hannon, Senate Print 5970A, an

        17       act to amend the Tax Law, in relation to

        18       providing a sales and compensating use tax

        19       exemption.

        20                  THE PRESIDENT:    Read the last

        21       section.

        22                  THE SECRETARY:    Section 13.  This

        23       act shall take effect immediately.

        24                  THE PRESIDENT:    Call the roll.

        25                  (The Secretary called the roll.)


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         1                  THE SECRETARY:    Ayes, 55.

         2                  THE PRESIDENT:    The bill is

         3       passed.

         4                  Senator Bruno, that completes the

         5       noncontroversial reading of the calendar.

         6                  SENATOR BRUNO:    Madam President,

         7       can we ask that the bells be rung.  We are

         8       going to now proceed to the controversial

         9       calendar.

        10                  THE PRESIDENT:    The Secretary

        11       will ring the bell, and the members should

        12       return to their seats now so we can proceed

        13       with the controversial calendar.

        14                  Senator Skelos.

        15                  SENATOR SKELOS:    Madam President,

        16       can we take up the controversial calendar now,

        17       beginning with Calendar Number 84, by Senator

        18       Wright.

        19                  THE PRESIDENT:    The Secretary

        20       will read.

        21                  THE SECRETARY:    Calendar Number

        22       84, by Senator Wright, Senate Print 5846A, an

        23       act to amend the Tax Law.

        24                  SENATOR LIZ KRUEGER:

        25       Explanation.


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         1                  THE PRESIDENT:    An explanation

         2       has been requested, Senator Wright.

         3                  SENATOR WRIGHT:    Thank you, Madam

         4       President.

         5                  The bill before us this morning

         6       creates a new section, 28, of the Tax Law and

         7       provides tax credits for biofuel production

         8       plants.

         9                  The biofuel tax credit is

        10       calculated at 15 cents a gallon after

        11       production of 40,000 gallons, with a maximum

        12       tax credit of 2.5 million per taxpayer per

        13       year.  The credit is available for a maximum

        14       of four years.

        15                  The credit may not lower taxes

        16       below the minimum tax fixed by law.  If it

        17       does, it will be treated as a refundable

        18       overpayment of tax, but without any interest.

        19                  Biofuel includes both biodiesel and

        20       ethanol.  The intent of the legislation is to

        21       encourage the development of the biofuel

        22       industry in New York State.  New York is

        23       already using ethanol as a mix in its gasoline

        24       as a result of action of this Legislature

        25       banning the use of MBTE.  And so as a result,


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         1       we need that as an additive to achieve

         2       compliance with federal air emissions

         3       standards.

         4                  Equally important, we're now

         5       currently importing that biofuel rather than

         6       producing it here in New York State and

         7       thereby creating jobs and adding to the

         8       economy of the state.

         9                  So by pursuing this tax incentive,

        10       we encourage an industry to develop in the

        11       state.  That will have positive benefits for

        12       our agricultural industry.  It in turn will

        13       have positive environmental impacts and have

        14       positive economic impacts.

        15                  THE PRESIDENT:    Senator Krueger.

        16                  SENATOR LIZ KRUEGER:    Thank you,

        17       Madam President.  If the sponsor would please

        18       yield.

        19                  THE PRESIDENT:    Senator Wright,

        20       will you yield for a question?

        21                  SENATOR WRIGHT:    Yes, I will,

        22       Madam President.

        23                  THE PRESIDENT:    You may proceed

        24       with a question, Senator.

        25                  SENATOR LIZ KRUEGER:    Thank you.


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         1                  We had an extensive debate on this

         2       last year.  And since this is an A version,

         3       can I start off, have you amended this bill at

         4       all since last year?

         5                  SENATOR WRIGHT:    This is the same

         6       version that was passed in September.

         7                  SENATOR LIZ KRUEGER:    Thank you.

         8       Madam President, if the sponsor would continue

         9       to yield.

        10                  THE PRESIDENT:    Senator Wright,

        11       do you continue to yield?

        12                  SENATOR WRIGHT:    I will, Madam

        13       President.

        14                  THE PRESIDENT:    You may proceed

        15       with a question.

        16                  SENATOR LIZ KRUEGER:    Thank you.

        17                  You mentioned in your explanation

        18       that it would be up to $2.5 million per plant

        19       per year for no more than four years.  Do we

        20       have any existing plants this would apply to

        21       in New York State?

        22                  SENATOR WRIGHT:    We have several

        23       plants that are under consideration.  We

        24       anticipate that by the end of the year there

        25       will be four plants in the state, two in the


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         1       Central New York area, one in Western

         2       New York, and one in the mid-Hudson.

         3                  SENATOR LIZ KRUEGER:    Thank you.

         4                  Madam President, if the sponsor

         5       will continue to yield, please.

         6                  THE PRESIDENT:    Senator Wright,

         7       do you yield?

         8                  SENATOR WRIGHT:    I will continue

         9       to yield, Madam President.

        10                  THE PRESIDENT:    You may proceed

        11       with a question, Senator.

        12                  SENATOR LIZ KRUEGER:    Thank you.

        13                  There's been more attention, I

        14       think, around biofuels and ethanol production

        15       even since we last debated this bill, perhaps

        16       because of the radically rising costs of

        17       petroleum.  And one of the new concerns that

        18       seems to be coming out in the literature is

        19       that the shifting of the use of agricultural

        20       products to ethanol and biofuels can actually

        21       dramatically raise the costs for others in the

        22       agriculture sector because those products

        23       suddenly are not available as easily for feed

        24       or for human consumption.

        25                  And I was wondering, since you


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         1       talked about the economics for New York State,

         2       whether anyone's done an analysis for us of

         3       what if any negative consequences there might

         4       be on other parts of our agricultural industry

         5       if we shift the use of these products to

         6       ethanol and/or biofuel production.

         7                  SENATOR WRIGHT:    Madam President,

         8       I'm not aware of any detailed analysis that

         9       has been done.

        10                  The agricultural community,

        11       including the Farm Bureau, supports this

        12       legislation.  So from their perspective, they

        13       do not anticipate any dramatically adverse

        14       impacts upon their industry.

        15                  In turn, of course, it's like any

        16       other commodity, there will be supply and

        17       demand issues initially.  But once you have an

        18       existing capacity within the state, that sends

        19       a very clear signal to producers, be it corn

        20       or willow or whatever we're using to create

        21       the biofuel, that there will be a permanent

        22       market that they can sell into.

        23                  And as a result, I believe you will

        24       see supply in fact increase, and that will

        25       have a positive impact, providing a diverse


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         1       product to many of our farms throughout

         2       northern New York.

         3                  SENATOR LIZ KRUEGER:    Thank you.

         4                  Madam President, on the bill.

         5                  THE PRESIDENT:    You may proceed

         6       on the bill, Senator Krueger.

         7                  SENATOR LIZ KRUEGER:    Thank you,

         8       Madam President.

         9                  I appreciate the sponsor's

        10       responses to my questions.

        11                  I spoke out against this bill last

        12       time and voted against it, and I've done some

        13       additional homework since.  But I have to say

        14       my concerns are that the State of New York

        15       needs to do more homework for itself before it

        16       goes down this road.

        17                  Once you start to open the door of

        18       tax exemptions and credits and encouragement

        19       for certain new industries -- and as the

        20       Senator clarified, we don't have this yet in

        21       New York, we're talking about having some in

        22       the pipeline -- I think it's incumbent on us

        23       in the government to figure out, before we

        24       start to incentivize a new type of business,

        25       what that impact would be for us, both for


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         1       other parts of the agriculture sector, whether

         2       there are differences out there between

         3       biofuels that use, as was said, hardwoods,

         4       grasses, nuts, as opposed to ethanol, where

         5       there has been some research showing that that

         6       is a seriously costly model for replacement of

         7       petroleum.

         8                  So while I am more open than I was

         9       a few months ago to the idea of exploring what

        10       could the State of New York do to increase the

        11       use of biofuels, particularly since I would

        12       argue that we need to do everything possible

        13       to decrease our use of petroleum products and

        14       decrease our dependence on foreign oil, I

        15       still think that the right type of legislation

        16       for us to be moving at this time is some kind

        17       of mandated research by government and the

        18       industries that would be affected in New York

        19       to figure out what is the right direction to

        20       go.

        21                  Because not all biofuels are equal

        22       or offer the best or the same options for us.

        23       And I think before we start to incentivize by

        24       giving away our tax dollars to particular

        25       industries or new developing industries, we


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         1       need to ask the question what will it really

         2       mean for us.

         3                  So I continue to argue that it's

         4       too early for us to pass this kind of bill and

         5       open up this door.  I'll be voting no.

         6                  Thank you, Madam President.

         7                  THE PRESIDENT:    Senator

         8       Marcellino.

         9                  SENATOR MARCELLINO:    Yes, Madam

        10       President.  Thank you.

        11                  I rise in support of this

        12       legislation.  I use, as a classic example, a

        13       few years ago when I proposed the tax credit

        14       on hybrid vehicles and the hybrid technology,

        15       we didn't propose a tax credit for any

        16       particular car, we proposed a tax credit on

        17       the technology.  Nobody was buying hybrid cars

        18       then.  In my office was General Motors,

        19       Chrysler -- representatives, obviously -- and

        20       Ford.  They were opposed to this:  "Senator,

        21       it was an interim technology.  It's not the

        22       future.  Fuel cells is going to be the

        23       future."  Well, fuel cells is hydrogen

        24       technology.

        25                  And I said to them, you know, then:


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         1       "It may be in the future, but you're 20, 30

         2       years down the road before you're even close.

         3       Hybrids are going to be here."

         4                  Today, hybrids you can't buy.  It's

         5       a six- to eight- to nine-month waiting list to

         6       buy hybrid cars.  Who manufactures the vast

         7       majority of them?  Japanese car makers.  Who's

         8       laying off thousands of workers in this

         9       country?  American car makers.  Who's losing

        10       profits?  American car makers.  Who's losing

        11       jobs?  American workers.  It's an outrage.

        12                  We can wait and wait and wait and

        13       wait and wait.  It doesn't help.  Do you know

        14       who's going to be, ladies and gentlemen of the

        15       Legislature, who's going to be the largest

        16       manufacturer of cars in this country next

        17       year?  Toyota.  The largest manufacturer of

        18       cars is going to be Toyota.  Not General

        19       Motors, not Ford, and not Chrysler.  It's an

        20       outrage.

        21                  We cannot afford to wait.  American

        22       car manufacturers seem to be waiting for some

        23       myth down the road.  We can research things to

        24       death.  It's time to move.  In Brazil,

        25       gasoline in Brazil, 85 percent ethanol.


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         1       85 percent.  That's nationwide.  We could do

         2       that here.  Ford is now beginning to develop

         3       their supersecret car which would operate on

         4       ethanol.  Think what that would do for our

         5       economy.  We produce more sugarcane than we

         6       can take.  That's, by the way, where they get

         7       it from.  They get it from sugarcane, not

         8       corn.

         9                  So the technologies that we want to

        10       incentivize have to be moved.  Senator Wright

        11       is to be congratulated.  We need to bring

        12       these types of vehicle, these types of plants,

        13       this type of industry online now and in

        14       incentivize them and grow them and grow jobs,

        15       literally, and grow ourselves out of this

        16       dependency on fossil fuels and foreign fuels.

        17       It's destroying this country and eventually

        18       will destroy the world.

        19                  Ladies and gentlemen, I think we

        20       should all support this bill wholeheartedly.

        21       It's the right thing to do.

        22                  THE PRESIDENT:    Does any other

        23       member wish to be heard on this bill?

        24                  Then the debate is closed.

        25                  The Secretary will ring the bell.


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         1                  Read the last section.

         2                  THE SECRETARY:    Section 6.  This

         3       act shall take effect immediately.

         4                  THE PRESIDENT:    Call the roll.

         5                  (The Secretary called the roll.)

         6                  THE PRESIDENT:    The Secretary

         7       will announce the results.

         8                  THE SECRETARY:    Those recorded in

         9       the negative on Calendar Number 84 are

        10       Senators Duane, Hassell-Thompson, and

        11       L. Krueger.

        12                  Those absent pursuant to Rule 9 are

        13       Senators Breslin, Johnson, Libous, Montgomery,

        14       M. Smith, Stavisky, and Trunzo.

        15                  Those Senators absent from voting:

        16       Senator Sampson.

        17                  Ayes, 47.  Nays, 3.

        18                  THE PRESIDENT:    The bill is

        19       passed.

        20                  The Secretary will continue to

        21       read.

        22                  THE SECRETARY:    Calendar Number

        23       85, by Senator Spano, Senate Print 5965A, an

        24       act to amend the Tax Law.

        25                  SENATOR SCHNEIDERMAN:


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         1       Explanation.

         2                  THE PRESIDENT:    Senator Spano, an

         3       explanation has been requested.

         4                  SENATOR SPANO:    Thank you, Madam

         5       President.

         6                  Last September, September 14th in

         7       New York City, the Investigations Committee

         8       conducted hearings on the surging prices of

         9       home heating fuel as well as gasoline taxes.

        10       We listened to testimony from everyone from

        11       the oil companies to the service stations and

        12       everyone in between.

        13                  We learned a lot at that hearing.

        14       We learned about the failed energy policies of

        15       the federal government.  I would take it a

        16       step further; we heard that there are no

        17       energy policies of the federal government.

        18       And maybe tonight maybe we'll hear the

        19       president talk about cracking down on profits

        20       of oil companies.  Because as we read today,

        21       Exxon, with a $10 billion surplus in the final

        22       quarter of the year, is something that is

        23       obnoxious to all of us.

        24                  We know there have been no

        25       refineries, no new refineries.  We know that


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         1       there's a concentration of refineries in the

         2       Gulf Coast.  And we recognize that those in

         3       Washington are pointing fingers of blame all

         4       over the place.

         5                  We also learned, of course, that

         6       there's nothing at all that we can do about

         7       that and that let us focus on what we can do

         8       to those people who we continue to call the

         9       overburdened taxpayers in our communities.

        10                  Who are more overburdened than our

        11       seniors?  It's easy for us to say to our

        12       family members, lower the thermostat.  But

        13       when you're a senior living in an apartment or

        14       living in a house, particularly in the

        15       metropolitan area of New York or all across

        16       New York State, it is not realistic to say,

        17       lower the heat.

        18                  So the alternative is for us to

        19       come up with a program, $140 million, that

        20       impacts 640,000 seniors across this state.  We

        21       provide a $100 personal income tax credit to

        22       the renters, and we provide a $200 rebate

        23       check to those seniors who are eligible for

        24       the enhanced STAR program.  It's a direct way

        25       of helping those people who are most in need


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         1       in this state.

         2                  And this has been an issue that we

         3       in the Senate have continued to take a

         4       leadership role on and hope to see passage of

         5       this soon so that the benefit will go directly

         6       to those seniors before April, so that they

         7       will see a benefit when they're seeing those

         8       heating fuel bills, when they open those

         9       bills.

        10                  Yes, consumption may be down, but

        11       the cost of heating fuel is significantly

        12       higher as a result of what's happening in

        13       Washington.  But this is the best way that we

        14       can come up with to find a solution to

        15       lessening the burden on our seniors and our

        16       communities.

        17                  THE PRESIDENT:    Senator

        18       Schneiderman.

        19                  SENATOR SCHNEIDERMAN:    Thank you,

        20       Madam President.  On the bill.

        21                  THE PRESIDENT:    You may proceed.

        22                  SENATOR SCHNEIDERMAN:    This is

        23       the same bill, and the other legislation we're

        24       moving today is essentially the same, subject

        25       to changes in a few dates and technical


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         1       details, that we passed when we were here in

         2       September.  And the objections that some of us

         3       had to this legislation is equally applicable

         4       to the legislation presented to us today.

         5                  What I find the most discouraging,

         6       frankly, is we are clearly in a time when the

         7       people of the State of New York are paying too

         8       much for gas, for oil, for energy.  And I

         9       respectfully disagree with my friend and

        10       colleague Senator Spano that there's nothing

        11       we can do to deal with the lapses with the

        12       federal government.  I mean, we certainly, for

        13       starters, we can withdraw our support from the

        14       parts of the federal government that are

        15       responsible for this catastrophe.

        16                  But second of all, the State of

        17       New York has tremendous power to develop an

        18       energy plan not to deal with this in a

        19       haphazard way, to deal with something that is

        20       fair to all the people of the State of New

        21       York.  The reason we are not doing that is

        22       because the Energy Planning Board expired in

        23       2002.  The 2002 energy plan is badly outdated.

        24                  This is state policy.  This is

        25       something we have the ability to remedy.  So


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         1       what is required is leadership at the state

         2       level, what is required is a comprehensive

         3       energy plan not just to deal on a piecemeal

         4       basis with small parts of the problem, but to

         5       deal comprehensively with the explosion of

         6       energy prices in our state.

         7                  Now, this particular piece of

         8       legislation, again, I think we pointed out

         9       some problems with it when it came up in

        10       September.  It is the same bill.  It's not

        11       moving in the Assembly.  It's not going

        12       anywhere.  I'm not sure, on an energy bill,

        13       what the justification is for wasting the

        14       energy to reprint the exact same bill that

        15       hasn't moved forward at all.  But this is a

        16       bill that many of us voted against because it

        17       clearly and blatantly discriminates against

        18       tenants and against renters.

        19                  I appreciate the fact that

        20       homeowners have problems with heating costs,

        21       but so do renters.  And to continue to push a

        22       bill that provides a $200 credit to homeowners

        23       that meet certain qualifications, but only a

        24       $100 credit to tenants, to renters -- who

        25       very, very frequently have less resources, are


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         1       poorer than the homeowners -- is simply

         2       discrimination that we shouldn't accept.

         3                  It's not necessary for it to be in

         4       this bill.  We pointed this out when it came

         5       up in September.  This bill is not moving

         6       forward in the Assembly.  I don't see any

         7       progress towards a comprehensive energy plan.

         8       Let's do this right.  Let's not continue to

         9       press bills that aren't going anywhere and

        10       reprint them, at some cost of energy.  Let's

        11       work towards passing something that can pass

        12       the Assembly, that can get done with the

        13       cooperation of the Executive.  Let's move

        14       towards an energy plan.

        15                  And please, as we go forward, let's

        16       provide justice for all New Yorkers.  Let's

        17       provide relief from energy costs for all

        18       New Yorkers.  Let us not be, the Senate be the

        19       house that discriminates over and over again

        20       against renters and tenants.  That's what this

        21       bill does.  For that reason, I'm voting no.

        22                  And I would urge that we move

        23       forward and try and come up with some energy

        24       proposals that could pass the Assembly, that

        25       could become law, that could be a part of a


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         1       comprehensive energy plan.

         2                  Thank you, Madam President.

         3                  THE PRESIDENT:    Senator Wright.

         4                  SENATOR WRIGHT:    Thank you, Madam

         5       President.

         6                  I rise to recognize Senator Spano's

         7       efforts, because this effort commenced with

         8       Senator Spano in this house last September.

         9                  And it's because of that effort

        10       that a week ago we achieved an agreement

        11       dealing with the HEAP program and providing

        12       unprecedented commitment of state dollars to

        13       assist low- and moderate-income individuals

        14       across the State of New York, to the tune of

        15       $100 million.

        16                  This is an important component of a

        17       comprehensive approach to energy.  Because we

        18       have provided HEAP money, we've called upon

        19       the federal government to provide additional

        20       HEAP money.  And now we are providing a

        21       component to those individuals most in need,

        22       our senior population.

        23                  Now, the bill in fact is balanced.

        24       If one looks at square footage and utilization

        25       records, you'll find that renters typically


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         1       have smaller space than homeowners, typically

         2       have lower heating costs than homeowners.

         3       Consequently, you see the differential in the

         4       bill.  Not discrimination, but in fact equal

         5       treatment, recognition of the differences in

         6       cost and impact.

         7                  So we in fact do have a balanced

         8       approach.  We do have a bill that, when

         9       coupled with the additional appropriations

        10       last week to HEAP, provide a solution that is

        11       badly needed in this state.

        12                  I commend Senator Spano for his

        13       efforts, and I'm very pleased to join with him

        14       in supporting the bill today.

        15                  Thank you, Madam President.

        16                  THE PRESIDENT:    Senator Parker.

        17                  SENATOR PARKER:    Madam President,

        18       on the bill.

        19                  THE PRESIDENT:    You may proceed

        20       on the bill.

        21                  SENATOR PARKER:    First let me

        22       begin by thanking Senator Spano for his

        23       concern on this issue.  Energy issues really

        24       should be really more on the front burner of

        25       what we are talking about this year and what's


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         1       going on in the State of New York, especially

         2       in the wake of Katrina and what we saw in

         3       terms of both rising fuel prices but also

         4       what's happening to our school districts,

         5       what's happening in people's homes.

         6                  I'm sure there's not any member

         7       here who hasn't gotten a significant amount of

         8       calls from constituents complaining about

         9       their heating bills.  And I think that, you

        10       know, we really need to be working together to

        11       figure out how we in fact move forward to

        12       provided relief for seniors, for poor

        13       New Yorkers who can't afford to heat their

        14       homes and apartments.

        15                  However, this bill doesn't do that.

        16       This bill does not take us where we need to

        17       be.  This bill provides a significant

        18       inequity.  There's a significant lack of

        19       distribution of resources.

        20                  We have tried to deal with this

        21       issue.  This bill would cost the state roughly

        22       around $300 million.  And I think that that

        23       money could be better used in a program like

        24       the Temporary Home Energy Assistance Grant

        25       program.  And I think that those kind of


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         1       programs, that really work on the federal

         2       model and really supplement what is being done

         3       by the federal government for folks who are

         4       not eligible for that program, really is the

         5       way we ought to be going.

         6                  So I want to rise not to oppose

         7       you, Senator Spano, but to work with you on

         8       creating a solution together that we think

         9       will help everybody equally across the state.

        10                  THE PRESIDENT:    Does any other

        11       member wish to be heard?

        12                  Senator Krueger.

        13                  SENATOR LIZ KRUEGER:    Thank you,

        14       Madam President.  On the bill.

        15                  THE PRESIDENT:    You may proceed.

        16                  SENATOR LIZ KRUEGER:    Thank you.

        17                  Again I rise to argue against this

        18       bill.  The Home Energy Assistance Program has

        19       been mentioned now several times by my

        20       colleagues.  And yes, we put a hundred million

        21       dollars into that, although analysts argue

        22       that, given what the federal government has

        23       failed to do and the cost of home heating

        24       increases, that we really should have put in

        25       at least $200 million or $300 million into


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         1       HEAP, not $100 million.

         2                  So then suddenly we have a

         3       revisiting of a bill from September that would

         4       cost us that kind of money in a different

         5       model.  We should be putting that money -- if

         6       we're prepared to put more state money into

         7       assisting low-income people with their ability

         8       to pay for heating in their homes, we should

         9       be putting that money into an existing

        10       successful program called HEAP.

        11                  But even HEAP tends to discriminate

        12       against renters versus homeowners, because the

        13       money shifts to the owners of the building for

        14       tenants, and that money is not always then

        15       reinvested into the building to ensure that it

        16       is weatherized, to ensure that rents don't go

        17       up disproportionately when the building owner

        18       has already received assistance from the HEAP

        19       program.

        20                  But this bill -- and the words were

        21       used before, and I have to emphasize it -- it

        22       does discriminate in several ways between

        23       people who own their own homes versus people

        24       who lease or rent theirs.  And it's not just

        25       the $200 versus the $100 difference, it's also


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         1       the mechanism.

         2                  For the homeowners, it would be a

         3       rebate, a check in the mail from the Tax

         4       Department immediately and directly when you

         5       need the money.  Like HEAP, that gives you

         6       money to pay your bill directly and

         7       immediately.

         8                  And for renters and leasers, it

         9       would be a tax credit, meaning you would have

        10       to learn somehow that there was a new credit

        11       for you out there, if you fell into certain

        12       categories; you would have to make an

        13       application for it through the Department of

        14       Tax and Finance; and you would have to hope

        15       that that worked through correctly and you got

        16       a credit against other taxes owed, not a check

        17       in the mail to pay your utilities when you

        18       need to.

        19                  And technically, the way the bill

        20       is written, in order to draw down that hundred

        21       dollars -- if you figured out that credit, if

        22       you got that paperwork in, if you ever got a

        23       response and got a credit on taxes, not a

        24       rebate check in the mail -- it would be

        25       dependent on being able to prove that you paid


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         1       separately for heat.

         2                  And of course the dilemma in the

         3       big cities of this state -- I won't speak for

         4       everywhere, but having done a little homework,

         5       about 90 percent of renters actually have

         6       their heat costs attached as part of their

         7       rent cost, or the bill technically comes as

         8       part of their landlord's costs, not a separate

         9       freestanding bill from a utility company.

        10                  So it's not clear to me how the

        11       vast majority of renters, even though their

        12       housing and heating costs are going up, would

        13       ever be eligible to apply even for this

        14       discounted, harder-to-get benefit.

        15                  So New York State should move

        16       forward with simple, tried-and-true models for

        17       ensuring that low-income people who can't

        18       afford to pay their heating bills get that

        19       money when they need it.  HEAP is a program

        20       that exists.  As was said by Senator Wright,

        21       we just proudly put a hundred million more

        22       into it.  We could do more to adjust for some

        23       of the unfairness of the federal HEAP program,

        24       because we're now putting state money in.

        25                  That's where we should be focusing


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         1       our energy and our attention.  And in fact we

         2       have support in both houses and I believe the

         3       Governor's chambers for HEAP, and we should be

         4       moving forward immediately on that.

         5                  So I will be voting against this

         6       bill.  It goes in the wrong direction and it

         7       complicates the debate.

         8                  Thank you, Madam President.

         9                  ACTING PRESIDENT LITTLE:    Thank

        10       you.

        11                  Is there any other Senator wishing

        12       to be heard?

        13                  Senator Marcellino.

        14                  SENATOR MARCELLINO:    Madam

        15       President, just briefly on the bill.

        16                  ACTING PRESIDENT LITTLE:    On the

        17       bill.

        18                  SENATOR MARCELLINO:    I think it's

        19       important.  I want to commend Senator Spano

        20       for this legislation.  I think it's time and

        21       it's something that we need to do at this

        22       point in time.

        23                  But what I'm hearing from the other

        24       side about getting a policy, getting things

        25       done, you know, we're doing bills that we've


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         1       done before -- yeah, we're doing bills that

         2       we've done before.  And the reason we're doing

         3       it, we're trying to prod, as Senator Bruno

         4       said at a press availability a couple of hours

         5       ago, is to get the other house to do

         6       something.

         7                  This house is passing legislation

         8       with an energy policy in mind, a current

         9       policy and a policy for long-term.  We're

        10       doing something, or we're trying to.  But in

        11       this state, it takes three legs of the stool

        12       to work.  We need something from the other

        13       house.

        14                  If they don't agree with everything

        15       that is in our package, I urge them and I ask

        16       my colleagues to take a deep breath and urge

        17       their colleagues on the other side to pass a

        18       bill, pass their own version.  We'll go to

        19       conference committees, resolve the issues as

        20       we've done in the past, and resolve our

        21       issues.  I see no reason why they can't do

        22       that.  But the Assembly has done nothing but

        23       talk.

        24                  Talk is cheap, and heating costs

        25       are expensive.  So I suggest we move ahead on


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         1       this thing.  Ladies and gentlemen, we should

         2       move this bill.

         3                  ACTING PRESIDENT LITTLE:    Thank

         4       you, Senator Marcellino.

         5                  Senator Diaz.

         6                  SENATOR DIAZ:    Thank you, Madam

         7       President.  On the bill.

         8                  ACTING PRESIDENT LITTLE:    On the

         9       bill.

        10                  SENATOR DIAZ:    It is

        11       understandable that the bill doesn't cover

        12       everything that we want and that there is more

        13       to be done.

        14                  However, I come from a district

        15       that represents a lot of senior citizens,

        16       homeowner senior citizens and all kinds of

        17       senior citizens.  And this bill would provide

        18       the financial relief to New York seniors to

        19       assist them with their home heating bills this

        20       winter.

        21                  I know seniors that -- I know some

        22       seniors -- a lot of seniors in my district

        23       that, even though they are homeowners, some of

        24       them, and some of them are renting, they have

        25       to decide if they should buy their medicine,


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         1       to pay their rent, to pay their heating bills,

         2       or to purchase food.

         3                  So I understand that this bill

         4       doesn't go all the way that we want.  But

         5       ladies and gentlemen, anything, anything,

         6       anything that could help senior citizens is

         7       good.  For us to come here and to prevent some

         8       seniors to get some relief and some seniors to

         9       get something based on the fact that not

        10       everybody is going to get it, that's wrong.

        11                  I'm here to do anything possible,

        12       whatever I could do, to protect and to help

        13       senior citizens.  In my district, throughout

        14       New York State, in anywhere, senior citizens

        15       are carrying a heavy burden.  And we all

        16       should be concerned with that, and we all

        17       should be concerned in protecting senior

        18       citizens, and we all should be concerned doing

        19       for seniors whatever we can.

        20                  So even though this is not a

        21       perfect bill, it is a good bill.  And I'm

        22       voting for it.

        23                  Thank you.

        24                  ACTING PRESIDENT LITTLE:    Thank

        25       you, Senator Diaz.


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         1                  Senator Hassell-Thompson.

         2                  SENATOR HASSELL-THOMPSON:    Thank

         3       you, Madam President.  Just two points on the

         4       bill.

         5                  ACTING PRESIDENT LITTLE:    On the

         6       bill.

         7                  SENATOR HASSELL-THOMPSON:

         8       Senator Spano, you and I share contiguous

         9       communities.  And certainly I would not like

        10       to go on the record as having anyone believe

        11       that I would not be supportive of any

        12       legislation that would give relief to seniors.

        13                  However, the two points that

        14       concern me greatly is that there's nothing in

        15       this bill that prohibits oil companies and

        16       retail outlets from raising the price next

        17       week or tomorrow, thereby undermining the

        18       entire notion of providing direct relief to

        19       New York consumers.

        20                  The second is that this tax relief

        21       may only encourage an increase in the amount

        22       of consumption of gasoline, which would then

        23       continue to cause the price of oil to rise.

        24                  So if we were able in some way to

        25       ensure that we were capping it so that the


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         1       relief -- we knew that the relief would go

         2       directly to consumers, I would be much more

         3       amenable to supporting this bill.  However, I

         4       cannot.

         5                  Thank you, Madam President.

         6                  ACTING PRESIDENT LITTLE:    Thank

         7       you, Senator.

         8                  Is there any other Senator wishing

         9       to be heard?

        10                  Senator Saland.

        11                  SENATOR SALAND:    Thank you, Madam

        12       President.

        13                  I've listened to the debate, and

        14       I've certainly heard the comments in

        15       opposition to the bill.  For those of us who

        16       own homes, we do know that, depending upon the

        17       size of your home, it's going to cost you

        18       more.  The larger the home, the more to heat

        19       it.  I considered myself fortunate this year

        20       to be able to lock in a price in fuel oil that

        21       was merely about 50 percent more than I had

        22       paid last year.

        23                  And contrary to what I think was

        24       the message I just heard, the fact of the

        25       matter is if you're paying for your own fuel


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         1       oil, the price of it being as expensive as it

         2       is, or I would think regardless, you don't

         3       squander that resource.  You are very careful

         4       in what you set your term thermostat at, and

         5       you take great pains not to waste your heat.

         6                  So the size of the house -- 2,000,

         7       3,000, 3,500 and perhaps much larger --

         8       certainly is much larger than anything you're

         9       going to see in most apartments.  The fact

        10       that you own a home and you're paying taxes

        11       and you're writing off your taxes, you're

        12       filing a return in which you take your

        13       deductions -- perhaps, as an apartment owner,

        14       you're merely taking a standard deduction.

        15       The difference between a rebate and a tax

        16       credit may well reflect the manner in which

        17       you are filing.

        18                  But certainly the vast majority of

        19       people who have homes are taking personal

        20       deductions for whatever it is costing them in

        21       the course of paying their taxes and, if they

        22       happen to own as distinguished from lease,

        23       paying their mortgage.

        24                  So I think it is certainly, at the

        25       very least, counterintuitive to assume that


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         1       Senator Spano's bill is going to drive up the

         2       cost of oil, because there's no consumer who's

         3       paying the price of his or her cost of heating

         4       that's going to indiscriminately drive up

         5       their own cost.  What they're doing to do is,

         6       in a measured fashion, control how they're

         7       heating their homes.

         8                  As distinguished from somebody who

         9       may be in an apartment in which they're not

        10       paying for their heat and the heat continues

        11       to flow at rates far beyond what you would

        12       expect in an owned or leased residence in

        13       which somebody is paying for their own fuel

        14       oil.

        15                  So I commend Senator Spano for

        16       bringing this bill before us.  I think it

        17       fills a need.  I think it fills a critical

        18       need for seniors.  And I think it fits very

        19       well in the package of bills we've seen today.

        20                  And I would hope that this debate

        21       somehow or other will incite our friends over

        22       in the other house to bring forth their own

        23       package, and perhaps from that we will be able

        24       to make some progress on behalf of the people

        25       of the State of New York.


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         1                  Thank you.

         2                  ACTING PRESIDENT LITTLE:    Thank

         3       you, Senator Saland.

         4                  Senator Spano, to close the debate.

         5                  SENATOR SPANO:    Thank you, Madam

         6       President.

         7                  Just a couple of corrections on

         8       some of the things that were said.  As Senator

         9       Krueger was talking about, and as well Senator

        10       Schneiderman, about negative impact on

        11       tenants, what we're talking about is giving a

        12       $100 tax credit to our tenants.

        13                  And every one of our tenants who

        14       live in buildings across the state do pay

        15       their fair share of heating that apartment.

        16       They may not pay it directly to the energy

        17       company or to the oil company, but they're

        18       paying it as a part of their base rent, and

        19       it's certainly our intention to cover all of

        20       those as a part of this.

        21                  With regard to my colleague from

        22       Westchester's comments, you know, the Attorney

        23       General right now is and should continue to go

        24       after those companies who are gouging.  We

        25       should be looking at our statutes with regard


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         1       to gouging here.  And there are

         2       recommendations that Senator Wright and others

         3       have made with regard to that issue.

         4                  It shouldn't mean that we shouldn't

         5       do anything here, though.  You would have

         6       taken that argument when we talked about, a

         7       few years ago, limiting the sales tax on home

         8       heating fuels.  Well, there's 41 counties in

         9       this state who have removed the sales tax on

        10       home heating fuels.  You didn't see an

        11       increase in heating fuels as a result of that.

        12       The market wouldn't allow that.  And if they

        13       did, we have an Attorney General who could go

        14       after them.  And we need to encourage them.

        15                  I started off by saying that -- I

        16       didn't say we can't do anything about the

        17       federal government's lack of a federal policy,

        18       energy policy.  I think we can.  And the fact

        19       that we're standing here on the Senate floor

        20       in New York State speaking about the lack of

        21       energy policy is tantamount to us doing

        22       something about it.  Maybe someone in

        23       Washington will listen to us, whether they be

        24       Republicans or Democrats, and that's our

        25       purpose in standing here today.


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         1                  But we can also add to those issues

         2       that were raised by Senator Wright.  We are

         3       standing here doing something.  Senator Diaz

         4       said it, we are doing something.  Any one of

         5       us can find a reason not to do something.  But

         6       our seniors, when they open those bills every

         7       month, are going to look to us and say:  What

         8       are you doing about it?

         9                  If you want to vote against this

        10       bill, that's your prerogative.  But we are

        11       standing here saying to our seniors in this

        12       state:  We recognize the struggles that you

        13       have.  We are standing here talking about

        14       starting a process, asking for partnership

        15       from the Assembly, asking for partnership from

        16       Washington.  And let's make this happen.  It

        17       has to start somewhere, and it's starting here

        18       in the Senate.

        19                  ACTING PRESIDENT LITTLE:    Thank

        20       you, Senator Spano.

        21                  The Secretary will ring the bell.

        22                  Read the last section.

        23                  THE SECRETARY:    Section 2.  This

        24       act shall take effect immediately.

        25                  ACTING PRESIDENT LITTLE:    Call


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         1       the roll.

         2                  (The Secretary called the roll.)

         3                  ACTING PRESIDENT LITTLE:

         4       Announce the results.

         5                  THE SECRETARY:    Those recorded in

         6       the negative on Calendar Number 85 are

         7       Senators Andrews, Connor, Duane,

         8       Hassell-Thompson, L. Krueger, Parker,

         9       Paterson, Schneiderman, Serrano, and A. Smith.

        10                  Those absent pursuant to Rule 9 are

        11       Senators Breslin, Johnson, Libous, Montgomery,

        12       M. Smith, and Stavisky.

        13                  Those Senators absent from voting:

        14       Senator Sampson.

        15                  Ayes, 46.  Nays, 10.

        16                  ACTING PRESIDENT LITTLE:    The

        17       bill is passed.

        18                  Senator Trunzo.

        19                  SENATOR TRUNZO:    Madam President,

        20       Pursuant to Rule 9, I was required to be at a

        21       meeting of the Finance Committee, Standing

        22       Committee on Transportation, and I cast my

        23       vote as follows on a bill on the controversial

        24       calendar.  On Bill Number 5846A, Calendar

        25       Number 84, I vote aye.


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         1                  ACTING PRESIDENT LITTLE:    Thank

         2       you, Senator Trunzo.  The record will so

         3       reflect.

         4                  SENATOR TRUNZO:    Thank you.

         5                  ACTING PRESIDENT LITTLE:    The

         6       Secretary will read.

         7                  THE SECRETARY:    Calendar Number

         8       86, by Senator Robach, Senate Print 5968, an

         9       act to amend the Tax Law.

        10                  SENATOR LIZ KRUEGER:

        11       Explanation.

        12                  SENATOR SCHNEIDERMAN:

        13       Explanation.

        14                  ACTING PRESIDENT LITTLE:    Senator

        15       Robach for an explanation, please.

        16                  SENATOR ROBACH:    Gladly, Madam

        17       President.

        18                  This is a bill which would cap the

        19       sales tax on gasoline at $2 a gallon.  Again,

        20       in a comprehensive package, something that

        21       will help all New Yorkers across the state --

        22       upstate and downstate, young and old, for

        23       business transportation, family

        24       transportation, to again attempt to cut the

        25       amount of money people are paying for fuel at


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         1       the pump.

         2                  This is certainly something I've

         3       heard from greatly from my constituents as

         4       these spikes go on.  And while I wish I had

         5       the magic wand to get into the profits, the

         6       large profits of some of the oil companies,

         7       this clearly is something we can do in our

         8       purview, sales tax, to help working men and

         9       women all across this state have to pay a

        10       little bit less for gas at the pump.

        11                  And I am hopeful -- this was

        12       brought up once before, passed this house

        13       overwhelmingly.  We will do all we can to work

        14       with our colleagues on the other side of the

        15       aisle to get this implemented.

        16                  And I know this is an explanation,

        17       but let me caution everyone in the chamber.

        18       While to some degree I wouldn't say gas has

        19       become cheaper, because that's the wrong word,

        20       it has stabilized out somewhat.  My guess is

        21       we will be seeing that increase as we move

        22       forward.  Now is the time to act to help all

        23       our constituents.

        24                  And so hopefully this policy,

        25       again, to help people at the pump will move


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         1       forward.

         2                  ACTING PRESIDENT LITTLE:    Thank

         3       you.

         4                  Senator Duane.  No?  I'm sorry.

         5                  Senator Schneiderman.

         6                  SENATOR SCHNEIDERMAN:    Thank you,

         7       Madam President.  Senator Duane will lead us

         8       in calisthenics.

         9                  On the bill.  Thank you.

        10                  Once again, ladies and gentlemen,

        11       there is no basis for any assertion that

        12       anyone on this side of the aisle does not want

        13       to do something about high energy costs.  My

        14       colleagues on this side of the aisle do

        15       represent most of the very poor communities in

        16       this state where people are burdened the most

        17       by energy costs, where people have to make

        18       decisions between heat and fuel.  This is

        19       something that is of vital concern to everyone

        20       in this house.  And I believe that, with all

        21       good faith, it's of vital concern to my

        22       colleagues on the other side of the aisle.

        23                  The problem I have with this bill,

        24       the problem I have with the approach we're

        25       taking in this house is that, frankly,


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         1       continuing to print and advance the same

         2       flawed bills over and over again does not in

         3       fact move the debate forward.

         4                  You want to move the debate forward

         5       with the Assembly?  Let's show we're actually

         6       doing something.  Let's take suggestions that

         7       make sense and do something with them.

         8                  The bill that we debated just a few

         9       moments ago, no one here objects to the effort

        10       in good faith to provide relief to seniors

        11       from increased home heating oil costs.  The

        12       problem is when you look at a piece of

        13       legislation that's going to cost hundreds of

        14       millions of dollars and say, in fact, if you

        15       analyze it, the people who are most in need

        16       are not going to be eligible for this relief,

        17       then that's a problem.  That's not something

        18       that's going to move forward.  That's not

        19       something that's going to become law and

        20       provide relief to anyone.

        21                  This piece of legislation, once

        22       again, I thought we offered helpful

        23       suggestions in September.  The sponsors have

        24       not seen fit to add any of those suggestions

        25       to improve the bills.  This legislation does


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         1       not deal with the fact that sales taxes, which

         2       it would reduce on motor fuel and diesel motor

         3       fuel, are collected from wholesalers when they

         4       accept delivery of a shipment of fuel.  This

         5       would give a break to wholesalers.  Absolutely

         6       caps taxes for wholesalers, no question.

         7                  There is nothing in this bill, as

         8       there was nothing in September, to ensure or

         9       to even monitor whether or not those savings

        10       are passed to the retailers.  There is nothing

        11       in this bill, as there was not in September,

        12       to ensure or even to find out if the savings

        13       are passed from the retailers to the

        14       consumers.

        15                  So once again we have a piece of

        16       legislation that sounds good, that's a

        17       one-house bill with no sponsor in the

        18       Assembly, that doesn't have corresponding

        19       legislation.  Maybe it doesn't have

        20       corresponding legislation because it is, on

        21       its face, not particularly compelling.

        22                  This does not guarantee that one

        23       dollar goes to a consumer.  Maybe it would.

        24       Maybe it would.  Again, and I think perhaps

        25       the sponsor is a bit idealistic about oil


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         1       companies, saying that, you know, we do

         2       believe they will -- they want to reduce costs

         3       and they want to keep costs down.  Maybe they

         4       do.  But the relief is slow.  A lot of money

         5       is left on the table at the wholesaler level

         6       and at the retailer level.

         7                  If we really want to help the

         8       consumers of this state, let's pass a bill

         9       like this and add in some provisions to ensure

        10       that the savings are passed on.  Let's pass a

        11       bill like this that adds in provisions for

        12       monitoring where the savings go.  That's easy

        13       to do.

        14                  As with the bill that we just were

        15       debating earlier, it's easy to do something

        16       that tries to ensure that the people most in

        17       need of relief from home heating oil costs,

        18       even if they're paying through their landlord

        19       and their landlord increases their rent and

        20       heating costs -- rent and utility costs, which

        21       is the way it's broken out in many cases --

        22       they go up, but they wouldn't be eligible for

        23       Senator Spano's bill.

        24                  Let's make the modifications that

        25       make these bills better and not continue to


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         1       reprint and push bills that aren't going to go

         2       anywhere in their present form.

         3                  So I'm going to be against this

         4       bill for the same reasons we were against it

         5       in September.  This does not guarantee any

         6       pass-through of the savings from the

         7       wholesalers to the retailers or from the

         8       retailers to the consumers.  We need to do

         9       better than that.  We need to take action on

        10       things like the proposal we made in September,

        11       on our side of the aisle, to change the

        12       price-gouging statutes for more effective

        13       enforcement of price-gouging laws in New York

        14       State.

        15                  Let's look at the overall picture

        16       and ensure that the people we are claiming to

        17       help actually will receive the benefits from

        18       the legislation.  Until we do that, we're

        19       engaged in an exercise of one-house pandering,

        20       continuing to assert that we're solving

        21       problems that we're not in fact solving.

        22                  There is a lot we can do in this

        23       state to reduce energy costs.  Senator Wright

        24       was absolutely correct when he said we have to

        25       look ahead, we have to anticipate the


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         1       direction of the markets.  We should be a

         2       state with strong portfolio standards,

         3       reducing costs, using photovoltaic, using wind

         4       energy, using alternative fuels where they

         5       will save money for our consumers.  We should

         6       have an energy plan to do that.

         7                  But the legislation that we're

         8       passing today I'm afraid is not getting the

         9       job done.  Certainly this bill and the last

        10       bill, if you really analyze them, don't

        11       deliver the results, don't deliver the aid

        12       where it is most needed, do not guarantee that

        13       the consumers most in need will receive the

        14       benefits.

        15                  If we're going to spend our

        16       taxpayers' precious dollars, let's make sure

        17       it goes to the right place.  Until we do that,

        18       Madam President, I will continue to vote no on

        19       this piece of legislation.

        20                  Thank you very much.

        21                  ACTING PRESIDENT LITTLE:    Thank

        22       you, Senator Schneiderman.

        23                  Senator Winner.

        24                  SENATOR WINNER:    Thank you, Madam

        25       President.


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         1                  I listened with interest to Senator

         2       Schneiderman's comments with regard to his

         3       concern that the price savings on the sales

         4       tax relief will not be passed on to the

         5       consumers.  And all I can say is that he

         6       certainly doesn't have a very good

         7       appreciation of the area in the state of

         8       New York from which I come from, or the area

         9       in the state of New York which is populated by

        10       our upstate senators.

        11                  Certainly those also that are on

        12       the borders of this state know that when you

        13       shop for gas and go across the line, that you

        14       have a price break.  And for someone who

        15       drives down Route I-86 along the Pennsylvania

        16       border, all I know is I have to just hop off a

        17       little bit into Wilawana or some of these

        18       other communities on the Pennsylvania border,

        19       and guess what?  What the price is is

        20       reflective of the difference in the tax.  And

        21       it's right there in front of you.

        22                  So I would welcome you to take a

        23       drive up that road and shop in Pennsylvania.

        24       Or also, maybe if you want to hop across the

        25       line into New Jersey from Manhattan, you'll


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         1       find that the price of gas is substantially

         2       less over there because the taxes are less.

         3       And they're reflective almost exactly, day to

         4       day, as to the difference in the tax that is

         5       levied on a gallon of gasoline from the

         6       wholesale level to the retailer.

         7                  So if you believe at all in the

         8       competitive marketplace, you'll know that if

         9       you're paying less for that gallon of gas as a

        10       retailer, you're going to pass it along to the

        11       consumer.  Because if you don't, your

        12       competitors certainly will in this

        13       marketplace.

        14                  So again, Madam President, this is

        15       a great idea to help our hard-pressed

        16       motorists out there in the state of New York.

        17       I heartily welcome the passage of this bill

        18       because it will go a long way to providing

        19       some relief to those particularly who live in

        20       the upstate regions who rely on their

        21       automobile, not only to work but to do almost

        22       anything as far as their travel needs.

        23                  So, Madam President, I commend

        24       Senator Robach for advancing this measure.

        25                  ACTING PRESIDENT LITTLE:    Thank


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         1       you, Senator Winner.

         2                  Senator Volker.

         3                  SENATOR VOLKER:    Madam President,

         4       I normally don't get into these esoteric

         5       debates, I call them.  Because the funny thing

         6       about it is that, so my constituents

         7       understand, I'll have no problem with

         8       guaranteeing my constituents, if this bill

         9       became law, that they would pay cheaper

        10       amounts at the gas pump.

        11                  Now, I've been the first to admit

        12       to you, Eric, that if you lived in Manhattan

        13       that might be a different story.  And part of

        14       the thing here is -- and I understand that

        15       you're protecting the Assembly.  Because the

        16       Assembly really doesn't want to do a bill that

        17       decreases sales tax, because of course they

        18       want to spend it on different things and so

        19       forth.

        20                  And not that they don't want to

        21       keep energy costs down, but they'd like to be

        22       able to criticize the federal government,

        23       because we know there is very little that this

        24       house or either house can do about energy

        25       costs.  We had our chance years ago and let


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         1       the environmentalists keep us from doing

         2       refineries and all that other stuff.

         3                  And as I always tell my

         4       constituents when they ask me, they say:  Is

         5       there enough power in Western New York?  I

         6       say:  We got enough power for 40, 50 years.  I

         7       say:  We send so much power down to New York

         8       City because they can't bring themselves to

         9       build a refinery or a power plant or any of

        10       that stuff.  We send 90 percent of our power

        11       down to the south.

        12                  But the key to this issue is I will

        13       guarantee you that if this bill passes in both

        14       houses, the gasoline prices will fall by the

        15       amount of the sales tax.  It has to.  You

        16       don't have to mandate it.  I'll tell you one

        17       guy who will be happy to tell you that is a

        18       guy named Eliot Spitzer.  He'll be all over

        19       these gas stations if they try to fool around

        20       with the gas pump prices.

        21                  And as a result, I can assure you

        22       that the problem here is -- I know it's hard

        23       for people to understand all this stuff.  But,

        24       Senator, in upstate New York, I'll guarantee

        25       you that we and my constituents will


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         1       enormously benefit from this.  And I wish we

         2       could do this only because it's a temporary

         3       kind of thing.

         4                  And you're right, it's not a

         5       solution.  Because the solution lies in

         6       Washington, more than anything, and lies in an

         7       intention of people to determine that we're

         8       tired of allowing certain people in this

         9       country, people like Ralph Nader, to make

        10       decisions for us on energy that are

        11       outrageous.  The Clean Air Act costs us about

        12       30 to 40 cents per gallon on every gallon of

        13       gasoline.  Now, we don't want to admit that,

        14       and we talk about all this stuff.

        15                  Western New York has the cleanest

        16       air in the whole Northeast, and yet we have to

        17       put some crap in our -- excuse me -- gasoline

        18       because the Clean Air Act says we have to.

        19       Everybody knows it doesn't do it anything.

        20       But we're supposed to put it in there.  And

        21       then we have to have another refinery for

        22       that.

        23                  By the way, there's four refineries

        24       still down in Louisiana, four oil refineries.

        25       The last I knew, there were still four natural


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         1       gas refineries down, which is even worse for

         2       us.  So I just want to point that out.

         3                  I'm in favor of this bill because I

         4       think it will give a temporary help to a lot

         5       of my people, my constituents, and I would

         6       hope -- and I think that even in Manhattan,

         7       where most people don't drive, it will

         8       actually have a good impact.

         9                  The Assembly takes the attitude, I

        10       think, Well, there's a better way to do this,

        11       because it will make some people, maybe the

        12       Governor, look better.  Well, I don't care

        13       whether the Governor looks better, whether the

        14       Assembly looks better, whether we look better.

        15       I just want to see my constituents pay less

        16       for gas.

        17                  ACTING PRESIDENT LITTLE:    Thank

        18       you, Senator Volker.

        19                  Senator Liz Krueger.

        20                  SENATOR LIZ KRUEGER:    Thank you,

        21       Madam President.  Will the sponsor please

        22       yield.

        23                  ACTING PRESIDENT LITTLE:    Thank

        24       you.  Will the sponsor yield for a question?

        25                  SENATOR ROBACH:    Absolutely will.


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         1                  ACTING PRESIDENT LITTLE:    Thank

         2       you.  Senator Robach yields.

         3                  SENATOR LIZ KRUEGER:    Thank you.

         4                  How much per gallon would this bill

         5       save us?

         6                  SENATOR ROBACH:    Approximately

         7       7 cents a gallon for those counties that did

         8       not opt out of, on a gallon of gas.

         9                  SENATOR LIZ KRUEGER:    Madam

        10       President, if the sponsor would continue to

        11       yield.

        12                  ACTING PRESIDENT LITTLE:    Thank

        13       you.  Do you continue to yield, Senator

        14       Robach?

        15                  SENATOR ROBACH:    Yes.

        16                  ACTING PRESIDENT LITTLE:    Yes, he

        17       does.

        18                  SENATOR LIZ KRUEGER:    Thank you.

        19                  What average cost per gallon are

        20       you basing that 7 cents on?

        21                  SENATOR ROBACH:    Well, actually,

        22       let me take that back.

        23                  If gasoline went up to $3 a gallon,

        24       as it had in some cases in upstate New York --

        25       I don't know about downstate New York -- even


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         1       went above that, that savings would be on

         2       every cost over $2.  Because obviously we're

         3       capping it at $2.

         4                  So let me take that back to

         5       specifically clarify where the savings would

         6       come from.

         7                  SENATOR LIZ KRUEGER:    Madam

         8       President, if the sponsor will continue to

         9       yield.

        10                  ACTING PRESIDENT LITTLE:    Thank

        11       you.

        12                  SENATOR ROBACH:    Sure.

        13                  ACTING PRESIDENT LITTLE:    The

        14       sponsor yields.

        15                  SENATOR LIZ KRUEGER:    And the

        16       counties that would opt out in your bill, or

        17       would be allowed to, are whom?

        18                  SENATOR ROBACH:    The way the

        19       legislation is is that counties would have to

        20       opt out not to give the full 7-cent rebate for

        21       every additional dollar over $2.  Which is

        22       what we had predicated our budget reading on

        23       previously, what we estimated our revenue

        24       would be.

        25                  Perhaps part of the reason why we


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         1       have the windfall in the state may have come

         2       from, ironically, the spike in gas.  So not

         3       only are the oil companies making a lot of

         4       money, perhaps New York State benefited from

         5       that -- I think which is the point of our

         6       bill -- at the cost of the taxpayers, which we

         7       like to give some of that money back to them

         8       or minimally at least ensure we're not

         9       continuing to take that from them as outgoing

        10       policy, as outgoing energy and taxation

        11       policy.

        12                  SENATOR LIZ KRUEGER:    Madam

        13       President, if the sponsor would continue to

        14       yield.

        15                  ACTING PRESIDENT LITTLE:    Thank

        16       you.  Senator Robach, do you continue to

        17       yield?

        18                  SENATOR ROBACH:    I do.

        19                  ACTING PRESIDENT LITTLE:    The

        20       Senator yields.

        21                  SENATOR LIZ KRUEGER:    Since

        22       there's been so much dialogue already on the

        23       floor today about the fact that this isn't

        24       actually a rebate to the consumer but, rather,

        25       a reduction in taxes above a certain dollar


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         1       amount, in a formula between wholesalers and

         2       retailers -- and there does seem to be

         3       disagreement on the floor as to whether or not

         4       consumers would ever see this, because it

         5       would in fact be within the decision-making of

         6       the oil wholesalers and perhaps even

         7       manufacturers that would determine that, not

         8       the actual individual gas station negotiating

         9       a lower price with the consumer -- since we

        10       seem to have disagreement about that, and yet

        11       earlier today we were told that the best way

        12       to help homeowners with their heating costs

        13       was a direct rebate check from the State

        14       Department of Finance, why wouldn't you

        15       approach this problem by offering a rebate or

        16       a credit directly to the consumers, a la the

        17       proposal of Senator Spano for home heating?

        18                  Why not go that road if the real

        19       concern is -- or one of the real concerns on

        20       this floor is will consumers ever see that

        21       money.

        22                  SENATOR ROBACH:    Well, there's a

        23       number of ways I could answer that.

        24                  Home heating oil doesn't have a

        25       tax.  So there is no tax to take off.


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         1                  Secondly, we also don't know who

         2       those consumers and consumption or what level

         3       it is.  I think this is a very fair way to

         4       help everybody in the system.

         5                  And again, if this is the goal.  I

         6       think this is really what we disagree on.  I

         7       am desperate to help my constituents have more

         8       money in their pocket.  And ironically, not to

         9       digress, Eric Schneiderman and I may have

        10       similar districts, or at least an interest.  I

        11       represent a lot of the lower-income people

        12       also.  And I can assure you, from their

        13       mouths, not mine, every cent they have in

        14       their pocket is important to them.

        15                  This clearly, while you may not

        16       like the mechanism, it's called free

        17       enterprise.  Just like when we did clothing

        18       tax and everything else, whatever consumers

        19       out there -- and if they're going to lower

        20       their price of gasoline, and I believe at

        21       least some of them, if not all of them, will

        22       initially; the rest will follow suit to be

        23       competitive.

        24                  The bottom line is it will put more

        25       money or at least give the opportunity for


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         1       people to save money at the pump.  I think

         2       that is something we all agree on.

         3                  So we're here with this bill, and I

         4       would guess I'd turn it around and ask you

         5       what you could do in the other house to get

         6       something passed so we're not here in this

         7       rhetorical quagmire of once again delivering

         8       nothing to the constituents.  That's what I'm

         9       concerned about.

        10                  SENATOR LIZ KRUEGER:    Thank you.

        11                  Madam President, on the bill.

        12                  ACTING PRESIDENT LITTLE:    Thank

        13       you.  Senator Krueger, on the bill.

        14                  SENATOR LIZ KRUEGER:    Thank you.

        15                  I appreciate my colleague's

        16       responses to my questions.

        17                  I'm not sure I agree on the 7 cents

        18       question, although you did clarify it, because

        19       I think the average cost now is about $2.50 a

        20       gallon statewide, although obviously we need

        21       to do a comparison.  It's certainly much

        22       higher in my district.  But I only have,

        23       shockingly, one gas station in my district.

        24       So I think it would probably be closer to

        25       4 cents a gallon.


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         1                  And I accept the challenge of many

         2       colleagues here, what are we going to do about

         3       this.  And I would argue there are many things

         4       we could do about this, but this is still the

         5       wrong way to go, even in concern for our

         6       constituents.

         7                  One, you mentioned Senator

         8       Schneiderman and you both have lower-income

         9       constituents.  The trick about sales taxes in

        10       general is it's not a really good way to

        11       address progressive or regressive taxation.

        12       This isn't a bill that will be more relevant

        13       for people based on their having lower income.

        14       One might even argue that there's a

        15       correlation of the more you drive, probably

        16       the higher your income, particularly because

        17       automobiles, auto insurance and of course now

        18       gasoline are so incredibly expensive.  So it's

        19       not really the right model in tax policy for

        20       trying to address the problems of lower-income

        21       New Yorkers.

        22                  It also risks the problem of not

        23       addressing the real problem -- and I agree we

        24       all think there's a real problem -- because

        25       lowering taxes on petroleum products


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         1       statistically has been shown to not discourage

         2       use of petroleum products but, in many cases,

         3       actually encourage the continued use of

         4       petroleum products.  Which most of us, I

         5       think, think is bad public policy in the state

         6       of New York and the country.  It continues our

         7       dependence on foreign oil.  It continues our

         8       usage of polluting products.

         9                  And Senator Volker blamed or

        10       credited Ralph Nader for the Clean Air Act.

        11       I'm not sure what the reality there is of

        12       Mr. Nader's role in the Clean Air Act.  But

        13       speaking for, I think, most of the people of

        14       the state, the country, and the world, we

        15       really need cleaner air.  It's really not

        16       clean enough.  We have a global warming

        17       problem which is making Albany in January more

        18       delightful than usual, but in general is

        19       actually bad for us all.

        20                  And so continuing use of petroleum

        21       products and negating the need for regulation

        22       of clean air and a clean environment isn't

        23       really going to get us to our solutions

        24       either.

        25                  And unfortunately, I don't think


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         1       this bill will.  I don't believe there is any

         2       way, despite my colleague Senator Winner's

         3       analysis, that of course they will lower their

         4       prices.  I don't think there's any evidence

         5       that passing this bill translates to the

         6       entire oil/gas international conglomerate

         7       model of pricing that it's going to lower the

         8       price for consumers.  And that there's so much

         9       better we could be doing, not pushing our

        10       colleagues in the other house to pass this --

        11                  ACTING PRESIDENT LITTLE:    Excuse

        12       me, Senator Krueger.

        13                  Senator Robach, why do you rise?

        14                  SENATOR ROBACH:    Senator Krueger,

        15       would you just yield for a question?

        16                  SENATOR LIZ KRUEGER:    Oh, yes,

        17       absolutely.

        18                  ACTING PRESIDENT LITTLE:    Senator

        19       Krueger, do you yield?

        20                  SENATOR LIZ KRUEGER:    Absolutely.

        21                  ACTING PRESIDENT LITTLE:    She

        22       yields.

        23                  SENATOR ROBACH:    Do you think

        24       lowering or removing the tax on clothing

        25       helped the consumers in New York?


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         1                  SENATOR LIZ KRUEGER:    I think

         2       lowering the sales tax on clothing below $110,

         3       which I believe is the actual proposal you're

         4       referencing, encourages people to buy clothing

         5       under $110.

         6                  SENATOR ROBACH:    So why do you

         7       think that this wouldn't help people who

         8       are -- because we don't know who they are.

         9       Though I would dis -- not disagree, I would

        10       say depending on where you live, how important

        11       your mode of transportation is or what options

        12       you have for transportation.

        13                  Certainly rural low-income people

        14       don't have the option of mass transit as we do

        15       in some of our larger cities.  They do have to

        16       rely on that.  Why do you think that wouldn't

        17       apply or help them?

        18                  SENATOR LIZ KRUEGER:    Well,

        19       again, I think the way you asked the question,

        20       all right, would lowering the sales tax on

        21       clothing encourage people to buy clothing

        22       below $110, I think you and I would both agree

        23       yes.

        24                  And so I will answer your question

        25       with a reverse question.  Do we want to,


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         1       quote, unquote, encourage people to use more

         2       petroleum gas products?

         3                  SENATOR ROBACH:    You know what,

         4       I'm on the topic of what it costs.  I probably

         5       don't disagree with you on energy policy or

         6       other stuff.  But I think we're sticking our

         7       head in the sands if you don't think that

         8       people need to drive a certain amount to get

         9       to their place of work, to get their kids to

        10       where they need to go.  And that certainly

        11       really is a very vital thing for my

        12       constituents.

        13                  I don't try to judge other people's

        14       districts.  But I can tell you in mine, and I

        15       know a lot of other people's districts around

        16       here, it is in theirs.  Since we cannot

        17       dictate the cost of gasoline by law -- that

        18       would be unconstitutional -- I would still ask

        19       you to look at, knowing that this will help

        20       them -- because I don't think the way you're

        21       suggesting it would really -- is pragmatic.

        22       You're saying we should try to do a rebate

        23       check to people who might not even own a car.

        24                  I would ask you to say let's look

        25       at what we're really at and what we could do


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         1       today, and then worry about energy consumption

         2       and these larger issues that are critically

         3       important at another time so we can get

         4       something done this session, this time, right

         5       now.

         6                  And maybe even work -- or even if

         7       we can get the Assembly to pass something, I'd

         8       be willing to go to a conference committee on

         9       it and talk about it.  But let's do something

        10       like we did on clothes, how's that.

        11                  Thank you.

        12                  SENATOR LIZ KRUEGER:    Madam

        13       President, thank you.

        14                  To continue on the bill, I

        15       appreciate the Senator's analysis.  I think

        16       the debate I'm trying to have is tax policy

        17       and what the use of tax policy is.

        18                  Because no, I wouldn't -- I'm

        19       sorry, just to clarify, no, I wasn't

        20       suggesting a rebate even if you don't use a

        21       car to pay for gas, just to clarify, a la the

        22       proposal before that, you would only receive

        23       this if you actually had the expenses in

        24       heating.

        25                  But what I'm trying to say is there


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         1       are lot of ways we can go down the road of

         2       changing our tax policies to help New Yorkers

         3       or, one could argue, to hurt New Yorkers.

         4       This bill takes $200 million out of the

         5       budget.  I ask you -- although I won't, since

         6       I didn't ask the sponsor to yield to more

         7       questions -- but I rhetorically ask all of us,

         8       what are we cutting out of the budget with the

         9       loss of that $200 million?  That's a realistic

        10       question for us as legislators every time we

        11       make a change in tax policy, every time we

        12       give a tax cut or a credit or exemption.

        13                  And if you're asking a question

        14       about what's in the best interests of

        15       New Yorkers -- and I do not accept that this

        16       is a downstate/upstate fight or an argument

        17       over vehicles.  We all recognize that at this

        18       point in history, until we solve the problem

        19       of being so dependent on petroleum products,

        20       that most of the people driving most of the

        21       cars will be using mostly oil to fill their

        22       gas tanks.

        23                  I'm saying that this Legislature

        24       and I agree.  Both houses should come

        25       together, we should have an ongoing conference


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         1       committee, one on energy policy -- I totally

         2       support that.  Another Senator suggested that

         3       earlier.  It shouldn't be unique to any bill.

         4       We should have an ongoing conference committee

         5       between the two houses on energy policy.  But

         6       I would challenge you, because your bill is a

         7       tax bill, we should have an ongoing conference

         8       committee on tax policies and on tax credits

         9       and exemptions.

        10                  Because I just said this bill, you

        11       say, will cost us $200 million.  If you lack

        12       at our full tax expenditure/tax credit budget,

        13       right now in this year we're going to spend

        14       $28 billion in tax credits and exemptions,

        15       with a B.  And that means that's $28 billion

        16       we're not collecting for other things.

        17                  And that forces to us make the

        18       kinds of decisions we have to make when we say

        19       are we going to cut a sales tax on clothing,

        20       are we going to cut a sales tax on oil, how

        21       much money do we give up from the coffers of

        22       our tax finance and revenue department when we

        23       make these decisions, and who is making them.

        24       And we shouldn't make them in a vacuum.  We

        25       shouldn't make them one at a time, as this


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         1       bill proposes.

         2                  So I vote against this bill both

         3       because I don't think it's good energy policy,

         4       I also vote against this bill because I don't

         5       think it's good tax policy.  But I completely

         6       agree that both houses and the Governor could

         7       sit down on energy policy and on tax policy

         8       and accomplish a great deal for all of our

         9       constituents in this session.

        10                  Thank you.

        11                  ACTING PRESIDENT LITTLE:    Thank

        12       you, Senator Krueger.

        13                  SENATOR ROBACH:    May I ask just

        14       one more question?

        15                  ACTING PRESIDENT LITTLE:    Senator

        16       Robach.

        17                  SENATOR LIZ KRUEGER:    Absolutely.

        18                  SENATOR ROBACH:    I listened

        19       intently --

        20                  ACTING PRESIDENT LITTLE:    Senator

        21       Krueger, do you yield to Senator Robach?

        22                  SENATOR LIZ KRUEGER:    Oh, yes, I

        23       do, Madam President.

        24                  ACTING PRESIDENT LITTLE:    The

        25       Senator yields.


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         1                  SENATOR ROBACH:    I think if I

         2       heard you correctly, then, your tax policy is

         3       you feel that we don't tax enough in New York?

         4       Is that what you're saying why you're opposed

         5       to taking this tax off the gas tax?

         6                  SENATOR LIZ KRUEGER:    No, I

         7       certainly didn't say that.

         8                  SENATOR ROBACH:    Oh, okay, I'm

         9       sorry, I thought that's what --

        10                  SENATOR LIZ KRUEGER:    I said that

        11       every time we pass a bill that reduces taxes,

        12       we take revenue out of the budget; this bill,

        13       $200 million.  We ought to be answering the

        14       question at the same time what won't we fund

        15       instead because we don't have that

        16       $200 million.

        17                  And I say that we should look at

        18       tax policy from the broader perspective of

        19       what is our entire tax policy, who are we

        20       taxying, who are we not, what are those tax

        21       exemptions and credits that we're not

        22       collecting to the tune of $28 billion, and

        23       let's put those all on the table and have a

        24       rational discussion.

        25                  SENATOR ROBACH:    -- because I


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         1       would just point out that you understand that

         2       this also, we've never estimated the gas

         3       revenue side ever anticipating it going above

         4       $3 a gallon.  Really not even above $2 a

         5       gallon, that was the rate.  So in this

         6       particular case I would say we're not taking

         7       anything out of the coffers.

         8                  But on tax policy, certainly

         9       there's critical things we have to fund --

        10       education, economic development, public

        11       safety, healthcare.  But I think we are kind

        12       of saying this, I guess as a group over here,

        13       we think the tax policy's been pretty

        14       intensive for kind of the overburdened average

        15       New Yorker.  This is one little thing we want

        16       to give them back which was a windfall to us.

        17       Hopefully you see it the same way.

        18                  SENATOR LIZ KRUEGER:    Thank you,

        19       Madam President.

        20                  ACTING PRESIDENT LITTLE:    Thank

        21       you.  Thank you, Senator Krueger.

        22                  Senator Parker.

        23                  SENATOR PARKER:    Madam President,

        24       on the bill.

        25                  ACTING PRESIDENT LITTLE:    Thank


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         1       you.  Senator Parker, on the bill.

         2                  SENATOR PARKER:    Colleagues, we

         3       could do better.  And I really -- I share,

         4       Senator Robach, your desperation over wanting

         5       to help your constituents.  But as Senator

         6       Volker said, this is not a solution to the

         7       problem that we're trying to face.

         8                  I drive a car too.  I represent a

         9       district where the vast majority of the people

        10       in my district, you know, live in one- or

        11       two-family homes.  Many, many, many, many of

        12       them -- probably, from our estimation, too

        13       many of them -- own their own cars.  You know,

        14       in a family of four there's probably three

        15       cars in my district per family of four.

        16                  So that being said is that I, like

        17       you, have been hearing the cries of my

        18       constituents who have been desperate to get

        19       some relief on energy issues.

        20                  But again, this is not an answer.

        21       Once again, here we are with a short-term

        22       solution to a long-term problem.  I mean, we

        23       learned, as we looked at what has happened

        24       over time with energy prices, that they're

        25       going to go up, because we continue to use and


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         1       rely on fossil fuels.  We continue to, in this

         2       state, not have an energy policy.

         3                  So we can sit around and we can

         4       bemoan and critique the federal government --

         5       which is run by Republicans, I believe -- but

         6       we have no federal policy right now.  And so,

         7       you know, what are we going to do in this

         8       state when we also don't have a state policy.

         9                  So, you know, it's better, I know,

        10       for some people to curse the darkness as

        11       opposed to trying to light a match.  This,

        12       unfortunately, is not that match.  This,

        13       unfortunately, does not provide light to the

        14       situation because it's again a short-term

        15       solution to a long-term problem.  And we can

        16       do better.

        17                  When we start talking about

        18       partnerships and critiquing, you know, the way

        19       in which the process happens around here, if

        20       you want to start with partnerships, forget

        21       partnerships between this body and the

        22       Assembly, let's talk partnerships between that

        23       side of the aisle and this side of the aisle.

        24                  You know, we have conversations

        25       here all of the time where no one ever pays


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         1       attention to what we say.  Let's have some

         2       real conversation.  Let's have a -- here's an

         3       idea.  Let's have a conference committee in

         4       the Senate.  How about that?

         5                  How about, you know, instead of

         6       getting up -- if you don't want to have a

         7       three-hour debate about something, then, I

         8       don't know, let's do something novel and let's

         9       really have committee meetings that in fact

        10       work actually happens in the committee, where

        11       people actually have an opportunity to debate

        12       bills and to make policy recommendations on

        13       bills before they come to the floor.  All

        14       right?

        15                  And we can do a working committee.

        16       I'm committed to that, and I think my

        17       colleagues are.  So let's try that before we

        18       start going out and pointing fingers about

        19       partnerships.

        20                  The only thing, frankly, that stops

        21       anything in Albany from getting done is will.

        22       Simple will.  And, colleagues, we can do

        23       better.  We develop the will to say we're

        24       going to do something about energy policy,

        25       we'll do it.  If we don't, we won't do it.


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         1       Just like last year we developed the will, all

         2       of a sudden, after 21 years, to do an on-time

         3       budget, and it happened.  And if we have the

         4       will again, it will happen again.

         5                  So to say it's not going to happen

         6       because of this side or that side -- you know,

         7       it's not about pointing fingers.  We shouldn't

         8       be trying to assign blame, we should be trying

         9       to develop solutions.  And I think that we

        10       haven't kind of gone there to this point.

        11                  The sales tax that we're trying to

        12       get rid of I think frankly doesn't do the job

        13       and goes far enough.  But I'm glad you brought

        14       up the issue of the sales tax on clothes,

        15       because I think that you're comparing, Senator

        16       Robach, apples and oranges.

        17                  When you look at the clothing sales

        18       tax versus the sales tax here, in this

        19       particular case you're talking about giving

        20       money -- and frankly, when you look at the

        21       7 cents that you may be talking about per

        22       gallon, it's a minuscule amount of money,

        23       folks.  This is not significant amounts of

        24       money.  This is not hundreds of dollars, this

        25       is not even tens of dollars that you're giving


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         1       to people per purchase.

         2                  So let's -- but let's not pretend

         3       that we're trying to, you know, throw dollars

         4       back into the hands of people.  When you're

         5       looking at what we ought to be doing, and not

         6       what we are doing, what we ought to be doing

         7       around sales tax on items that are $110 or

         8       less, what we're trying to do is not just put

         9       money back into, you know, the poorest

        10       New Yorkers' hands, but we're also trying to

        11       equalize the playing field and create more

        12       opportunities for our retailers to compete

        13       with the markets in Jersey and Connecticut,

        14       which oftentimes have either no or lower sales

        15       tax on those kind of items.

        16                  And so being that, you know, we're

        17       so happy about giving taxes back, I really

        18       hope that people around budget time will

        19       oppose your Governor's attempts to, for a

        20       third year, break the promise of giving people

        21       back the money that they promised to give them

        22       on the sales tax of $110, because that's

        23       currently not in his budget proposal.  You

        24       know, we could do better on sales tax if you

        25       really want to start doing things to give back


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         1       stuff to people.

         2                  I wanted to address the issue that

         3       Senator Winner raised about gas prices and why

         4       gas prices are cheaper in Pennsylvania than

         5       they are here.  And it's a good point, but

         6       sales taxes is not nearly the only thing.

         7                  There's really -- you know, the

         8       price of fuel is very, very complex, and it

         9       changes state to state based on a number of

        10       things, taxes just being one of them.  Some of

        11       them have to do the policies that we as a

        12       Legislature set in terms of what kind of

        13       additives and preservatives and whatever

        14       things go into gas.  Those things also have a

        15       significant impact on pricing.  And so in

        16       fact, you know, forgoing these taxes may in

        17       fact not give you the tax break that you

        18       expect and still have people going across the

        19       line.

        20                  I frankly don't -- I frankly don't

        21       think that people in --

        22                  ACTING PRESIDENT LITTLE:    Thank

        23       you.  Senator Winner, why do you rise?

        24                  SENATOR WINNER:    Will Senator

        25       Parker yield for a question?


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         1                  ACTING PRESIDENT LITTLE:    Thank

         2       you.  Senator Parker, will you yield for a

         3       question?

         4                  SENATOR PARKER:    I will yield

         5       when I'm finished, if that's okay.

         6                  ACTING PRESIDENT LITTLE:    Thank

         7       you.  The Senator wishes to conclude his

         8       remarks first.

         9                  SENATOR PARKER:    I frankly don't

        10       understand why we care whether somebody goes

        11       to a Mobil station in New York State as

        12       opposed to Pennsylvania, because frankly the

        13       amount of traffic that's going to proceed over

        14       the border is not going to affect, you know,

        15       business in any kind of significant way.

        16                  And like I said, because of the

        17       amount of this transaction is so minuscule

        18       that people are not going to find a

        19       significant savings to keep them on this side

        20       of the aisle.  So, you know, we can do better

        21       as we look to get that done.

        22                  So let's talk about some solutions

        23       for a second.  And I think that, you know,

        24       nothing is guaranteed.  But certainly we ought

        25       to understand the way in which these things


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         1       happen.  Right now there is no effective way

         2       in which we monitor gas prices.  So right now,

         3       you know, you can point to the Attorney

         4       General and say, Well, you know, he should do

         5       this and they should do that.  But the reality

         6       is is that right now we have not provided for

         7       any division to go around and monitor where

         8       prices are going.

         9                  And so we would have to, you

        10       know -- you know, and if you want to put some

        11       more money in the budget for the Attorney

        12       General's office to develop an office of fuel

        13       enforcement, then let's have that conversation

        14       and let's figure out if that's worth doing.

        15       But right now it's not being done.

        16                  So to say that the federal

        17       government or the state government is doing

        18       it, right now no one is doing it.  No one is

        19       systematically sampling, either randomly or in

        20       totality, gas stations and making sure that

        21       they are in fact providing the prices that

        22       they should be doing.

        23                  And I frankly don't even think that

        24       the Consumer Protection Board, as good as they

        25       are here in the State of New York, I'm not


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         1       even sure that they do it with any kind of

         2       regularity.

         3                  We could do better.  We could do

         4       much better as it relates to making sure that

         5       enforcement happens and that when we in fact

         6       are handing down tax relief that those tax

         7       reliefs are actually getting to the people

         8       that we intend those tax reliefs to go for.

         9                  I want to conclude really on some

        10       solutions, because I really think that this

        11       debate is not about where we differ, Senator.

        12       I think this is about where we want to be

        13       helpful.  And I'll say what I said before, is

        14       I'm as desperate as you are to provide some

        15       relief to consumers on this issue because I

        16       think that it's important.

        17                  But if we're going to look for

        18       where to get the best bang for our dollars,

        19       where we can create a significant economy of

        20       scale in fact to put dollars into such that we

        21       create relief for folks, the answer is public

        22       transportation.  The answer is that when you

        23       put dollars into public transportation -- and

        24       I think that one of our major failures as a

        25       state government is not to provide the proper


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         1       types of public transportation in some of the

         2       suburban and rural areas.

         3                  So let's take the $200 million that

         4       looks to be a windfall, and let's take that

         5       $200 million and let's invest that.  Instead

         6       of spending it, let's invest that back into

         7       public transportation and let's provide a way

         8       for your constituents, for the constituents

         9       around the state and the people around the

        10       state who are looking to get to work and get

        11       to their family's house and go shopping and do

        12       other things, for them to be able to do that

        13       in a way that both saves them money -- because

        14       we understand that public transportation is

        15       significantly cheaper than people driving

        16       their own cars.

        17                  And so if you want to look for a

        18       real savings for your constituents, public

        19       transportation is the answer.

        20                  I look forward to us working

        21       together in these conference committees

        22       between your side of the aisle and this side

        23       of the aisle.

        24                  And if Senator Winner has a

        25       question, I'll be happy to take it.


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         1                  ACTING PRESIDENT LITTLE:    Thank

         2       you.

         3                  The noise level is at point where

         4       it's difficult to hear.  If we could keep it

         5       down, please.

         6                  Senator Winner.

         7                  SENATOR WINNER:    Senator Parker,

         8       I appreciate your thoughts on gasoline prices

         9       and the fact that you're trying to distinguish

        10       the state of Pennsylvania for other reasons

        11       other than I believe are the facts.

        12                  Here's the state of facts.  I mean,

        13       I live on the border of Pennsylvania and I

        14       have a very good familiarity with a wholesale

        15       dealer who owns a bunch of gas stations in

        16       New York and owns a bunch of gas stations in

        17       Pennsylvania.  He's got the same truck.  He

        18       takes the gas over to Chemung, New York, and

        19       fills up the tanks over there, and they have a

        20       certain price per gallon.  Then he takes the

        21       same truck and drives a little ways away to

        22       Wilawana and Sayer and Athens, Pennsylvania,

        23       some other places that are just, you know,

        24       within a mile or so of the other gas station.

        25                  And you know the difference in the


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         1       price?  The difference in the price is the

         2       sales tax.  And that's exactly what he tells

         3       me.

         4                  So I beg to differ with you when

         5       you try to make these pronouncements about

         6       gasoline pricing policies based upon no

         7       experience.  I have the experience of knowing

         8       and seeing and watching and driving down that

         9       particular area day in and day out, and that's

        10       the difference in the price.

        11                  So if you take the sales tax off,

        12       the difference between you and me and this

        13       side of the aisle and that side of the aisle

        14       is that we want to reduce the price of

        15       gasoline.  You don't want to reduce the price

        16       of gasoline.  I want to reduce the price of

        17       gasoline.  And one way I know it's going to

        18       get reduced is to reduce the sales tax.

        19                  ACTING PRESIDENT LITTLE:    Thank

        20       you, Senator Winner.

        21                  Senator Nozzolio.

        22                  SENATOR PARKER:    Wasn't that a

        23       question?

        24                  SENATOR NOZZOLIO:    Will Senator

        25       Parker --


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         1                  SENATOR PARKER:    I thought there

         2       was a question.

         3                  ACTING PRESIDENT LITTLE:    There

         4       was a question, excuse me.

         5                  SENATOR PARKER:    I'm not sure

         6       there was a question there, but let me respond

         7       to what I thought the question was, was -- and

         8       I'm guessing you're questioning whether I have

         9       experience in this or not.

        10                  I guess I drive a car like

        11       everybody else does.  I didn't know that you

        12       were actually a gas owner.  So unless you told

        13       me that you personally owned a gas station

        14       yourself and you were delivering it, I mean --

        15                  SENATOR WINNER:    I'm familiar

        16       with someone who owns a gas station.

        17                  SENATOR PARKER:    And so am I.

        18                  And we can talk about our

        19       experiences all the time.  I'm the ranker on

        20       the Energy and Telecommunications Committee.

        21       I have actually gone places and talked to

        22       people about it.  I've attended national

        23       conferences on this very subject to talk to

        24       people exactly about how this stuff gets done.

        25                  Let me say this.  This is not a


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         1       matter of about whether that side of the aisle

         2       wants to reduce gas prices and whether we do

         3       or not.  This is about how best to get that

         4       done.

         5                  I think we all agree that we would

         6       like to see more money in the hands of our

         7       constituents.  And on that we don't disagree.

         8       I think where we disagree at is how to do

         9       that.

        10                  And I am not disagreeing with

        11       Senator Robach's attempt to do that.  I'm

        12       arguing that this particular method is not the

        13       best method.  We can do better.  And I think

        14       we can do better by having a comprehensive

        15       energy policy for this state.  I think we can

        16       do better by investing money into public

        17       transportation.  I think we can do better by

        18       stop lying to ourselves and lying to the

        19       public, quite frankly, about how much money

        20       we're going to save them with these minuscule

        21       investments or tax relief that we're

        22       proposing.

        23                  So this is not a matter of us not

        24       wanting to do it.  It's a matter about this

        25       not being the proper tool.  And whenever you


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         1       get serious about wanting to talk about the

         2       proper tools, I'm more than happy -- my

         3       extension is 2580.  Anybody here can give me a

         4       call and I'm happy to meet with them at any

         5       time to make sure that it gets done.

         6                  SENATOR WINNER:    Will Senator

         7       Parker yield for a question?

         8                  ACTING PRESIDENT LITTLE:    Thank

         9       you.  Senator Parker --

        10                  SENATOR PARKER:    Absolutely.

        11                  ACTING PRESIDENT LITTLE:    Senator

        12       Parker yields.

        13                  SENATOR WINNER:    Senator Parker,

        14       is it your statement on the floor that I'm

        15       lying to you when I suggest that Senator

        16       Robach's bill will reduce the price of

        17       gasoline by the amount of the sales tax that

        18       will no longer be charged?  Are you suggesting

        19       that I'm lying to you?

        20                  SENATOR PARKER:    No, I'm

        21       suggesting that it is insincere and that there

        22       is an overestimation of how important this

        23       tax, you know, rebate is going to be in terms

        24       of people's day-to-day spending habits.

        25                  SENATOR WINNER:    So you're not


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         1       suggesting that I'm lying, we're lying to you.

         2                  SENATOR PARKER:    I'm suggesting

         3       that there's an overestimation and that this

         4       is not the best way.  We can do better.  And

         5       that's what I've said continuously.

         6                  SENATOR WINNER:    But you do agree

         7       that this will lower the price of gasoline?

         8                  SENATOR PARKER:    I agree that

         9       this is an attempt to do that.  I don't

        10       actually agree that this is going to in fact

        11       lower the price of gasoline and that's going

        12       to make a difference.

        13                  See, lowering the price of

        14       gasoline, when you say a generalization like

        15       that, yeah, but you may lower it by one cent.

        16       And at the end of the day, if I'm making a

        17       transaction --

        18                  SENATOR WINNER:    Senator Parker.

        19                  SENATOR PARKER:    -- and it costs

        20       me --

        21                  SENATOR WINNER:    Senator --

        22                  SENATOR PARKER:    You asked me a

        23       question.  And if it costs me --

        24                  SENATOR WINNER:    Senator, would

        25       you --


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         1                  ACTING PRESIDENT LITTLE:    Thank

         2       you.  We need order.  Order.

         3                  SENATOR SCHNEIDERMAN:    I request

         4       that we go through the chair.

         5                  I appreciate the emotion in this

         6       debate, but let's try and follow procedure and

         7       rules, and we can get answers to all sincerely

         8       and passionately held questions.  Thank you.

         9                  SENATOR WINNER:    Madam President,

        10       I asked --

        11                  ACTING PRESIDENT LITTLE:    Just a

        12       moment, please.

        13                  I would ask both Senator Winner and

        14       Senator Parker, please address your questions

        15       through the chair.

        16                  SENATOR PARKER:    Yes, ma'am.

        17                  SENATOR WINNER:    Will Senator

        18       Parker yield?

        19                  ACTING PRESIDENT LITTLE:    Senator

        20       Parker, do you yield?

        21                  SENATOR PARKER:    Yes.

        22                  ACTING PRESIDENT LITTLE:    Senator

        23       Parker yields.

        24                  SENATOR WINNER:    Senator, you

        25       said you don't necessarily agree that lowering


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         1       the sales tax on gasoline will lower the

         2       price.  Now, would you agree that raising the

         3       sales tax would raise the price?

         4                  ACTING PRESIDENT LITTLE:    Senator

         5       Parker.

         6                  SENATOR PARKER:    Madam President,

         7       through you, this is a matter -- this whole

         8       matter is not about whether it actually lowers

         9       it, it's whether it's effective or not.

        10                  It may raise it -- raising it in

        11       general terms, yes, will raise it.  Lowering

        12       it, yes, will lower it.  The question is how

        13       much.  And it's insincere to stand here and

        14       talk about this like it's significant.  It's

        15       not a significant savings, Madam President.

        16                  That in fact, if we do this on a

        17       transaction that may cost you $40 or $50 -- it

        18       costs me $50 to fill up my vehicle from E.  On

        19       that transaction, even if I save 7 cents, over

        20       the cost of the transaction it's less than a

        21       dollar that I'm saving.

        22                  I'm not clear that that

        23       less-than-a-dollar savings is enough savings

        24       for us to give up over $200 million worth of

        25       tax revenue.  A better bang for the buck would


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         1       be to invest in public transportation.

         2                  A better way to do this is for us,

         3       as a state legislature and as a state

         4       government, to work together to get a

         5       comprehensive energy policy for this state.

         6       We can do better.  And that's what I maintain.

         7                  ACTING PRESIDENT LITTLE:    Thank

         8       you.

         9                  Senator Winner.

        10                  SENATOR WINNER:    Thank you, Madam

        11       President, for the coherent discussion of

        12       gasoline pricing in the state of New York.

        13                  ACTING PRESIDENT LITTLE:    Thank

        14       you, Senator Winner.

        15                  Senator Nozzolio.

        16                  SENATOR NOZZOLIO:    Thank you,

        17       Madam President.  On the bill.

        18                  Madam President and my colleagues,

        19       I thank Senator Robach for putting forth this

        20       bill.  It's saying very clearly that we do not

        21       want one penny more of taxation on our already

        22       overburdened taxpayers.  Simple as that.

        23                  We do not believe, those of us who

        24       support this legislation, that our taxpayers

        25       can afford to pay more in sales tax because of


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         1       international policies driving up the price of

         2       oil.  Simply stated, that's what Senator

         3       Robach's bill does.

         4                  I did not intend to speak on this

         5       measure.  But after hearing the dialogue from

         6       the other side of the aisle, I could not sit.

         7       Because what I heard was answers to Senator

         8       Robach's solution.  He never intended it to be

         9       a total solution.

        10                  But I heard Senator Krueger say my

        11       constituents, that's all they have to do, is

        12       drive less and conserve more.  And Senator

        13       Parker said that that's all my constituents

        14       have to do, is have more public

        15       transportation.

        16                  I think, with all due respect to my

        17       colleagues, they need to get out more.  They

        18       need to come upstate.  I guess that's your

        19       answer for helping the upstate economy:  Drive

        20       less, get more buses.  Frankly -- Senator

        21       Krueger is, I know, from Manhattan Island.

        22       You could put all of Manhattan Island in the

        23       center of the smallest county of my district.

        24       It takes at least 7, 8 miles for some people

        25       one way to travel to get a gallon of milk or a


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         1       loaf of bread.  It takes many of my

         2       constituents at least a 60-, 70-mile round

         3       trip to go to work.  You tell the lady in my

         4       district that has to pick up her children at

         5       daycare, a 20-mile round trip, that she should

         6       drive less.

         7                  I think that what you're suggesting

         8       may make sense in Manhattan.  You've got

         9       public transportation that parenthetically, I

        10       should add, is supported by the sales tax

        11       revenue from my constituents who are forced to

        12       drive more.  Your buses, your subways are

        13       second to none.  And that's the way it should

        14       be, because there are subways and buses of our

        15       state.  But the fact of the matter is they're

        16       subsidized, in large part, by upstate

        17       taxpayers who have to drive very far to and

        18       from work, to and from school, to and from

        19       grocery shopping, to and from daycare.

        20                  Senator Robach's bill says, simply,

        21       we want to help that burden.  If you want to

        22       design comprehensive energy policy, I welcome

        23       you.  We need that.  We need it -- but it's a

        24       question, I think, not just for the state

        25       legislature but for the national legislature.


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         1       These are national and international issues.

         2                  What Senator Robach is trying to do

         3       is all he can do to stop the already

         4       tremendous crush of tax burden and cost burden

         5       to our upstate taxpayers and, in this case,

         6       our upstate motorists.  And I think it's so

         7       naive for you to suggest that we drive less.

         8       Because, frankly, we don't have jobs.  We need

         9       more jobs.  We have to drive a long way to and

        10       from work, to and from commerce.

        11                  I think that this bill is the right

        12       bill at the right time.  We need to reduce

        13       this burden.

        14                  Senator Robach, thank you for

        15       proffering it.

        16                  ACTING PRESIDENT LITTLE:    Thank

        17       you, Senator Nozzolio.

        18                  Senator Padavan.

        19                  SENATOR PADAVAN:    Thank you,

        20       Madam President.

        21                  I'm sure everybody in this chamber

        22       is familiar with the FOMC, the national body

        23       that periodically meets and determines

        24       monetary policy for this nation.  They're

        25       meeting today, as I believe.  All of the


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         1       measures of that group are economists in the

         2       main, as is its chairman, Mr. Greenspan.

         3                  We've heard time and time again

         4       these national leaders in our economy telling

         5       us that energy costs and the rise in these

         6       costs is a tax on the people in this nation.

         7       A tax.  And that tax has reduced their ability

         8       to be consumers of other goods and services.

         9       And the net result on the economy is a

        10       negative.

        11                  Now, all of the bills we've dealt

        12       with today, including this one, have one

        13       primary purpose, and that is to reduce the

        14       magnitude of that tax.  We can't set national

        15       monetary policy or national energy policy.

        16       But we can deal with a tax.

        17                  I also suggest to some of other

        18       colleagues over there that we can also walk

        19       and chew gum.  Meaning that we can not only do

        20       this, but we can also advance transportation

        21       initiatives that increase the number of people

        22       getting on trains and buses and out of their

        23       cars.  As a matter of fact, we did that

        24       recently with our proposals dealing with the

        25       Amtrak and other trains from New York all the


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         1       way to Buffalo up to Albany, getting more

         2       people out of their cars into trains.

         3                  We could also do it by getting more

         4       goods off of trucks and onto railcars.  And

         5       there are proposals to do that.  And we should

         6       encourage that.  So we agree.

         7                  But the issue here is very, very

         8       direct.  It's been said here time and time

         9       again, we are reducing the economic burden on

        10       the riders, the consumers of energy.  Whether

        11       it's home heating fuel with Senator Golden's

        12       bill or drivers in their automobiles with this

        13       bill, we are reducing that burden.  And no one

        14       should object to that.

        15                  If there are subtleties in the

        16       approach, let's resolve them.  You talk about

        17       setting up dialogue with the other house.

        18       Fine, that's great.  Let's do it.  But let

        19       them pass some bills so we can do it together

        20       and we can make some sense out of all of this.

        21                  Thank you, Madam President.

        22                  ACTING PRESIDENT LITTLE:    Thank

        23       you, Senator Padavan.

        24                  Senator Liz Krueger.

        25                  SENATOR LIZ KRUEGER:    Thank you.


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         1       On the bill and in response.

         2                  ACTING PRESIDENT LITTLE:    Thank

         3       you.  On the bill, Senator Krueger.

         4                  SENATOR LIZ KRUEGER:    Thank you.

         5                  I appreciate Senator Padavan's

         6       comments we can walk and chew gum and take

         7       deep breaths.  And now that we are televised,

         8       we can also go to the tape.

         9                  So in response to the comments that

        10       I was told I made a few minutes ago, anyone

        11       who wants to rerun the comments, I did not

        12       criticize the people of upstate New York for

        13       needing to use their vehicles more than those

        14       of us who live in areas with public

        15       transportation.  I said if you want to address

        16       the problems of people who have to use their

        17       vehicles, this isn't the right answer.

        18                  The right answer is to figure out

        19       how they can be less dependent on

        20       petroleum-driven vehicles.  The answer in tax

        21       policy is to ask where are the tax burdens

        22       falling most unfairly and what can we in the

        23       New York State Legislature do to make a more

        24       fair and progressive tax system.  Which

        25       requires evaluating our tax policies, not


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         1       doing one-house, one-sales-tax bills at a

         2       time.

         3                  And in technical fact, while it is

         4       true that New York City residents use public

         5       transportation more than the rest of the

         6       state -- I appreciate Senator Parker's

         7       arguments and in fact Senator Padavan's

         8       reconfirmation of that, that we should be

         9       doing more to expand our public transportation

        10       options throughout the state of New York, in

        11       suburban New York, in rural New York, and in

        12       urban New York -- that in fact the subsidies

        13       for public transportation are not

        14       disproportionately carried by upstate

        15       New Yorkers.

        16                  But in fact, when you look at the

        17       budget and you look at the distribution of tax

        18       revenue to public transportation and highways

        19       and roads, in fact it is just the opposite.

        20       There is disproportionately less of a

        21       supplement or a subsidy to urban public

        22       transportation users than to the rest of

        23       New Yorkers.

        24                  So I am delighted we are having

        25       this debate.  I am delighted that now the


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         1       entire state can turn on their televisions and

         2       watch these debates and weigh in with their

         3       own views.  I think it will make us a better

         4       government.

         5                  And I agree with everyone who said

         6       let's go to conference committees and let's

         7       figure out the big-picture problems, rather

         8       than spending our time on one-house small

         9       bills that won't accomplish our larger goals.

        10                  Again, I'll be voting no.

        11                  Thank you, Madam President.

        12                  ACTING PRESIDENT LITTLE:    Thank

        13       you, Senator Krueger.

        14                  Are there any other Senators

        15       wishing to be heard?

        16                  Senator Wright.

        17                  SENATOR WRIGHT:    Thank you, Madam

        18       President.

        19                  I want to commend Senator Robach

        20       for his leadership.

        21                  What we're talking about is simply

        22       a tax that is too high and every time the gas

        23       price goes up, the tax goes up.  Simple.

        24       We're here to cut taxes.  That's the

        25       objective.  And every time we cut that


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         1       gasoline sales tax, whether it's state or

         2       local, we reduce the cost per gallon to every

         3       individual in this state, every business in

         4       this state.  Everyone who pays that tax

         5       benefits, period.  That's all we need to be

         6       focused on.

         7                  It is part of a comprehensive

         8       energy solution.  But without a comprehensive

         9       energy solution, reducing the gasoline tax

        10       still has merit.  And we are fully prepared to

        11       negotiate with the Assembly.  We are fully

        12       prepared, as we did back in September when

        13       this idea was advanced and we advanced the

        14       senior heat bill.  That led to the Assembly

        15       acting and providing us with a HEAP proposal

        16       that ended up with a compromise and us last

        17       week providing a hundred million dollars of

        18       assistance to the people of this state.

        19                  This is the same approach.  We're

        20       fully prepared to negotiate.  We're fully

        21       prepared to consider an alternative, but we

        22       haven't had one advanced.  In the meantime,

        23       we're not going to just sit here and do

        24       nothing.  And that's what the alternatives I'm

        25       hearing are being advanced:  Let's study,


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         1       let's evaluate, let's analyze, let's delay

         2       further and maybe the prices will go down and

         3       we won't have to worry about cutting the

         4       taxes.

         5                  Well, that time is now.  We should

         6       stand up, cut the taxes to the people of this

         7       state so they will have that direct benefit.

         8       It's a relatively simple equation.  We stand

         9       up, we say, yes, we reduce taxes, the people

        10       of this state benefit.  I don't understand how

        11       you can disagree with that proposal.

        12                  Thank you, Madam Chairman.

        13                  ACTING PRESIDENT LITTLE:    Thank

        14       you, Senator Wright.

        15                  Senator Schneiderman.

        16                  SENATOR SCHNEIDERMAN:    Thank you,

        17       Madam President.  Very briefly; I realize

        18       people want to get out of town.

        19                  I think it is quite healthy for us

        20       to actually have a debate on energy issues, to

        21       the extent we're not degenerating into

        22       personal recriminations or geographic or other

        23       sorts of divisiveness.

        24                  I would suggest the following.

        25       Everyone's constituents feel they pay too much


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         1       for taxes.  There is no question we want to

         2       reduce taxes.  There's no question our energy

         3       costs are too high.  Let's all settle down and

         4       try and come up with something better than

         5       simply passing the same bills over and over

         6       again.

         7                  Senator Volker suggested, which I

         8       gather on the other side of the aisle is

         9       considered one of the most -- you know, it's

        10       those offenses you have duels over, that I'm

        11       covering for the Assembly.  Well, I'm not

        12       covering for the Assembly.

        13                  Ladies and gentlemen, I think

        14       you're covering for the Assembly if you think

        15       this whole system of us passing a bunch of

        16       one-house bills and pointing the finger at

        17       them and them passing one-house bills and

        18       pointing the finger at us is working with the

        19       voters.  It's not.  They're on to the game.

        20       They want results.

        21                  And with all due respect,

        22       everyone's in favor of reducing taxes.  You

        23       know what doesn't reduce taxes?  If we cut

        24       taxes in one area but, as we have found a way

        25       to do every year in the budget since I've been


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         1       here, miraculously we raise them in other

         2       areas, so that state and local taxes and fees

         3       go up and up and up.  I think the Majority

         4       votes in all of those budgets, ladies and

         5       gentlemen.

         6                  So let's be honest about it.  Let's

         7       not distort the facts.  We are all in this

         8       together.  We're not going to solve our

         9       state's energy problems by upstaters attacking

        10       downstaters or vice versa.

        11                  In fact, it is the case, pretty

        12       clearly documented by the Center for

        13       Governmental Responsibility in Rochester, that

        14       City of New York subsidizes the rest of the

        15       state between 7 and 11 billion dollars a year.

        16       I'm not saying, you know, give all that money

        17       back.  But let's be honest and respectful

        18       about how we raise our taxes.  Upstate sales

        19       taxes do not pay for the MTA.  That's a

        20       regional tax.

        21                  So let's get the facts on the

        22       table.  Let's have an honest debate about

        23       energy policy.  Let's try and do away with the

        24       divisiveness.  And let's do something that

        25       actually reduces energy costs.  I don't think


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         1       you're hearing from people on this side of the

         2       aisle -- I think the debate got carried

         3       away -- that we object to some of the ideas

         4       you're advancing.  We have to do something

         5       when taxes go up to make adjustments.  We have

         6       to do something, as Senator Spano's bill

         7       attempted to address, about seniors and home

         8       energy costs.

         9                  We're saying let's do it better,

        10       let's make sure the relief is targeted to the

        11       consumers, to the people who actually suffer

        12       the worst from increases in energy costs.  We

        13       welcome the opportunity to work with you on

        14       that.  We're not doing anyone any good if we

        15       degenerate into a debate on, you know, what

        16       part of the state is hurting worse than other

        17       parts of the state.

        18                  All of the taxpayers in this state

        19       are hurting.  We should be looking out for all

        20       of them.  The energy costs are a tax, as

        21       Senator Padavan said, on everyone in the

        22       state.  Let's not just focus on the sales

        23       taxes, let's focus on the costs of energy.  We

        24       can improve efficiency, we can promote

        25       conservation.  And it is in fact the position


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         1       of every conservation organization, liberal

         2       and conservative and bipartisan, in the

         3       country that we do drive too much.  So I would

         4       respectfully suggest that that's not an

         5       offensive comment for someone for make as a

         6       part of an overall solution.

         7                  I'm going to vote against this bill

         8       because, once again, coming back to the

         9       specific legislation, I do have a concern over

        10       the failure to ensure that the savings are

        11       passed on from the wholesaler to the retailer

        12       and the retailer to the consumer.

        13                  I do not reject the suggestion

        14       others have made that this could result, this

        15       would result in some savings to some people.

        16       It's just not a good enough bill.  We passed

        17       it in September; we should have improved it by

        18       now.

        19                  Let's not keep coming back with the

        20       same bill, ladies and gentlemen.  Let's try

        21       and do a better job.  We welcome the debate.

        22       We welcome the discussion.  We should not end

        23       this session without enacting a comprehensive

        24       energy plan and moving forward on many of the

        25       issues that have been raised by members on the


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         1       other side of the aisle.  But let's

         2       incorporate -- we do have some ideas over here

         3       also.  Let's incorporate some of those ideas

         4       and let's try and move forward as one state

         5       together to solve our collective problems.

         6                  Thank you, Madam President.

         7                  ACTING PRESIDENT LITTLE:    Thank

         8       you.

         9                  Senator Skelos.

        10                  SENATOR SKELOS:    Madam President,

        11       I listened with great interest to Senator

        12       Schneiderman.  And sometimes I think that some

        13       of the representatives from Manhattan are from

        14       another world and really do not understand the

        15       issues that confront people that have to use

        16       their cars on a daily basis.

        17                  Now, Senator Schneiderman talks

        18       about this imbalance of revenues from the city

        19       to other parts of the state.  I believe last

        20       year this Legislature voted to cap the

        21       Medicaid costs within the state of New York,

        22       of which over 70 percent and probably higher

        23       go directly to help the taxpayers of New York

        24       City.  Over 70 percent of the burden is

        25       New York City.  And probably in the next year


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         1       or so it will be approximating a billion

         2       dollars.

         3                  So I think really when you govern

         4       or even more so when you look to lead -- and

         5       this is what this Majority does, is lead --

         6       you look to strike a balance between the

         7       different regions of the state.

         8                  And what's critically important for

         9       those of us who live in suburban communities,

        10       but even more so those of us who live in

        11       upstate communities, is the fact that gasoline

        12       is expensive, people have to drive 55,

        13       60 miles to go to their place of business.

        14       That costs a lot of money in sales tax.

        15                  And anything that we can do, even

        16       if it's $100 a year, $50 a year, when you cut

        17       some taxes here and there, it all adds up.

        18       And there are people that if we can save them

        19       $500, $1000 a year from different programs

        20       that have been brought forth by this

        21       Majority -- the rebate program with the STAR

        22       program, and I can go on and on -- to these

        23       individuals, it means a lot.  It can be the

        24       difference between maybe a one-week vacation

        25       or not going on vacation, and it enhances


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         1       their quality of life.

         2                  So I would urge many of my

         3       colleagues that think saving a few dollars on

         4       the gasoline price is not lowering the cost,

         5       that they're simply wrong, and perhaps be a

         6       little bit more sensitive to the needs of

         7       those whose livelihood and their lives are

         8       dependent upon the use of an automobile.

         9                  ACTING PRESIDENT LITTLE:    Thank

        10       you, Senator Skelos.

        11                  The debate is closed.

        12                  The Secretary will ring the bell.

        13                  Read the last section.

        14                  THE SECRETARY:    Section 3.  This

        15       act shall take effect on the 30th day.

        16                  ACTING PRESIDENT LITTLE:    Call

        17       the roll.

        18                  (The Secretary called the roll.)

        19                  ACTING PRESIDENT LITTLE:    Senator

        20       Bonacic, to explain his vote.

        21                  SENATOR BONACIC:    Thank you,

        22       Madam President.

        23                  I think this debate crystallizes

        24       the difference between Republicans and

        25       Democrats.  Republicans want to cut taxes.


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         1       They want to help small businesses reduce

         2       their energy bills.  The Democrats do not.

         3                  And this debate that I've heard

         4       today, whenever the Democrats get up and they

         5       try to justify why they don't want to cut

         6       taxes, it's, I think, the inaction of the

         7       other house that never takes the bills up to

         8       cut taxes.  That is the fundamental difference

         9       between Republicans and Democrats.

        10                  I'm voting yes.  Thank you, Madam

        11       President.

        12                  ACTING PRESIDENT LITTLE:    Thank

        13       you.  Senator Bonacic will be recorded in the

        14       affirmative.

        15                  Senator DeFrancisco, to explain his

        16       vote.

        17                  SENATOR DeFRANCISCO:    I'm voting

        18       yes, and proudly.

        19                  And I think no one has mentioned up

        20       to this point a very simple concept of what's

        21       happened over the last -- I don't think

        22       anybody has mentioned it -- over the last year

        23       or so.  And that is the state has received a

        24       windfall.  A windfall.  And by receiving a

        25       windfall, they're collecting taxes only


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         1       because of a market totally beyond our

         2       control.

         3                  If a state is receiving a windfall,

         4       you can talk all the policy you want to talk.

         5       We should give the money back.  And that's

         6       what Senator Robach's bill does.  We should

         7       give the money back.

         8                  Senator Nozzolio mentioned

         9       something very simple:  Not one penny more.

        10       You say it's not enough?  It's certainly more

        11       than nothing.  And not passing this bill is

        12       nothing.  And our consumers deserve that.

        13                  We need to continue the long-term

        14       solutions.  The long-term solutions are the

        15       most important.  But the short-term ones are

        16       all that we can do, and we're going to

        17       continue rolling these out.

        18                  And if you want to vote no, vote

        19       no.  But we're going to make these things

        20       happen.

        21                  ACTING PRESIDENT LITTLE:    Thank

        22       you.  Senator DeFrancisco will be recorded in

        23       the affirmative.

        24                  Senator Wright, to explain his

        25       vote.


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         1                  SENATOR WRIGHT:    Thank you, Madam

         2       President.

         3                  I'm going to vote in favor of this

         4       bill because this will be the seventh bill

         5       that we've passed today, all of which comprise

         6       a comprehensive approach to addressing the

         7       energy issues in this state.

         8                  And I would note that all seven of

         9       those bills have passed with bipartisan

        10       support -- not unanimous, but certainly

        11       bipartisan support from all of the regions of

        12       this state, reflecting the comprehensiveness

        13       and appropriateness of the policy being

        14       advanced this morning by us.

        15                  Madam President, I vote aye.

        16                  ACTING PRESIDENT LITTLE:    Thank

        17       you.  Senator Wright will be recorded in the

        18       affirmative.

        19                  Senator Oppenheimer.

        20                  SENATOR OPPENHEIMER:    Thank you,

        21       Madam President.

        22                  ACTING PRESIDENT LITTLE:    To

        23       explain her vote.

        24                  SENATOR OPPENHEIMER:    Yes, I'm

        25       changing my vote.  But I have been with you on


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         1       all the other bills today.

         2                  But I'm changing my vote on this

         3       one, because I feel that the information that

         4       I heard, that it is the wholesaler who is

         5       going to be the beneficiary of this, and there

         6       is actually nothing that requires the

         7       wholesaler to pass it down to the retailer.

         8       And since prices on gasoline change every few

         9       days, there's no way to even follow this

        10       through.

        11                  I'm not interested in giving the

        12       wholesalers this benefit.  The reason I like

        13       STAR and the programs that are going directly

        14       to people is because it directly benefits

        15       people.  But I hear that this is only going to

        16       benefit the wholesaler and there's no way to

        17       make them pass it on.

        18                  So for that reason, I'm changing my

        19       vote from this autumn.  It will be no.

        20                  ACTING PRESIDENT LITTLE:    Thank

        21       you.  Senator Volker will be recorded in the

        22       negative.

        23                  I'm sorry, I looked at Senator

        24       Volker.  Senator Oppenheimer will be recorded

        25       in the negative.  I apologize.


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         1                  Senator Maziarz, to explain his

         2       vote.

         3                  SENATOR MAZIARZ:    Madam

         4       President, I rise to support Senator Robach's

         5       legislation.

         6                  I think that lowering the sales

         7       tax -- I don't know how you can even dream

         8       that this benefits wholesalers more than it

         9       does the retailers, those people who drive to

        10       the pumps almost on a daily basis to fill up.

        11                  You know, ExxonMobil, Sunoco, Shell

        12       Oil Company are making billions of dollars in

        13       record profits because they're gouging.  The

        14       State of New York is no better.  They're doing

        15       the same thing by making this windfall profit

        16       on sales tax.

        17                  I agree with Senator Robach,

        18       capping this at $2 a gallon is absolutely the

        19       right way to go.  And if it doesn't become the

        20       law in the State of New York, we clearly know

        21       that the blame rests with the other house

        22       because of their concern for one geographic

        23       area of this state over their concern for

        24       another geographic area.

        25                  Thank you, Madam President.


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         1                  ACTING PRESIDENT LITTLE:    Thank

         2       you.  Senator Maziarz will be recorded in the

         3       affirmative.

         4                  Senator Volker, to explain his

         5       vote.

         6                  SENATOR VOLKER:    Just very

         7       quickly, Madam President, to explain my vote.

         8                  You know, Suzi, by the way, I'm

         9       very much flattered that they thought that I

        10       was you.

        11                  But let me just say that I used to

        12       be chairman of Energy.  And Jim Wright is

        13       much, much better at this than I am.  But I

        14       could tell you something.  There's no possible

        15       way that the sales tax cut is not going to be

        16       passed on to the consumers.

        17                  Yeah, the wholesalers.  But if you

        18       look at the pump -- next time you go get some

        19       gasoline, look at the pump.  What you'll find

        20       out is that the sales tax is shown right on

        21       there.  If they don't reflect the sales tax,

        22       it's fairly -- it's easy to go in and get

        23       after the retailers and the dealers.

        24                  And that's basically what happened

        25       with the Attorney General when he went in and


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         1       fined several of my gas stations.  What they

         2       did is they jumped ahead of the price

         3       increase.  That is not that the price wasn't

         4       going up, but they knew it was coming, so they

         5       increased the price the day before instead of

         6       the day that they actually got the gasoline

         7       with the higher price.  And one of them got

         8       fined, I think, $10,000 or something of that

         9       nature.

        10                  But the truth is, I know it's easy

        11       to say, Well, it's not going to get to the

        12       consumers.  I'll guarantee you it will get to

        13       the consumers, no matter what they say.  This

        14       is not for wholesalers.  When you cut taxes,

        15       it's going to get to the consumers or else we

        16       will pounce on them, and "we" meaning the

        17       State of New York.

        18                  So my -- and I know that this is a

        19       political debate to a certain extent.  But the

        20       truth is we are trying to cut taxes.  And I

        21       know you want to, but don't believe this

        22       nonsense that because you cut at the wholesale

        23       level that it's not going to get to the

        24       consumers.  Because it has to.  Otherwise, our

        25       system will pounce on the people who don't


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         1       comply.

         2                  I vote aye.

         3                  ACTING PRESIDENT LITTLE:    Thank

         4       you.  Senator Volker will be recorded in the

         5       affirmative.

         6                  Senator Onorato, to explain his

         7       vote.

         8                  SENATOR ONORATO:    Madam

         9       President, I plan on supporting this measure,

        10       but I think there is a little better way to do

        11       it.

        12                  And the thing that I would like to

        13       suggest again, that the tax should be based

        14       upon the gallonage rather than the price.

        15       Because the price fluctuates from day to day

        16       as we see it lately.  During this gasoline

        17       shortage, I passed my gasoline station in the

        18       morning and in the afternoon it was 10 cents a

        19       gallon more than it was in the early morning.

        20       And I know he didn't receive a delivery

        21       between the morning and the afternoon.

        22                  And the other thing, Senator Volker

        23       mentions about the taxes, you see them

        24       alongside the gasoline thing?  I don't see

        25       that anymore.  I used to see it.  You used to


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         1       see the price of the gasoline, the federal

         2       tax, the state tax, and the city tax.  We

         3       don't have that listed alongside the gas pumps

         4       any longer.

         5                  And I think if we made that

         6       mandatory that the taxes be shown, perhaps the

         7       public will start getting on all of these

         8       legislators, not only on the state level but

         9       on the federal level, to bring the cost of it

        10       down.  And do it by doing it on the gallonage,

        11       not the price.

        12                  I vote aye.

        13                  ACTING PRESIDENT LITTLE:    Thank

        14       you.  Senator Onorato will be recorded in the

        15       affirmative.

        16                  Senator Alesi, to explain his vote.

        17                  SENATOR ALESI:    Thank you, Madam

        18       President.  I've been listening with great

        19       interest, and I'd like to explain my vote as

        20       well.

        21                  Because Senator Nozzolio very

        22       passionately explained how necessary it is for

        23       those of us who live in upstate to rely on our

        24       vehicles and how expensive it can be when we

        25       have to fill those vehicles with fuel.


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         1                  And, yes, Senator Schneiderman

         2       paraphrased a lot of what was said here by

         3       saying can't we all just get along.  I guess I

         4       can agree with that too.

         5                  You know, it struck me, though, as

         6       someone who kind of has a love affair with

         7       New York City, that if it's being suggested

         8       that we drive a little less, then I don't know

         9       how, when all of those subways are rolling

        10       underneath New York streets, we can suggest to

        11       those taxicabs, the 20,000 of them that are

        12       running 24 hours a day, that they drive a

        13       little less.

        14                  How do you suggest to them, as

        15       small businesses or large businesses, and how

        16       do you suggest to all of those delivery trucks

        17       and how do you suggest to everybody that,

        18       aside from their own personal needs, relies on

        19       small business to provide the needs of

        20       everything that we need in our daily lives,

        21       whether it's a bread truck or whether it's

        22       somebody delivering parts to an appliance

        23       store, whatever it is -- how do you suggest to

        24       them that they drive a little less?  You

        25       can't.


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         1                  And if you look at it from the

         2       standpoint of the personal consumer, Senator

         3       Nozzolio made the best argument anybody could

         4       make for those of us who rely on our vehicles.

         5                  But let's look at New York City.

         6       Let's go to Manhattan and let's look at those

         7       congested streets.  And what are they filled

         8       with?  They're filled with cabs and they're

         9       filled with delivery trucks.  It's business.

        10       It's enterprise.  It's commerce.

        11                  And what we're saying is if you

        12       want to, join us in helping the constituency

        13       in Manhattan and those other areas of New York

        14       City that rely on that commerce, that rely on

        15       those small businesses, that they themselves

        16       rely on transportation that consume gasoline

        17       and pay taxes when they do buy that

        18       gasoline -- join us.  Help us help you with

        19       your constituents and with all of those small

        20       businesses in New York City that have to pay

        21       taxes on gasoline as well.  Join us.  Join us

        22       and help us help you with your constituents.

        23                  Tax cuts work.  They work just as

        24       easily in Manhattan as they work in upstate

        25       New York.


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         1                  By way of explaining my vote, I'll

         2       be voting yes.

         3                  ACTING PRESIDENT LITTLE:    Thank

         4       you.  Senator Alesi will be recorded in the

         5       affirmative.

         6                  Senator Young, to explain her vote.

         7                  SENATOR YOUNG:    Thank you, Madam

         8       President.  I rise to support this bill for

         9       many reasons.  And I too have listened very

        10       carefully to the debate here today.

        11                  And this whole argument about

        12       there's really not going to be any savings to

        13       the consumers is false, that the wholesalers

        14       are just going to get the break.

        15                  Senator Winner talked about the

        16       fact that his district is on the Pennsylvania

        17       line.  So is mine.  You just have to travel a

        18       short distance from the edge of my district to

        19       see lower prices.

        20                  But nowhere do I see it most

        21       greatly put forward as when you go on the

        22       reservations in my district.  Because you know

        23       what?  They're not collecting the state sales

        24       tax on the gasoline in the reservations in my

        25       district, and the price differential is


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         1       enormous.

         2                  You talk about the fact that people

         3       should drive less and this really doesn't hurt

         4       upstaters to have the high price in gasoline.

         5       Senator Nozzolio spoke very well about the

         6       impact.  But I'll tell you some stories.  I

         7       can tell you at least one right now.

         8                  In my district, access to

         9       healthcare is a huge issue.  We have to drive

        10       to get to the hospital.  And if somebody has a

        11       serious illness, they have to drive to Buffalo

        12       or Rochester, which can be anywhere from 75 to

        13       90 miles away.

        14                  Recently I was talking to a

        15       constituent whose husband was seriously ill,

        16       gravely ill.  He had to have a valve replaced

        17       in his heart, and there were complications.

        18       She was driving 75 miles to Buffalo every

        19       single day for two weeks, and she was out of

        20       her mind with worry.  But what compounded that

        21       was the fact that her budget, her family's

        22       budget was being busted because she had a very

        23       difficult time paying for the gasoline.

        24                  You have to think about the real

        25       life consequences that people face across this


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         1       state and keep those in mind.  People in this

         2       state feel like they're being taxed to death.

         3       And they are.  They are.  They need to have

         4       relief just to live their everyday lives, to

         5       be able to afford to stay in this state.  And

         6       that's what this bill is about.

         7                  And I vote yes.

         8                  ACTING PRESIDENT LITTLE:    Thank

         9       you.  Senator Young will be recorded in the

        10       affirmative.

        11                  Senator Ada Smith, to explain her

        12       vote.

        13                  SENATOR ADA SMITH:    Thank you,

        14       Madam President.

        15                  In a former life, directly out of

        16       college, I worked for a major oil company.

        17       And one of the things that we had to do late

        18       at night was to go and visit service stations

        19       throughout the five boroughs, Nassau and

        20       Suffolk County, because prices were not being

        21       shown at the pump from the wholesalers.  The

        22       wholesalers were keeping the money, and the

        23       retailers were suffering and showing the

        24       higher prices.

        25                  So therefore, with this knowledge,


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         1       I clearly vote no.

         2                  ACTING PRESIDENT LITTLE:    Thank

         3       you.  Senator Ada Smith will be recorded in

         4       the negative.

         5                  Senator Robach, to explain his

         6       vote.

         7                  SENATOR ROBACH:    Yes, very

         8       briefly.

         9                  I rise to support this bill,

        10       obviously.  And I guess what I would say is,

        11       first and foremost, I think it is very good

        12       policy, long term or short term.

        13                  And secondly, I've appreciated the

        14       dialogue.  There was someone made the

        15       suggestion that this bill was shortsighted.  I

        16       think Senator Parker said I was insincere.

        17       I'll let you be the judge if those accusations

        18       are true.

        19                  But one thing I can tell you I am

        20       is a pragmatic person, and I like to be a

        21       populist.  And I just ask you to run this over

        22       your head.  If you think, if your constituents

        23       could vote directly for this bill, that they

        24       don't think it will help their bottom line,

        25       you're wrong.  Because if this was a survey, I


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         1       would guarantee you that overwhelmingly,

         2       whether you're upstate or downstate, your

         3       constituents would vote yes.

         4                  And so I think, in the spirit of

         5       wanting to do something, and something that is

         6       popular with our constituents on an issue

         7       that's affecting them in their pockets, it's

         8       time for New York to make a different change.

         9       This is a start.

        10                  I'll be voting in the affirmative.

        11                  ACTING PRESIDENT LITTLE:    Thank

        12       you.  Senator Volker will be -- Senator

        13       Robach, excuse me, will be recorded in the

        14       affirmative.

        15                  Senator Meier, to explain his vote.

        16                  SENATOR MEIER:    Thank you, Madam

        17       President.

        18                  I have to have to rise to thank

        19       everyone here for educating me because I've

        20       learned something valuable today.  And it's

        21       the answer to a question, and the question is

        22       this.

        23                  When does a large organization, a

        24       large, powerful organization, when are they

        25       able to reap an obscene $200 million excess


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         1       profit and not get condemnation from the other

         2       side of the aisle?  And the answer is, it's

         3       when that organization is government of the

         4       State of New York.  Two hundred million

         5       dollars out of the pockets of the taxpayers of

         6       this state that we didn't count on when we

         7       enacted the budget last year.

         8                  Now, if you want to call what's

         9       going into Exxon's pockets obscene, what about

        10       what's going out of the pockets of my

        11       constituents and yours into the treasury of

        12       this state so that, oh, by the way, all of us

        13       can carve it up and spend it later.  That's

        14       obscene.  We ought to give it back.

        15                  I vote aye.

        16                  ACTING PRESIDENT LITTLE:    Thank

        17       you.  Senator Meier will be recorded in the

        18       affirmative.

        19                  Senator Parker, to explain his

        20       vote.

        21                  SENATOR PARKER:    Madam President,

        22       I rise to vote no on this bill.  Some of you

        23       may be surprised by that.

        24                  The difference between the

        25       Democrats and Republicans is not that you want


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         1       to do something and we want to do nothing,

         2       it's that we are not willing to trick the

         3       people of the State of New York to think that

         4       we're giving them a whole bunch of money when

         5       the reality is we're giving them dimes on the

         6       bushels, whatever.

         7                  I mean, this is not a significant

         8       savings.  This is extremely short-term.  There

         9       is nothing long-term about this proposal at

        10       all.

        11                  And, you know, when we really, you

        12       know, understand what people really want is

        13       they want -- they want services.  They want

        14       things.  And the reality is if you take this

        15       and you cost it out and you ask your voters

        16       would you rather -- and you poll them on this,

        17       would you rather have $10 back or would you

        18       rather us give you $200 million worth of

        19       services?  And I bet you if you polled them on

        20       that question you would get a very, very

        21       different answer than the question that you

        22       posed them.

        23                  They would say absolutely every

        24       time that they'll take the $200 million in

        25       services, because they understand what that


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         1       means in terms of reducing their kids' tuition

         2       at CUNY and SUNY, they understand what that

         3       means in terms of having access to affordable

         4       housing, they understand what that means in

         5       terms of accessible and affordable and quality

         6       healthcare.

         7                  That's what they understand, not

         8       the tricks that we try to pull off in this

         9       chamber and call them tax breaks.

        10                  ACTING PRESIDENT LITTLE:    Thank

        11       you.  Senator Parker will be recorded in the

        12       negative.

        13                  The Secretary will announce the

        14       results.

        15                  THE SECRETARY:    Those recorded in

        16       the negative on Calendar Number 86 are

        17       Senators Andrews, Breslin, Diaz, Dilan, Duane,

        18       Hassell-Thompson, L. Krueger, Oppenheimer,

        19       Parker, Paterson, Schneiderman, and A. Smith.

        20                  Those Senators absent pursuant to

        21       Rule 9:  Senators Libous and Stavisky.

        22                  Those Senators absent from voting:

        23       Senator Sampson.

        24                  Ayes, 46.  Nays, 12.

        25                  ACTING PRESIDENT LITTLE:    The


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         1       bill is passed.

         2                  Senator Johnson.

         3                  SENATOR JOHNSON:    Madam

         4       President, pursuant to Rule 9, I was required

         5       to be at a meeting of the Finance Standing

         6       Committee, and I cast my votes as follows for

         7       the bills on the controversial calendar:

         8       5846A, Calendar Number 84, aye; 5965A,

         9       Calendar Number 85, aye.

        10                  Thank you.

        11                  ACTING PRESIDENT LITTLE:    Thank

        12       you, Senator Johnson.  The record will so

        13       reflect.

        14                  Senator Breslin.

        15                  SENATOR BRESLIN:    Thank you,

        16       Madam President.  Pursuant to Rule 9, I was

        17       required to be at the Finance meetings.  And I

        18       request that my votes be taken as follows.  On

        19       S5846A, Calendar 84, an aye.  And on S5965A,

        20       Calendar Number 85, aye.

        21                  Thank you, Madam President.

        22                  ACTING PRESIDENT LITTLE:    Thank

        23       you, Senator.  The record will so reflect.

        24                  Senator Malcolm Smith.

        25                  SENATOR MALCOLM SMITH:    Thank


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         1       you, Madam President.

         2                  Pursuant to Rule 9, I was required

         3       to be in a public hearing for the Finance

         4       Committee.  I'd like to have my vote recorded

         5       on the following controversial calendar bills.

         6       On Senate Bill 5846A, I vote aye.  And Senate

         7       Bill 5965A, I vote aye also.

         8                  ACTING PRESIDENT LITTLE:    Thank

         9       you, Senator.  The record will so reflect.

        10                  Senator Montgomery.

        11                  SENATOR MONTGOMERY:    Yes, Madam

        12       President.  Pursuant to Rule 9, I was required

        13       to be at a public hearing on finance.  And I

        14       would like to cast my votes as follows.  On

        15       Senate Bill 5846A, Calendar Number 84, my vote

        16       is aye.  And Senate Bill S5965A, Calendar

        17       Number 85, no.

        18                  ACTING PRESIDENT LITTLE:    Thank

        19       you, Senator.  The record will so reflect.

        20                  Senator Skelos, that completes the

        21       controversial reading of the calendar.

        22                  SENATOR SKELOS:    Thank you, Madam

        23       President.

        24                  Is there any other business at the

        25       desk at this time?


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         1                  ACTING PRESIDENT LITTLE:    No,

         2       there is not.

         3                  SENATOR SKELOS:    I just want to

         4       point out to the members of the Majority that

         5       there will be a conference following session.

         6                  And also to all the members that

         7       next week is a three-day week, so I know we

         8       all look forward to that.

         9                  And I move we adjourn in memory of

        10       Coretta Scott King -- and I'm sure at some

        11       future time we will do an appropriate

        12       recognition of her life -- and move we stand

        13       adjourned until Monday, February 6th, at

        14       3:00 p.m., intervening days to be legislative

        15       days.

        16                  ACTING PRESIDENT LITTLE:    Thank

        17       you.

        18                  On motion, the Senate stands

        19       adjourned until Monday, February 6th, at

        20       3:00 p.m., intervening days being legislative

        21       days.

        22                  (Whereupon, at 1:46 p.m., the

        23       Senate adjourned.)

        24

        25


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