Regular Session - March 1, 2006

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         1                 NEW YORK STATE SENATE

         2

         3

         4                THE STENOGRAPHIC RECORD

         5

         6

         7

         8

         9                   ALBANY, NEW YORK

        10                     March 1, 2006

        11                      11:18 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                  THE PRESIDENT:    The Senate will

         3       please 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                  THE PRESIDENT:    In the absence of

        10       clergy, may we bow our heads in a moment of

        11       silence, please.

        12                  (Whereupon, the assemblage

        13       respected a moment of silence.)

        14                  THE PRESIDENT:    Reading of the

        15       Journal.

        16                  THE SECRETARY:    In Senate,

        17       Tuesday, February 28, the Senate met pursuant

        18       to adjournment.  The Journal of Monday,

        19       February 27, was read and approved.  On

        20       motion, Senate adjourned.

        21                  THE PRESIDENT:    Without

        22       objection, the Journal stands approved as

        23       read.

        24                  Presentation of petitions.

        25                  Messages from the Assembly.


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         1                  Messages from the Governor.

         2                  Reports of standing committees.

         3                  Reports of select committees.

         4                  Communications and reports from

         5       state officers.

         6                  Motions and resolutions.

         7                  Senator Fuschillo.

         8                  SENATOR FUSCHILLO:    Thank you,

         9       Madam President.

        10                  On behalf of Senator Winner, on

        11       page number 27 I offer the following

        12       amendments to Calendar Number 352, Senate

        13       Print Number 2453, and ask that said bill

        14       retain its place on Third Reading Calendar.

        15                  THE PRESIDENT:    The amendments

        16       are received, and the bill will retain its

        17       place on the Third Reading Calendar.

        18                  SENATOR FUSCHILLO:    Madam

        19       President, on behalf of Senator Padavan, I

        20       move to recommit Senate Print Number 1055A,

        21       Calendar Number 380 on the order of first

        22       report, to the Committee on Environmental

        23       Conservation, with instructions to said

        24       committee to strike out the enacting clause.

        25                  THE PRESIDENT:    So ordered.


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         1                  SENATOR FUSCHILLO:    Thank you.

         2                  THE PRESIDENT:    Senator Skelos.

         3                  SENATOR SKELOS:    Madam President,

         4       I believe there are substitutions to be made

         5       at this time.

         6                  THE PRESIDENT:    The Secretary

         7       will read.

         8                  THE SECRETARY:    On page 28,

         9       Senator Johnson moves to discharge, from the

        10       Committee on Finance, Assembly Bill Number

        11       9566A and substitute it for the identical

        12       Senate Bill Number 6466A, Third Reading

        13       Calendar 397.

        14                  THE PRESIDENT:    Substitution

        15       ordered.

        16                  Senator Skelos.

        17                  SENATOR SKELOS:    Madam President,

        18       there's a resolution at the desk by Senator

        19       DeFrancisco.  If we could have it read in its

        20       entirety and move for its immediate adoption.

        21                  THE PRESIDENT:    The Secretary

        22       will read.

        23                  THE SECRETARY:    By Senator

        24       DeFrancisco, Legislative Resolution Number

        25       3711, congratulating the 2005 North Syracuse


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         1       Babe Ruth 15-Year-Old All-Stars for advancing

         2       to the Babe Ruth World Series.

         3                  "WHEREAS, Excellence and success in

         4       competitive sports can be achieved only

         5       through strenuous practice, team play and team

         6       spirit, nurtured by dedicated coaching and

         7       strategic planning; and

         8                  "WHEREAS, Athletic competition

         9       enhances the moral and physical development of

        10       the young people of this state, preparing them

        11       for the future by instilling in them the value

        12       of teamwork, encouraging a standard of healthy

        13       living, imparting a desire for success and

        14       developing a sense of fair play and

        15       competition; and

        16                  "WHEREAS, It is the sense of this

        17       Legislative Body to recognize those young

        18       people among us and within the State of

        19       New York who achieve excellence and success in

        20       competitive sports; and

        21                  "WHEREAS, One such group of young

        22       people is the North Syracuse Babe Ruth

        23       15-Year-Old All-Stars, which consisted of team

        24       members who had prior experience as players in

        25       the North Syracuse Babe Ruth League, but who


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         1       had never played together as a team.  In 2005,

         2       they achieved a most outstanding season; and

         3                  "WHEREAS, This remarkable group of

         4       elite athletes consisted of players from seven

         5       different schools in the greater Syracuse

         6       area.  The purpose of building such a team is

         7       to provide these top athletes an organized

         8       baseball program in the summer months when

         9       schools are closed and when skills are honed

        10       in competition with others of outstanding

        11       abilities; and

        12                  "WHEREAS, These extraordinary

        13       gifted young men had all proven themselves to

        14       be an outstanding combination of athletic

        15       prowess and discipline before being named a

        16       part of this All-Star team.  They had already

        17       brought much pride to their parents, their

        18       schools, their friends and their communities;

        19       and

        20                  "WHEREAS, The team members and

        21       coaches of the 2005 North Syracuse Babe Ruth

        22       15-Year-Old All-Stars were just one of almost

        23       3,000 other talented teams that had the goal

        24       of winning the national World Series title, to

        25       be determined in August 2005.  The road to the


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         1       World Series was filled with many stops where

         2       the North Syracuse All-Stars had to prove to

         3       themselves and to others their exceptional

         4       talents; and

         5                  "WHEREAS, The race to the World

         6       Series began in early July of 2005 with the

         7       District 2 Championship, where competition was

         8       held among teams from Central New York.  North

         9       Syracuse emerged from the double elimination

        10       competition, which was held in Syracuse, by

        11       sweeping three games.  The North Syracuse Babe

        12       Ruth 15-Year-Old All-Stars thereby earned the

        13       right to move on to the Western New York State

        14       Championship; and

        15                  "WHEREAS, A familiar North Syracuse

        16       Junior High School baseball field was the site

        17       of the Western New York State Championship.

        18       Teams from the Syracuse, Rochester, Buffalo

        19       and Ithaca areas participated and, once again,

        20       the North Syracuse All-Stars swept their

        21       series, this time in four games, to move on to

        22       the Mid-Atlantic Regional Championships, which

        23       were held in Frederick, Maryland; and

        24                  "WHEREAS, Only the best of Babe

        25       Ruth 15-year-olds from throughout the


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         1       Northeast participated in the regional

         2       competition.  The North Syracuse Babe Ruth

         3       15-Year-Old All-Stars again faced the

         4       challenge of competing with increasingly

         5       talented teams, just as they had in the

         6       earlier rounds.  For the regionals, that

         7       included the top teams from eastern New York,

         8       New Jersey, Pennsylvania, Delaware, and

         9       Maryland; and

        10                  "WHEREAS, As they had in the past,

        11       the North Syracuse Babe Ruth 15-Year-Old

        12       All-Stars swept another four games and were

        13       named the Mid-Atlantic Regional Champions,

        14       having brought their tournament record to

        15       11-0.  Most importantly, they earned the

        16       distinction of being just one of ten teams

        17       from all 50 states to qualify to play in

        18       Abbeville, Louisiana, with the hope of winning

        19       the 2005 15-Year-Old Babe Ruth World Series;

        20       and

        21                  "WHEREAS, In Louisiana, the North

        22       Syracuse Babe Ruth 15-Year-Old All-Stars

        23       played four games in five days in 'pool play.'

        24       They went 2-2 and thereby qualified as one of

        25       just four teams to advance to the final


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         1       elimination; and

         2                  "WHEREAS, The North Syracuse Babe

         3       Ruth 15-Year-Old All-Stars next took on a most

         4       talented team from Norwalk, Connecticut.

         5       North Syracuse's outstanding pitching made the

         6       difference as the All-Stars went on to win 7-5

         7       and head to the semifinals on Friday, August

         8       19; and

         9                  "WHEREAS, North Syracuse was

        10       matched with Oahu, Hawaii, in the semifinal.

        11       Oahu surprised North Syracuse early and led by

        12       8-0 after the first inning.  North Syracuse

        13       was unable to recover, and the game ended with

        14       a 12-4 win for Oahu.  Overall, the North

        15       Syracuse Babe Ruth 15-Year-Old All-Stars ended

        16       tied for third place in the World Series

        17       competition; and

        18                  "WHEREAS, No matter how gifted any

        19       one team member may be, no team can accomplish

        20       all that the North Syracuse Babe Ruth

        21       15-Year-Old All-Stars accomplished on the

        22       field.  Its team members, and the schools they

        23       attend, include Brett Botsford

        24       (Baldwinsville), Dom Caruso (Liverpool), Paul

        25       Conte (Baldwinsville), Joe Ilacqua


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         1       (Cicero-North Syracuse), David Kernan

         2       (Cicero-North Syracuse), Matt Marra (Central

         3       Square), Alex Nodzo (Henninger), Pat O'Brien

         4       (Cicero-North Syracuse), D.J. Pastuf

         5       (Cicero-North Syracuse), Ryan Poplawski

         6       (Bishop Ludden), Aaron Schuldt (Liverpool),

         7       Dan Sisto (CBA), Matt Wessinger (Liverpool),

         8       Aaron Wirth (Liverpool), and Jakob Wirth

         9       (Liverpool).  Special mention is also made of

        10       the team's official World Series Bat Boy,

        11       Andrew Gaudette, the grandson of the team

        12       manager, Joe Sacco; and

        13                  "WHEREAS, The success of this team,

        14       which was formed just two months prior to

        15       traveling to Louisiana, is due in large part

        16       to the efforts of Manager Joe Sacco and his

        17       coaches Mark Botsford, John Ilacqua and Dan

        18       Pastuf, as well as the never-ending

        19       encouragement and support of friends, family

        20       and the entire community; and

        21                  "WHEREAS, This tribute to the team

        22       does not end with their last game.  About one

        23       month later, the team learned that one of its

        24       host families in Louisiana was virtually wiped

        25       out by the devastation of Hurricane Rita.  The


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         1       team showed its true spirit by organizing a

         2       fundraiser for Huey and Carla Delcambre of

         3       Abbeville, Louisiana.  They and their

         4       7-year-old son were flown to Syracuse by the

         5       team, not knowing what the team had planned;

         6       and

         7                  "WHEREAS, On Saturday, November 5,

         8       2005, the Mattydale VFW was the site of a

         9       'surprise' fundraiser which raised a

        10       significant amount for the Delcambres.

        11       Approximately 300 people attended, four

        12       professional comedians donated their time, and

        13       numerous donations of food and merchandise,

        14       much of which was won by those attending but

        15       turned over by them to the Delcambres, helped

        16       to make the event a success; now, therefore,

        17       be it

        18                  "RESOLVED, That this Legislative

        19       Body pause in its deliberations to

        20       congratulate the North Syracuse Babe Ruth

        21       15-Year-Old All-Star Team, their coaches and

        22       supporters on their successful season, overall

        23       team record, and outstanding efforts that

        24       culminated in their third-place finish in the

        25       2005 Babe Ruth 15-Year-Old World Series


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         1       Championship, and for the outstanding

         2       citizenship these individuals, who just months

         3       earlier had never been together as a team,

         4       displayed by assisting one of their host

         5       families; and be it further

         6                  "RESOLVED, That copies of this

         7       resolution, suitably engrossed, be transmitted

         8       to Manager Joe Sacco, Coaches John Ilacqua,

         9       Mark Botsford and Dan Pastuf, as well as the

        10       members of the 2005 North Syracuse Babe Ruth

        11       All-Star Team."

        12                  THE PRESIDENT:    Senator

        13       DeFrancisco.

        14                  SENATOR DeFRANCISCO:    Thank you,

        15       Madam President.

        16                  You know, we have a lot of

        17       champions in Central New York, and we keep

        18       bringing these championship teams here to

        19       congratulate them for their outstanding

        20       seasons and for the competition that they

        21       participated in and became winners.

        22                  Well, this group of young people

        23       that we're honoring today came in third; they

        24       didn't win the World Series of the All-Star

        25       Babe Ruth League.  There were 3,000 teams


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         1       throughout the country; they came in third.

         2       To me, they're winners.

         3                  But the real reason I brought them

         4       here is what was stated in one of the

         5       paragraphs.  And that is that they probably

         6       learned a lesson, and gave us a lesson for us

         7       to learn, that these competitive sports are

         8       much more than who gets that final victory.

         9                  When you hear about how a host team

        10       in Louisiana was virtually wiped out by a

        11       hurricane and what this team did to bring the

        12       family to Syracuse to have a fundraiser for

        13       them, and to have them be able to participate

        14       in a fundraiser showing that we care in

        15       Central New York about their plight and, more

        16       than just caring, we're going to do something

        17       about it.  And these are young people that not

        18       only learned a great lesson but are teaching

        19       us a great lesson today in not only how to

        20       win, how to compete, but also how to care for

        21       others who are truly in need.

        22                  So I brought them here for that

        23       reason.  They're true champions in not only

        24       their final success in the tournament, but

        25       also in how they dealt with a very, very


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         1       serious situation.

         2                  So thank you all for what you've

         3       done, and congratulations on your exploits.  I

         4       played a little baseball in my day, and you're

         5       going to remember this the rest of your life.

         6                  Is Manager Joe Sacco here?  I

         7       played ball with Joe Sacco since I was 9 years

         8       old.  We're the same age.  I look much better.

         9                  (Laughter.)

        10                  SENATOR DeFRANCISCO:    But he was

        11       a great ballplayer and a great human being,

        12       and I'm sure it's in large part because of him

        13       and because of the assistant coaches and the

        14       parents that the success of this team was such

        15       as it was.  And I thank them for everything

        16       they've done.

        17                  Thank you.

        18                  THE PRESIDENT:    Senator Valesky.

        19                  SENATOR VALESKY:    Thank you,

        20       Madam President.  I rise to join my colleague

        21       from Onondaga County, Senator DeFrancisco.

        22                  Senator, thank you for your efforts

        23       in bringing the team here to Albany and for

        24       offering this resolution today.

        25                  I would just add my comments and


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         1       congratulations to the Babe Ruth 15-Year-Old

         2       All-Star League from North Syracuse, and

         3       remind my colleagues that this is a team as an

         4       All-Star team that did not have an opportunity

         5       to play with each other very much before

         6       competitive competition.

         7                  And their success in what they

         8       accomplished throughout last summer's All-Star

         9       season, how they came together as a team

        10       certainly reminds all of us of the importance

        11       of teamwork and working together.

        12                  And Senator DeFrancisco is

        13       absolutely correct in suggesting that the life

        14       lesson that they learned throughout that

        15       process, when one of their host families was

        16       virtually devastated by Hurricane Rita, they

        17       stepped up to the plate, as it were, back in

        18       Syracuse, hosted a number of events,

        19       fundraisers, brought the family to Syracuse to

        20       show their support for the devastation that

        21       occurred in the state of Louisiana to their

        22       host family.

        23                  So congratulations on your success

        24       in baseball.  Congratulations and we look

        25       forward to many more great things from you as


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         1       leaders in the community as you grow older.

         2                  Thank you, Madam President.

         3                  THE PRESIDENT:    On the

         4       resolution, all in favor please signify by

         5       saying aye.

         6                  (Response of "Aye.")

         7                  THE PRESIDENT:    Opposed, nay.

         8                  (No response.)

         9                  THE PRESIDENT:    The resolution is

        10       adopted.

        11                  Congratulations and best wishes for

        12       your continued success.  We're confident,

        13       based on your record, that you will be

        14       successful in your future endeavors.  Have a

        15       great celebration.

        16                  (Applause.)

        17                  THE PRESIDENT:    Senator Skelos.

        18                  SENATOR SKELOS:    Madam President,

        19       can we go to the noncontroversial reading of

        20       the calendar, please.

        21                  THE PRESIDENT:    The Secretary

        22       will read.

        23                  THE SECRETARY:    Calendar Number

        24       64, by Senator Morahan, Senate Print 5733A, an

        25       act to amend the Penal Law, in relation to


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         1       possession of gambling devices.

         2                  THE PRESIDENT:    Read the last

         3       section.

         4                  THE SECRETARY:    Section 3.  This

         5       act shall take effect immediately.

         6                  THE PRESIDENT:    Call the roll.

         7                  (The Secretary called the roll.)

         8                  THE SECRETARY:    Ayes, 45.

         9                  THE PRESIDENT:    The bill is

        10       passed.

        11                  THE SECRETARY:    Calendar Number

        12       96, by Senator Bonacic, Senate Print 6415A, an

        13       act to amend the Environmental Conservation

        14       Law, in relation to requiring.

        15                  THE PRESIDENT:    Read the last

        16       section.

        17                  THE SECRETARY:    Section 2.  This

        18       act shall take effect immediately.

        19                  THE PRESIDENT:    Call the roll.

        20                  (The Secretary called the roll.)

        21                  THE SECRETARY:    Ayes, 45.

        22                  THE PRESIDENT:    The bill is

        23       passed.

        24                  THE SECRETARY:    Calendar Number

        25       163, by Senator DeFrancisco, Senate Print


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         1       4856, an act to amend the Estates, Powers and

         2       Trusts Law, in relation to the right of

         3       election.

         4                  THE PRESIDENT:    Read the last

         5       section.

         6                  THE SECRETARY:    Section 2.  This

         7       act shall take effect on the first of January.

         8                  THE PRESIDENT:    Call the roll.

         9                  (The Secretary called the roll.)

        10                  THE SECRETARY:    Ayes, 46.

        11                  THE PRESIDENT:    The bill is

        12       passed.

        13                  THE SECRETARY:    Calendar Number

        14       219, by Senator Leibell, Senate Print 4761A,

        15       an act directing the Commissioner of Labor to

        16       issue a report.

        17                  THE PRESIDENT:    Read the last

        18       section.

        19                  THE SECRETARY:    Section 2.  This

        20       act shall take effect immediately.

        21                  THE PRESIDENT:    Call the roll.

        22                  (The Secretary called the roll.)

        23                  THE SECRETARY:    Ayes, 46.

        24                  THE PRESIDENT:    The bill is

        25       passed.


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         1                  THE SECRETARY:    Calendar Number

         2       248, by Senator Robach, Senate Print 3186, an

         3       act to amend the Civil Service Law, in

         4       relation to the authority of the Civil Service

         5       Commission.

         6                  THE PRESIDENT:    Read the last

         7       section.

         8                  THE SECRETARY:    Section 2.  This

         9       act shall take effect on the first of January.

        10                  THE PRESIDENT:    Call the roll.

        11                  (The Secretary called the roll.)

        12                  THE SECRETARY:    Ayes, 46.

        13                  THE PRESIDENT:    The bill is

        14       passed.

        15                  THE SECRETARY:    Calendar Number

        16       251, by Senator Maziarz, Senate Print 302A, an

        17       act to amend the Highway Law, in relation to

        18       the designation of the "General Casimir

        19       Pulaski Interchange."

        20                  THE PRESIDENT:    Read the last

        21       section.

        22                  THE SECRETARY:    Section 3.  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, 46.

         2                  THE PRESIDENT:    The bill is

         3       passed.

         4                  THE SECRETARY:    Calendar Number

         5       255, by Senator Alesi, Senate Print 2272, an

         6       act to amend the Vehicle and Traffic Law, in

         7       relation to additional penalties.

         8                  THE PRESIDENT:    Read the last

         9       section.

        10                  THE SECRETARY:    Section 2.  This

        11       act shall take effect on the first of

        12       November.

        13                  THE PRESIDENT:    Call the roll.

        14                  (The Secretary called the roll.)

        15                  THE SECRETARY:    Ayes, 46.

        16                  THE PRESIDENT:    The bill is

        17       passed.

        18                  THE SECRETARY:    Calendar Number

        19       268, by Senator Rath, Senate Print 3313, an

        20       act to amend the General Municipal Law, in

        21       relation to municipal cooperative activities.

        22                  THE PRESIDENT:    Read the last

        23       section.

        24                  THE SECRETARY:    Section 2.  This

        25       act shall take effect immediately.


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         1                  THE PRESIDENT:    Call the roll.

         2                  (The Secretary called the roll.)

         3                  THE SECRETARY:    Ayes, 46.

         4                  THE PRESIDENT:    The bill is

         5       passed.

         6                  THE SECRETARY:    Calendar Number

         7       271, by Senator Little, Senate Print 6384, an

         8       act in relation to creating the Dodge library.

         9                  THE PRESIDENT:    Read the last

        10       section.

        11                  THE SECRETARY:    Section 8.  This

        12       act shall take effect immediately.

        13                  THE PRESIDENT:    Call the roll.

        14                  (The Secretary called the roll.)

        15                  THE SECRETARY:    Ayes, 46.

        16                  THE PRESIDENT:    The bill is

        17       passed.

        18                  THE SECRETARY:    Calendar Number

        19       298, by Senator DeFrancisco, Senate Print

        20       5999A, an act to amend the Public Health Law,

        21       in relation to promotion.

        22                  THE PRESIDENT:    Read the last

        23       section.

        24                  SENATOR DUANE:    Lay it aside,

        25       please.


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         1                  THE PRESIDENT:    The bill is laid

         2       aside.

         3                  THE SECRETARY:    Calendar Number

         4       313, by Senator Maziarz, Senate Print 691, an

         5       act to amend the Penal Law, in relation to the

         6       crime of obstructing firefighting operations.

         7                  THE PRESIDENT:    Read the last

         8       section.

         9                  THE SECRETARY:    Section 2.  This

        10       act shall take effect on the first of

        11       November.

        12                  THE PRESIDENT:    Call the roll.

        13                  (The Secretary called the roll.)

        14                  THE SECRETARY:    Ayes, 47.

        15                  THE PRESIDENT:    The bill is

        16       passed.

        17                  THE SECRETARY:    Calendar Number

        18       327, by Senator Alesi, Senate Print 5023, an

        19       act to amend the Retirement and Social

        20       Security Law, in relation to option election.

        21                  THE PRESIDENT:    Read the last

        22       section.

        23                  THE SECRETARY:    Section 2.  This

        24       act shall take effect immediately.

        25                  THE PRESIDENT:    Call the roll.


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         1                  (The Secretary called the roll.)

         2                  THE SECRETARY:    Ayes, 47.

         3                  THE PRESIDENT:    The bill is

         4       passed.

         5                  THE SECRETARY:    Calendar Number

         6       328, by Senator Golden, Senate Print --

         7                  SENATOR SKELOS:    Lay it aside for

         8       the day, please.

         9                  THE PRESIDENT:    The bill is laid

        10       aside for the day.

        11                  THE SECRETARY:    Calendar Number

        12       396, Senate Budget Bill, Senate Print Number

        13       6465, an act to amend the Racing, Pari-Mutuel

        14       Wagering and Breeding Law.

        15                  THE PRESIDENT:    Read the last

        16       section.

        17                  THE SECRETARY:    Section 2.  This

        18       act shall take effect immediately.

        19                  THE PRESIDENT:    Call the roll.

        20                  (The Secretary called the roll.)

        21                  SENATOR DUANE:    Lay it aside,

        22       please.

        23                  THE PRESIDENT:    The bill is laid

        24       aside.

        25                  THE SECRETARY:    Calendar Number


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         1       397, substituted earlier today, Assembly

         2       Budget Bill, Assembly Print Number 9566A, an

         3       act to amend Chapter 55 of the Laws of 2005,

         4       making appropriations for the support of

         5       government.

         6                  SENATOR DUANE:    Lay it aside,

         7       please.

         8                  THE PRESIDENT:    The bill is laid

         9       aside.

        10                  THE SECRETARY:    Calendar Number

        11       398, by Senator Robach, Senate Print 6806, an

        12       act to amend the Retirement and Social

        13       Security Law, in relation to investments.

        14                  THE PRESIDENT:    Read the last

        15       section.

        16                  THE SECRETARY:    Section 2.  This

        17       act shall take effect immediately.

        18                  THE PRESIDENT:    Call the roll.

        19                  (The Secretary called the roll.)

        20                  THE SECRETARY:    Ayes, 47.

        21                  THE PRESIDENT:    The bill is

        22       passed.

        23                  Senator Skelos, that completes the

        24       noncontroversial reading of the calendar.

        25                  SENATOR SKELOS:    Thank you, Madam


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         1       President.  If we could go to the

         2       controversial reading of the calendar.

         3                  THE PRESIDENT:    The Secretary

         4       will ring the bell, and the members should

         5       return to their seats so we can continue with

         6       the controversial calendar.

         7                  The Secretary will read.

         8                  THE SECRETARY:    Calendar Number

         9       298, by Senator DeFrancisco, Senate Print

        10       5999A, an act to amend the Public Health Law.

        11                  SENATOR LIZ KRUEGER:

        12       Explanation.

        13                  THE PRESIDENT:    Senator

        14       DeFrancisco, an explanation has been

        15       requested.

        16                  SENATOR DeFRANCISCO:    Thank you,

        17       Madam President.

        18                  This bill would provide for the

        19       establishment of a public cord blood banking

        20       program.  And it calls upon the Department of

        21       Health to promote public awareness of the

        22       potential benefits of public cord blood

        23       banking and to promote research in the use of

        24       cord blood, and to facilitate the donation of

        25       umbilical cords for use in research and also


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         1       for use for individuals who may need this

         2       blood based upon some disease that they may

         3       have.

         4                  Basically, what the bill is doing

         5       is to preserve rather than to throw away

         6       medical waste that is being thrown away

         7       routinely in the State of New York, and to

         8       provide that material, which has been proven

         9       to save lives -- to have that material placed

        10       in some public bank for the use of others, to

        11       cure diseases.  It also is going to be used

        12       for research.

        13                  Just about a month ago in Syracuse,

        14       New York, there was a young child who ended up

        15       going to Duke Hospital, since there was no

        16       such facility here, in order to get umbilical

        17       cord blood, and was cured of a very serious

        18       disease.  That is the purpose of the bill.

        19                  There is a same-as in the Assembly

        20       sponsored by Assemblyman Joe Lentol.

        21                  THE PRESIDENT:    Senator Krueger.

        22                  SENATOR LIZ KRUEGER:    Thank you,

        23       Madam President.  If the sponsor would please

        24       yield.

        25                  SENATOR DeFRANCISCO:    Yes.


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         1                  THE PRESIDENT:    The Senator does

         2       yield.  You may proceed, Senator Krueger, with

         3       a question.

         4                  SENATOR LIZ KRUEGER:    Thank you.

         5                  I certainly can support ensuring

         6       that there is a mechanism for more people to

         7       be able to store and donate their umbilical

         8       cords from their children, in the hope that

         9       future research will find that this is a

        10       valuable research option that may in fact lead

        11       to both cures for illnesses and treatment for

        12       illnesses.

        13                  But I do have several questions

        14       about the bill.  Senator, on page 2, line 6,

        15       paragraph D, it says that one of the

        16       responsibilities of the Department of Health

        17       will be to "promote research through public

        18       and private funding sources in the potential

        19       benefits of cord blood as an alternative to

        20       tissue transplantation as a source of stem

        21       cells in the treatment of disease."

        22                  Is it your intent in this

        23       legislation to discourage people from donating

        24       their tissue?

        25                  SENATOR DeFRANCISCO:    No, it's


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         1       not.

         2                  SENATOR LIZ KRUEGER:    It is not,

         3       thank you.

         4                  If, through you, Madam President,

         5       the sponsor would continue to yield.

         6                  THE PRESIDENT:    Senator

         7       DeFrancisco, do you yield for a question?

         8                  SENATOR DeFRANCISCO:    Yes.

         9                  THE PRESIDENT:    You may proceed,

        10       Senator, with a question.

        11                  SENATOR LIZ KRUEGER:    Thank you.

        12       And while you've changed the cover memo to

        13       your bill since earlier today -- and so

        14       concerns that I had with your previous memo I

        15       have to say I don't have anymore, because

        16       you've changed your memo.

        17                  But I would like to ask you, for

        18       the record, is it the intent of this

        19       legislation to in any way prohibit embryonic

        20       stem cell research in the future in the state

        21       of New York?

        22                  SENATOR DeFRANCISCO:    Yes, I did

        23       change the memo.  Because apparently there was

        24       a lobbyist running around Albany 10 minutes

        25       ago, at the last minute, saying that there's


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         1       some objectionable language in the bill

         2       memo -- without coming to me to suggest maybe

         3       I could correct that language.

         4                  There was language in the bill memo

         5       that was intended to say that there's a debate

         6       on ethical grounds and other grounds as to

         7       whether or not embryonic blood cells should be

         8       collected and used for this type of purpose.

         9                  The intent of the memo, what I was

        10       trying to say was that we may be debating that

        11       issue in the future, it may be held up because

        12       of various opposition from some parties, but

        13       there is no opposition from anyone that I know

        14       of with respect to using umbilical cord blood.

        15                  And the point in my prior memo was

        16       rather than wait for this debate to develop

        17       and rather than to postpone further research

        18       and rather than to not be in a position to

        19       help young kids that have diseases, like this

        20       young child in Syracuse that has to go out of

        21       state to find some cord blood for a cure, that

        22       we should get this done now.

        23                  It certainly does not -- so I

        24       changed the language to be more politic about

        25       that, stating what I just said.


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         1                  But my point was to be, namely,

         2       that let's not hold this up.  The future

         3       debate is going to happen, no doubt, at some

         4       point in time, and when it happens the cards

         5       will fall as they may based upon the number of

         6       votes that are available on both sides of that

         7       issue.

         8                  SENATOR LIZ KRUEGER:    Madam

         9       President, if the sponsor would continue to

        10       yield.

        11                  THE PRESIDENT:    Senator, do you

        12       yield?

        13                  SENATOR DeFRANCISCO:    Yes.

        14                  THE PRESIDENT:    He does yield.

        15       You may proceed, Senator Krueger.

        16                  SENATOR LIZ KRUEGER:    Thank you.

        17       And I appreciate your explanation.  But again,

        18       just since the intent of the Legislature

        19       sometimes gets used in debates after bills

        20       have become law, can I just ask you, with a

        21       yes or no, does this bill intend to prohibit

        22       embryonic stem cell research in the state of

        23       New York?

        24                  SENATOR DeFRANCISCO:    It does not

        25       intend to prohibit that.


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         1                  It intends to have this lifesaving

         2       umbilical cord available for research and

         3       saving lives now, rather than wait for that

         4       debate to develop and materialize one way or

         5       the other.

         6                  SENATOR LIZ KRUEGER:    Thank you.

         7                  Madam President, on the bill.

         8                  THE PRESIDENT:    You may proceed

         9       on the bill, Senator.

        10                  SENATOR LIZ KRUEGER:    Thank you.

        11                  I want to thank Senator DeFrancisco

        12       for his explanation and thank him for the

        13       bill.  New York State clearly should be moving

        14       forward with legislation that ensures that any

        15       kind of research this is going to lead us down

        16       the road of curing diseases, of preventing

        17       diseases, of saving lives should be allowed in

        18       New York State.

        19                  And in fact, he has answered the

        20       two concerns that I did have about the bill.

        21       One, would it discourage tissue donation.  And

        22       he said no, it is not intended to discourage

        23       tissue donation.

        24                  Which is an important issue for us

        25       to highlight on the record, because in fact,


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         1       according to the Musculoskeletal Transplant

         2       Foundation, at least 750,000 tissue

         3       transplants occur in the United States each

         4       year.  This has more than doubled annually

         5       since the early '90s.

         6                  Often, individual donors make

         7       possible more than a hundred tissue

         8       transplants.  In 1998, donated tissue from one

         9       volunteer firefighter ended up being

        10       transplanted to help 422 individual people.

        11       Between 1994 and 2003, in the United States

        12       the number of donors of blood and related

        13       tissues more than tripled, rising from 6,000

        14       to 20,000 donors.

        15                  These tissue transplants save limbs

        16       from being amputated, give sight to the blind,

        17       allow recipients to walk without pain, lift up

        18       their child, or perform other functions in

        19       employment and in their lives.  In fact, I

        20       would argue that we need to do everything we

        21       can to expand public knowledge about the

        22       importance of donating tissue and organs

        23       because the waiting lists are far greater than

        24       the number of donors available.

        25                  He also answered another important


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         1       question for me, is this bill in any way an

         2       attempt to discourage moving forward with the

         3       option for embryonic stem cell research in the

         4       state of New York.  And again, I would argue,

         5       as I have before -- and I carry a bill that I

         6       hope this house will take up sometime in the

         7       near future, or someone else's version

         8       therein, that would establish regulatory

         9       guidelines for what would and wouldn't be

        10       appropriate in doing embryonic stem cell

        11       research in the state of New York.

        12                  Because the scientists in the

        13       country have made it clear that while there

        14       are many options that they hope will come out

        15       of umbilical cord blood cell research, that it

        16       is a much more limited option in research than

        17       embryonic stem cell research.  And that it is

        18       critical for this state, as so many other

        19       states now have already moved forward, to move

        20       forward with passing legislation that would

        21       establish what is appropriate research in the

        22       state of New York, what will we encourage,

        23       what will we limit.

        24                  In my law, we could exclude any

        25       option for human cloning, but we would


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         1       absolutely allow donations of embryonic cells

         2       from fertility clinics, with the full

         3       knowledge of the donors that this is what

         4       their surplus embryonic cells would be used

         5       for.  We would establish a scientific

         6       committee that would be there to evaluate, on

         7       an ongoing basis, since medical research is a

         8       dynamic field, what is moving forward, what is

         9       not, what is successful, what is not.  We

        10       would have bioethicists involved who would

        11       evaluate where are the lines that perhaps the

        12       State of New York should not cross, who will

        13       be overseeing the type of research that goes

        14       forward, who will be ensuring that the right

        15       kind of research goes forward without putting

        16       any of us and our futures at risk.

        17                  So I am happy to have had the

        18       debate today with Senator DeFrancisco.  I will

        19       be voting for the bill.  I urge my colleagues

        20       to do so.  But I again strongly, strongly urge

        21       this house to take up a discussion and a

        22       debate of the importance of passing a broader

        23       stem cell research law for the State of

        24       New York.

        25                  Thank you, Madam President.


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         1                  THE PRESIDENT:    Senator Ada

         2       Smith.

         3                  SENATOR ADA SMITH:    Thank you,

         4       Madam President.

         5                  I too join with my colleague

         6       Senator Krueger in commending Senator

         7       DeFrancisco for this bill.

         8                  Many of us have heard, read, or

         9       have personal knowledge of how beneficial this

        10       can be, especially to young people.  And any

        11       doubts that I may have had, Senator

        12       DeFrancisco has allayed all of those fears by

        13       his answers.  And I want to personally thank

        14       him for this.

        15                  And I will be voting yes, and I

        16       look forward to working with him closer to

        17       make sure that we can go forward to ensure

        18       that other bills come to the floor that will

        19       be of benefit to our constituents.

        20                  THE PRESIDENT:    Senator Diaz.

        21                  SENATOR DIAZ:    Thank you, Madam

        22       President.  On the bill.  On the bill.

        23                  THE PRESIDENT:    You may proceed

        24       on the bill, Senator Diaz.

        25                  SENATOR DIAZ:    It is well known


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         1       that the use of embryos in the stem cell

         2       research is the killing of life.  And the use

         3       of embryos is -- to some of us is

         4       unacceptable, by killing embryos and using

         5       their parts.

         6                  According to Senator DeFrancisco,

         7       this bill is not intended to prohibit the use

         8       of embryos.  But if we can prove that

         9       umbilical cord blood is effective and that we

        10       don't have to kill embryos by using umbilical

        11       cords, even though the bill does not prohibit

        12       the use of embryos, but if in the future we

        13       could prove that the umbilical cord is

        14       sufficient to cure many illnesses and we don't

        15       have to use embryos, let it be.  It will be a

        16       godsend.

        17                  So I congratulate you, Senator

        18       DeFrancisco.  I'm voting for this bill.  We

        19       all know that the umbilical cords have been

        20       used, have been effective curing many

        21       illnesses, including lymphoma, leukemia, and

        22       many others.  So it is a good move.  Again, I

        23       repeat myself:  If we could prove that we

        24       don't need to use the embryos, let it be.

        25                  This is a good bill.  I'm voting


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         1       yes.

         2                  THE PRESIDENT:    Senator Duane.

         3                  SENATOR DUANE:    Thank you, Madam

         4       President.

         5                  I'm going to vote in favor of this

         6       bill.  However, I want to note a couple of

         7       things.

         8                  The Governor and my colleagues on

         9       the other side of the aisle have proposed

        10       $200 million in this year's budget to expand

        11       biomedical studies, which is an excellent

        12       step.  The Assembly is proposing $300 million

        13       for stem cell research.  That's a terrific

        14       step.

        15                  I'm hopeful that in the budget

        16       process we can work out what's best for the

        17       people of this state, because the issue of

        18       biomedical research, which I hope will include

        19       stem cell research, is very important just for

        20       humanitarian purposes, but is also very

        21       important to the economy of our state, from

        22       Long Island to New York City to Roswell Park.

        23                  So I'm assuming that will be worked

        24       out as we move forward in the budget.  And I'm

        25       hoping that that will happen, because we


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         1       really have to get ahead of this issue.  Other

         2       states are already working on this issue, and

         3       we really need to be competitive.  And let's

         4       face it, New York is the best place to conduct

         5       this kind of research.  And we can't let any

         6       time go by.

         7                  I personally have concerns about

         8       this bill, though I'm going to vote in the

         9       affirmative, because of the language that

        10       says -- talks about the potential benefits of

        11       cord blood as an alternative to tissue

        12       transplantation.  It's hard to tell whether or

        13       not if this bill and the companion bill, which

        14       is introduced by Assembly Member Lentol in the

        15       Assembly, passes, if that would have the

        16       impact of discouraging tissue donation and an

        17       impetus towards stem cell research.  I think

        18       that that would be a mistake.

        19                  And while I have, and I think they

        20       know this tremendous esteem, for the sponsor

        21       here in this house and also the Assembly

        22       sponsor, I think we would do a disservice to

        23       the state and do a disservice to people in

        24       general and hoped-for cures for diseases and

        25       better treatment for diseases if we did


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         1       discourage tissue donation in any way or

         2       having a focus on stem cell research as well.

         3                  I also would be remiss if I didn't

         4       mention that my colleague Senator Krueger has

         5       a bill on this topic as well, and her bill

         6       would authorize the conducting of stem cell

         7       research.  And it would have safeguards.

         8       There would be informed consent, and there

         9       would be a prohibition against human

        10       reproductive cloning, which I know is

        11       appropriately a concern to people as well.

        12                  I also think this is an issue that

        13       deserves hearings.  And I think we could have

        14       hearings quickly.  I think people would be

        15       more than happy, experts in the field, to come

        16       and testify on this issue.  I think it would

        17       be educational for all of us.  I personally am

        18       not an expert in biomedical issues; I know

        19       some of my colleagues probably are, but I am

        20       not.  But for those of us who are not, I would

        21       be interested to hear what experts in the

        22       field had to say on this issue.

        23                  And I think if we did do that, one

        24       of the outcomes would be is that while this is

        25       good-intentioned and something we should vote


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         1       for, it's not enough.  And even if the

         2       Assembly companion bill passed, it would not

         3       be enough.

         4                  So I'm going to vote yes on this

         5       bill, in the hope that no one here thinks that

         6       we have done our job on this issue and that we

         7       will come back to together -- both houses,

         8       both parties -- and really make the best

         9       investment we possibly can and the most

        10       inclusive investment we possibly can in

        11       biomedical research.

        12                  Thank you, Madam President.

        13                  THE PRESIDENT:    Does any other

        14       member wish to be heard?

        15                  Then the debate is closed.

        16                  The Secretary will ring the bell,

        17       and the members should return to their seats

        18       so we can vote on this bill.

        19                  Read the last section.

        20                  THE SECRETARY:    Section 2.  This

        21       act shall take effect on the 180th day.

        22                  THE PRESIDENT:    Call the roll.

        23                  (The Secretary called the roll.)

        24                  THE PRESIDENT:    Senator

        25       DeFrancisco, to explain your vote.


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         1                  SENATOR DeFRANCISCO:    Yes, I rise

         2       to explain my yes vote.

         3                  I want to thank all those who spoke

         4       and those that didn't that have the same

         5       beliefs as those that spoke.

         6                  And I think -- I want to make very

         7       clear that probably should be hearings on some

         8       of the issues concerning the use of embryonic

         9       cells and that type of donation and the like.

        10       There should be hearings on that.  And those

        11       hearings may take some time.  And whatever

        12       results from those hearings in an ultimate

        13       bill, an ultimate vote, will come someday,

        14       there's no question about that.

        15                  But my whole point in doing this

        16       bill is that we can do this now, and we can

        17       create a public bank of umbilical cord blood.

        18       Right now many of you know that there are

        19       private banks where people can actually take

        20       the umbilical cords and store them for use of

        21       their own children or their own family

        22       members.

        23                  Well, there's a lot of people in

        24       the general public that don't have that

        25       ability.  And if we can start creating such a


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         1       bank today, while whatever other debate goes

         2       forward, and provide the education and try to

         3       encourage people to donate this medical waste,

         4       is what it is right now, we can truly do a

         5       great service, not only in research but also

         6       in curing people right here and now as they've

         7       been cured.

         8                  And I appreciate what Senator Diaz

         9       says.  You know, maybe this will affect the

        10       ultimate debate on further type of use of

        11       materials that many, many feel should not be

        12       used.  If this is as successful as I think it

        13       would be, that could be a relevant factor in

        14       the ultimate debate on use of other types of

        15       blood cells.

        16                  So I vote yes, and I again thank my

        17       colleagues for their support.

        18                  THE PRESIDENT:    You will be

        19       recorded as voting in the affirmative,

        20       Senator.

        21                  The Secretary will announce the

        22       results.

        23                  THE SECRETARY:    In relation to

        24       Calendar Number 298, those absent pursuant to

        25       Rule 9:  Senators Breslin and Johnson.


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         1                  Those absent from voting:  Senators

         2       C. Kruger and Montgomery.

         3                  Ayes, 51.  Nays, 0.

         4                  THE PRESIDENT:    The bill is

         5       passed.

         6                  The Secretary will read.

         7                  THE SECRETARY:    Calendar Number

         8       396, Senate Budget Bill, Senate Print 6465, an

         9       act to amend the Racing, Pari-Mutuel Wagering

        10       and Breeding Law.

        11                  SENATOR DUANE:    Explanation.

        12                  THE PRESIDENT:    Senator Larkin,

        13       an explanation has been requested.

        14                  SENATOR LARKIN:    Madam President,

        15       this bill is a technical amendment to the

        16       Racing and Wagering Law, Section 208B, which

        17       modifies the provisions that govern the

        18       Nonprofit Racing Association's Oversight

        19       Board.

        20                  This board, as we all know, was

        21       established last year, and aspects of it are

        22       to observe and address the NYRA until NYRA's

        23       franchise ends on 31 December, '07.

        24                  Basically what this law does, it

        25       creates the oversight board that assumes the


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         1       responsibility of the State Thoroughbred

         2       Racing Capital Investment Fund, which was a

         3       public benefit corporation.  The oversight

         4       board, when it was created, was not designated

         5       as a public benefit corporation.  This bill

         6       corrects that discrepancy.

         7                  Also, as a public benefit

         8       corporation, it must abide by all of the

         9       public authority's transparency laws.

        10                  THE PRESIDENT:    Does any member

        11       wish to be heard on this bill?

        12                  SENATOR LIZ KRUEGER:    Yes, I'm

        13       just out of my place.  I'm so sorry.

        14                  THE PRESIDENT:    Senator Krueger.

        15                  SENATOR LIZ KRUEGER:    Thank you.

        16       I apologize.  I seem to be over there with the

        17       Republicans today, so I -- and they're over

        18       here.  It's all very confusing.  Sorry, Madam

        19       President.

        20                  If the sponsor would please yield

        21       for a question.

        22                  THE PRESIDENT:    Senator Larkin,

        23       will you yield for a question?

        24                  SENATOR LARKIN:    Yes ma'am.

        25                  THE PRESIDENT:    You may proceed,


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         1       Senator Krueger, with a question.

         2                  SENATOR LIZ KRUEGER:    Thank you

         3       very much.

         4                  How does changing to a public

         5       benefit corporation actually change anything

         6       about the way we're operating with this

         7       situation?

         8                  SENATOR LARKIN:    First of all,

         9       you have to recognize now they'll have to

        10       abide by other laws.  They don't have any

        11       bonding authority.  But they have the

        12       oversight, which we didn't have before, and

        13       which was the cause of the problems that we

        14       have, because we didn't have a definitive

        15       board observing and interacting with NYRA.

        16                  SENATOR LIZ KRUEGER:    Madam

        17       President, if the sponsor would continue to

        18       yield.

        19                  THE PRESIDENT:    Senator Larkin,

        20       do you continue to yield?

        21                  SENATOR LARKIN:    Yes.

        22                  THE PRESIDENT:    You may proceed,

        23       Senator.

        24                  SENATOR LIZ KRUEGER:    Thank you.

        25                  It's my understanding from the bill


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         1       and from your explanation that this would

         2       require that they do quarterly reports to the

         3       Legislature --

         4                  SENATOR LARKIN:    Yes.

         5                  SENATOR LIZ KRUEGER:    -- and

         6       therefore we would actually have the

         7       opportunity --

         8                  SENATOR LARKIN:    It will be

         9       accountability, Senator.

        10                  SENATOR LIZ KRUEGER:    Yes.  Thank

        11       you.

        12                  Thank you, Madam President.

        13       Speaking on the bill.

        14                  THE PRESIDENT:    You may proceed

        15       on the bill.

        16                  SENATOR LIZ KRUEGER:    I'm very

        17       pleased we're moving forward with this

        18       legislation.  I think it highlights how

        19       important it is for the Legislature to play an

        20       oversight role in overseeing agencies and

        21       public authorities.

        22                  And I think it's exactly what many

        23       of us have been talking about in the State of

        24       New York of having, as Senator Larkin just

        25       said, more accountability for the people's


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         1       money and the process.  That public

         2       authorities should go through careful scrutiny

         3       and oversight and tracking.  And the

         4       Comptroller's office would have a role here,

         5       the State Legislature would have a role here.

         6       And that we should be following our own

         7       lessons from this legislation on any number of

         8       other areas of the state where we have not

         9       been careful enough in providing oversight and

        10       evaluation and asking the hard questions.

        11                  So I'm very happy to support this

        12       bill.  Thank you, Senator Larkin.

        13                  Thank you, Madam President.

        14                  THE PRESIDENT:    Does any other

        15       member wish to be heard?

        16                  Then the debate is closed.

        17                  The Secretary will ring the bell.

        18                  Read the last section.

        19                  THE SECRETARY:    Section 2.  This

        20       act shall take effect immediately.

        21                  THE PRESIDENT:    Call the roll.

        22                  (The Secretary called the roll.)

        23                  THE PRESIDENT:    The Secretary

        24       will announce the results.

        25                  THE SECRETARY:    Those recorded in


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         1       the negative on Calendar Number 396:  Senator

         2       Duane.

         3                  Those absent pursuant to Rule 9:

         4       Senators Breslin and Johnson.

         5                  Those absent from voting:  Senators

         6       C. Kruger and Montgomery.

         7                  Ayes, 50.  Nays, 1.

         8                  THE PRESIDENT:    The bill is

         9       passed.

        10                  The Secretary will continue to

        11       read.

        12                  THE SECRETARY:    Calendar Number

        13       397, substituted earlier today, Assembly

        14       Budget Bill, Assembly Print Number 9566A, an

        15       act to amend Chapter 55 of the Laws of 2005,

        16       making appropriations for the support of

        17       government.

        18                  SENATOR SABINI:    Explanation.

        19                  THE PRESIDENT:    Senator Larkin,

        20       an explanation has been requested.

        21                  SENATOR LARKIN:    Madam President,

        22       this is a budget bill that authorizes the

        23       Division of Lottery to loan, to loan to NYRA

        24       up to $20 million so that NYRA can remain in

        25       operation and assist the system as the current


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         1       operator of the state racing franchise in its

         2       construction of VLTs at Aqueduct.

         3                  The money will be paid back to the

         4       Division of Lottery with a 4 percent interest

         5       rate when the VLTs are up and running.

         6       However, before any money is transferred to

         7       NYRA, the Nonprofit Racing Association's

         8       Oversight Board that we just talked about --

         9       to prove that we will have accountability and

        10       transparency, John -- will approve any of

        11       these transfers.

        12                  The money will be gradually lent to

        13       NYRA depending upon NYRA's accomplishing the

        14       goals that were stated in this bill.  Among

        15       the standards NYRA will need to comply with

        16       include the development of a cash management

        17       plan so that NYRA revenues will equal NYRA

        18       expenses; develop a plan to reduce NYRA's

        19       expenses to minimize further losses; NYRA is

        20       to increase the amount of money that it

        21       retains from each bet to increase its revenue;

        22       alter NYRA's cash management statement so that

        23       the oversight board may review its cash

        24       management practices on a real-time,

        25       continuing basis.


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         1                  Implementing this bill is essential

         2       to retain stability in New York's racing

         3       industry, while the future of the management

         4       of the state's racing franchise to operate

         5       their tracks at Aqueduct, Belmont, and

         6       Saratoga is resolved by the law in existence

         7       which terminates 31 December, 2007.

         8                  THE PRESIDENT:    Senator Sabini.

         9                  SENATOR SABINI:    Madam President,

        10       if the sponsor will yield for a question.

        11                  THE PRESIDENT:    Senator Larkin,

        12       will you yield for a question?

        13                  SENATOR LARKIN:    Yes, Madam

        14       President.

        15                  THE PRESIDENT:    You may proceed,

        16       Senator, with a question.

        17                  SENATOR SABINI:    Through you,

        18       Madam President, I'm wondering if the sponsor

        19       can tell me, if there is so much debt and

        20       mismanagement at the New York Racing

        21       Association, how are they going to pay off

        22       this loan before their franchise ends in 2007?

        23                  SENATOR LARKIN:    I think a couple

        24       of things that I said, John, just a few

        25       minutes ago, what we've been talking around


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         1       this Capitol since December when this concept

         2       was first originally proposed.  If you recall,

         3       the original concept was for $30 million, was

         4       to sell land, to sell paintings.  But there

         5       was no estimate of how to repay it.

         6                  What we structured here is, one, up

         7       to $20 million; two, when they do the 5,000

         8       slot machines at Aqueduct, we're talking about

         9       a revenue of a billion dollars.  They'll be

        10       able to pay that back at an interest rate of

        11       4 percent.

        12                  I don't know who you're talking to,

        13       but the people that I'm talking to in the

        14       financial market assure us that this is a

        15       concept based on the fact that they're not

        16       going to get $20 million, they're going to get

        17       up to 20.

        18                  The oversight board is in place.

        19       You know, the Assembly just appointed their

        20       people.  They'll be able to start monitoring,

        21       as a concept of the Governor, Senate Majority,

        22       Senate, and Assembly.  This board has the

        23       oversight responsibility.

        24                  So they're not going to get a pile

        25       of money thrown at them.  They're going to get


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         1       money, as they request it, based on what is

         2       thought to be needed and how the oversight

         3       board reviews it.

         4                  SENATOR SABINI:    Madam President,

         5       will the sponsor continue to yield.

         6                  THE PRESIDENT:    Senator Larkin,

         7       will you yield for another question?

         8                  SENATOR LARKIN:    Yes, Madam

         9       President.

        10                  THE PRESIDENT:    You may proceed

        11       with a question.

        12                  SENATOR SABINI:    I'm wondering if

        13       the sponsor is aware of the fact that NYRA

        14       claims they can't pay their New York State tax

        15       this year.

        16                  SENATOR LARKIN:    John, you and I

        17       both sit on the same committee, and we've been

        18       observant of this for a number of years.

        19                  This concept that we're doing here

        20       today was the vehicle to try to straighten

        21       that management up.  You know, when you start

        22       to look at the number of people that are

        23       employed in the racing industry just in those

        24       three tracks, you're talking 35,000 people.

        25       Are we going to lay 35,000 people off?  Or are


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         1       we going to do good management, reorganize it,

         2       put it in place, and allow it to be invested

         3       and the return?

         4                  They're going to pay this back at

         5       4 percent.  That's better than banks are doing

         6       today.

         7                  SENATOR SABINI:    Thank you, Madam

         8       President.  On the bill.

         9                  THE PRESIDENT:    You may proceed

        10       on the bill, Senator.

        11                  SENATOR SABINI:    Thank you, Madam

        12       President.

        13                  I don't know if my new colleague to

        14       my right, Senator Coppola, has been to a

        15       racetrack of a thoroughbred nature.  But if

        16       you go to the track and you're serious about

        17       horse racing, you buy the Racing Form, look at

        18       past performances.  Just like a business would

        19       go and look at a credit report or a management

        20       report before investing money in another

        21       business, if we were in the investing

        22       business.

        23                  It is my assertion that NYRA's past

        24       performance is dismal.  They're a nag.  I

        25       heard the chairman of the committee in June of


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         1       2004 talk about a bill, if we just passed this

         2       bill, everything would be fine, Aqueduct would

         3       be up and running.  We passed another bill in

         4       the August of 2004.  The chairman said if we

         5       passed that bill, Aqueduct would be up and

         6       running.  Well, let's look at the record.

         7                  In 2003, the New York Racing

         8       Association lost $22 million.  In 2004, they

         9       lost $15 million.  They currently owe us,

        10       without this money, $60 million.  They are

        11       $100 million in debt.  As of the end of 2004,

        12       NYRA's accumulated deficit totaled

        13       $102.2 million.  That's the Comptroller's

        14       figure -- not NYRA's, not mine, but the

        15       Comptroller's, based on his audit about their

        16       franchise fee calculations and related

        17       operations of 2002 and 2003.

        18                  And their condition continues to

        19       deteriorate.  The Comptroller determined that

        20       NYRA underpaid their franchise fee to us, to

        21       the State of New York's taxpayers, at least

        22       $25.7 million and maybe as high as

        23       $27.7 million, from the Comptroller's

        24       observations.  They are now $13 million behind

        25       in the pension fund to the workers that we all


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         1       care about.

         2                  And the chairman is right, horse

         3       racing is a big business here.  We don't want

         4       to see the business fold up, we just think

         5       someone else maybe could do it better.

         6       Because the people that are doing it now, in

         7       some of the crown-jewel locales of racing,

         8       aren't doing the job properly.

         9                  They're even behind $17.6 million

        10       in property tax to Nassau County and New York

        11       City, because part of their franchise

        12       agreement is they're supposed to pay their

        13       property tax and the water bill on the tracks.

        14                  They recently received a tax

        15       warrant for $1.25 million for taxes generated

        16       at Aqueduct.  They want to sell the paintings

        17       off the walls.  They're talking about selling

        18       the tracks that we don't know if they own.

        19                  And I could get into a debate here

        20       at length as to who owns the racetracks.

        21       Oddly enough, the chair of the oversight board

        22       that we just memorialized, J. Patrick Barrett,

        23       says that we own them.  So why would we do

        24       business with an organization that won't even

        25       agree with us as to what we own and what they


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         1       own?

         2                  We make compacts with Indian tribes

         3       and Native Americans over what land they own,

         4       and yet we have less honest dealings with NYRA

         5       than we do with some of the tribes who are our

         6       adversaries.

         7                  Last year, Comptroller Hevesi

         8       called NYRA the poster child for mismanagement

         9       and corruption.  They gave a $700,000 no-bid

        10       contract to the former CEO's son-in-law and

        11       daughter, a $1.6 million no-bid PR contract,

        12       and spent $400,000 in that one year on

        13       trophies alone.

        14                  In 2003 they agreed to a plea

        15       bargain from federal prosecution for tax

        16       evasion and agreed to pay a $3 million fine

        17       and submit to a court-appointed monitor.

        18                  They've been investigated by the

        19       Attorney General, who said they lack

        20       appropriate financial and operational controls

        21       and have rampant criminal activities at

        22       state-owned thoroughbred racetracks.  Notice

        23       he said "state-owned," so I guess the Attorney

        24       General recognizes that we may own that land

        25       as well.


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         1                  Perhaps most onerous of all, or

         2       most scandalous of all, is that there are

         3       several NYRA officials now under indictment

         4       for rigging the scales.  That goes right to

         5       the heart of our pari-mutuel wagering industry

         6       and tells the bettors that the races may not

         7       be honest, that there were jockeys riding who

         8       may not be at the weight they're supposed to.

         9       Not in minor races in January at Aqueduct, but

        10       as big a race as the Cigar Mile, which is a

        11       major stakes, Class 1 stakes race.

        12                  And that really -- if that

        13       continues to happen, we won't a thoroughbred

        14       racing pari-mutuel industry in New York,

        15       because the bettors won't want to come.

        16                  When New York State extended NYRA's

        17       franchise in 1997 -- even then people

        18       complained -- it required NYRA to operate in a

        19       sound, economical, efficient, effective manner

        20       so as to produce reasonable revenue for the

        21       support of our government, because that's what

        22       they're supposed to do.  They're not doing it.

        23                  Now, I've heard from other people

        24       that, well, they're getting better.  Well,

        25       this Comptroller's report was released on


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         1       February 17th, not that long ago.  Just a

         2       couple of weeks ago.  And in it the

         3       Comptroller stated:  "NYRA has made little

         4       effort to produce realistic budgets or rein in

         5       its expenses."

         6                  The Comptroller reported NYRA

         7       inappropriately categorized certain expenses

         8       as promotional or extraordinary and

         9       nonrecurring and improperly excluded these

        10       costs from tests for excess expenses.  They

        11       improperly included operational expenses such

        12       as $800,000 for trophies for next year in this

        13       category.  They have done everything they can

        14       do to violate their franchise, which could be

        15       terminated today if it was so seen.

        16                  In July of 2003 the Attorney

        17       General concluded in a report that the

        18       Legislature and the Governor should end NYRA's

        19       franchise now, that the current structure has

        20       not, does not, and will not work.  And that

        21       was before all the convictions and indictments

        22       and plea bargains I mentioned before.

        23                  It's time for this to end.  That is

        24       not a business plan that you would loan money

        25       to.  That is not an entity you would loan that


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         1       kind of money to.  And it's about time that we

         2       got realistic about the fact that their

         3       franchise has to end.

         4                  My colleague, the distinguished

         5       chairman of the committee, wrote an op-ed in

         6       the New York Post, and I read it with

         7       interest.  He said:  "We need fresh ideas, new

         8       energy, and a new model for racing in New

         9       York."  I agree with him.

        10                  This is not the new model.  This is

        11       an extension of the old model.  And when I

        12       heard the explanation about how they need this

        13       money to get better, it sounded an awful lot

        14       like a guy borrowing money at a racetrack.

        15       You know, "if you just get me through this

        16       next race, I'll have the money to pay you back

        17       for all the other money you loaned me."  And

        18       how often does that happen that that money

        19       comes back?

        20                  I know, and I think you all know,

        21       that this is a bad investment.  NYRA has taken

        22       what was the jewel locations of thoroughbred

        23       racing in America -- Saratoga, Belmont, and

        24       Aqueduct -- so important to the economy of

        25       this state, so important to the economy of our


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         1       agriculture upstate, because horse farms need

         2       other things, and squandered the goodwill of

         3       the betting public, squandered the goodwill of

         4       this Legislature.  And I believe that we can't

         5       continue to pour money down this hole.

         6                  So, Madam President, I will be

         7       voting no.

         8                  THE PRESIDENT:    Senator Bruno.

         9                  SENATOR BRUNO:    Thank you, Madam

        10       President.  And thank you, Senator, for your

        11       comments.

        12                  And what's great about what goes on

        13       in this chamber is that all of us are

        14       representative and we can all talk about our

        15       opinions, and we don't have to be right.

        16       That's what's good about it.  And you are

        17       about as wrong in what you are saying as

        18       anybody can be, in all due respect to you,

        19       sir.

        20                  Saratoga is in my district.

        21       Saratoga is the premier racing place in the

        22       whole world.  People come from all over the

        23       world.  Forty thousand people work in

        24       agriculture and in racing in this state.  And

        25       the Senator is right, the model doesn't work.


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         1       The model is broken.  And we are fixing it

         2       together -- with the Assembly, with you, with

         3       the Governor.  We're fixing it.

         4                  We passed the law that says we have

         5       a nine-member committee that will review all

         6       of the bids that will be put in between now

         7       and December 31, '07, when the NYRA franchise

         8       expires.  By law.  That's the law.

         9                  That committee has had open

        10       hearings.  There are nine members functioning.

        11       And the rest of what will happen is they will

        12       take -- put together a new model, a model that

        13       will work.

        14                  Because you've had some extremely

        15       successful, bright people, CEOs and chairmen

        16       of NYRA -- and you're right, Senator, they all

        17       fail.  They all lose money.  It doesn't take a

        18       genius to know that if you get some of the

        19       most successful people in the country in

        20       charge and they still lose $30 million,

        21       $40 million, $50 million, something is wrong

        22       with the model.  And shame on us that we

        23       didn't change it a long time ago.  But we're

        24       changing it now.

        25                  But the option is not to do this


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         1       legislation.  Don't do it.  That's an option.

         2       And let NYRA go bankrupt, let them go

         3       bankrupt, and then let them operate under the

         4       federal courts.  Let the federal judge

         5       dictates what happens out there in the lives

         6       of the 40,000 people who are grooms, who are

         7       growing crops, who are walking the horses, who

         8       are making $7 and $8 and $9 an hour.  Let the

         9       federal judge say what's going to happen.

        10       That's an option.  But it's a very poor

        11       option.

        12                  So this money that we are voting on

        13       will help bridge getting NYRA, with their

        14       broken model, to the VLTs which should have

        15       been operative already.  And the state has

        16       lost about a billion and a half dollars for

        17       education because they're not up and running.

        18       So this will help get them running.

        19                  And MGM should be operating, when

        20       this is done, by February of next year, which

        21       is about two years-plus later than they were

        22       supposed to.  And we lose about a half a

        23       billion dollars a year.

        24                  So it's simple arithmetic.  And

        25       this money is for education, it's to help


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         1       finance CFE, it's to help finance the

         2       high-need districts of this state.

         3                  So an alternative is let them go

         4       bankrupt.  Let the feds take over horse racing

         5       in New York State.  It's an option.  Because

         6       they don't have the cash flow to continue.

         7                  So in the wisdom of Senator

         8       Larkin -- and I think you participated,

         9       Senator -- and the Speaker and the Governor

        10       and all of the others involved, this plan was

        11       put together.  And is it a bailout of NYRA?

        12       No, it's an investment in NYRA, in horse

        13       racing, and it will be paid back.  The dollars

        14       will be paid back.

        15                  You're right, have they paid back

        16       in the past?  No.  Why?  Because they

        17       couldn't.  Why?  Because they don't have the

        18       money.  That's why.

        19                  So where will the final word be on

        20       how this franchise continues?  Where will it

        21       be?  Right here in this chamber.  That's the

        22       procedure.  That's the law.  When the bids are

        23       put out and the responses are there -- and

        24       you'll have responses.  I hope NYRA is one of

        25       them, with whatever partners partner with


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         1       them.  I hope people come in from all over the

         2       world and bid.

         3                  And the committee, with some very,

         4       very bright people, will make a recommendation

         5       to the Legislature, the Assembly, and the

         6       Senate, and we will vote on how to proceed,

         7       how to select, how to go forward and fix what

         8       is wrong and has been wrong with horse racing.

         9                  Because, Senator, you're right.

        10       This should be -- New York State should have,

        11       and we do have, despite all of the failures,

        12       we have some of the best racing in the

        13       country.  And we will have the best racing in

        14       the world.  Not just to have racing, but

        15       because it is a sport, it creates jobs, more

        16       and more jobs, it stimulates the economy with

        17       tourism.

        18                  And tourism still is the

        19       second-largest industry, second only to

        20       agriculture, thanks to Senator Young and all

        21       the others that maintain agriculture as the

        22       most viable, largest industry in this state.

        23       And racing is part of agriculture, and it's

        24       part of tourism, and it will also be part of

        25       the funding of education that is so critical


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         1       in the city and in the rest of the state.

         2                  So thank you, Senator, for sharing

         3       your point of view.  And thank you to my

         4       colleagues -- Senator Duane, are you going to

         5       speak?  What does this mean, Senator?  Does

         6       that mean that I'm talking too much?

         7                  SENATOR DUANE:    Never.  I would

         8       never say that.

         9                  SENATOR BRUNO:    What does it

        10       mean?

        11                  Thank you.  I respectfully sit

        12       down.  When my esteemed leader here on my left

        13       goes like this, I'm sitting down.  Because I

        14       hope I've made my point, sir.

        15                  Thank you.  Thank you, Madam

        16       President.

        17                  THE PRESIDENT:    Thank you,

        18       Senator Bruno.

        19                  Senator Ada Smith has the floor.

        20                  SENATOR ADA SMITH:    Thank you,

        21       Madam President.

        22                  My district stops at the Home Depot

        23       which is next door to Aqueduct.  So it is of

        24       grave importance to my community and my

        25       constituents what happens there.


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         1                  And in listening to both sides of

         2       the argument, I'm even more perplexed.

         3       Because it's my understanding that NYRA is

         4       supposed to be the money machine to generate

         5       funds to pay for public education.  And I'm

         6       well aware that the CFE decision mandates that

         7       we give more money to the City of New York for

         8       the children there.

         9                  But if NYRA is wasting $60 million

        10       and we're giving them another $20 million and

        11       we're not giving anything to the children of

        12       the City of New York, who's losing?  We're

        13       throwing good money after bad money, and we're

        14       not getting a win, place, or show bet out of

        15       it.  And our children, who haven't even begun

        16       to get an education, are losing.

        17                  I'm even more perplexed that I'm

        18       told that the VLTs at Aqueduct will begin to

        19       pay back the $20 million.  The $20 million on

        20       top of the $60 million that they haven't paid,

        21       and they're going to do all of this in

        22       22 months.  Well, in all the years that

        23       they've existed, they haven't paid back any.

        24       So why in 22 months, all of a sudden, they're

        25       going to be made whole again?


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         1                  But what concerns me even more is

         2       it's my constituents who live next door to

         3       Aqueduct that's going to be spending the money

         4       that they can ill afford to spend on the VLTs.

         5       So not only do they lose in the educational

         6       funding, but they're losing out by spending

         7       money on these VLTs that they can ill afford.

         8       So they're in essence, as we would say in the

         9       community, screwed twice.

        10                  I don't understand how we, as

        11       supposed lawmakers, can make a decision to

        12       give money to NYRA, who has proven themselves

        13       to be a bad bet.  Because I believe that when

        14       you place a bet, you place it to win.  And in

        15       placing a bet on NYRA, we are certainly

        16       losing.

        17                  Thank you, Madam President.

        18                  THE PRESIDENT:    Senator Duane,

        19       would you like to speak?

        20                  SENATOR DUANE:    I thought you'd

        21       never ask, Madam President.

        22                  THE PRESIDENT:    You may proceed.

        23                  SENATOR DUANE:    Thank you.

        24                  It's the universal symbol of

        25       chatting.  Don't bring up the Scouts.


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         1                  (Laughter.)

         2                  THE PRESIDENT:    Senator Duane, is

         3       your microphone on?

         4                  SENATOR DUANE:    Yes, Madam

         5       President.  Thank you.

         6                  You know, it's no secret I don't

         7       like gambling.  I don't like gambling.  I

         8       don't like horse racing less than I don't like

         9       gambling in general.  And I have to say that

        10       Saratoga is wonderful.  And I know that it's

        11       absolutely something that Senator Bruno,

        12       appropriately, is very proud of and we should

        13       be proud of what happens there as a state.

        14       And I like the sport, I just don't like the

        15       gambling part of it.

        16                  And the other thing I don't like

        17       with what's happened at the tracks is this VLT

        18       thing.  And I have been to a VLT place in

        19       Monticello, and I'm sorry to say the buffet is

        20       horrible.

        21                  (Laughter.)

        22                  SENATOR DUANE:    And the other

        23       tragedy is that it's supposed to be a place

        24       where people, you know, from out of state or

        25       all around the state come and spend some


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         1       money, maybe have the buffet -- although,

         2       again, I don't suggest it.  But there's a

         3       really sad part of it too.  I believe that it

         4       sucks money from people who can least afford

         5       it.

         6                  And I've seen Access-A-Ride vans

         7       pull up to the VLT place in Monticello.  And

         8       if you are coming by Access-A-Ride and you're

         9       spending your Social Security check, that's a

        10       problem.  I know that's different than horse

        11       racing, but the VLTs go where the horse racing

        12       is.

        13                  You know, we're supposed to swallow

        14       gambling because it's supposed to fund

        15       education.  But in this case, the lottery,

        16       which is supposed to be funding education,

        17       is -- instead of giving millions to education,

        18       they're loaning it to NYRA so that they can, I

        19       think, lose it.

        20                  You know, I don't know much about

        21       gaming.  I don't know much about the odds.  I

        22       really don't.  But what I do know about NYRA

        23       is they are always in trouble -- with us, with

        24       the law, right, with localities, with the

        25       feds.  Always in trouble.  And they lose


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         1       money.  And, you know, I know that this is a

         2       "we," and we're all working on it together.

         3       But actually, that's not true.  We don't have

         4       any appointments to any of the three boards

         5       over here.  We don't have an appointment to

         6       NYRA or the ad hoc or that other thing that

         7       they have, the Nonprofit Racing Association

         8       Oversight -- don't blame us.  We don't have

         9       any people on that.  Senator Sabini's not on

        10       that.  He'd be a welcome addition on any of

        11       them.  But we don't have anybody.  Don't blame

        12       us.

        13                  NYRA loses money.  It's a big

        14       problem.  We know it's a big problem, but

        15       somehow the admitting that it's a big problem

        16       doesn't really get us to do anything about the

        17       problem.  Right?  What's the definition of

        18       insanity?  Doing the same thing over and over

        19       again and expecting different results.  Like

        20       gambling.  Keep spending money, think you're

        21       going to win, but you don't.

        22                  The house is supposed to win.  The

        23       state's not winning.  Enough already.  Let's

        24       get rid of it.  Vote no.

        25                  Thank you.


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         1                  THE PRESIDENT:    Senator Krueger.

         2                  SENATOR LIZ KRUEGER:    Thank you,

         3       Madam President.  On the bill.

         4                  I thought Senator Sabini did an

         5       excellent analysis for us about what's wrong

         6       with continuing to try to bail out NYRA.

         7       Senator Tom Duane said it very well.

         8                  So I will just repeat, somebody

         9       recently said it was lunacy to want to put all

        10       this new money into public education in

        11       New York City and underutilized high-need

        12       areas of the State of New York.  And I have to

        13       say it's lunacy for the State of New York to

        14       keep putting more money into gambling that's

        15       losing money.

        16                  There are different debates on this

        17       floor about the ethical issues of supporting

        18       gambling or government funding of operation of

        19       gambling.  But if it's supposed to be for

        20       public education, and instead we're taking

        21       money out of the lottery for public education

        22       to give it to an entity that keeps losing it,

        23       I don't understand this at all.  This is

        24       completely counterintuitive to what our

        25       mission is supposed to be.


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         1                  So I'll agree that we have great

         2       racetracks, and I would suspect somebody is

         3       making a lot of money somehow on racing in

         4       New York State.  So it constantly escapes my

         5       understanding why we would use children's

         6       education money to continue to bail out an

         7       entity that, as others have pointed out, keeps

         8       getting in trouble with us and with the law,

         9       never seems to be able to figure out how to

        10       avoid the next set of problems, and keeps

        11       coming begging the Legislature for money.

        12                  We have so many unmet needs in the

        13       State of New York because we say "we don't

        14       have the money for you."  It's very confusing

        15       to me why we would waste more of the

        16       taxpayers' money bailing out a gambling

        17       industry.  I also say vote no.

        18                  Thank you, Madam President.

        19                  THE PRESIDENT:    Does any other

        20       member wish to be heard?

        21                  Senator Sabini.

        22                  SENATOR SABINI:    Thank you, Madam

        23       President.  Again, on the bill.

        24                  I just want to point out that as

        25       Senator Krueger said, we are taking money out


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         1       of the Division of Lottery to pay this loan.

         2       And we heard about how the money is going to

         3       be paid back, by the sponsor, based on the

         4       VLTs.

         5                  Let me just also point out to my

         6       colleagues, you know, there's an old story

         7       about a guy at the racetrack, walks along and

         8       meets someone.  The guy says:  "Listen, I'd

         9       like you to help me, I need a thousand dollars

        10       for my wife's operation."  And he says:

        11       "Well, if it's serious, I'd be happy to do it,

        12       but how do I know you won't use it for

        13       gambling money?"  And the guy says:  "Well, I

        14       have gambling money."

        15                  (Laughter.)

        16                  SENATOR SABINI:    The money for

        17       the VLTs, based on legislation passed in this

        18       house, was supposed to help education.  And

        19       some of it, based on action by this house and

        20       the other house, was supposed to do track

        21       improvements, money for the breeders, money to

        22       the horsemen, improvements on the tracks'

        23       perimeters, making the racing industry better.

        24       One-third of that was supposed to go to that.

        25       And then the rest was supposed to go to


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         1       education.

         2                  But now we're putting in more money

         3       to pay off the money we're lending them to get

         4       to that point.  It's a very vicious circle

         5       that I think they will never get out of.  And

         6       in fact, I suspect we'll be back debating

         7       their franchise and they'll be holding all

         8       this money over our head and saying, Well, you

         9       got to keep us around, we owe you so much

        10       money.

        11                  So while I respect the arguments of

        12       the chair and the Majority Leader, I just

        13       don't see how doing this helps matters.  I am

        14       concerned about a federal judge as well.  But

        15       you know what?  The pension fund's in debt

        16       now, they're selling off assets to the track.

        17       I don't know that a judge could do worse.

        18                  Thank you, Madam President.

        19                  THE PRESIDENT:    Senator Bruno, to

        20       close debate.

        21                  SENATOR BRUNO:    I just want to

        22       clarify, Madam President.  I agree with some

        23       of the other Senators:  I hate gambling.  I

        24       hate gambling.  I am probably one of the few

        25       people in this chamber that originally voted


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         1       against the lottery because it was gambling.

         2       Okay?  I just want to make that clear.

         3                  Most of our colleagues hate

         4       gambling.  Hate it.  The fact of the matter

         5       is, if we, anybody here was king of the whole

         6       world, there would be no gambling anywhere.

         7       None.  But you're not king of the world.

         8       Sorry.  I'm not king of the world.

         9                  So go to Pennsylvania, 61,000 VLTs

        10       activated to fund education.  Go to

        11       New Jersey, by the tens of thousands you can

        12       gamble, 45 minutes out of New York City from

        13       your home.  Go to Connecticut, Foxwood and

        14       Mohegan Sun, 2 hours and 15 minutes from here,

        15       the two biggest casinos in the whole world.

        16       Go to Canada, to Montreal, Toronto, Niagara,

        17       the other side of the river.  Gambling.

        18                  The fact of the matter is, New York

        19       is an island surrounded by gambling.  And you

        20       know what is tragic and sad?  The biggest

        21       exporters of gamblers are in New York State,

        22       second only to California.  Okay?  You know

        23       what that means?  That means that our bettors

        24       that you'd like to keep home, that you would

        25       like to keep home, that I would like to keep


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         1       home are funding education in New Jersey --

         2       our bettors -- in Connecticut, in Canada, in

         3       Pennsylvania.  Those are our dollars that

         4       people are funding education all around us.

         5                  So I hate gambling.  And if there's

         6       any way that you could stop it in Canada, let

         7       me know.  Okay?  If you can stop it in

         8       Connecticut, let me know.  If you can stop it

         9       in New Jersey, let me know.  Okay?

        10       Pennsylvania, 61,000 of them all over.  But if

        11       anybody here has an idea on how we can limit,

        12       stop it, I'm your partner.  Okay?  We can't.

        13       Common sense tells us we can't.

        14                  So common sense tells me that this

        15       is the right thing to do.  It's not a bailout.

        16       This is equity.  This is representative of the

        17       taxpayers of New York State, so that they have

        18       equity in that we are able to step up and fund

        19       education and not see our dollars flow in all

        20       of the other countries and states that

        21       surround us.

        22                  I hate gambling, Madam President,

        23       and I wish it wasn't necessary anywhere in the

        24       world.  There shouldn't be gambling.  But

        25       there is.  So I deal in common sense.  I deal


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         1       in reality.  And I would urge a vote on this,

         2       my colleagues, to support the children of

         3       New York State.

         4                  THE PRESIDENT:    The debate is

         5       closed.

         6                  The Secretary will ring the bell.

         7                  Read the last section.

         8                  THE SECRETARY:    Section 2.  This

         9       act shall take effect immediately.

        10                  THE PRESIDENT:    Call the roll.

        11                  (The Secretary called the roll.)

        12                  THE PRESIDENT:    Senator Diaz, to

        13       explain your vote.

        14                  SENATOR DIAZ:    Thank you, Madam

        15       President.

        16                  In explaining my vote, I have to

        17       say that I heard Senator Bruno's speech on

        18       Pennsylvania, Connecticut, New Jersey.  So

        19       everybody is making money out of gambling.

        20       Therefore, because everybody is making money,

        21       we should also make money.

        22                  I am opposing this piece of

        23       legislation because I don't believe in

        24       gambling.  In my neighborhood and in New York

        25       City, in New York State, there are parents and


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         1       people that use children to sell drugs because

         2       they make money.  And because they make money,

         3       therefore I have to make money, then I should

         4       pay my children to go and sell drugs to

         5       compete with the others?  And that's the kind

         6       of mentality that we are having.

         7                  The other day I heard before, on

         8       the stem cell research, somebody says that

         9       it's good, beneficial; embryos, stem cell

        10       research will financially benefit New York

        11       State.  So because it's financially good,

        12       let's kill children and living creatures.

        13                  And I hate to think that we are

        14       doing things because everybody is making money

        15       or because everybody is doing it, let's do it.

        16       We have to have some kind of standard, some

        17       kind of belief or moral belief and ethics, not

        18       saying because people are making money out of

        19       gambling so we should gamble too.

        20                  I oppose this bill.  Ladies and

        21       gentlemen, gambling is no good, gambling is

        22       disastrous to our society.  So I'm voting no.

        23                  THE PRESIDENT:    You will be so

        24       recorded as voting in the negative, Senator.

        25                  Senator Onorato, to explain your


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         1       vote.

         2                  SENATOR ONORATO:    To explain my

         3       vote, Madam President.

         4                  I've been listening to the debates

         5       here quite a bit.  I remember a few years ago

         6       I got up to debate about how we were balancing

         7       our budget.  And I reminded the crowd that we

         8       had a built-in $5 billion deficit because we

         9       were premising it on the Lotto money -- not

        10       only Lotto money, but the video lottery

        11       terminals that were not online.  They weren't

        12       online three years ago, and here we are today

        13       trying to lend money to NYRA.

        14                  You know, in this particular case

        15       in private industry, when the bookmaker's

        16       runners don't come back with the money that

        17       they took from bets, that runner is no longer

        18       operating for that bookmaker.  He's out of

        19       business.

        20                  Well, we're the bookmakers here for

        21       NYRA.  They work for us.  And they've been

        22       losing money for all of these years, and we've

        23       still got them in business.  Why?  Why haven't

        24       we gotten rid of them, gotten new runners, got

        25       new operators of the thing?


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         1                  Plus, again, we're still hoping

         2       that they're going to pay us back with video

         3       lottery terminals from the Aqueduct Racetrack

         4       that are still not online.  When are we going

         5       to learn?

         6                  When they're online and you got the

         7       money, you expend it.  But let's stop betting

         8       with "if" money.  I am going to vote no.  Put

         9       the video lottery terminals on, and I'll vote

        10       for the bill.

        11                  THE PRESIDENT:    You will be

        12       recorded, Senator, as voting no.

        13                  Senator Stavisky.

        14                  SENATOR STAVISKY:    Madam

        15       President, to explain my vote.

        16                  I too vote no.  There are many

        17       institutions facing bankruptcy or in

        18       bankruptcy, particularly those serving the

        19       most vulnerable of our society, whether they

        20       be healthcare institutions or whatever.

        21                  And when we lend money, it seems to

        22       me this is wrong.  One person's investment is

        23       another person's bailout.  And I think when we

        24       have so many institutions, particularly in the

        25       healthcare field, in bankruptcy, it seems to


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         1       me that this is not a wise investment, and

         2       instead it's a bailout.

         3                  And that perhaps these institutions

         4       should start going into the lottery business,

         5       because that seems to be the way to do it.  I

         6       think it's wrong, and I vote no.

         7                  THE PRESIDENT:    You will be so

         8       recorded as voting in the negative, Senator.

         9                  The Secretary will announce the

        10       results.

        11                  THE SECRETARY:    Those recorded in

        12       the negative on Calendar Number 397 are

        13       Senators Andrews, Connor, Coppola, Diaz,

        14       Dilan, Duane, Gonzalez, Klein, L. Krueger,

        15       Montgomery, Onorato, Padavan, Parker,

        16       Paterson, Sabini, Sampson, Savino, Serrano,

        17       A. Smith, Stavisky and Valesky.

        18                  Those absent pursuant to Rule 9:

        19       Senator Breslin.

        20                  Those absent from voting:  Senator

        21       C. Kruger.

        22                  Ayes, 32.  Nays, 21.

        23                  THE PRESIDENT:    The bill is

        24       passed.

        25                  Senator Bruno, that completes the


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         1       controversial calendar.

         2                  SENATOR BRUNO:    Can we recognize

         3       Senator Paterson, Madam President.  Thank you.

         4                  THE PRESIDENT:    Senator Paterson.

         5                  SENATOR PATERSON:    Madam

         6       President, it's always great to be recognized

         7       by the Majority Leader and by you.

         8                  And it is my honor today to

         9       introduce to all of you our newest member.  He

        10       served for seven years in the Buffalo City

        11       Council.  He became the majority leader of the

        12       City Council.  And who knows, maybe one day

        13       he'll be the majority leader right here in

        14       this Senate.

        15                  And we are very proud to have him

        16       among us, and I would like to introduce to

        17       everyone our new Senator from Buffalo, Senator

        18       Marc Coppola.

        19                  (Applause.)

        20                  THE PRESIDENT:    Senator,

        21       congratulations and welcome.

        22                  Senator Spano.

        23                  SENATOR SPANO:    Madam President,

        24       on behalf of Senator Bruno, in consultation

        25       with Senator Paterson, I'd like to hand up the


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         1       following leadership and committee assignment

         2       changes.

         3                  THE PRESIDENT:    They will be

         4       recorded in the Journal, Senator.

         5                  SENATOR SPANO:    Can you please

         6       recognize Senator Johnson for a motion.

         7                  THE PRESIDENT:    Senator Johnson.

         8                  SENATOR JOHNSON:    Madam

         9       President, pursuant to Rule 9, I was required

        10       to be at a meeting of the Finance Committee

        11       and cast my votes as follows for the bills on

        12       the controversial calendar:

        13                  5999A, Calendar Number 298, in the

        14       affirmative; 6465, Calendar Number 396, in the

        15       affirmative.

        16                  Thank you.

        17                  THE PRESIDENT:    You will be so

        18       recorded, Senator Johnson.

        19                  Senator Golden, with a motion.

        20                  SENATOR GOLDEN:    Madam President,

        21       on page number 25 I offer the following

        22       amendments to Calendar Number 328, Senate

        23       Print Number 6624, and ask that the said bill

        24       retain its place on the Third Reading

        25       Calendar.


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         1                  THE PRESIDENT:    The amendments

         2       are received, and the bill will retain its

         3       place on the Third Reading Calendar.

         4                  SENATOR GOLDEN:    Thank you, Madam

         5       President.

         6                  THE PRESIDENT:    Senator Spano.

         7                  SENATOR SPANO:    Thank you, Madam

         8       President.

         9                  Just two announcements.  We want to

        10       remind the members that the Senate picture

        11       will be taken on Monday, March 6, promptly at

        12       3:00 o'clock.

        13                  And also we'd like to announce that

        14       after session that we will have a father from

        15       the Cathedral Church who will be giving ashes

        16       in the east lobby, east lobby of the Assembly.

        17       That's after session, but that's actually at

        18       1:30 today in the east lobby of the Assembly.

        19                  I'd like to recognize Senator

        20       Sabini for a motion.

        21                  THE PRESIDENT:    Senator Sabini.

        22                  SENATOR SABINI:    Thank you, Madam

        23       President.

        24                  I have a motion at the desk.  I'd

        25       like to have it called up at this time.


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         1                  THE PRESIDENT:    The Secretary

         2       will read.

         3                  THE SECRETARY:    By Senator

         4       Sabini, Senate Resolution Number 2302,

         5       amending Section 1 of Rule XI of the Senate

         6       Rules.

         7                  THE PRESIDENT:    Senator Sabini.

         8                  SENATOR SABINI:    Thank you, Madam

         9       President.

        10                  This is a motion to discharge a

        11       resolution, something we haven't done.

        12       Normally we discharge bills.  But I think this

        13       is perhaps more important to the framework of

        14       what we do in this chamber than almost any

        15       bill we could propose for discharge.

        16                  This resolution amends Senate

        17       Rule XI to delete language that was added in

        18       January of 2005.  We heard a lot of talk in

        19       2004 -- as my leader, Senator Paterson, often

        20       says, there were more press conferences in

        21       October of 2004 on reform than in the twenty

        22       years before.  And we came here in January,

        23       and we passed a few measures that changed or

        24       tinkered with the Senate rules and gave the

        25       appearance of change.


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         1                  One thing that was done here, which

         2       I believe will make sure that there will never

         3       be real change here, is to put the rules of

         4       the Senate into the Rules Committee and not be

         5       allowed to be discussed on the floor.  The

         6       intent of that was clear.  The intent of it

         7       was to avoid any discussion in the future on

         8       reform in this house.

         9                  Now, despite making some mild

        10       progress on reform, the State Legislature

        11       continues to be called dysfunctional by people

        12       that look at it and many of us who are in it.

        13       Giving the Senate Rules Committee more

        14       authority is a step backward.  In short,

        15       making the Rules Committee stronger fails the

        16       test of reform.

        17                  Debates over Senate rules, if we

        18       ever have a debate again on Senate rules, will

        19       be consigned to Room 332 of the Capitol, the

        20       Majority Leader's office, outside the view of

        21       the public who might be watching now on the

        22       Internet or on television.

        23                  Earlier this year, Citizens Union,

        24       Common Cause/New York, the League of Women

        25       Voters, NYPIRG, and the Brennan Center for


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         1       Justice at NYU Law School issued a document

         2       entitled "2005 Midterm Report Card on Reform

         3       for New York State Government."  And they

         4       stated the problem pretty succinctly:  "Most

         5       disturbing about the Senate approach to rules

         6       reform in 2005 was the cynical decision to

         7       require all future rules changes to be

         8       considered and approved by the Rules Committee

         9       of the Senate rather than raised and approved

        10       in the full chamber at the beginning of

        11       session.  That reform" -- air quote --

        12       "effectively killed any rules reform in the

        13       Senate for the future."

        14                  The Senate received an F grade on

        15       reform in that report.

        16                  This proposal brings back Senate

        17       rules onto the Senate floor and empowers all

        18       of us -- those on the Rules Committee, as I

        19       am, and those not -- to talk about reform, act

        20       on reform, and takes it out of the centralized

        21       situation that that so-called reform, which

        22       was a step backwards, did.

        23                  And I urge all my colleagues to

        24       vote yes to discharge this resolution.

        25                  Thank you.


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         1                  THE PRESIDENT:    All those

         2       Senators in favor of the petition out of

         3       committee please signify by raising your

         4       hands.

         5                  THE SECRETARY:    Those recorded in

         6       agreement are Senators Coppola, Connor, Diaz,

         7       Dilan, Duane, Gonzalez, Klein, L. Krueger,

         8       Montgomery, Onorato, Parker, Paterson, Sabini,

         9       Sampson, Savino, Serrano, A. Smith, Stavisky

        10       and Valesky.

        11                  THE PRESIDENT:    The petition is

        12       not agreed to.

        13                  Senator Spano.

        14                  SENATOR SPANO:    Madam President,

        15       there being no further business, I would ask

        16       that we adjourn until Monday, March 6th,

        17       3:00 p.m., intervening days to be legislative

        18       days.

        19                  THE PRESIDENT:    On motion, the

        20       Senate stands adjourned until Monday,

        21       March 6th, 3:00 p.m., intervening days being

        22       legislative days.

        23                  (Whereupon, at 12:58 p.m., the

        24       Senate adjourned.)

        25


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